Sustainability Report 2018

Sustainability Management
Yamaha Group Sustainability Policy
Our aim is “Sharing Passion & Performance”
The Corporate Philosophy of the Yamaha Group is, “With our unique expertise and sensibilities, gained from our
devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people
around the world.”
Based on this philosophy, Yamaha conducts its sustainability activities according to the following guidelines,
seeking to contribute to the sustainable development of society and to further strengthen the bond of trust with its
stakeholders through sound, transparent management methods, and corporate activities that balance social andenvironmental concerns.
1. By creating new values through products and services focused on social and environmental issues, Yamaha
contributes to the sustainable development of society.
2. Through business development and social contributions based in each region of the globe, Yamaha contributes to thepromotion and popularization of music, and to the development of communities.
3. By understanding the significance of protecting the natural environment and maintaining biodiversity, and by promoting
the reduction of environmental burden through measures such as sustainable procurement of timber and loweringgreenhouse gas emissions, Yamaha works to maintain a healthy global environment.
4. Yamaha observes laws, ordinances, and social norms, and moreover, conducts business in a fair and impartial manner
throughout the entire value chain, including activities such as socially responsible procurement carried out incooperation with business partners.
5. Yamaha endeavors to prevent abuses of human rights, responding appropriately to the effect of its business activities
as well as to any attendant risks to human rights, with the goal of achieving a society that safeguards the dignity of all.
6. Yamaha works to create an atmosphere that holds in high regard the employee diversity that is a source of the newvalues created within the company, and which allows each person to fully demonstrate their sensibilities and creativity
through training and use, without regard to race, nationality, gender, or age.
Formulated in February 2010 and revised in July 2018

Yamaha Group Sustainability Policy
Japanese /English /Chinese /Indonesian

Sustainability Management
Basic Policy
The mission of the Yamaha Group is to continue pursuing its corporate philosophy, which is to utilize our held assets, various
resources, unique expertise, and sensibilities gained from our devotion to sound and music to create excitement and cultural
inspiration together with people around the world. To put this philosophy into practice, Yamaha is working to understand theimpact of our business activities on the environment and society and pursue dialogue with stakeholders, while solving
challenges toward the creation of a sustainable society.
Sustainability Issues and Initiatives in the Value Chain
Engagement with Stakeholders

Sustainability Management Applying ISO 26000
As of fiscal 2014, the Yamaha Group has been executing sustainability management by applying the principles of ISO 26000
Guidance on Social Responsibility. We are also organizing activities and initiatives in accordance with the core subjects of
ISO 26000, and managing the promotion and progress of sustainability activities.
Sustainability Management Promotion Plan

2
Yamaha Sustainability Report 2018

Promotion of Sustainability priorities
The Yamaha Group has established the Sustainability priorities, focused on the medium-to-long-term, based on the impact ofour business activities on the environment and society, as well as stakeholders’ expectations and societal demands. In
establishing our key themes, the Yamaha Group made sure that we listened to the voices of our customers, the local
communities in which we work, NPOs and NGOs, our employees, and others, grasped important topics in ESG evaluation,and held hearings with external experts. From this, we then devised the themes necessary for further promotion anddiscussed them at the executive level on the basis of medium- and long-term management strategies before determining
the themes.
We are making efforts to manage progress and promotion by monitoring the status and action plan of each theme
activity and conducting yearly reviews in the Management Council which is overseen by the president.
Yamaha Group Sustainability Policy

Progress of Sustainability Priorities
Sustainability
priorities

Major initiatives

Progress

Future issues and activity targets

Response tosocietal issues

Universal Design• Establishment of consortium topromote Universal Design in sound(Omotenashi guide)
Educational Solutions• Development and release of various
educational material, such as forchoruses or alto recorders, for the
Smart Education System (SES)
Health/Safety Solutions• Developed in-vehicle communication
modules for emergency call systems

Universal Design• Support consortium members/promote
standardization of technology• Determine standards and constructframework to promote Universal Design inYamaha products
Educational Solutions• Consider comprehensive solutions for next
generation music education
Health/Safety Solutions• Begin supplying in-vehicle communications
modules to market and expand suppliers

Response toenvironmental
issues• 16 Yamaha Eco products (320 totalmodels) certified as environmentallyfriendly products• Development and construction of
production system for thermoelectric
power generation module which canutilize waste heat

• Certify 40 Yamaha eco products a year as
environmentally friendly products• Conduct tests to release thermoelectric
power generation module on the market

Development of
products andservices with afocus on social/environmental
issues3
Yamaha Sustainability Report 2018

Major
relatedSDGs

Sustainability
priorities

Development ofregional
community-based
business andsocialcontribution
activities

Lowering ofgreenhouse gas
emissionsSustainableprocurement oftimber

Systematic
initiatives for therespect of humanrightsPromotion ofdiversity andhuman resources
development

Major initiatives

Progress

Future issues and activity targets

Spread instrumental
music education toschools• Introduction to 124,000 students in
933 schools in Russia and three
countries in southeast Asia (School
Project)• Introduction to 3,300 students in 33
schools in five countries in Africa andthe Middle East

• Introduce to 240,000 students in
1,350 schools in five countries,
including Russia and southeast Asia
• Introduce to 7,000 students in 60
schools in eight countries in Africa andsoutheast Asia

Support for youth
development
orchestra/band• Held instrument maintenance seminars
for users; systemized and launchedtraining program for repair techniciansof wind, string, and percussion
instruments in Latin America (AMIGO
Project)• Expand the number of countries andorganizations in Latin America (AMIGO
Project)

Community support• Promotion of community building
through music (Oto-Machi)• Strengthen promotion of Oto-Machi
project

Construction ofsystem to calculate
greenhouse gas
emissions acrossentire value chain• Calculation and disclosure of Scope 3
greenhouse gas emissions• Verification greenhouse gas emissions
by third party

Reduction ofgreenhouse gas
emissions duringbusiness activities• Consideration of establishing mediumto-long-term reduction targets basedon scientific knowledge (Science
Based Targets: SBT)

• Establish SBTs and emission reduction
plan

Avoid use of illegally
lumbered timber;promote use ofverified timber• Establishment of due diligenceprocedures to avoid using illegally
lumbered timber• Confirmation of legality of timber(including on-site visits)• Promote and brush up on due diligenceprocedures• Confirm 100% legality in tree logging
based on in-house standards

Procure timber withawareness of cyclebased forest
conservation• Completion of surveys to produce
high-quality timber in Tanzania;
beginning of tree-planting pilot project(African Blackwood)• Based on survey results, begin
expansion of tree nursery activities
and launch procurement of planted
trees (African Blackwood)

Develop system/
structure• Establishment of Yamaha Group
Human Rights Policy in January, 2018
• Promotion of human rights due
diligence (establishment ofmanagement items)• Promote training and awarenessraising based on human rights policy• Promote human rights due diligence(monitoring of management items)

Supply chain
management• Request and execution for 79 suppliercompanies to execute self-assessment
at beginning of transactions• Improve effectiveness by strengthening
supplier assessment system• Promote training and raise awarenessfor suppliers and supplier supervisors

Global humanresources
management• Determine and test Group standards
grading and development system• Promote human resourcesmanagement based on Group
standards grading and development
systemPromotion of theactive role of female
workers, response todiverse workstyles• Expansion of work-life balance support
system, execution of work- style
improvement trials, began female
manager development program• Increase ratio of female managers,
end of March 2018, 14.3% at YamahaGroup• Promote the utilization of work-lifebalance support system, grasping
expansion needs. Share informationand identify issues as a result of thework-style improvement trials. Promote
the female manager development
program across Group.
• Increase ratio of female managers to
17% at Yamaha Group

4
Yamaha Sustainability Report 2018

Major
relatedSDGs

Initiatives for Sustainable Development Goals (SDGs)
The Yamaha Group intends to contribute to the attainmentof the “Sustainable Development Goals” (SDGs) throughour business.
The Yamaha Group aims to contribute to Goal 4,“Quality Education,” through our initiatives to spreadmusic, which were listed in Sustainability priorities. We
also aim to contribute to Goal 12, “Responsible
Consumption and Production,” and Goal 15, “Life on
Land,” by procuring sustainable sources for timber
procurement. As such, the Yamaha Group intends todevelop products and services with an awareness of thegoals and targets of each SDGs, as well as improvebusiness processes.
In FY2018, the Yamaha Group used the intranet,
Group newsletters, posters, and internal seminars toconnect SDGs with the role of each personnel member,leading to a deeper understanding of SDGs. The YamahaGroup is engaged in discussions at the management levelto further increase contributions to SDGs in the next

medium-term management plan in order to both connect
themes and businesses related to sustainability to theobjectives and targets of SDGs as well as achieve thecorporate vision of “Becoming an Indispensable, Brilliantly
Individual Company.”

Sustainable Development Goals (SDGs)

Sustainability Education
The Yamaha Group aims to ensure sustainability throughout each aspect of its business operations and in all levels of thework force, from managers to new recruits. In order to make that possible, we engage in educational and awareness-raising
activities by sharing sustainability information via our website and Intranet, as well as through training and seminars for all
employees.

Fiscal 2018 Results
Item

TargetBasic training

New recruits, etc.

E-learning
Intranet

Number ofparticipantsContent
Introduction to sustainability, explanation of Yamaha Group
Sustainability Policy and measures, etc.

59

Domestic Group employees

Confirmation of degree of understanding of the “Yamaha CSR Report”

1,370

Domestic Group employees

Explanation of key sustainability themes, introduction of bestpractices at Yamaha and other companies, etc.

