CSR Report 2011

Business
Information
Corporate Data (As of March 31, 2011)
Company name: Yamaha Corporation
Headquarters: 10-1, Nakazawa-cho, Naka-ku, Hamamatsu Shizuoka 430-8650, Japan
Year of establishment: 1887
Date of incorporation: October 12, 1897
Representative: Mitsuru Umemura, President and Representative Director

Stated capital: ¥28,534 million
Number of employees: Consolidated: 26,816; Non-Consolidated: 4,965
The Yamaha Group: Number of consolidated subsidiaries: 78(including companies located outside Japan)
Number of companies accounted for by the equity method: 1

Business Segments
Musical Instruments

Electronic Devices

Yamaha manufactures and sells musicalinstruments, professional audio equipment, andrelated products while expanding its businesslines to include the operation of music schools,
music media software production, and content
distribution.

Yamaha manufactures and sells semiconductors
for mobile phones, home theater AV amplifiers,
as well as communications and amusement
devices.
* Following the transfer of the electronic metal products businesson November 30, 2007, the former Electronic Equipment and Metal
Products segment was renamed the Electronic Devices segmentfrom the fiscal year ended March 31, 2009.

AV/IT

OthersYamaha manufactures and sells a range ofaudio and visual (AV) equipment that includes
AV amplifiers, receivers, speaker systems, andDigital Sound Projector™ surround soundsystems, as well as commercial online karaokesystems, routers, and IP conferencing systems.

Yamaha’s other businesses include the Golf
Products business, the Automobile Interior
Wood Components business, the Factory
Automation (FA) business, and theRecreation business.
* Following the transfer of four resort facilities on
October 1, 2007, the Recreation segment was
included in the Others segment from the fiscal year
ended March 31, 2009.

Key Financial Indicator Trends (Consolidated)
Net Sales by Segment and Net Income (Loss)

Consolidated Net Sales by Region■■ Musical Instruments (left axis) ■■ AV/IT (left axis)■■ Electronic Devices (left axis) ■ Lifestyle-Related Products (left axis)■■ Others (left axis) ■■ Net Income (Loss) (right axis)(Millions of Yen)■■ Japan ■■ North America ■■ Europe■■ Asia, Oceania & Other Regions(Millions of Yen)

600,000(Millions of Yen)

100,000

600,000

50,000300,00000373,866
300,000

27,86639,5585,078

0373,866

2006–4,921

2007

2008

2009

2010

–20,615
2006

2007

2008

2009

2010

–50,000
FY

The Relationship Between Yamaha Corporation,
Yamaha Motor Co., Ltd., and Yamaha Livingtec Corporation
Yamaha Motor Co., Ltd. (Yamaha Motor) manufactures and sells
motorcycles, marine products, snowmobiles, and other related products.
The company separated from Yamaha in 1955, becoming an independent
business, and as a result is not included in the scope of this report. Yamaha
Motor was previously recorded as an affiliated company accounted for by
the equity method. Yamaha Motor was excluded from Yamaha’s scope of
consolidation as an equity-method affiliate following a reassessment of
the capital relationship between the two companies.
In addition, Yamaha Livingtec Corporation (YLT), which manufacturesand sells system kitchens and bathrooms as well as other housing fixturesand equipment, was excluded from Yamaha’s scope of consolidation on
March 31, 2010. As a result, details of YLT have not been included in the
Company’s reports from the fiscal year ended March 31, 2011.

1

Looking ahead, all three companies will work to increase theircorporate values in each of their respective businesses and fulfill their
missions and responsibilities to society on a global basis under thecommonly shared Yamaha brand.

FYEditorial Policy

Contents

The Yamaha Group issues a CSR report in order to communicate
its CSR vision and initiatives to the Group’s broad stakeholder
base. Since we first published the report in 2000, we have worked
to prioritize information that is of greater interest based on our
ongoing dialogue with stakeholders.
We have continued to review the format of the report eachyear since 2009, and have decided to take a two-pronged
approach, posting detailed information and environmental
performance data on the website and presenting key points moreconcisely in a printed report to make it easier to read and digest.
In preparing this report, we referred to the Japanese Ministry of
the Environment’s “Environmental Reporting Guidelines (2007
Version)” and the Global Reporting Initiative’s “Sustainability
Reporting Guidelines (v. 3.0).”

Business Information1

Editorial Policy / Contents

2

Top Message

3

The Yamaha Group and the Great East Japan Earthquake

5

CSR Management / Yamaha Corporation Group CSR Policy

6

Contributing to the Popularization andDevelopment of Music and Musical Culture

7

Promoting the Music School BusinessSupporting People Engaged in Musical Pursuits
Promoting Universal Design

Organizations Included in the Scope of Reporting

Pursuing Customer Satisfaction

It is Yamaha Corporation’s intention to report to the fullest extent
possible on activities carried out by the organizations that fallwithin the scope of its consolidated financial accounting. The
environmental protection activities discussed in this report coverthe 24 business sites (22,668 total employees, 85% of consolidated
employees) that have obtained ISO 14001 certification. Reported
items other than environmental protection and social
contribution activities are primarily activities by Yamaha
Corporation, although certain items focus on activities carried out
by Yamaha Group companies. We will continue to expand thescope of reporting on Group company activities.

Proposing Solutions that Employ Sound Technologies

Contributing to a Healthy Global Environment

12

Eco Activities Undertaken by Employees
Environmental Management
Reducing the Burden Imposed on theEnvironment by Manufacturing Processes
Environmentally Friendly ProductsProtecting Forests and Maintaining Biodiversity

Reports on the Yamaha Corporation Website
You can access the Yamaha CSR Report 2011 web version at:

http://www.yamaha.com/about_yamaha/csr/

Creating a Better Society

15

Contributing to Local Communities
Supporting Development of the Next
Generation
Engaging in Social Welfare Activities

Regarding Environmental Performance Data
Environmental performance data including details not recordedin this report can be found on the Company’s website.

http://www.yamaha.com/about_yamaha/csr/environment/data/

Building a Corporate Culture that Helps Offer
Better Products and Services

17

Promoting for a Better Work-Life Balance
Handing Down Skills to the Next Generation
Product and Service Quality Management

Promoting Highly Transparent Management andMutual Understanding with Business Partners

Reporting Period

Fair and Timely Information Disclosure

April 1, 2010 to March 31, 2011

Strengthening Corporate Governance* The above period is referred to as fiscal 2010 in this report.

Mutual Understanding with Business Partners

19* Certain initiatives underway prior to fiscal 2010 and informationfrom April 2011 onward are also included in this report.

Next Scheduled Issue
We plan to issue the next CSR Report in October 2012.

Third-Party Opinion

21

Response to the Third-Party Opinion /Overview of the Company’s Website

222

Top Message

Yamaha is Committed to Developing Musical Culture andEnriching Society through Its Business Activities

The Impact of the Great East Japan
Earthquake
We wish to convey our deepest condolences to those
persons who lost their lives to the Great East Japan
Earthquake and our most sincere sympathies to theirfamilies as well as all who continue to suffer from theaftereffects of the disaster.
The Yamaha Group is donating to disaster relief
efforts, providing essential supplies and conducting
charity concerts together with other support activities.
Moving forward, the Group will continue to assist in therecovery and reconstruction of affected areas whileworking with its network of dealers. Recognizing our
responsibilities as a member of the music industry, we
are also taking part in the School Music Revival Fund,founded by Ryuichi Sakamoto, in an effort to support
young children. It is our heartfelt wish that we can insome small way bring a smile back to the faces of thosepeople struggling in devastated areas as quickly as
possible.