–

Education at new recruit training

Participation in Initiatives
With a commitment to cooperating and forming ties with the global society as we work toward building a sustainable
society, Yamaha signed the Global Compact in June 2011, and is working to adhere to the 10 Principles. Additionally, as amember of the Global Compact Network Japan, we are also actively participating in subcommittees.** FY2018 subcommittee participation: Environmental Management, Reporting, Kansai, Human Rights Due Diligence, Human Rights Education,
Disaster Prevent/Mitigation, SRI/ESG.

Support for the UN Global Compact
5
Yamaha Sustainability Report 2018

Sustainability Management Promotion Plan
Sustainability Management
Sustainability Management
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

PDCA activities to promotesustainability• Promoted Sustainability Priorities based on review
of management• Progress management based on the promotion plan

• Take efforts based on a managerial review of
Sustainability Priorities• Evaluate plans that take SDGs into consideration(KPI configuration, review Sustainability Priorities,
etc.)

Ensuring penetration of
Sustainability throughout
the Group* Applicable to all initiatives including Sustainability
Priorities• Implemented e-learning to confirm understanding ofsustainability (about 1,400 persons)• Implemented initiative to promote understanding of
SDGs (seminars, intranet, posters, Group
newsletters, etc.)• Promote understanding of SDGs and continue
initiatives for penetration of information• Plan seminars and E-learning

Engagement with Stakeholders
Theme

Results in Fiscal 2018

Developing a system thatreflects stakeholders' input• Responded to issues identified in third-party
opinions of the Sustainability Report• Implemented dialog between experts and executives

Plans in Fiscal 2019
• Confirm social requirements, and reflect ininitiatives and disclosure

Organizational GovernanceCorporate Governance
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Strengthening the corporate
governance system• Transferred to new governance system (move tocompany with nominating committee, etc.) andstabilized its operation• Execute continuous initiatives to raise effectivenessof corporate governance

Development of internal
control system• Promoted the development of an internal control
system• Initiatives to maintain work performance andefficiency• Initiatives related to managing the risk of loss, etc.
• Construction of an internal control system for use
throughout the Group• Promote the development of an internal control
system• Initiatives to maintain work performance andefficiency• Initiatives related to managing the risk of loss, etc.
• Construction of an internal control system for use
throughout the Group

Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Thorough observation of theCompliance Code of
Conduct within the Group• Raised awareness of Code of Conduct in JapaneseGroup Companies• Operated Compliance Hotline appropriately(Consultation /Reports: 47 cases)• Planned and implemented awareness promotion
content for the Intranet for Japanese companies• Implemented a global communications hotline
which can be utilized in 16 different languages• Ensure penetration and extension of revised
Compliance Code of Conduct (create versions invarious languages, study workshops at workplaces,etc.)• Conduct training for internal communications
hotline for overseas Group Companies• Survey employee awareness both domestically andoverseas

Compliance

6
Yamaha Sustainability Report 2018

Risk Management
Theme
Strengthening the risk
management system

Results in Fiscal 2018
• Created overall risk management PDCA
• Constructed global BCP system and framework• Executed earthquake-resistance 3-year plan

Plans in Fiscal 2019
• Create and advance overall risk management PDCA
• Ensure the global framework and system for BCP
takes root

Information Disclosure and IR Activities
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Promoting and expanding IR
activities to enhance
understanding of theCompany• Held investor briefings (results briefings, individualinterviews, visiting foreign investors, company
briefings for individual investors)• Collected and analyzed opinions of participants inbriefings• Hold investor briefings (results briefings, businessbriefings, factory/facility tours, individual interviews,
visiting foreign investors, company briefings forindividual investors)• Collect and analyze opinions of briefings
participants

Human Rights and Labor Practices
Respect for Human Rights
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Promoting human rights
awareness throughout the
Yamaha Group• Enacted “Yamaha Group Human Rights Policy”• Promoted human rights due diligence (establishedmanagement items)• Implemented employee education and awarenesspromotion via the intranet, etc.

• Promote human rights due diligence (create
monitoring system)• Expand awareness promotion activities throughe-learning, and seminars, etc.

Promoting measures toprevent harassment• Education and awareness promotion for employees
overall and the management class• Issued notices regarding measures to prevent
harassment• Familiarization activities, and maintained
appropriate operation of the hotline• Education and awareness promotion for employees
overall and the management class• Familiarization activities, and maintain appropriate
operation of the hotline

Promotion of Diversity and Inclusion
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Promoting employee
diversity• Partially implemented key measures in diversity
management promotion plans (Japan) (evaluatedfemale managerial candidate selection anddevelopment program, proactively hired foreign
employees including recruiting activities overseas)• Publicly announced action plan for assisting
women's careers• Investigated overseas group companies (number ofmanagerial positions for men and women, etc.)• Ongoing implementation of key measures indiversity management plans (Implementation of
female managerial candidate selection anddevelopment program, proactive recruitment offoreign employees, overseas group R&D, promotionof localization of development staff, etc.)• Investigate overseas group company employment
statusMeeting employment
requirements of society• Maintained ratio of employees with disabilities,
streamlined work environment• Expanded scope of rehiring system for persons
accompanying family on overseas assignment• Developed system for rehiring of employees who
retired to care for the elderly• Reviewed aspects of treatment of senior partners(re-employment system after retirement) such as
new establishment of allowance for working inremote areas• Promote employment of people with disabilities,
streamline work environment• Operate and stabilize rehiring system

7
Yamaha Sustainability Report 2018

Promoting a Better Work-Life Balance
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Improving work-life balance• Promoted use of preset company holidays and 15
days or more of paid leave a year
• Implemented Go Home at the Same Time Day• Promoted proper management of work hours using
objective data

• Thorough use of paid leave days for preset company
holidays, and promote taking paid leave for 15 daysor more per year
• Implement Go Home at the Same Time Day• Thoroughly implement proper management of work
hours making use of objective data

Communication with Employees
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Enhancing communications
between labor andmanagement• Set up labor and management meetings andconsultations• Dissemination of information transmission throughin-house journals (ASEAN, China)• Set up labor and management meetings andconsultations• Promote and grasp status of labor and management
communication in Group (e.g. expanding ER
activities)

Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Standardizing Group rules
and activities• Reviewed standards on personnel and goods(globally standardized)• Issued handy safety card in Malay and promoted
education to promote dissemination• Expanded introduction of risk assessment activities
to facilities• Implemented Group-wide safety and healthmonitoring• Develop health and safety education program(multi-level education, education of new employees
in Indonesia)• Expand introduction of risk assessment toproduction facilities in Japan and overseas, andprovide support for the stabilization and selfsustainment of such activities• Implement Group-wide safety and health monitoring• Provide support for newly built factories (establish
rules, system, plan, activities, etc.)

Maintaining employee
health• Implemented awareness promotion for undergoinghealth checkups and 100% achievement ofnecessary follow-up measures• Introduced stress checks and implemented followup measures• Implement awareness promotion for undergoinghealth checkups and 100% implementation ofnecessary follow-up measures• Expand stress checks for employees assigned
overseas

Health and Safety

Human Resource Development Initiatives
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Fair evaluations andtreatment, support for
growth• Implementation of a new personnel system (Yamaha
Corporation)• Conducted evaluation training for management• Consolidate new personnel system• Conduct evaluation training for management

Promoting purposeful,targeted education andtraining• Enhanced management personnel training program(sales-related)• Train manufacturing and crafting personnel (coreskill transmission, etc.)• Developed system for management anddevelopment of global management personnel• Develop Group personnel training systems• Train manufacturing and crafting personnel• Formulate plan for management and developmentof global management personnel

8
Yamaha Sustainability Report 2018

The Environment
Environmental Management
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Establishing environmental
management system• Maintained ISO 14001 certification at each facility• Acquired ISO 14001:2015 certification in 2015
• Applied Yamaha Environmental Management
System throughout the Group• Expanded targets for environmental performancedata collection• Maintain ISO 14001 certification at each facility• Ongoing operation of management systems for theentire Group Continue to apply Yamaha
Environmental Management System throughout theGroup• Determine EMS development policy at new overseas
factories• Expand targets for collecting environmental
performance data

Maintaining environmental
management capabilities• Implemented environmental education inaccordance with jobs and roles• Held seminars for training internal environmental
auditors and advanced training• Reorganized capabilities needs, and implemented
assessment• Promote environmental education in accordancewith jobs and roles• Train and improve skills of environmental auditors

Results in Fiscal 2018

Plans in Fiscal 2019

Environmental risk
management• No environmental pollution accidents• Updated wastewater disposal facilities at domestic
manufacturing subsidiaries• Promoted observance of Environmental Facility
Standards for prevention of environmental pollution,
implemented environmental audits at eight facilities• Started low-density PCB waste disposal• Execute risk reduction measures at new overseas
manufacturing facilities• Update wastewater disposal facilities atmanufacturing subsidiaries both domestic andoverseas facilities• Promote observance of Environmental Facility
Standards for prevention of environmental pollution• Promote low-density PCB waste disposal

Chemical substancemanagement and reduction• Continued reduction activities in accordance with
the Chemical Substances Usage Standards• Introduced VOCs processing devices in China,
reduced emission volume• Reduced volume of styrene used in expansion ofpaints inside molds• Continue reduction activities in accordance with theChemical Substances Usage Standards (especiallyfor VOCs, activities to use alternative materials andreduce emissions)• Promote and execute initiatives to completely
discontinue use of 1-bromopropane

Prevention of Pollution
Theme

Environmentally Friendly Products and Services
Theme

Results in Fiscal 2018

Creating environmentallyfriendly products• Operated in-house standards for environmentallyfriendly products• Calculated and disclosed greenhouse gases emitted
while using products• Implemented education for environmentally-friendly
design9
Yamaha Sustainability Report 2018

Plans in Fiscal 2019
• Enhance environmentally friendly products• Improve accuracy of calculation of greenhousegases emitted while using products• Ongoing implementation of education forenvironmentally-friendly design

Use of Sustainable Resources
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Using wood resources
appropriately andeffectively• Implemented primary investigation of traceability
and sustainability of procured timber• Created framework for timber tallying system• Started construction of a business model forsustainable use of African Blackwood timber• Improve rate of confirmation of legality at time of
cutting trees according to in-house standards• Organize timber procurement standards, due
diligence procedures• Confirm supply conditions of certified timber,
evaluate use thereof• Investigate and select out issues for improvement offorestry management skills at local sites (AfricanBlackwood)

Reduction and recycling ofwaste• Promoted recycling of metals, etc.
• Activities to reduce rejection rate during
manufacturing processes• Effectively used sawdust waste• Promote effective use of waste• Reduce emission of waste by implementing waste
liquid concentrating device

Conserving and effectively
using water resources• Promoted water recycling at overseas
manufacturing facilities• Checked water-related risks at all facilities of theGroup• Introduce closed system at new factory in India• Promote water recycling at Chinese factories

Climate Change Mitigation and Adaptation
Theme

Reducing greenhouse gas
emissions related tobusiness activities

Results in Fiscal 2018
• Regarding greenhouse gas emissions,- Group-wide understanding of Scope 1 and 2
emission volumes- Expanded calculation scope to Scope 3• Upgraded to energy-saving equipment, installed
LED for lighting

Plans in Fiscal 2019
• Regarding greenhouse gas emissions,- Improve precision of calculations for Scope 3- Conduct evaluation of emissions volume by third
party- Formulate medium-to-long term reduction plan for
Scope 1 and 2• Continue ongoing efforts to reduce greenhouse gas
emissions at domestic and overseas facilities

Biodiversity Preservation Initiatives
Theme
Promoting forests andnatural environment
preservation activities

Results in Fiscal 2018

Plans in Fiscal 2019

• Held Enshunada coastal forest recovery activities• Participated in activities to protect rare organisms• Enshunada coastal forest recovery activities• Confirm growth status of tree nursery in Indonesia
using satellite imaging• Participate in activities to protect rare organisms

Fair Operating Practices
Protection from Corruption
Theme

Results in Fiscal 2018

Thoroughly preventing
corruption, and building adeterrence system• Conducted surveys at domestic and overseas Group
companies (54 companies)

10
Yamaha Sustainability Report 2018

Plans in Fiscal 2019
• Create Group-common operational guidelines

Responsible Participation in Politics
Theme
Maintaining transparency
with respect to participationin politics

Results in Fiscal 2018
• Consistently applied systems for conferences,consultations and audits

Plans in Fiscal 2019
• Continue to consistently apply systems forconferences, consultations and audits

Fair Trade Practices
Theme

Results in Fiscal 2018

Strictly adhering to faircompetition and building adeterrent system toeliminate anti-competitive
behavior• Implemented laws and regulations training for the
Anti-Monopoly Act, etc., with a total of
approximately 140 participants

Plans in Fiscal 2019
• Implement laws and regulations training for the
Anti-Monopoly Act, etc.

Promotion of Social Responsibility in the Value Chain
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Promoting sustainability inthe supply chain• Executed survey of 79 companies before start of
new transaction (self-assessment)• Executed educational session regarding
procurement of timber (26 participants)• Improve supplier assessment system• Execute survey before start of new transaction (selfassessment)• Educate personnel in charge of procurement

Respect for Property Rights (Protecting Intellectual Property)
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Managing and appropriately
using intellectual property• In-Group monitoring regarding handling ofintellectual property• Hosted copyright seminars, lecture meetings• Effectively managed intellectual property owned by
Yamaha• In-Group monitoring regarding handling ofintellectual property• Internal education and awareness promotion forproper use of intellectual property rights of others(e.g. hosted copyright seminars, lecture meetings)• Effectively manage intellectual property owned by
YamahaConsumer Issues
Product/Service Information Disclosure
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Appropriately disclosing
information on the safety of
products and services• Regular review of safety awareness promotion
information• Operated in-house provisions for proper information
disclosure• Periodic review of safety awareness promotion
information• Consider revision to in-house provisions for proper
information disclosure

Ensuring Product/Service Safety
Theme
Ensuring product safety andtaking immediate action
when faced with a productsafety issue

Results in Fiscal 2018
• Revised standards for product safety risk
assessment• Executed internal seminars

11
Yamaha Sustainability Report 2018

Plans in Fiscal 2019
• Establish effective methods to link information
regarding past incidents with measures topreemptively prevent similar difficulties• Establish method to improve capability to detect risk
during design and use

Quality Assurance
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Strengthening the quality
assurance system andquality management• Expanded scope of operation of Group quality
management system• Education in response to ISO 9001:2015 for QMS
internal auditors• Promoted reinforcement of safety management forcustomers (resort business)• Expand scope of application of Group quality
management system• Review quality assurance training system• Promote reinforcement of safety management forcustomers (music education business)• Improve quality governance

Results in Fiscal 2018

Plans in Fiscal 2019

Sustainable Consumption
Theme
Contributing to sustainability
through products andservices• Additionally certified Yamaha Eco products: 16
models• Yamaha Eco products additional certification goal:
40 models

Improving Customer Satisfaction
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Improving customer
satisfaction with products
and services• Implemented new member system to improve
communication with customers• Promoted sharing information regarding customer
opinions globally• Expanded training which focuses on customer
perspective• Improve process to reflect customer evaluations in
products and services• Improve management of customer support
department• Promote systematic expansion of efforts to foster aculture of understanding customer orientation

Initiatives for Improved Customer Response and Support Improving Customer Satisfaction
Theme

Results in Fiscal 2018

Initiatives for improved andmore uniform customer
response and support• Began monitoring operation of Group After-sales
Service Management Policies & Rules

Plans in Fiscal 2019
• Establish processes for customer support
management

Personal Information Protection (Customer Data and Privacy)
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Preventing information leaks
by managing the personal
information of customers• Improved security for personal information
management (preparation of storage facilities
equipped with automatic encryption functionality)• Reinforce measures for prevention of leaks• Prevent recurrence of loss of terminal equipment

Enhancing Products and Services
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Promoting universal design• Introduced and promoted “Omotenashi Guide”• Considered UD policy• Communicate UD policy both inside and outsidecompany• Determine guidelines and consider introduction into
provisions for each business

Proposing solutions for
issues in society• Development of applications for thin film
displacement sensors (wearable devices inhealthcare field, etc.)• Plan products and services based on importantsocial issues such as SDGs

12
Yamaha Sustainability Report 2018

Community Involvement and Development
Connection to Local Communities
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Building good relations with
communities that are home
to our offices and factories• Held discussions with local communities atindividual offices (information exchange sessions,etc.)• Participated in local activities (environmental
preservation, social welfare)• Hosted piano factory tours, 11,600 participants• Hold ongoing discussions with local communities at
each facility• Ongoing active participation in local activities• Host piano factory tours• Develop framework for accepting visitors toInnovation Road

Promoting Music Culture (Promoting Initiatives through Sound and Music)
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Help promote and develop
music culture• Music Time program: introduced to 248 schools inthree countries• Introduction of musical instrument education in
Vietnam: launched recorder club activities in 10
schools• Hosted and participated in local music events
including Hamamatsu Jazz Week

• Music Time program: introduced to 500 schools infour countries• Introduction of musical instrument education in
Vietnam: expand recorder club activities to 50
schools in three cities• Host and participate in local music events including
Hamamatsu Jazz Week

Contributing to Regional Community Development
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Helping regional community
making use of resources• Promoted Oto-Machi Project for Community
Development through Music• Promoted maintenance of musical instruments in
Latin America (AMIGO PJ), systemized andexpanded training program for fostering repair
specialists of wind, string, and percussion
instruments• Strengthen and promote Oto-Machi Project forCommunity Development through Music• Expand number of countries and organizations for
Latin America activities (AMIGO PJ)

Support that Helps Foster Future Generations
Theme

Results in Fiscal 2018

Plans in Fiscal 2019

Provision of study
experience to children andyouth• Implemented manufacturing classes: hosted 4times, total 320 participants• Began provision of digital music classroom teachingmaterials such as “VOCALOID for Education,”“Guitar Class,” “Koto Class,” etc.