The Yamaha Group’s Concept of CSR
Through business activities grounded in sound andmusic, the Yamaha Group strives to achieve its corporate
objective of “Creating ‘Kando’ Together.” Guided by this3

overarching objective, the Yamaha Group has positioned
corporate activities that embody its philosophy andfocus on customer-oriented and quality-conscious
management as well as transparent and soundmanagement, valuing people, and harmony with society
at the heart of its CSR-oriented management.
Under the Yamaha Management Plan 125 (YMP 125),
the Group’s medium-term management plan launchedin fiscal 2010, Yamaha is aiming to put in place thefoundation for future growth in the lead up to its 125th
anniversary in 2012. We have also established the visionof becoming a trusted and admired brand with
operations centered on sound and music as well as anachiever of growth through both products and services.
In order to attain these lofty goals, we acknowledge thecritical need to practice sound, transparent and sincere
CSR management as a part of efforts to build strong tiesof mutual trust with all stakeholders.
CSR-oriented management as practiced by the
Yamaha Group is distinguished by its focus on efforts
that contribute to the development of musical culture
and the enrichment of society through businessactivities. Encapsulating this approach toward CSR, weformulated the Yamaha Corporation Group CSR Policy in
February 2010. By making the most of our strengths to

provide products and services that meet the
expectations of all customers who love music, we canbetter contribute to the development and prosperity ofpeople and society worldwide.
As Yamaha develops operations on a global scale,
we believe it is vital that we do our part to address theissues faced by local communities, together with suchworldwide concerns as global warming and biodiversity.
With this in mind, Yamaha publicly acknowledged its
participation in and commitment to the principles of the
Global Compact advocated by the United Nations inJune 2011. Looking ahead, we will place considerable
emphasis on activities that are best suited to theparticular nature of its businesses guided by both the
Yamaha Corporation Group CSR Policy and the 10
Principles of the Global Compact. We will make efforts to
support cultural and educational development in eachregion, use raw materials more efficiently, and reduce
the environmental impact of our development andmanufacturing activities. We will also support forest
revitalization as a company that utilizes wood materials
to manufacture its products.

The 2011 CSR Report
The Yamaha Group has adopted a two-tiered approachto presenting its stance toward and activities regarding
CSR. This printed report provides key details of theGroup’s principal activities in a concise manner that iseasier to read and digest. More detailed information on
the policies and programs that form the foundation of
the Group’s CSR activities, as well as environmental
performance data and other basic information is postedon the Company’s website.
The 2011 CSR Report has been configured in linewith the five core components of the Yamaha
Corporation Group CSR Policy. In order to better convey
the daily efforts and activities that underpin the Policy’score components, initiatives are presented together withcomments from directly responsible officers.
We welcome the opinions, comments, and inquiries
of all readers.

Mitsuru Umemura
President and Representative Director
Yamaha Corporation

The United Nations Global Compact
The United Nations Global Compact is a strategic policy
initiative for businesses that voluntarily commit to aligning
their operations and strategies with 10 universally accepted
principles in the areas of human rights, labour, theenvironment and anti-corruption. Top management ofassenting and participating businesses publicly pledge theircommitment and work consistently to achieve theobjectives espoused under the 10 principles.

The 10 Principles of the United Nations
Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment
and occupation.

Environment
Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.

4The Yamaha Group and the Great East Japan Earthquake
In the wake of the Great East Japan Earthquake that struck the nation on March 11, 2011, we wish to convey our sincerest
condolences to those persons who lost their lives and our heartfelt sympathies to their families as well as all other persons
suffering from the aftereffects of the disaster. We would also like to take this opportunity to report on the impact of theearthquake on the Group and its operations as well as provide details of activities in support of relief and recovery efforts.

Initiatives Undertaken in the Immediate Aftermath of
the Disaster and the Extent of Damage
In the immediate aftermath of the earthquake, the Yamaha Group set up adisaster countermeasures task force within its head office. Steps were thentaken to promptly collect and collate information and to implement
appropriate countermeasures. At the same time, similar task forces
established in each region worked diligently to implement security
measures, confirm the safety of employees and their families, ascertain thestatus of damage and prevent further suffering. Drawing on disaster
reserves of essential commodities, goods including food items were
distributed from the Group’s head office to devastated areas. Fortunately,
none of the Group’s employees suffered personal injury.

The Status of Damage to Business Infrastructure andRecovery Measures
The Yamaha Group launched steps to ascertain the extent of damage to
its nationwide network of business sites, buildings and facilities on the dayof the disaster. As a result, we were able to identify cracks and damage tocertain buildings mainly in the Tohoku region. Thereafter, on confirming
the safety of these and all other buildings, every effort was made torecommence operations. Turning to the Group’s information infrastructure
including its communications systems, we experienced temporaryinterruptions to our office network particularly in the Tohoku and Kanto
areas. By March 19, communications across approximately 90% of affectedbases had been restored with full recovery completed by April 10.

The Impact on Business Activities andSubsequent Countermeasures
On April 1, 2011, the Great East Japan Earthquake Emergency Committee
was established. Led by Yamaha Corporation’s president, this task force has
been charged with the responsibility of ascertaining the impact on theGroup’s business activities by the earthquake disaster as well as
subsequent issues including instability in the supply of electric power andputting forward essential countermeasures.
There was no direct damage to the Yamaha Group’s principal factories
in Japan including the Saitama Factory and those production facilities inthe Enshu region located more than 400km from the areas hardest hit by
the earthquake disaster. Turning to the procurement of components andraw materials, responsibilities were allocated to specific departments andindividuals based on supplier location information shared between
business divisions and steps taken to confirm the status of damage. While
there was no major impact on the production of acoustic instruments
including pianos, the production of electronic devices including electronic
instruments and audio-visual equipment have been affected due todifficulties with respect to procurement.
As a part of efforts aimed at confirming product safety following
incidents resulting in concerns with respect to radiation, dosimetricmeasurements are undertaken at the time of factory packaging andshipment as required.

Support for Affected Areas
The Yamaha Group is doing everything in its power to bring smiles to thefaces of those sufferers in affected areas as quickly as possible. In addition
to donations by Group companies both in and outside Japan, the Group is
promoting the inspection and repair of musical instruments through its
network of dealers, endeavoring to reopen music schools and conducting
charity concerts across devastated areas together with other support
activities. Led by the Japan Musical Instruments Association, the School
Music Revival Fund was established in July with the Company’s president
Mitsuru Umemura serving as chief promoter. Under the Fund, steps arebeing taken to inspect and repair the musical instruments ofkindergartens, elementary, junior and senior high schools located indevastated areas.

5

Measures Aimed at Conserving Electric PowerThe Yamaha Group established targets for the reduction of electric power
consumption at its business sites and implemented working shifts during
weekends and holidays to help reduce consumption during peak weekday
periods. These and other initiatives are aimed at addressing shortfalls in the
supply of electric power as a result of the earthquake.
● Reducing Electric Power Consumption at Business Sites

The Company has set the target of reducing electric power
consumption by 15% or more on an hourly basis compared with theprevious year at business sites*1 located within the areas serviced by the
Tokyo Electric Power Company, Incorporated (TEPCO) and Tohoku
Electric Power Co., Inc. with contract demand exceeding 500kW. This
reduction target applies to the period between July and September andspecifically to weekdays between the hours of 9:00 and 20:00. Among ahost of measures, each business site will reduce lighting and regulate air
conditioning. Business sites within the aforementioned operating areaother than those mentioned above will also establish targets inaccordance with the previously identified target. Every effort will bemade to reduce maximum consumption during peak periods.
*1 Saitama Factory (Fujimino-shi, Saitama Prefecture), Tokyo Office (Minato-ku),
Yamaha Ginza Building (Chuo-ku, Tokyo Prefecture)● Introducing Weekend and Holiday Work Shifts to Reduce Peak

Period Electric Power Consumption
In order to reduce electric power consumption during peak weekday
periods, business sites*2 located in areas serviced by Chubu ElectricPower Co., Inc. suspended operations for five Mondays during July andAugust. Work on each of these days was shifted to Saturdays and public
holidays.
*2 Yamaha Headquarters and factories located in the western region of Shizuoka
Prefecture

Key Features of Future Disaster Countermeasures
Taking seriously the lessons learned from the Great East Japan Earthquake,
Yamaha undertook a Group-wide review of its disaster countermeasuresand contingency planning. Focusing particularly on bases located in the
Enshu region which is in close proximity to the Tokai area considered prone
to major earthquakes, the Yamaha Group is taking steps to put in place anappropriate structure and systems including the stockpiling of essential
items.
As an initial measure, the Group is working to secure multiple means ofcommunication while at the same time reviewing reporting systems bybase and organization.
In addition, a specialist group has been established led mainly byadministrative divisions. Drawing on the Group’s experiences during theGreat East Japan Earthquake, Yamaha is putting in place all appropriate
procedures and methods to ensure greater efficiencies in restoring basic
infrastructure.
While at this stage estimates indicate no major damage to bases
located in the Enshu region as a result of the tsunami*3, both national andprefectural governments are reassessing damage estimates. Steps will thenbe taken to consider appropriate countermeasures.
Furthermore, efforts are being made to provide employees and theirfamilies living in coastal areas with information regarding predeterminedactions to be taken at times of evacuation.
In order to ensure the utmost safety of its employees and to minimize
the impact of disasters on the Group’s ongoing operations, Yamaha
periodically reviews its BCP*4 Guidelines formulated in 2009 taking into
consideration each of the aforementioned.
*3 Source: Shizuoka Prefecture damage estimates*4 BCP: Business Continuity PlanCSR Management
The Yamaha Group is working diligently to promote CSR activities that reflect
the five core components of the Yamaha Corporation Group CSR Policy.

Yamaha Corporation Group CSR Policy
Our Aim is "Creating 'Kando' Together"
The objective of the Yamaha Corporation Group is to continue to create “Kando*” and enrich culture
with technology and passion born of sound and music, together with people all over the world.
Based on this Corporate Objective, Yamaha conducts its CSR activities according to the following
guidelines to further strengthen the bonds of trust with its stakeholders through its corporate
activities and contribute to the sustainable development of society.
* 'Kando' (is a Japanese word that) signifies an inspired state of mind.

Yamaha provides support to people who want to perform music and people who want to enjoy
it by contributing to the popularization and development of music and musical culture.

7

Yamaha works to maintain a healthy global environment by understanding the significance ofprotecting the natural environment, maintaining biodiversity, and reducing the burden on theenvironment, as well as promoting the proper use of wood resources, and cooperating with
forest protection activities.

123

As a "corporate citizen" that is a member of society, Yamaha contributes to creating a better
society by actively participating in many kinds of activities that further the development of thecommunity and culture.

15

4

Yamaha complies with laws and high ethical standards, works to create an environment in which
its personnel can draw fully on their sensitivities and creativity, and aims to build a corporate
culture that will enable it to offer better products and services.

17

For its shareholders, who support its corporate activities financially, Yamaha aims for a highdegree of transparency by disclosing management information and engaging in active andsustained communication. For its business partners, Yamaha conducts transactions fairly andtransparently, endeavors to deepen mutual understanding, and works to build strong
relationships of trust.

19

1
2

5

Engaging in corporate social responsibility (CSR) activities is
one of the Yamaha Group’s fundamental management policies.
In specific terms, we express this policy commitment across awide range of areas including the product quality, customer
satisfaction (CS), procurement, environmental protection, andpublic relations fields.
In February 2010, we established the Yamaha Corporation
Group CSR Policy, a summary of the Group’s approach toward
CSR. Comprised of five key guidelines, this Policy outlines theCompany’s fundamental stance toward fulfilling its responsibilities
to its diverse stakeholders. Moving forward, the Group is working
to ensure that its employees have a complete understanding of
the Policy while actively promoting CSR management.

6

ization and
ar
ul
p
Po
e
th
to
g
in
ut
b
Contriusical Culture
M
d
an
ic
us
M
of
t
en
m
Develop
Conveying the joy of music to people throughout the world, the Yamaha Group operates music
schools both in and outside Japan as a part of efforts to popularize and develop musical culture.
The music school business is essentially conducted by the Yamaha Music Foundation, whichis responsible for providing a platform that develops a proficiency-oriented curriculum as wellas teaching materials and texts, and helps nurture skilled and professional instructors, andYamaha, whose activities extend to the actual operation of schools.
To date, Yamaha music schools have catered to the needs of over 5,000,000 graduates inJapan alone putting in place lesson plans tailored to specific ages from young children throughadolescents to adults and diverse objectives.

Promoting the Music School Business
The Yamaha Group engages in the development and operationof music schools based on an overarching philosophy that
focuses on efforts that help nurture the musical talents ofpeople throughout the world. Our goal is to provide individuals
with the opportunity to make the most of their skills andcapabilities. By helping individuals to create music and to
perform, we are endeavoring to convey the joy of music to anever-increasing audience.
Since opening the Music Class for Pre-school Children inTokyo in 1954, the Yamaha Group has provided music education
to help enrich the development and growth of children for over
five decades. In specific terms, the Yamaha Music Foundation has
established and developed the Yamaha Music Education System,a unique education method that is distinguished by its three
timely education, group lessons and emphasis on creativity
features. Taking full advantage of this unique know-how, and in
addition to Yamaha music schools for children that cater to theneeds of one-year old infants through to junior high school
students, Yamaha’s Music Lessons for Adults are currently
available both for music enthusiasts as well as individuals
interested in learning to play a musical instrument as a hobby.

Yamaha music school original textbooks
and teaching materials

The Three Features for Nurturing Music Skills
Considerable emphasis is placed on creativity as one of threeelements that comprise the Yamaha Music Education System.
This entails lessons that encompass a full range of musicalpursuits including listening, singing, playing, reading andcreating. Through these means, children are encouraged toexpress themselves by thinking freely. We work to help children
acquire and enhance their sensitivity and imagination that willallow them to fully enjoy the pleasures that music can provide.
In order for children to enjoy music and to absorb andunderstand the given material easily, we believe it is best to givethem appropriate guidance in accordance with the degree of
their physical and mental development. Based on this concept oftimely education, emphasis is placed on music fundamentals
that focus on listening for pre-school children when hearing
capabilities are rapidly developing. This learning process also
helps children to more freely express themselves through musicheightening interest and enjoyment.
The third and final element of the Yamaha Music Education
System is the Group Lesson format. Group lessons have the7advantage of allowing children to enjoy rich musical experiences
while making friends in a social environment and developing astronger sense of cooperativeness.

Comprehensive
Music
Education

TimelyEducation

Group Lessons

Maintaining a Strong Awareness toward the Importance of Popularizing
Music while Promoting with Pride a Rich and Prosperous FutureWith a history that dates back over a half century, Yamaha Music School continues
to contribute to society. While adapting to each era, the Group’s fundamental
philosophy toward music education, its efforts to consistently enhance its
curriculum and the passion of its instructors all remain unchanged. My role is tocarry forward the foundation and track record put in place by my predecessors andto pass on to the next generation this passion for excellence. Yamaha Music School
caters to the needs of some 500,000 students in Japan. With a renewed sense of
responsibility and a strong awareness toward the importance of popularizing
music, I plan to undertake my duties and tasks at hand with a deep sense of pride.
ManagerMusic Education Planning Office
Domestic Sales & Planning Division
Yamaha Corporation

Engaging in Business Activities Across Over 40 Countries Worldwide While Catering to the
Needs of Around 700,000 Students Globallythat address demand from adults. As we work toward
popularizing music, every effort is made to develop a common
global philosophy and curriculum that takes into account andharmonizes the music culture and history of each individual
country and region.

Yamaha Music School boasts a significant business scale with a
network encompassing approximately 4,300 locations, 500,000
students, and 13,000 instructors in Japan as of June 2011.
Graduates to date total more than 5,000,000 students.
Overseas, around 200,000 students attend Yamaha Music
School operating in over 40 countries and regions around theworld. In similar fashion to Japan, our overseas activities focus
mainly on pre-school education as well as popular music courses

Countries in which Yamaha Music Schools Operate (2011)

SwedenGermany
The Czech Republic
Lithuania
PolandSlovakia
Austria
GreeceHolland
The United Kingdom
Belgium
FranceSpain
Portugal
Switzerland
Italy

CanadaChina

South Korea

Hong Kong
The United Arab Emirates

VietnamThailand
Malaysia

The United States of America

Japan
TaiwanMexicoThe Philippines

GuatemalaCosta Rica

Singapore
Indonesia

Venezuela
PanamaColombia
Peru
Paraguay

Australia
Argentina

Uruguay

New Zealand

Number of Students
Japan

500,000
Asia & Oceania

134,000
North America

9,000Central and South America North, Central and South America

12,00021,000EuropeOverseas

192,000

37,0008

ularization andContributing to the Pop
Musical Culture
and
sic
Mu
of
nt
me
op
Devel

Supporting People Engaged in Musical Pursuits
The Yamaha Group actively supports all individuals engaged in learning pursuits in their efforts to hone their musicalskills and expand their musical endeavors. At the same time the Group strives to enrich community life through avariety of musical events as a part of collective efforts to popularize and develop musical culture.