• Implement manufacturing classes and evaluate newprograms• Plan and develop educational support contents

Donations and Social Welfare Activities
Theme
Promoting donations andsocial welfare activities

Results in Fiscal 2018
• Expanded activities to foster a volunteer spirit
amongst employees• Evaluated continuation of support and the ideal
state of support for areas affected by disasters

13
Yamaha Sustainability Report 2018

Plans in Fiscal 2019
• Expand activities to fostering a volunteer spirit
amongst employees• Evaluate continuation of support and the ideal stateof support for areas affected by disasters

Engagement with Stakeholders
Basic Philosophy
The Yamaha Group’s business activities are conducted through relationships with various interested parties. We consider
these parties to be key stakeholders and categorize them into separate groups, such as the customers to whom we provide
products and services, the shareholders and investors, our employees, our business partners (suppliers, clients andsubcontractors), and the people in the regional communities where we develop our business. We also place importance on
consideration for the global environment, since our business activities could have both positive and negative influence on it.
The Yamaha Group encompasses “Customer-Oriented and Quality-Conscious Management,” “Transparent and Sound
Management,” “Valuing People,” and “Harmony with Society” as promises to stakeholders. In order to pursue these values
and remain committed to our corporate slogan, “Sharing Passion & Performance,” we use various opportunities forcommunication that enables us to listen to the opinions and needs of all stakeholders and reflect these in our corporate
activities.
We also solicit opinions on our sustainability activities from an expert each year, and work hard to make improvements
based on his/her ideas. We will continue to examine more multifaceted review systems.

Opportunities and Methods for Communicating with Key Stakeholders

Customers
In offering products and services, we aim to impress and deeply satisfy the customer.

Key Responsibility
Provision of safe and secure products and services of value/Promotion of universal design/Appropriate provision of productinformation/Appropriate customer response and support/Appropriate protection of customer privacy and personal information

Usual Method of Communication
Customer inquiries service for each product and service (telephone and email, etc.)/Regular business activities

Communication examples

Improving Customer Satisfaction
Initiatives for Improved Customer Response and Support

Shareholders/Investors
We disclose management information to and engage in proactive and continuous communication with the shareholders andinvestors who financially support our business activities.

Key Responsibility
Timely disclosure of accurate management information/Appropriate profit allocation/Maintenance and improvement ofcorporate value

14
Yamaha Sustainability Report 2018

Usual Method of Communication
General Shareholders’ Meeting/Briefing sessions for investors/Website and e-mail magazine for investors

Communication examples

Information Disclosure and IR Activities (Communication with Shareholders and Investors)

Employees
We respect the individuality and sensitivity of the people who work at Yamaha, we work to create an environment where
each and every one of them can display creativity, and we aim to create a corporate culture that allows us to offer better
products and services.

Key Responsibility
Fair evaluation and treatment/Respect for human rights and diversity/Application and training of human resources/Support fordiverse working styles/Ensuring health and safety

Usual Method of Communication
Opinion surveys on business management/Labor-management meetings and consultations

Communication examples

Communication with Employees

Business partners (suppliers, clients, subcontractors)
We consider our business partners to be organizations with whom we walk hand in hand toward the goal of achieving ourcorporate philosophy, and we work to deepen mutual understanding and build and maintain a good relationship of trust withthem, based on a foundation of fair and transparent dealings.

Key Responsibility
Selection of business partners by fair and reasonable standards/Fair trade practices/Elimination of dubious business
relationships/Prohibition of the abuse of dominant bargaining positions

Usual Method of Communication
Regular business and procurement activities/Production and sales trend report meetings/Policy briefing sessions/ surveys

Communication examples

Promotion of Social Responsibility in the Value Chain

Local communities
Regarding our business activities in different countries and regions, we comply with the related laws, ordinances andinternational standards, giving ample consideration to environmental conservation and respect for human rights. Moreover,
we proactively participate in various activities that contribute to the development of regional society and culture, and wecontribute to building a better community as a corporate citizen that is one member of society.

Key Responsibility
Coexistence with the region and contribution to its development (promotion of culture, education of the next generation,
welfare, job creation, technology and skill development, etc.)

Usual Method of Communication
Information exchange meetings with regional and local organizations/Factory tours/Employee participation in regional activities

Communication examples

Connection to Local Communities
Contribution to Regional Community Development

Global environment
We understand the significance of environmental conservation and the preservation of biodiversity for the sake of the earth’s
environment, which is the basis of a sustainable society. We are engaged in various activities to contribute to theenvironment, including of course reducing the environmental burden of our business activities, products, and services.

Key Responsibility
Prevention of pollution/Mitigation of climate change/Conservation of water resources/Management and reduction of chemical
substances/Conservation of biodiversity

Usual Method of Communication
Information exchange and dialogue with the local communities and NPO/NGOs

15
Yamaha Sustainability Report 2018

Sustainability Issues in the Value Chain
The Yamaha Group provides various products and services, including musical instruments.
Yamaha is fulfilling its social responsibilities by addressing issues related to the value chain by focusing on the impact of
its products, services, and production processes on society and the environment.

Download

UN Global Compact
The United Nations (UN) Global Compact was proposed by the Secretary General of the UN in 1999
and consists of 10 universally accepted principles in the areas of human rights, labor, theenvironment, and anti-corruption. The top management of companies that become signatories to
the Global Compact pledge their commitment and, within the scope of their enterprises, promise towork consistently to achieve the objectives espoused under the 10 principles. Since signing the
Global Compact in June 2011, Yamaha has actively worked to cooperate with the Global Compact
Network Japan in conducting subcommittees.

(http://ungcjn.org/)

The 10 Principles of the United Nations Global Compact
Human
RightsPrinciple 1: Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;Labor

Principle 4: the elimination of all forms of forced and compulsory labor;
Principle 5: the effective abolition of child labor; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges;

Environment

Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

AntiCorruption

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

16
Yamaha Sustainability Report 2018

Activities Report
Organizational Governance
Human Rights and Labor Practices
The Environment
Fair Operating Practices
Consumer Issues
Community Involvement and Development

17
Yamaha Sustainability Report 2018

Organizational GovernanceCorporate Governance
Basic Policies for Corporate Governance
The Yamaha Group has issued the Yamaha Philosophy and our Promises to Stakeholders, which outline our commitment
to ensuring strong profitability while upholding our social responsibilities as a company, and thereby to achieving sustainablegrowth and improving corporate value over the medium- to long-term. We carry out transparent, high-quality business
management based on the basic policies for corporate governance indicated below.

Basic policies for corporate governance– From a shareholder's perspective, ensure the rights and equal treatment ofshareholders– Taking into consideration our relationships with all stakeholders, proactively fulfill
the Company's social responsibilities– Ensure that information is disclosed appropriately and the management istransparent– By separating the oversight and executive functions and strengthening theoversight function, ensure that the Board of Directors is highly effective while atthe same time executing decisions appropriately and with a sense of urgency– Proactively engage in dialogue with shareholders

Basic Corporate Governance System
Yamaha Corporation made the transition to a Company with Three Committees (Nominating, Audit, and Compensation) from
June 22, 2017, with the objectives of making a clear separation between the oversight and the execution in management,
thereby enhancing the oversight function of the Board of Directors and speeding up the execution of business.
Regarding the composition of the Board of Directors, the Company has appointed a Board with two thirds (2/3) of themembers from independent Outside Directors with a diversity of backgrounds and specialties, including persons withmanagement experience in other industries. Also, by forming a Nominating Committee, Audit Committee, andCompensation Committee with a majority of independent Outside Directors as obligated by law, the Company can execute
its oversight function with further transparency and objectivity. The Audit Committee will strengthen the oversight function
through audit by implementing validity checks in addition to legal checks, in cooperation with the Internal Audit Division.
Also, as an official function under the Companies Act, the Company established the Executive Officer position toassume a direct responsibility to shareholders, and they have been delegated major authority from the Board of Directors. By
having the Executive Officers functioning as important decision-makers in the execution of business operations, theCompany is aiming to speed up this process.
By implementing the abovementioned measures to strengthen the oversight functions and speed up the execution, theCompany endeavors to further strengthen corporate governance and to continuously increase corporate value.

18
Yamaha Sustainability Report 2018

Corporate Governance Structure(As of June 26 ,2018)

Download

Governance Organization Personnel

Directors
Executive Officers
Operating Officers
Nominating Committee Members
Audit Committee Members
Compensation Committee Members(Yamaha Corporation, as of June 26, 2018)

Total
Outside Directors
Total
President and Representative Executive Officer
Managing Executive Officer
Total
Total
Outside Directors
Total
Outside Directors
Total
Outside Directors

Governance Organization Personnel, by Nationality

Directors
Executive Officers

Male
8
5
7
1
2
10
4
3
3
2
4
3

Female
1
1
0
0
0
0
0
0
1
1
0
0

(Yamaha Corporation, as of June 26, 2018)

Total
Outside Directors
Total
President and Representative Executive Officer
Managing Executive Officers
Operating Officers

Japan

Overseas

9
6
7
1
2
9

0
0
0
0
0
1
Directors and Officers

19
Yamaha Sustainability Report 2018

Board of Directors
As of June 26, 2018, there are nine (9) Directors (including six (6) independent Outside Directors).
The Board Meeting held monthly (in principle).
The Board of Directors oversees the conduct of duties by the Executive Officers and the Directors, and makes decisions
on important matters that are specified in laws and regulations, the Articles of Incorporation, and the Regulations of theBoard of Directors.
In keeping with its fiduciary duties, the Directors act to ensure the Company's sustainable growth and enhance its
enterprise value over the medium- to long-term, taking into consideration the relationships with all stakeholders.
Directors understand relevant laws and regulations and the Company's Articles of Incorporation and gather sufficient
information in order to proactively express their opinions and engage in constructive discussions at the Board of Directors'
meetings as elsewhere.