Local Events to Promote Music Culture
Each year, Yamaha holds “Hamamatsu Jazz Week” in cooperation
with the city of Hamamatsu. In addition to concerts inauditoriums and on the street, activities including free lessons
and booths, where participants were offered the opportunity toplay instruments were conducted in May 2010. Moreover,
Yamaha Music Osaka Co., Ltd. is a member of the planningcommittee for Kobe Motomachi Music Week, which is held every
year in the Motomachi shopping district in Kobe. Through theseand other means, the Yamaha Group actively supports the
spread of music and culture in communities around Japan.

Hamamatsu Jazz Week
The Kobe Motomachi Music Week

Spreading the Joy of Wind-Instrument Music through Training Workshops
Yamaha Music & Electronics (China) Co., Ltd. held training
workshops across 12 major cities in China in November 2010. The
brass bands of leading schools in each region were invited to attend.
Lectures were provided by prominent instructors to an aggregate
total of 944 elementary, junior and senior high school students.
A lecture conductedby Mr. Li Tianchi

Supporting the Musical Pursuits of Artists
Yamaha Music Europe GmbH (YME) provides young musicianswith opportunities to perform while supporting the musicalpursuits of artists. YME Iberica Branch takes great pride inassisting Rafael Calderon, a well-known trumpeter with Down
syndrome who performs in Spain. In fiscal 2010, the branch
produced a magazine advertisement featuring Mr. Calderon.

Providing young musicians with opportunities
to perform and the Musée d’Orsay

A magazine advertisement
featuring Rafael Calderon

Promoting Universal Design
Yamaha Corporation is keen to help create an environment inwhich any and all people can enjoy the pleasures of music. With
this in mind, we are considering the merits of incorporating theuniversal design concept into our products and services. In
putting forward this concept, we participated as a sponsoring
company in the 3rd International Conference for Universal
Design in HAMAMATSU 2010 held between October 30, 2010
and November 3, 2010 in Hamamatsu City in fiscal 2010. Basedon the slogan and pledge of “music for you, music with all,” weshowcased several universal design prototype products at thecorporate exhibition corner of the Conference. Buoyed by thissponsorship and exhibition, the Yamaha Group will again
consider adopting a universal design approach. Looking ahead,
we will put forward proposals that take full advantage of thepower and strength of music to help realize a society that is bothrich in communication and that allows people of diverse
backgrounds and attributes to live in harmonious comfort.

Music in the palm of one’s hand

9Sound window

Pursing Customer Satisfaction
Yamaha Corporation’s Digital Musical Instrument Division Conducts Product Development Usability Tests
Led by Yamaha Corporation’s Digital Musical Instrument Division,
the Yamaha Group adopted usability tests*, which help assess
operability, as a part of its product development process in 2004.
Placing the utmost importance on the customer’s point of view,
this initiative is designed to improve how our products andservices, which boast a wide variety of functions, are used. The
development and other departments involved in products andservices coordinate usability tests, sharing information about
potential issues at an early stage. This allows the Digital MusicalInstruments Division and the Group as a whole to quickly takethe steps necessary to improve the usability of existing products
and uncover operability issues with products in development.

ExamplesUsability assessment for the CVP multi-function
digital piano● Workability assessment for digital drum assembly● Usability assessment for the IDC function (connects
the instrument directly to the Internet to stream asong or display musical notes simultaneously) of the
CVP digital piano● Visual discrimination assessment for LED andoperating display colors●* Usability test: Having likely customers actually use a product to determine theproduct’s ease of use (usability).

Yamaha Corporation’s AV Products Division Gathers and Analyzes Feedback from its Customers in an
Effort to Deliver Products and Services that Exceed Expectations
To develop the kind of products and services that exceed
customer expectations, the AV Products Division actively gathers
and collates customer feedback. The division collects as much
feedback as possible, constantly looking for ways to satisfy eachand every customer in every business setting.
In this context, the AV Products Division creates planningsheets at the product planning stage. These planning sheets
outline planning details from the customer’s point of view
including projected customer profiles, the value provided to thecustomer, customer feedback and suggested improvements forexisting products. This information is shared with every person
who is involved in the creation of the end product. The division
sends out customer satisfaction surveys to customers in Japan,
the United States, and Europe immediately after purchase. In a
CS evaluation meeting, the division looks at the results of thesesurveys, using the information as feedback for current and future
product development. Of particular importance are customer
assessments and opinions related to sound quality, looks(design), ease of use, innovation (function), and reliability. These
factors relate to major quality policies within the Yamaha Group.
From this perspective, the division focuses on the differences
between pre-purchase customer expectations andpost-purchase satisfaction. They use text mining* techniques on
free-form customer feedback to perform trend analysis,
combining quantitative and qualitative data to uncover areas ofpotential improvement that can lead to greater customer
satisfaction. The results of these surveys (please refer to figureson the right for certain examples of analysis results) are
published to all divisions, and used as guides to help reach goals
defined in our quality policies. We believe that the daily inquiries
and opinions coming into our customer help desks provide a
wealth of clues leading to future improvements. We analyze andutilize this feedback in the same manner as the customer surveys.
In other ways, too, the division continues activities that tie toproduct creation and manufacturing from the customer’s pointof view. The division publishes a monthly CS News newsletter
delivered to departments, relevant sales companies, andfactories. This newsletter is filled with information about
customer preferences and trends. The division also creates a daily“Customer Feedback of the Day,” which is sent to all businesslocations. The update communicates product-related opinions
and impressions from customers in the division’s main markets.
By utilizing customer feedback stemming from various businessscenarios, the division moves closer to offering products andservices that exceed the expectations of our customers.
* A method for analyzing text data by scanning regular text and extracting useful
information.

Customer Feedback Analysis for One Product Model
①

③

②
④
①② Analyze customer
feedback (map mostfrequent comments)

Customer Feedbackof the Day③ Chart expectations and satisfaction levels④ CS assessment analysis (analyze importantfactors to improve customer satisfaction)

CS News

English version for overseas distribution
Japanese version for Japanese locations

10

ularization andContributing to the Pop
Musical Culture
and
sic
Mu
of
nt
me
op
Devel

Proposing Solutions that Employ Sound Technologies
The Yamaha Speech Privacy System™ that Helps Prevent Conversation Leakage
Yamaha Corporation has continued to create richly realized
independent sound fields through the manufacture of its
products while also engaging in sound research and thedevelopment of control systems that help establish soundlistening environments.
Yamaha’s endeavors to create new businesses in the sounddomain focusing largely on acoustic spaces have extended toefforts to better protect personal information. In this context, theCompany developed the Yamaha Speech Privacy System™ VSP-1
to help provide an environment under which private
conservations can be protected in public places.
The VSP-1 is equipped with Yamaha’s proprietary informational

masking technology. This technology uses a newly developed
original disruptive masker synthesized from human speech,
which is combined with a camouflage technology that
encapsulates conversations for private consumption using
environmental sound. This system can mask the information inpeople’s conversations much more effectively than conventionalenergy masking.
In addition, Yamaha has developed a sound system thatincorporates elements from nature including the babbling of abrook or birds singing together with the sounds produced bymusical instruments to create an optimal sound environmentthat helps protect private conversations.

A visual representation of soundinformational masking

The Yamaha Speech
Privacy System™ VSP-1

Sound Signage Helping to Enhance the Effectiveness of Information Displays Through Sound
In recent years, digital signage or electronic billboards that deliver
images and information using flat-panel displays and projectors
have attracted considerable attention for their ability to provide
timely information in the advertising and promotional media
fields. It has long been acknowledged that the addition of soundsignificantly increases the appeal and effect of these displays. To
date, however, the market has lacked easily accessible andeffective sound solutions. Against this backdrop, Yamaha
Corporation has put forward the Sound Signage System solution,a new and novel advertising medium that combines theCompany’s Thin Light Flexible Speaker (TLF-SP) technology withINFOSOUND, Yamaha’s proprietary acoustic data communication
technology. Demonstration trials were launched in autumn 2010.
At the same time, the Company showcased demonstrations of its
Sound Signage System and technologies at its corporate booth
during the CEATEC JAPAN 2010 Exhibition in October.
In fiscal 2011, Yamaha plans to establish a Sound Signage
business model drawing on the fruits of demonstration trials.
Moving forward, the Company will continue to promotecommercial application of its various technologies including TLF-SP.