Nominating Committee
The Nominating Committee has four (4) members (including three (3) Outside Directors) as of June 26, 2018. A majority ofthe members are independent Outside Directors, and both committee members and the chair are appointed by the Board of
Directors.
The Nominating Committee decides on the content of the proposals to be submitted to the General Shareholders'Meeting for selection/dismissal of Directors and the content of proposals submitted to the Board of Directors for selection/
dismissal of Executive Officers and Operating Officers. The Nominating Committee also implements the succession plan for
the Chief Executive Officer and other officers through activities to develop human resources that can assume the positionsof Director, Executive Officer, and Operating Officer.

Audit Committee
The Audit Committee has four (4) members (including three (3) independent Outside Directors) as of June 26, 2018. A
majority of the members are independent Outside Directors, and both committee members and the chair are appointed by
the Board of Directors.
The chair shall be an independent Outside Director. The Audit Committee either works in collaboration with the Internal
Auditing Division or conducts audits directly on its own initiative, and audits the structure and operation of the internal control
systems of the Company and other Group companies. Based on audit results, the Audit Committee conducts audits todetermine the legality and appropriateness of the conduct of duties by the Executive Officers and Directors.
When deemed necessary, members of the Audit Committee report to or express their opinions to the Board of
Directors, or may issue cease and desist injunctions of Executive Officers and/or Directors. In addition, the Audit Committee
may decide on proposals to be considered in the General Shareholders' Meeting, including the selection/dismissal of the
Accounting Auditor.
The Audit Committee shall select full-time members to increase the effectiveness of internal information gathering. In
addition, an Audit Committee's Office will be established as a specialized organizational unit that reports directly to the Audit
Committee to assist the committee members in the performance of its work. To secure independence from the Executive
Officers and other persons engaged in the conduct of business, personnel evaluations, changes in personnel assignments,
and rewards/disciplinary punishments of the staff of the Audit Committee's Office will require the approval of the Audit
Committee.
For matters where it is necessary to undertake auditing of the conduct of duties by the Executive Officers andDirectors, the Audit Committee will make arrangements to ensure that sufficient and appropriate audits can be conducted,
including collaboration and sharing information with the Accounting Auditor and the Internal Auditing Division, and engage inactivities to increase auditing quality and realize the efficiency of auditing.
The Internal Auditing Division must report on the results of their auditing activities to the Audit Committee periodicallyand at other times when appropriate, and any time when there are requests for such reports from the Audit Committee.
The Audit Committee shall be able, when necessary, to give instructions regarding audits to the Internal Auditing
Division.
In cases where audit-related instructions given by the Audit Committee conflict with those given by the President andRepresentative Executive Officer, the instructions of the Audit Committee will take precedence.
When the manager of the Internal Auditing Division is going to be reassigned, the opinions of the Audit Committee shallbe heard in advance.

20
Yamaha Sustainability Report 2018

Compensation Committee
The Compensation Committee has four (4) members (including three (3) independent Outside Directors) as of June 26, 2018. A
majority of the members are independent Outside Directors, and both committee members and the Committee Chairman are
appointed by the Board of Directors.
The Compensation Committee establishes policies regarding the setting of compensation for Directors, Executive
Officers, and Operating Officers and, based on these policies, sets the compensation of such officers individually.

Executive Officers
As an official function under the Companies Act, the Executive Officer position shall bear direct responsibility toshareholders.
There are seven (7) Executive Officers as of June 26, 2018. The Executive Officers will make important decisions froma Companywide perspective on matters related to the conduct of business that have been delegated to them by the Boardof Directors and will be subject to the oversight of the Board of Directors.
A member of the Executive Officers, the President and Representative Executive Officer will represent the Company
and, with supreme duties for matters of the Company, will be in overall charge of business under the basic policies set by
the Board of Directors.
Managing Executive Officers and Executive Officers will provide assistance to the Representative Executive Officer andwill have the position and duties corresponding to general managers in charge of core divisions.

Operating Officers
The Operating Officers will execute the business activities they are responsible for from a Companywide perspective basedon the important decisions related to conduct of business made by the Board of Directors or the Executive Officers, under
the oversight of the Executive Officers.
The Operating Officers will be heads of core divisions of the organization and/or be officers responsible for major Group
companies.
As of June 26, 2018, the Company has 10 Operating Officers.

Process and Standards for Selecting Directors and Other Personnel
Regarding the selection of candidates for Director, the Nominating Committee selects candidates based on basic personalqualities and capabilities, competency, experience and record of achievements that are required of internal directors andoutside directors as defined by their respective roles, and then decides on the content of selection proposals to be submitted
to the General Shareholders' Meeting.
Regarding the selection of members and the chairs of the Nominating Committee, Audit Committee, and Compensation
Committee, the Nominating Committee selects candidates based on personal qualities and capabilities as defined by theroles of each of these committees. The Nominating Committee then decides on the content of selection proposals to besubmitted to the Board of Directors. Note that for the selection of candidates for the members and the chair of the Audit
Committee, the Nominating Committee gathers opinions from the Audit Committee in advance.
For Executive Officers, the Nominating Committees selects candidates based on basic personal qualities andcapabilities, competency, experience, and record of achievements that are required of Executive Officers as defined by theirrespective roles, and then decides on the content of selection proposals to be submitted to the Board of Directors.
For Operating Officers, the Nominating Committee selects candidates based on personal qualities and capabilities they
are required to play as defined by their respective roles, and then decides on the content of selection proposals to besubmitted to the Board of Directors.

21
Yamaha Sustainability Report 2018

Reason for Appointment of Outside Directors
Title

Name

Reason for appointment

Director

ShigeruNosaka• He is a person of desirable personality and has considerable insight as a director.
• He has vast experience in running businesses in other industries.
• He can be expected to strengthen the oversight function of the Board of Directors and provide appropriate advice
from an objective viewpoint.

Director

Masatoshi
Ito• He is a person of desirable personality and has considerable insight as a director.
• He has vast experience in running businesses in other industries.
• He can be expected to strengthen the oversight function of the Board of Directors and provide appropriate advice
from an objective viewpoint.

Director Junya Hakoda• He is a person of desirable personality and has considerable insight as a director.
• He is a certified public accountant and is acquainted with corporate finance and accounting.
• He can be expected to strengthen the oversight function of the Board of Directors and provide appropriate advice
from an objective viewpoint.

Director

YoshimiNakajima• She is a person of desirable personality and has considerable insight as a director.
• She has vast experience in running businesses in other industries.
• She can be expected to strengthen the oversight function of the Board of Directors and provide appropriate advice
from an objective viewpoint.

Director

Taku
Fukui

• He is a person of desirable personality and has considerable insight as a director.
• He is an attorney at law and is acquainted with laws and regulations.
• He can be expected to strengthen the oversight function of the Board of Directors and provide appropriate advice
from an objective viewpoint.

Director

Yoshihiro
Hidaka• He is a person of desirable personality and has considerable insight as a director.
• He has experience as the President and CEO of Yamaha Motor Co., Ltd.
• He can be expected to strengthen the oversight function of the Board of Directors, improve brand value, andprovide appropriate advice from an objective viewpoint.

* Yamaha has registered six Outside Directors — Shigeru Nosaka, Masatoshi Ito, Junya Hakoda, Yoshimi Nakajima, Taku Fukui, and Yoshihiro Hidaka— as independent directors pursuant to Tokyo Stock Exchange provisions (as of June 26, 2018).

Major Activities by Outside Directors in the Year Ended March 31, 2018
Board ofDirectors

Board ofAuditors

Nominating
Committee

Audit
Committee

Compensation
Committee

13

4

5

15

1

Attended

12

–

5

–

1

Attendance rate*

92.3%

–

100%

–

100%

Attended

13

–

5

–

1

Attendance rate*

100%

–

100%

–

100%

Attended

13

–

5

–

1

Attendance rate*

100%

–

100%

–

100%

Outside Director
Junya Hakoda

Attended

13

4

–

15

–

Attendance rate*

100%

100%

–

100%

–

Outside Director
Yoshimi Nakajima

Attended

10

–

–

15

–

Attendance rate*

100%

–

–

100%

–

Attended

9

–

–

15

–

Attendance rate*

90%

–

–

100%

–

Total meetings held
Outside Director
Hiroyuki Yanagi
Outside Director
Shigeru Nosaka
Outside Director
Masatoshi Ito

Outside Director
Taku Fukui* The attendance rate denominator is the total number of meetings held during each person's term of service* Outside Director Hakoda's attendance includes the number of meeting attended at the Board of Auditors up to June 22, 201722
Yamaha Sustainability Report 2018

Support system for Outside Directors
Providing Information to Outside Directors
In principle, management meetings are held monthly with the aim of sharing and discussing important management mattersand the directionality of business strategy with all directors. In addition, the outside directors receive individual explanations
regarding the agenda of the Board of Directors and other reported matters where necessary.

Regular Meetings Among Outside Directors
The Outside Directors regularly hold meetings for only the Outside Directors for the purpose of exchanging views based on
an objective perspective and developing a shared awareness of issues.
They also regularly hold meetings to exchange ideas with the President and Representative Executive Officer.

Development of Internal Control System
Based on the Companies Act and Ordinances for the Enforcement of the Companies Act, Yamaha Corporation has put inplace systems to secure the proper conduct of its business activities (hereinafter, Internal Control Systems). The aims ofthese systems are conducting business efficiently, securing the reliability of reporting, securing strict compliance with laws
and regulations, preserving the value of Company assets, and strengthening risk management.
The Company has structured the Internal Control Systems for the Group as a whole, based on the “Group Management
Charter,” which sets forth basic Group management policies, and the “Group Internal Control Policy,” which sets internal
control policy for the Group. Regarding decisions on the status of management and on issues with some degree ofimportance which may have an effect on the management condition of the Group, Subsidiaries are required to receive
approval from the Company in advance and report certain items to the Company.

Information Relating to Conflicts of Interest
When engaging in transactions with Directors, Executive Officers, or close relatives thereof, necessary systems shall be put
in place and monitored to ensure that they are not detrimental to Yamaha Corporation or its shareholders' common interests.
With the approval of the Board of Directors pursuant to the Companies Act, the results of related party transactions shall bereported after a transaction is completed.

Policy and Status Concerning Executive Officer Remuneration
Remunerations for Directors
Individual amounts and policy regarding the renumeration of Directors and Executive Officers have been determined in theCompensation Committee, which is comprised of three Outside Directors and one internal Director.
Compensation for Directors (excluding Outside Directors and Audit Committee members) and Executive Officers(excluding the Executive Officer in charge of the internal audit) will consist of (1) fixed compensation, (2) performance-linked
bonuses, and (3) compensation in the form of restricted stock. The approximate breakdown of total compensation of (1), (2),and (3) will be 5:3:2.
“(2) Performance-linked bonuses” will vary according to the Company's consolidated net income and consolidated
return on equity (ROE) in the previous fiscal year, and these bonuses will be calculated with consideration for the individual's
record of performance. The evaluation of individual performance will be based on indicators of performance set by businessand function in each area the individual is responsible for. “(3) The Restricted stock compensation plan” has been introducedwith the intent of continuously improving the corporate value, and having the Directors and Executive Officers share acommon interest with shareholders. Compensation based on Company performance has also been introduced to provide a
motivation for reaching performance goals in the medium term, therefore the two thirds (2/3) of the total amount is linked to
the Company performance. Conditions for performance will be measured by giving equal weight to three indicators; namely
the rate of sales (ROS), earnings per share (EPS), and return on equity (ROE), which are set out in the medium-term
management plan. The period of restriction on stock disposal shall be for ten (10) years (or till the retirement of Director or
Executive Officer) for the purpose of aligning the interests of the corporate officers with those of the shareholders over along period after the end of the medium-term management plan. In addition, in the event of serious cases of accounting
fraud and/or major losses, a claw-back clause is included that will require the return of all or a portion of restricted sharestransferred to officers on an accumulated basis to date, depending on the responsibility of the officers in charge.
Outside Directors and Directors who are members of the Audit Committee as well as the Executive Officer in charge ofthe internal audit will receive only the fixed compensation.

23
Yamaha Sustainability Report 2018

Amount of Remuneration and Other Compensation Provided to Yamaha Directors, Executive Officers, and Auditors (Year Ended March 31, 2018)
Compensation by Type (Millions of Yen)
Total
PerformanceCompensation in
Compensation
Fixed
Performancebased
the form of(Millions of Yen) Remuneration
based bonuses
compensation
restricted stock

Classification

Number of
directors,
auditors, andofficers

Director

115

103

11

–

–

10

Outside Directors

45

45

–

–

–

6

Executive Officers

413

189

–

140

83

7

Corporate Auditors

19

19

–

–

–

4

Outside Auditors

4

4

–

–

–

2

Amount of Remuneration and Other Compensation Provided to Yamaha Directors, Executive Officers, and Auditors (Year Ended March 31, 2018)
Compensation by Type (Millions of Yen)
Total
Compensation
Performance-based
Bonuses(Millions of Yen) Fixed Remunerationcompensation

Classification

Number of
directors andcorporate
auditors

Directors(excluding Outside Directors)

256

125

47

82

5

Corporate Auditors(excluding Outside Corporate
Auditors)

60

60

–

–

3

Outside Directors and Outside
Corporate Auditors

32

32

–

–

7

Reflecting the Opinions of Stakeholders
A System to Reflect the Opinions of Stakeholders in Management
In addition to the respective dialogue with shareholders and investors, Yamaha Corporation gives presentations on its
medium-term management plan and quarterly earnings for securities analysts and institutional investors, provides businessbriefings, and conducts facilities tours and gives presentations to individual investors. The Company also posts its
management plan and the explanatory materials used in earnings presentations on the Company website.
The results of the dialogue with shareholders and investors are reported to the Board of Directors by the Director,
Executive Officers, or Operating Officers responsible on a timely basis, and they will be appropriately reflected in the
management of the Company, leading to the Group's sustainable growth and enhancing enterprise value over the mediumto-longer term. Additionally, the voting is analyzed for each resolution at the Ordinary General Shareholders' Meeting, andthis is reported to the Board of Directors.
Information Disclosure and IR Activities (Communication with Shareholders and Investors)

Corporate Governance Policies/Report
In accordance to the provisions of the Tokyo Stock Exchange and the Corporate Governance Code, the Company has createda policy and report which describes our thoughts and systems for corporate governance.
Corporate Governance Report (PDF: 610 KB) Revised on November 14, 2018
Corporate Governance Policies (PDF: 229 KB) Revised on June 25, 201824
Yamaha Sustainability Report 2018

Compliance
Compliance Management Mechanisms and Promotion System
The Yamaha Group aims to achieve a high level of compliance management not only by conforming with laws andregulations, but also through adherence to social norms and corporate ethics.
We have established the Compliance Subcommittee under the Risk Management Committee to serve as theorganization with primary responsibility over the setting of policy and consideration of items concerning compliance. In
addition to formulating policies for ensuring compliance within the Yamaha Group, this subcommittee shall monitor every
department and Group company to ensure that business is being done ethically and according to law. It also takes measures
aimed at maintaining sound business activities. These measures include providing training and education to employees,
conducting questionnaires, and setting up help lines for internal reporting and consulting.

Compliance Subcommittee Activities

Compliance Promotion System

Activities
4 meetings in FY 2018

Major Achievements• Examined activities to ensure compliance throughout theGroup• Reported activities during Compliance Improvement Month• Promoted awareness of the Compliance Code of Conduct inJapan and revised and promoted awareness of the Code of
Conduct overseas

Compliance Code of Conduct
The Yamaha Group formulated the Compliance Code of Conduct in 2003 as the code of conduct for each company andindividual employees. Since then, we have made revisions according to the changes in environment and social
circumstances and developed individual language versions, promoting dissemination of the Compliance Code of Conduct.

Major Revisions to Date
Expanded on explanation concerning Code of Conduct and related laws (2011)
Unified our terminology and expressions to reflect the change to our
Corporate Philosophy and group policies. Our expressions associated withJapanese laws were revised to globally-accepted expressions. (2016)

Country-Specific Versions
The global versions (Japanese and English) were referenced to create Codes ofConduct in languages spoken by each country in which we have a Group company
in order to comply with the laws of those countries. We also created explanatory
booklets. (completed revised version for 12 companies as of end-FY 2018)25
Yamaha Sustainability Report 2018

Overseas versions of the Code of Conduct
bookletTraining and Education
Publication of Compliance Code of Conduct Booklets
The Yamaha Group publishes and distributes to all its employees in Japan a booklet that describes in detail the Group’s
Compliance Code of Conduct. In addition to these efforts, we also make the booklet available in PDF format on our intranet.

Code of Conduct recipients• All Yamaha Group employees in Japan (including part-time staff working under employment contracts) and temporary staff• Promote awareness with booklet and PDF version overseas

Code of Conduct education efforts• Code of Conduct explanations were given as part of a compliance program in stratified training for employees• Conducted read throughs at information sessions and within departments every time revision were made (Yamaha
departments and domestic Group companies)

Compliance Improvement MonthThe Yamaha Group has designated October as the month to bolster compliance every year in line with Keidanren’s Corporate
Ethics Promotion Month, and is working on a number of initiatives in this regard.

Major Efforts in FY 2018
• Put up posters to promote awareness• Held legal training on achieving compliance with the Antimonopoly Act and Act Against Delay in Payment of Subcontract
Proceeds, etc., to Subcontractors (Subcontract Act) (10 sessions held, 220 participants)

Intranet activities to promote awareness
Every month, the Yamaha Group posts content for domestic employees on the Intranet, including “Compliance News” and“Compliance Quiz,” in order to raise important points regarding compliance and promote awareness among employees.

Monitoring
To confirm and improve compliance within the Yamaha Group, we conducted monitoring of compliance status at the Yamaha
Corporation and Group companies on a regular basis.

Summary of Compliance Status Monitoring
Respondents

Yamaha departments and Group companies (48 companies)

Content

Reviewing of the system for promoting compliance, methods for familiarizing employees with the Code of Conduct, status ofeducation being systematically offered, establishment of internal reporting systems, number of reports madeFrequency

Once/year* For questionnaire conducted in April 201726
Yamaha Sustainability Report 2018

Help Line Operation
The Yamaha Group has set up help lines (internal and external) aimed at providing consultation and taking internal reports
related to compliance-related matters.
In Japan, we provide both internal and external help lines. The internal help line provides support by telephone, fax,
email, and mail, while the external help line (legal adviser's office) fields inquiries via fax, email, and mail.
In August 2017, we set up an overseas online help line which can receive requests in 16 different languages.
Contact information for the help lines is provided in Compliance Code of Conduct booklets and on posters put up at
Yamaha Group companies, and the system is advertised on such occasions as questionnaires and training sessions.
Internal rules that establish means to protect whistleblowers have been put in place to ensure that those who makesincere reports will not suffer reprisal.
As an effort to prevent the reoccurrence of such issues and promote better compliance, the issue is discussed attheme-based training at all workplaces involved and at stratified training.
The Company started training related to the handling of requests at overseas subsidiaries at the time the overseas
online help lines were set up. In FY 2018, training sessions were held in three countries.
A total of 47 reports and requests for consultation were made to the help line in FY 2018.
As of FY 2018, a majority of the consultations and reports concerned were labor-related and concerned issues such as
harassment and employment problems.
Although the help lines are intended primarily for regular Yamaha Group employees, temporary staff and certain
contracted staff are also permitted to make reports via the help lines. In FY 2018, there were two reports and requests for
consultation from non-regular employees.