Demonstration trial of the TLF Speaker(a designated site at the Shiodome officeof Nippon Television Network Corporation)

11

Commercial application of the TLF Speaker
The TLF-SP1-AO (AO size) (above) and TLF
amplifier module TLF-AM1 (below)

hyContributing to a Healt
Global Environment
Guided by the Yamaha Group Environmental Policy, each and every member of the Yamaha Groupis united in their efforts to promote environmental management. Individual employees are in turncommitted to activities that protect and contribute to a healthy global environment.

Eco Activities Undertaken by Employees
The Yamaha Group provides support and conducts education and training activities to raise individual employees’ awareness toward
the environment and to ensure that eco activities are incorporated into each employee’s daily life.

Household Eco-Account Book: Smart Life Guide
Since fiscal 2003, the Yamaha Group has worked in partnershipwith the Yamaha labor union to conduct the Eco-Account Book
“Smart Life Guide” program. This program encourages
employees to record household usage of electricity, natural gas,
and gasoline. Recording these figures helps employees becomeaware of their daily energy consumption and CO2 emissions,promoting ways to prevent global warming on a personal level.
More than 2,000 households participate each year, with acumulative 17,000 households having participated in the eight
years since the start of the program.

In fiscal 2011, Yamaha introduced
a new Smart Life in My Home
Commitment, which each family canmake according to their individual
circumstances. Yamaha hopes that
this new program will help families
expand their activities to include
more practical initiatives that extend
beyond the keeping records.
Smart Life Guide

Promoting Green Eco-Curtain in Employee Homes
Beginning in fiscal 2009, the Yamaha Group has encouraged
employees to create Eco Curtains in their homes, in parallel with Green
Eco Curtain activities at Yamaha business locations. In addition toproviding how-to instructions, Yamaha distributed seeds for morning
glories, Goya, and other hanging plants to those interested.
Yamaha will be featuring more information in the Company
newsletter to encourage employees to provide updates of their progress.

Green Eco-Curtain at
the Company’s head office

Providing information on
the Green Eco-Curtain initiative
utilizing the Group’s internal
communication tools

Creating Synergistic Effects through Activities
both in the Workplace and at HomeThe Yamaha Group is committed to ongoing activities that contribute to theenvironment. Among a host of initiatives, we strive to conserve energy, reduce CO2
emissions, effectively use natural resources, and engage in tree planting activities.
We also promote eco activities in the home ranging from the use of environmental
housekeeping to the move to establish green Eco Curtains. My wish is that each andevery employee will continue to hold a robust commitment toward protecting theenvironment and to create synergistic effects by engaging in eco activities both in
the workplace and at home.
Working Group Leader
The Yamaha Group ISO 14001
Environmental Contribution Activities

12hy
Contributing to a Healt
nt
me
on
vir
Global En

Environmental Management
Strengthening the Group’s Overall Management Structure by Integrating ISO 14001 Groups
The Yamaha Group adopted the environmental management
system ISO 14001 in fiscal 1997 as a key pillar of its environment
management. By fiscal 2006, Yamaha Corporation, Group
production-related companies in and outside Japan, resort
facilities, and major sales and marketing offices had acquired
certification. Over this period, the Group has continued toengage in environmental protection activities based on
predetermined environmental objectives and targets that take
into account the circumstances of individual businesses. The
total number of employees at 24 business sites to have acquired
certification stood at 22,668 as of fiscal 2010 representing 85% of
the Group’s workforce on a consolidated basis.
In order to further promote environmental pursuits acrossthe entire Group, and with the aim of bolstering Group-widecross-sectional environmental management, steps are being
taken to integrate ISO 14001 certification in Japan which to date
had been acquired on an individual business site basis from fiscal
2010. Positioning integration as a key pillar of its structure andsystems, Yamaha is formulating a Group-wide environmental
policy and is promoting effective and efficient activities in tune
with this integrated policy.

ISO 14001 external
assessment

Reducing the Burden Imposed on the Environment by
Manufacturing Processes
Incorporating a Cutting-edge Wastewater Treatment
Plant into Manufacturing Processes in China
A cutting-edge wastewater treatment plant came online from
October 2010 at Xiaoshan Yamaha Musical Instrument Co., Ltd.
following the relocation and establishment of a new factory. This
plant has the ability to treat wastewater bringing it to new purewater levels. As a result, the factory recycles over 90% of its
wastewater for use in manufacturing processes.
Xiaoshan Yamaha Musical Instrument Co., Ltd.
The cutting-edge wastewater treatment plant

Promoting Energy Conservation and CO2 Emission Reduction
Measures through the Integration of Piano Manufacturing Processes
Yamaha Corporation relocated the grand piano manufacturing
process from its headquarters factory to its Kakegawa Factory andcompleted consolidation with its upright piano production
processes in August 2010. Running parallel with this processintegration, the Company introduced a cogeneration system within
the Kakegawa Factory and converted the existing heavy-oil-fired
boiler to a natural-gas-fired boiler fueled by liquefied natural gas(LNG). In this manner, Yamaha Corporation took steps to promoteenergy conservation measures within its manufacturing processes.
These endeavors have resulted in a projected reduction of morethan 3,000 tons of CO2 emissions annually.
13

Kakegawa Factory
LNG Satellite Facility

Environmentally Friendly Products
Promoting the Design of Environmentally Friendly Products Utilizing the LCA Method
The Yamaha Group has positioned efforts to develop
technologies and provide products that are friendlier to theenvironment as major environment management theme under
its environmental policy.
To respond to this policy, and with respect to the various
product groups that the Yamaha Group manufactures, steps aretaken to conduct product life cycle assessments (LCA) that cover
the total product life cycle, including material procurement toproduction, transport, use, and disposal to identify what aspectof a product group life cycle has the largest environmental
impact and to tackle environmentally friendly design frommultiple angles.

Primary Product Group Characteristics According to LCA Assessments, and Initiatives
Acoustic instruments

Material
production

Use

Electronic Musical Instruments

Disposal● There is a need to consider deforestation and toprotect scarce natural materials to prevent
resource depletion for products made mainly
from wood-based resources.
● There is no energy consumption during use.
● While products are characterized by their long
life, products may be left idle depending on thecircumstances of customers and later disposed of.

Material
production

Use

AV Equipment, IT Equipment

Material
production

Disposal● The many different substances used in these

Use

Disposal● The many materials included in these products

products necessitate substance management inmaterial production and efforts to promote
recycling at time of disposal.
● Large products require a lot of materials in thematerial production phase, creating a large
environmental load.
● Numerous products that do not consume
standby electricity and impose a relatively smallburden on the environment during use.

make necessary substance management andefforts to promote recycling at time of disposal.

● The environmental load is comparatively small

during material production because there are
not that many large products.
● Use phases consume a great deal of energy,
making the environmental load of the use phasecomparatively large.

Protecting Forests and Maintaining Biodiversity
Yamaha Forest Phase II: Planting Trees in Indonesia
The Yamaha Group has continued to engage in Yamaha Forest
tree-planting activities in Indonesia since fiscal 2005. Carrying on
from Phase I, which continued through to fiscal 2009, the Grouplaunched Phase II of the Yamaha Forest, a five-year tree-planting
program for forest/biodiversity preservation, encompassing the
Mt. Ciremai National Park, located in Kuningan, West Java, fromfiscal 2010.
In December 2010, we held a kick-off event at the activity
site. In addition to Tsutomu Sasaki, Senior Executive Officer of
Yamaha Corporation, 230 people attended the event.

Java, Indonesia
JakartaWest Java

Yamaha Forest Phase II

Central Java

Yogyakarta

SurabayaEast Java

Yamaha Forest Phase I

Children participating inYamaha Forest tree-planting
activities

A Fourth Year of Tree-Planting Activities and Recovery
Support for the Enshunada Coastal Forest
As one part of our environmental preservation activities, Yamaha
Corporation signed on as a “Shizuoka Forests of the Future
Supporter.” The Company has accordingly undertaken
tree-planting activities at the Enshunada Coastal Forest since
fiscal 2007.
On October 23, 2010, a total of 150 people including YamahaGroup employees, family members, and local volunteers
participated in planting a total of 155 trees representing six local
species, including Ubame Oak, Camphor, and Japanese hackberry.

Activity as a part of the“Shizuoka Forests of the
Future Supporter System”

14

tyCreating a Better Socie
As a good corporate citizen, the Yamaha Group engages in business activities that contributeto the development of regional societies.
In addition, particular emphasis is placed on educational and welfare activities that support
the growth of the next generation of children. Through these means, the Yamaha Group isdedicated to help create a better society.

Contributing to Local Communities
Holding a Professional Golf Tournament Together with Local Residents
Charity at the Yamaha Ladies Open Katsuragi
Local residents①Volunteer support
for the tournament

YamahaLadies Open Katsuragi
Main sponsors: Yamaha Corporation,
Yamaha Motor Co., Ltd.
Sponsor: Yamaha Resort Corporation②Charitable contributions
to the region

Local government backing of the tournament from:
Shizuoka Prefecture, Hamamatsu City, Iwata City
Kakegawa City, Fukuroi City, and Mori Town

Sharing Experiences with as Many Local Community Residents as
Possible by Participating in Major Events with both Joy and Pride
The Yamaha Ladies Open Katsuragi (YLO Katsuragi) is an event that brings together the combined efforts of the Group, local government, andlocal residents.
For example, at the conclusion of the event, we call for comments from all volunteers, who have provided their assistance,
and as sponsors respond diligently to this feedback. This is an initiative that is unique to tournaments of this kind. We
recognize the importance of each volunteer’s comments and their cooperation in ensuring that the event is a success. In
this regard, I am confident that both the Yamaha Group and local residents are
keen to ensure that YLO Katsuragi is held in the highest esteem each year.
In fiscal 2010, YLO Katsuragi was the first tournament in Japan to
introduce a volunteer charter. As we work toward running this event
each year, I would hope that YLO Katsuragi will contribute not
only to further promoting the Yamaha brand, but also toreenergizing the local community, promoting sports andsports culture in general, and educating young golfers in theimmediate region.
Tournament Secretary of the Yamaha Ladies Open Katsuragi
Yamaha Corporation

15③

Local residents,
Yamaha Corporation,
Yamaha Motor Co.,
Ltd., and Yamaha
Resort Corporation
contribute to society
through various
activities

Benefiting the region

Each year in April, Yamaha Corporation and Yamaha Motor Co.,
Ltd. jointly host the Yamaha Ladies Open Katsuragi golf
tournament at the Katsuragi Golf Club operated by Yamaha Resort
Corporation in Fukuroi, Shizuoka. This major event is madepossible with the support of volunteer staff as well as local
residents and regional governments. Yamaha has given donations
to local governments that have backed the tournament as a tokenof its appreciation to local residents for their cooperation andsupport of the event. At the 2010 tournament, we donated a totalof ¥6 million, comprising¥1 million each to six
regional governments.

Local Exchange through Baseball Classes
In November 2010, the Yamaha Baseball Club invited 43 students
from two schools for international students from South America,
which rooted for the club at a major playoff, to the Yamaha
Baseball Club’s Toyooka baseball field for a mini baseball classroom
event. The Yamaha Baseball Club periodically offers baseballclasses to local youth baseball teams. Some of these classes also
provide Baseball Health Examinations in cooperation with sports
physicians and the baseball club’s alumni association.
A baseball class

Supporting Development of the Next Generation
Accepting Students for On-the-Job Experience and Factory Tours
Yamaha Music Craft Corporation has continued to accept juniorhigh school students from Hamamatsu City allowing them to gain
on-the-job experience at its business premises each year. In fiscal
2010, three schools participated in on-the-job experience while
two schools participated in factory tours for a total of approximately
130 students. These initiatives have attracted acclaim for instilling agreater interest in the art of making things as well as the local
community while providing students with a first-hand sense of what
it is like to have a career as well as a better outlook on life.
Students gaining first-handexperience of working life

Activities that Help Educate Young Children in
China’s Western Region
Xiaoshan Yamaha Musical Instrument Co., Ltd. has provided
donations and engaged in related activities to help provide an
education to impoverished children unable to go to school since 2006.
Yamaha has provided donations through the Gesanghua
Schooling Support Association of Qinghai for the purpose ofproviding economic aid. Funds are used to help educate young
children in China’s western region including Qinghai Province. We
have received numerous letters of appreciation and commentsfrom recipients of this aid. Students about to graduate haveprovided us with wonderful reports and news of their advance toCeremony celebrating
higher education.

the allocationof aid funds
and a letter of appreciation

Engaging in Social Welfare Activities
Charity Marathon in Support of the Battle Against Childhood Disease
As a part of Yamaha Cares, a voluntary charitable activity
promoted by employees, Yamaha Corporation America donates
funds raised through participation in the Southern California Half
Marathon to the Children’s Hospital of Orange County (CHOC)
where research is being conducted into the cause and cure ofType 1 juvenile diabetes. Fiscal 2010 was the third consecutive yearthat employees took the initiative to enter the marathon and tocall for donations. The aggregate amount of donations provided
has now totaled $25,000.
YCA Yamaha Cares volunteers participatingin the Southern California Half Marathon

16

ulture that Helps
Building a Corporate C d Services
anOffer Better Products
The Yamaha Group continues to deliver products and services, distinguished by their outstanding quality
and value, in an effort to secure ongoing company growth together with a rich and prosperous life foreach of its employees and the genuine satisfaction of its customers consistent with a key component of
its management philosophy, which emphasizes a customer-oriented and quality-conscious approach.

Promoting a Better Work-Life Balance
Revisions to Various Programs Including the Group’s Childand Nursing Care Leave as well as Shortened Work Hours Systems
Yamaha Corporation was quick to upgrade and expand its
childcare leave system and to promote the take-up of annual paid
leave. Yamaha was recognized for its support in the developmentof the next generation by Japan’s Ministry of Health, Labour andWelfare in 2008 and took steps to advance a five-year action plan.
As a part of this plan, the Company is working diligently to further
expand its systems in order to promote a better work-life balance.
Among a host of initiatives, we
extended the period of eligibility forshortened work hours for employeeswith small children, and established ascheme of shortened work hours forparents to participate in school events.
We also newly implemented a programof shortened work hours for employees“Kurumin” mark certification
enrolled in adult self-development
recognizing support for thecourses as well as introduced an
development of the next
generation.
employee assistance program (EAP).

Principal Measures for Better Work-Life Balance
Fiscal 2005 Revision of programs for child care leave andshortened work hours for childcare
Receipt of the Fiscal 2005 Family Friendly
Company Award from the Ministry of Health,Labour and Welfare
Fiscal 2006 Extensive revision to employee benefit programs
Fiscal 2007 Introduction of Company-wide annual paid leave
Fiscal 2008 Acquisition of the “Kurumin” mark, recognizing
Yamaha's support for the development of thenext generation
Fiscal 2010 Revisions to the childcare leave, nursing careleave and shorter working hours for nursing care
employee benefit programs

Proactive Selection of Childcare Leave;
Watching over the Growth of My Child First-Hand
When my son was born last year I took three weeks ofchildcare leave. Rather than at the request of my wife, I took
this as a personal decision and one which I believe is quite
natural. In taking leave, I had the opportunity to enjoy
first-hand the daily development of my son in his early days.
Working together with my wife, we were able to overcome
this difficult period. I truly believe that taking childcare leave
was the right decision.
Soon, my wife will return to the workforce and we will raise
our child as working parents. To be honest, I am a little anxious.
With the help of those around us and the Company, we plan totake full ownership in the selections that we make and the way
we decide to work.

Technology Planning Division, Yamaha Corporation

17

Handing Down Skills to the Next Generation
The Skill Registration System and the From-To Program for Passing On Core Production Skills
Many highly skilled employees in manufacturing positions at ourfactory in Japan will reach retirement age in the not too distantfuture. Given this state of affairs, Yamaha has been conducting
skill transmission initiatives to ensure that core production skills
are faithfully passed down to younger workers, and working tocross-train key manufacturing personnel. These initiatives areembodied in the Skill Registration System and From-To Program,which serve to guard Yamaha manufacturing technologies andtraditions in order for the Company to remain a world-classmanufacturer.