Reports to the Compliance Help Line
Name Provided

Anonymous

Total

FY 2014

18

17

35

FY 201525

631

FY 201619

726

FY 2017

26

13

39

FY 2018

34

13

47

27
Yamaha Sustainability Report 2018

Risk Management
Basic Policy
The Yamaha Group implements risk management based on the following policy.
1. We shall establish a structure and framework for risk management and work to enhance responsiveness to risk andmaximize corporate value.
2. We shall identify, evaluate and reduce risk through risk management activities during ordinary times, conduct awarenessraising activities such as education and training, and instill a greater awareness of, fostering a greater sensitivity to risk.
3. We shall prioritize people's safety when risks manifest themselves as crises, and coordinate with the local community toensure sincere, appropriate and speedy response as a means to minimize all adverse impact. In addition, we shall strive toensure the stable supply of products and services, continue business to the extent possible and contribute to thesustainable development of society.
4. After addressing risks, we shall analyze the reasons they occurred and how they were addressed in order to ensure they
do not occur again.

Classification of Risk
The Yamaha Group classifies the various types of risks related to its business in accordance to the chart below, evaluatesrisk importance, and is aiming to promote activities to reduce risk.

Classification

Based on the position of the business process risk in the value chain, risks are categorized as risks related to business activities and fundamental risks(Note)

External environment risks

Businessstrategy risks

3. Large-scale
accidents(external cause)

9. Distribution ofbusinessresources

4. Crimes

10. M&A/businessreorganization

5. Cyber attacks

14.
Procurement

13.
Marketing/product
planning

6. Changes to laws
and regulations

8. Natural disasters

12. Compliance

15.
Production

16. Sales

17. Business
partners(sales side)

18. Inventory

Business process risks (business foundation)
People19. Human
resources

20. Labor

21. Labormanagement
relationshipThings

23. Product/
service quality

24.
Transportation/
logistics

25.
Environment

Money

26. Financial/
tax affairs

27.IR

IT

28.
IT systems

29. Information
leakage

11. Group control

7. Fluctuations in
exchange/
interest rates

Basic risks

Business process risks (business activities)

1. Changes tobusiness environment
2. National-level
conflicts/turmoil

Business strategy risks

28
Yamaha Sustainability Report 201830.
Reporting

22.
Communication

31. Intellectual
property

FY 2018 initiatives
In FY 2018, the Company executed initiatives to systemize risk management in order to construct a PDCA cycle for overallrisk management. Specifically, the Company determined a risk map, specified important risks, visualized the activities related
to risk reduction, and promoted the development of a PDCA cycle.
Determine

Breakdown risk

Construct PDCA cycle forrisk reduction activities

Systematization of risk
management system

Promotion System
Yamaha Corporation established a Risk Management Committee as an advisory body to the President and Representative
Executive Officer. This committee deliberates on matters related to risk management from a company-wide standpoint andreports its findings to the President and Representative Executive Officer. Within this committee we also established thefollowing working groups such as the working groups for the business continuity plan (BCP) and disaster countermeasures,internal control, compliance, export screening, and information security have been established to address companywide
important issues.

Risk Management System

Download

Risk Management Initiatives
Business Continuity Management (BCP: Business Continuity Plan)
In preparation for large-scale natural disasters, fires, infectious disease outbreaks, and other emergency situations, theYamaha Group has made a number of business continuity management efforts, including the formulation of a BCP.

29
Yamaha Sustainability Report 2018

Main Efforts
Topic

FY 2018 Achievements

Formulation of abasic policy andrules

Formulated Infectious Disease Countermeasures following on the formulation of the BCP guideline as well as BCP/Disaster
Basic Countermeasures, Earthquake Countermeasures, Fire Countermeasures, and Storm and Flood Damage
Countermeasures as Group Internal Control Policies and Rules. Formulated the Group BCP Standards.

Drafting of a
BCP andconducting
training(1) In the Group BCP Standards, the Company clarified the role of each organization during emergencies and precautions to
be taken during normal times. As part of revisions, established target times for carrying out business recovery policies
in a short timeframe(2) In order to ensure the effectiveness of current response measures and improved BCP effectiveness, conducted Regional
Disaster Management Headquarters and Earthquake Initial Response Training (“blind scenario” training) from 2016 thatputs participants in a situation where business is stopped immediately after a disaster occurs. The Company also
conducted training based on the scenario of an intensity 7 earthquake to improve initial response capabilities at sites.
Made improvements to the BCP initial response procedures manual based on training results

Developinfrastructure(1) Implemented a 3-year earthquake resistance plan based on building earthquake proofing standards established in FY
2016(2) Formulated the Yamaha Equipment Earthquake Resistance Standards(3) Implemented an employee safety check system

Regional Disaster Management Headquarters
and Earthquake Initial Response Training

Improving earthquake resistance at a Nagoya
site

Safety Management at Overseas Production Sites
In the Yamaha Group, health and safety managers from Yamaha conduct patrols while facility control managers conduct
facility audits at overseas production facilities. Focused on production and other equipment, these efforts are aimed atpreventing accidents and disasters while improving health and safety levels. With respect to occupational health, the Group
conducts risk assessments and otherwise improves safety levels while at the same time having health and industrial
physicians from Japan to provide education and guidance on improving the workplace environment, which includes making
improvements to personal protection equipment.

Industrial physician advising on the proper way
to wear protective equipment

Facility audit in Indonesia

Export Control
The Yamaha Group has established provisions for national security-related trade control in its Compliance Code of Conduct
as rules pertaining to international trading.
8-3 National security-related trade control

30
Yamaha Sustainability Report 2018

A Working Group for Export Screening has been established under the Risk Management Committee at Yamaha Corporation,
formulating export control regulations and regulations for import and export procedures among others, and establishing awork process related to export control. Yamaha is also working to educate its employees on and improve their awareness of
the importance of export control in the company by conducting export control seminars led by industry experts.

Environmental Risk Management
In order to prevent environmental contamination, the Yamaha Group carries out a range of activities that include regularly
monitoring its plants, conducting environmental audits, and providing emergency response training.
Preventing contamination

Information Security
The leakage of personal information and other important information held by a company has the potential to not only damage
third parties but also become a case of gross negligence that can harm the company's reputation.
The Yamaha Group perceives information security as a critical aspect of risk management. Accordingly, we establishedthe Information Security Working Group under the Risk Management Committee in 2014. The subcommittee has put
together a policy on information management and is working to enhance the quality of this management by keeping track of
the current management system while identifying vulnerabilities and guiding efforts to address them. In addition to having
established rules for the usage and management of the information system as part of the Compliance Code of Conduct, thesubcommittee is working hard to ensure employees understand the importance of preventing inadvertent data leaks andprotecting against hacking by third parties.
9-8 Utilization and Management of the Company's Information Systems
Personal information protection

Information Disclosure and IR Activities(Communication with Shareholders and Investors)
Information Disclosure Policy
In order to conduct continued transparent business operations with the true understanding of shareholders, investors, and otherstakeholders, it is critical to disclose information properly. The Yamaha Group states in its Compliance Code of Conduct that it
will provide a true and accurate report of financial conditions and operational results to shareholders and government entities inaccordance with laws and other regulations, and appropriate management information to shareholders and investors.
2-1 Accurate accounting records and financial reports
2-2 Timely disclosure of information*1

IR Activities
The Yamaha Group strives to disclose information in a fair and timely manner for the benefit of institutional and private
investors in Japan and overseas. Rules for this disclosure are set forth in the Disclosure Policy, which is available online:*1 IR: Investor Relations (corporate communication for shareholders and investors)

Disclosure Policy

Website for Investors
The Yamaha website for investors and shareholders provides up-to-date information and newsletters in English and Japaneseon our business, including business strategies, medium-term management plan, earnings reports, and financial data.
Investor Relations

Proactive IR Activities
Yamaha endeavors to make communication with shareholders and investors in both Japan and overseas through various
activities such as quarterly result briefings, and other events including business briefings for securities analysts/institutional
investors, factory/facility tours, and explanatory meetings for private investors, held as needed. The opinions and information
gathered through dialogue with our shareholders and investors are shared internally among related departments, and thesefindings are reflected in our IR activities and execution of management.
31
Yamaha Sustainability Report 2018

Main activities
Target Audience

Frequency

Achievements
in FY 2018

Results briefings

Securities analysts
Institutional investors

Quarterly

4

Business briefings

Same as the above

Occasional0

Factory/facility tours

Same as the above

Occasional0

Individual sit-downs

Same as the above

About 250 times/year

260

Overseas investor visits

Overseas institutional investors

3 times/year (U.S., Europe, Asia)

3

Medium-term management plan briefings

Securities analysts Institutional investors

An explanatory meeting for private investors

Private investors

Explanatory meeting for private investors

As needed0

Occasional (in Japan)