Product and Service Quality Management
Establishing a Quality Assurance System and Implementing
Comprehensive Education and Training
The Yamaha Group has put in place a Group-wide quality
management system to ensure the production of high quality
products. As of June 30, 2011, the Yamaha Group had acquired
certification under the ISO 9001 international standard for quality
management systems at 27 business divisions in Japan andoverseas. Meanwhile, the Group takes steps to audit and improve
the quality assurance system as well as product quality to ensurethat the standards to which Yamaha aspires are met. At the sametime, the Yamaha Group’s personnel training system is comprisedof expert training related to “quality assurance,” as well as
training tailored to individual job positions. The goals of thissystem are to raise awareness and enhance skills with respect toquality management.

Personal Information Protection and Management
Yamaha protects and manages the personal information of its
customers in accordance with its privacy policy.
In 2004, Yamaha put in place a system of Personal
Information Protection Regulations to clarify the rules governing
the handling of personal information in-house. At the same time,
we appointed an officer to assume overall responsibility for thehandling of personal information. Directly reporting to thisofficer, a secretariat was established within Yamaha’s Legal Affairs
Department to promote personal information protection.
Together with the appointment of administrators to oversee

Conducting quality assurance
education and training

The Company’s in-house educationand training website

the handling of personal information in each division, we haveestablished a responsible reporting framework. Through these
initiatives, Yamaha is promoting the protection of personal
information while ensuring a timely and appropriate response in
the event of an incident.
Each year, the secretariat takes the lead in conducting
education, training and audits targeting those divisions that
handle personal information. At the same time, measures are
implemented in an effort to enhance awareness toward theimportance of personal information protection.

18

anagement and
M
t
en
ar
sp
an
Tr
y
hl
ig
H
Promotingh Business Partners
it
w
ng
di
an
st
er
nd
U
l
Mutua
The Yamaha Group consistently strives for the highest transparency in its management. While adhering
to all statutory requirements as a matter of course, the Group aims to promote outstanding compliancemanagement in line with social standards and business ethics. At the same time, we work diligently toensure the timely disclosure of all relevant information to investors and shareholders and to fully
engage in fair and open transactions based on a deep mutual understanding with business partners.

Fair and Timely Information Disclosure
Yamaha Corporation adheres to our Disclosure Policy that ensuresfair and timely disclosure of information to institutional andindividual investors around the world. In addition to holding
quarterly results conferences for institutional investors in Japan,
Yamaha conducts conferences and briefings on its management
policies and individual business segments as well as factory andfacility tours as required. For institutional investors in other countries,
along with making available English translations of all information
provided to institutional investors in Japan, the Company’s
president and directors visit investors overseas several times a year
to foster mutual understanding through direct communication thatencompasses explanations of the Company’s management plans aswell as the status of its businesses. For individual shareholders, andas a part of efforts to expand its shareholder base, Yamaha
commenced conferences andbriefings for individual investors
in regional cities from fiscal 2010.
Briefing sessions were held in
Nagoya in February 2011 as well
as Fukuoka and Hiroshima in
March 2011. For the benefit ofshareholders, Yamaha also runsa special benefit plan designed
to encourage more shareholders
to become active proponentsof the Company’s products
and philosophy.
A conference for individual investors

Major IR Activities in the Fiscal Year Ended
March 31, 2011
Regularly Scheduled Events● Quarterly result conferences● One-on-one meetings● Visits to overseas investors

Other Events● Briefing on the musical instruments business● Tour of facilities

I am involved in every facet of the Company’s IR operations. Among a host of activities, thisentails communicating with institutional and individual investors both in and outside Japan,
putting in place such IR tools as the Group’s annual report and website, conducting quarterly
briefing sessions on the Company’s results as well as investor presentations and events, andresponding to socially responsible investment (SRI)-related issues. There are many aspectsof IR that I find appealing. In addition to communicating daily with wide-ranging parties
outside the Company, I find gaining a first-hand feel of the macro economy and its
effect on the Company’s activities extremely interesting. In the future, I intend working
genuinely toward promoting equitable and timely information disclosure and securing
our position as a Company of the utmost integrity.

19

Four time annually(U.S. (East Coast andWest Coast), U.K., Asia)● Conference for the mid-term management plan

As an officer responsible for investor relations (IR),I am keen to promote feelings of confidence and trust

Corporate Planning Division, Yamaha Corporation

Each quarter(four annually)
250 times

Strengthening Corporate Governance
Creating a Management System based on Directors And Executive Officers
As of June 24, 2011, Yamaha has five directors, including two
outside directors. In principle, the Board of Directors convenes
once monthly, and is responsible for the Group’s management
function including the formulation of Group strategy as well as
monitoring and directing the execution of business carried out
by individual divisions. In order to clarify responsibilities, directors

are appointed for a term of one year. In addition, Yamaha
Corporation assigns executive officers who oversee theoperation of businesses and administrative divisions while
supporting the president, who is the chief officer in charge ofbusiness execution. As of June 24, 2011, the Company had 16
executive officers including two managing executive officers.

Audit System that Ensures Fairness and Transparency
Yamaha is a company with a Board of Auditors as defined underJapanese law, and has worked to enhance governance functions
by introducing an executive officer system. As of June 24, 2011,
Yamaha has four auditors, including two outside auditors.
Yamaha continues to enhance governance functions byintroducing an executive office system, as well as setting up a
Corporate Governance Committee and an internal control
system. These actions in conjunction with consistent audits of
the Company’s daily operations conducted by Yamaha’s systemof full-time auditors raise the effectiveness of governance.

Compliance Oriented Management
The Yamaha Group began in earnest to implement complianceactivities in Japan in 2003 with the establishment of theCompliance Committee, chaired initially by the Company’schairman and thereafter by the president and representative
director. At the same time, steps were taken to put in place theCompliance Code of Conduct.
Revisions were made to the Compliance Code of Conduct infiscal 2006, including additions regarding the prohibition offorced and child labor, and other information essential for Group
companies with overseas business interests in order to contributeto the establishment of a structure suitable for global businessdevelopment. With respect to almost all of the Group’s overseas
companies, the formulation of respective codes of conduct thatreflect the individual governing local laws and regulations werecompleted by 2008.
Taking into consideration revisions to various laws andregulations as well as changes in social conditions, Yamaha

updated its Compliance Code of
Conduct in April 2011. As a partof this update, detailed
explanations were included
covering such items as revisions
to consumer, antitrust, andlabor legislation, both theseverity and expectation inwhich companies are held bysociety and the increase ininternal reporting andwhistle-blowing. Guided bya uniform philosophy andcode, the Yamaha Group
continues to promote
development activities.

The Compliance Code of
Conduct booklet

Mutual Understanding with Business Partners
Adhering Strictly to Open and Fair Transactions
The Yamaha Group considers suppliers and subcontractors to be
partners in its effort to live up to the Group’s business philosophy.
Accordingly, the Group strives to build relationships of growing
mutual trust based on open and fair business dealings.
On this basis, the Group has worked diligently to incorporate
this concept into its Compliance Code of Conduct and to

implement education and training programs for its employees
while gaining the understanding of business partners. These
endeavors are aimed at avoiding any abuse of a dominantbargaining position and to ensure that transactions remain open
and fair adhering strictly to statutory requirements as well asinternal regulations and standards.

CSR Procurement Activities
In order to ensure a better understanding of our stance toward
the procurement of materials and components, we make public
the Yamaha Material and Component Procurement Policy, theGreen Procurement Standards and the Yamaha Timber Procurement
and Usage Guidelines. Every effort is also made to obtain thecooperation of suppliers.

Yamaha’s Procurement Division conducts surveys of the CSR
measures implemented by business partners when concluding
new contracts with suppliers. We request that suppliers
implement improvement measures when it has been
determined that such measures are required.

20

Third-Party
OpinionThe Yamaha Group believes that better communication withstakeholders is vital in meeting the host of challenges that arise
with respect to corporate social responsibility (CSR). This year,
Mr. Hiroaki Satoh shares his opinion on how the Group can improve
its performance in this area.

voluntary commitment to incorporating the 10 principles of theCompact, encompassing the four broad fields of human rights,
labour, the environment and anti-corruption, into its businessactivities. The purpose and purport of the Yamaha Corporation
Group CSR Policy formulated in 2010 also runs in concert with
the Global Compact. The Yamaha Group is to be commended
for endeavoring to further enhance its philosophy andprinciples and to tackle not only the challenges that confront
local communities, but also such global-scale issues as global
warming and biodiversity.

Toward Smart Management

Hiroaki SatohHead of the Shizuoka Center for Climate Change Actions(Professor Emeritus and former President, Shizuoka University)

Responding to the Great East Japan
Earthquake
Looking at the Yamaha Group’s sensitivity and endeavors in thewake of the Great East Japan Earthquake of March 11, 2011, it isclear that the Group’s actions epitomized its philosophy of“Creating ‘Kando’ Together.” Among a host of initiatives, theGroup was quick to provide donations and essential items insupport of relief efforts. In addition to the implementation ofholiday shifts as a measure to conserve electric power, theGroup conducted charity concerts across devastated areas. With
the Company’s president Mitsuru Umemura serving as chief
promoter, the School Music Revival Fund was established. Under
the Fund, steps were taken to inspect and repair the musicalinstruments of kindergartens, elementary, junior and senior highschools. Complementing the Group’s individual efforts, Yamaha
also collaborated with the music industry to assist inreconstruction endeavors.

In Partnership With the Global
Compact
The decision by the Company to become a signatory to andparticipating company of the United Nations’ Global Compact,
an internationally recognized CSR initiative, in June 2011, wasindeed a major milestone. This clearly indicates Yamaha’s

21

I look forward to further improvements in the Group’s collective
management endeavors and a more unified approach toward
environmental concerns following steps taken to move awayfrom the acquisition of ISO 14001 environmental management
system certification by individual business sites to consolidated
Group-wide certification in Japan. In this context, and in
renewing the Yamaha Group Environmental Policy, the Group asa whole has adopted the slogan of “Sustaining the Concerto of
Yamaha with the Earth” as a part of efforts to help create a truly
affluent society and a better global environment. This is indeed
a clear indication that the Yamaha Group is striving to assimilate
21st century smart management into its business activities, andplacing the utmost emphasis on realizing a sustainableecosystem and society based on a philosophy filled with colorand sound as well as concern for the environment.
I am impressed by this concentration on adopting smart
management within the confines of the Group’s roots andunique association with sound and music. This commitment isreflected in the Group’s strict adherence to environmental
lifecycle assessment (LCA) encompassing the entire productlifecycle from raw material procurement through manufacture
to transportation, use, and disposal, as well as the Group’s efforts
to develop technologies and deliver products with minimal
environmental load.

Steadily Promoting CSR Utilizing
the PDCA Cycle
It is vital that the Yamaha Group consistently monitors the statusof its compliance with the principles of the Global Compact aswell as its related policies and guidelines. It is equally importantthat the Group review the tone and nature of its concerto as
applied to its CSR activities, and employ a PDCA cycle thatincorporates frontline concerns to better visualize the results of
its endeavors. Through these means, we will gain a trueindication of the Group’s commitment and performance.

Response to the Third-Party Opinion

Tsutomu Sasaki
Senior Executive Officer
in charge of the Corporate
Administration Group
Yamaha Corporation

Carrying on from the previous year, we are again grateful in 2011 to receive third-party feedback from
Hiroaki Satoh, one of many distinguished individuals active in promoting the “STOP Global Warming
Action Campaign” in Shizuoka Prefecture, an area where the Company locates its head office.
Dr. Satoh has commented on the Group’s efforts in response to the recent earthquake disasterand Yamaha’s decision to become a signatory to the Global Compact. We are particularly glad to haveobtained his high evaluation on our initiative to integrate ISO 14001 certification and LCA endeavors
aimed at reducing the environmental load of our business activities.
The Yamaha Group has continued to engage in activities that both reflect and exploit its defining
attributes. Among a host of endeavors, the Group has worked diligently to contribute to the local
community while at the same time popularizing music through wide-ranging initiatives including
tree-planting. Looking ahead, we will continue to promote activities that are consistent with the
Yamaha Corporation Group CSR Policy and Global Compact.
Moreover, we will take particular note of Dr. Satoh’s comments on monitoring the status ofcompliance with respect to the principles of the Global Compact, the Group’s policies, and guidelines,
as well as the importance of better visualizing the results of our CSR activities. Taking into account thecritical nature of steadfastly employing a PDCA cycle to review our operations, we will take steps tobetter clarify the progress and results of our CSR endeavors and address the issue of establishing an
across-the-board framework.

Overview of the Company’s Website
http://www.yamaha.com/about_yamaha/csr/
Yamaha’s website provides detailed information ona broad spectrum of topics.
The Yamaha Group has set up a website dedicated to deepening the understanding ofstakeholders with respect to the Group’s CSR management and endeavors.
In addition to the themes covered by this CSR Report, the website provides detailed
information on a broad spectrum of topics. For example, the website offers
environmental performance data together with the latest CSR topics updated on aperiodic basis. The Yamaha Group is committed to addressing the diverse interests ofstakeholders.

Major Disclosure and Information Items
Management Emphasison CSR
Message from the President
・Message from the President
・The Yamaha Group and theGreat East Japan Earthquake● Management Emphasis on CSR● Yamaha Corporation Group CSR
PolicyManagement System

・Corporate Governance・ComplianceWith Our Customers
Quality Assurance● Ensuring Product Safety● Product Information Disclosure● Improving Customer Satisfaction● Reflecting Customer Concerns in
Customer Response and Support● Policy regarding the Protection of
Personal Information●

With Our Shareholders

With Society

Policies for Retained Earnings andReturns to Shareholders
Proactive Investor Relations Efforts
to Promote Understanding of theCompany● Inclusion in Socially Responsible
Investment Indexes

Activities Grounded in Soundand Music●●

For the People We Workwith
Initiatives for Employees

・Basic Policy on Hiring and
Employment
・Job-Tailored Training and
Education
・An Environment that Supports
Manufacturing and Transmissionof Skills
・Initiatives for a Better Work-Life
Balance・Assisting Women's Careers
・Measures to Prevent Harassment
・Health and Safety

Initiatives for Business Partners
・Mutual Understanding with
Business Partners
・CSR Procurement Activities

・Activities Aimed at Popularizing
Music・Proposing Solutions that UtilizeSound Technologies

With Local communities

・Contributions in those areas
where Yamaha maintains
a business base・Local Involvement through Sports
・Support that Helps Foster the
Next Generation

Social Welfare and Disaster
Relief Activities
・Social Welfare Initiatives
・Disaster Relief and Aid

Environmental Initiatives
Environmental Management

・Promotion of Environmental
Management
・Material Balance
・Goals and Achievements
・Environmental Accounting
・Environmental Risk Management
・Environmental Education andTraining

Environmentally Friendly
Products

・Environmentally Friendly
Products
・Initiatives in EnergyConserving Products
・Initiatives in ResourceConserving Products
・Conservation and Effective
Use of Wood Resources
・Reducing Substances with
Significant Environmental Loads
・Products that Support
the Environment
・Green Procurement Activities

Environmentally Friendly
Business Activities

・Measures to Address
Global Warming
・Waste Reduction andResource Recycling
・Management of Chemical
Substances and Reductionof Emissions
・Effective Use andConservation of Water
Resources
・Initiatives at Offices

Environmental Contribution
Activities
・Forests/biodiversity
Preservation Initiatives
・Regional Activities

Environmental
Performance Data
Environmental Accounting

・Yamaha Group・Resort Facilities
・Group Manufacturing
Companies Located Overseas

Environmental Data

・Yamaha Group (1)・Yamaha Group (2)・Resort Facilities
・Group Manufacturing
Companies Located Overseas

Environmental Data by Site

・Domestic Manufacturing Site (1)・Domestic Manufacturing Site (2)・Resort Facilities
・Sales Offices, Overseas●

ISO 14001-Certified Sites●

History of Environmental Initiatives

22

CSR Section, General Administration Division
http://www.yamaha.com/

This Report uses a waterless printing method. Printing is undertaken utilizing vegetable oilinks free of volatile organic compounds on FCS-certified paper.

2011.10