5

Earnings briefing

Efforts Towards Socially Responsible Investment
In recognition for the company’s regard for society and the environment, Yamaha Corporation is listed on the majorinternational Socially Responsible Investment (SRI) indexes*2 and SRI funds, including FTSE4Good Global Index, MSCI Global
Sustainability Indexes, and the Morningstar Social Responsibility Index (MS-SRI).
*2 SRI (Socially Responsible Investment) Index: An index that benchmarks comprised of companies with strong financial and sustainability profiles

The Company commissions a long-term preferred debt rating assessment from credit rating agencies annually, as a one of
the ways to measure financial soundness. Our evaluation is as follows:

Credit Ratings(as of November 15, 2018)

Rating and Investment Information, Inc. (R&I)

A+

Japan Credit Rating Agency, Ltd. (JCR)

AA–

Returns to Shareholders and Retained Earnings
The Company’s policy on returns to shareholders and retained earnings is explained below:
Dividends and Stock Prices

Shareholder benefits
Yamaha Corporation conducts a special incentive plan for shareholders in Japan to express our appreciation for their daily support.
Shareholder benefits (Japanese only)
32
Yamaha Sustainability Report 2018

Human Rights and Labor Practices
Respect for Human Rights
Basic Policy
Based on the “Guiding Principles on Business and Human Rights,” the Yamaha Group strives to comply with theinternational norms on human rights, including the International Bill of Human Rights (Universal Declaration of Human Rights
and International Covenants on Human Rights) , the ILO Declaration on Fundamental Principles and Rights at Work, and theUnited Nations Global Compact. In addition to establishing in its Compliance Code of Conduct the principles of respect for
fundamental human rights, prohibition of discrimination and prohibition of forced and child labor, in the “Yamaha Group
Sustainability Policy,” it clearly states the Group's resolve to respect human rights, with the goal of achieving a society thatsafeguards the dignity of all.
In January 2018, the Company created the “Yamaha Group Human Rights Policy” which displays our thoughts andresponsibilities regarding the respect for human rights. We intend to take efforts to engage in business activities, as well as
to educate and promote awareness of human rights based on this Human Rights Policy.
In order to identify impacts on human rights resulting from our business activities and respond appropriately, we
communicated with stakeholders, assessed the human rights aspects of suppliers, and established and operated help lines. In
addition, in FY 2018, we established management items for human rights due diligence. We plan to develop a framework tomonitor these management items and promote efforts to prevent human rights violations preemptively and respond to risk.
3-3 Favorable employer-employee relationships
3-7 Prohibition against forced labor and child labor
4-1 Respect for human rights and prohibition against discrimination
Support for UN Global Compact
Yamaha Group Sustainability Policy
Yamaha Group Human Rights Policy

Respect for Employees’ Human Rights
Hiring without Discrimination
In its hiring and employment practices, based on its Compliance Code of Conduct, the Yamaha Group strives for fair selection
and the absence of any form of discrimination, while providing employment opportunities to a diverse group of people.
In addition, Yamaha determines evaluation and compensation of employees according to fair rules using criteria such as
the ability to perform tasks, job responsibilities, and achievements. We also carry out training for managers involved withevaluations in order to ensure their ability to make accurate assessments.
3-5 Fair Evaluation and Compensation
4-1 Respect for human rights and prohibition against discrimination
Promotion of Diversity and Inclusion
Human Resource Development

Establishment of Good Employer-Employee Relationship
The Yamaha Group adheres to the protection of employee rights prescribed by international treaties, laws, collective labor
agreements and other agreements. Furthermore, in pursuing the Yamaha Corporate Philosophy, employees and theCompany strive to achieve favorable relationships based on ample communication.
Communication with Employees

33
Yamaha Sustainability Report 2018

Prevention of Harassment or Unfair Discrimination
The Yamaha Group strives for the absence of any form of harassment or discrimination. In order to spread awareness of thisstance, Yamaha has distributed the Compliance Code of Conduct in the form of a booklet which includes detailed explanations toall employees.
Employment regulations, etc. also clarify that harassment is grounds for disciplinary action. We also work to maintain ahealthy workplace environment by offering a hotline and by educating employees through workplace meetings and management
training.
3-2 Prohibition Against Harassment

Consideration of Human Rights in the Supply Chain
In the interest of furthering its policy concerning human rights throughout its supply chain, Yamaha is taking the following
efforts:• Establish CSR measures, including human rights, in the selection requirements for suppliers• Request that suppliers comply with the Yamaha Supplier CSR Code of Conduct, which establishes practices related tohuman rights and labor (specified in the Transaction Agreement). Request that suppliers carry out self-assessment basedon this Code of Conduct (correction is requested as needed)
Please see the Promotion of Social Responsibility in the Value Chain section for details on these efforts.
Yamaha Supplier CSR Code of Conduct
Promotion of Social Responsibility in the Value Chain

Prohibition of Forced/Child Labor
The Yamaha Group Compliance Code of Conduct prohibits any form of forced labor or labor by children under the minimum
age permissible by law. In addition, the Yamaha Supplier CSR Code of Conduct clearly states the same conditions andrequests that our business partners follow them. We also ask business partners to perform self-assessment using aquestionnaire and, based on the results, ask for improvement measures when necessary.
3-7 Prohibition against forced labor and child labor

Organize and Operate Help LineThe Yamaha Group has set up a help line both inside and outside the company that deals with requests for advice andnotifications from employees concerning human rights issues including harassment. In addition to developing a multilingual
mail reception form that can receive requests from various countries and regions, the Yamaha Group is aiming to raiseawareness of the help lines by posting the contact information both in the Compliance Code of Conduct booklet and internal
publications.
We investigate the facts behind each consultation and notification quickly and fairly, while protecting the privacy of boththe consulting person and the offender and take corrective measures, including providing guidance if a problem is identified.
If the consulting person or victim strongly requests confidentiality and it becomes difficult to conduct an investigation, we
will still take corrective measures, such as improving the workplace environment. Also, as needed, the Yamaha Group will
promote awareness and conduct training, such as management training, in order to prevent similar issues from emerging.
Compliance Hotline Operation

34
Yamaha Sustainability Report 2018

Human Rights Education
The Yamaha Group disseminates information to employees to improve understanding concerning human rights issues.
Using our intranet, for example, we provide explanations of the issue of conflict minerals and of matters such as “guiding
principles on business and human rights” and the “Act for Eliminating Discrimination against Persons with Disabilities. We also
hold expert-led in-house seminars and briefings and study sessions for personnel in charge of procurement, where discussions
address themes such as human rights issues in the supply chain. In FY 2018, 19 employees in charge of marketing learned
about related matters for advertising and promotions as part of their skills training.

Training on the Theme of Human Rights
Content

Style

Participants

Explaining business and human rights

Intranet

All domestic Yamaha Group employees

Sexual/power harassment

LectureNewly appointed managers Management candidates for
manufacturing workplaces

Supply chain human rights

LectureEmployees in charge of procurement

Promotion of Diversity and Inclusion
Policy for Promoting Diversity
The Yamaha Group believes that human resources diversity is the source of new value creation. The Group strives to provide
employment opportunities to a diverse group of people, while leveraging the diversity of employees to increase corporate
competitiveness.

Yamaha Group
Promotion of Diversity Management
Action Plan activity policy
Through the promotion of diversity management, the Yamaha Group
respects and leverages the diversity of its employees (age, gender,
nationality, various lifestyles that involve time constraints due tochildcare or nursing care, etc.) in order to further strengthen its corporate
competitiveness, grow, and develop further

Supporting Women’s Careers
As part of its diversity management, the Yamaha Group strives to promote a workplace environment in which women can
excel, while the Group creates systems to make this a reality.

Initiatives to Date
FY2005: Yamaha Corporation launches the Positive Action Project
FY2006: Yamaha Corporation establishes a dedicated role for the project within the Human Resources Division
FY2014: Yamaha Corporation registers a declaration of Positive Action Declaration with the Ministry of Health, Labor andWelfareFY2015: Yamaha renews the content of its registration in Shizuoka Prefecture’s campaign for “Creating a Society for Gender
Equality”
March 2016: Yamaha Corporation formulated an action plan based on the Act on the Promotion of Women’s Participation
and Advancement in the Workplace

35
Yamaha Sustainability Report 2018

Yamaha Corporation Action Plan

(formulated March 2016)

Item

Details

1. Planning term

2. Yamaha’s issues

Three years: April 1, 2016 - March 31, 2019
Issue 1:
The work-life balance support system has been streamlined, and now there is almost no difference in the number ofcontinuous years of employment for men and women. However, as the ratio of women in management roles is still low,
greater initiatives for improvement in this aspect are required.
Issue 2:We are implementing initiatives to increase opportunities for women to participate in training courses, etc. However, theprocess for systematically preparing women for mid-level management is still inadequate.

3. Goal

Women in management roles ratio of 7% or higher
Initiative 1: Increase the number of women hired as technical experts(from April 2016)• Publish Yamaha initiatives for assisting women with work-life balance support, etc. on the company’s career website.
• To appeal the image of having a career after entering the company to female students, provide the opportunity for
women working in the company to introduce job content.
• Increase the opportunity for communications between women taking science courses and women working astechnical experts in the company.

4. Contents ofInitiatives and
Implementation
PeriodInitiative 2: Implement selected programs for training personnel(from April 2016)• Continuously introduce various examples of role models and career paths via the Intranet.
• Create an environment where women can personally discuss career plans with supervisors and expand their career
scope through training courses, etc.
• Encourage women to participate in business leadership training courses, etc.
Initiative 3: Focus on reducing total annual working hours and lowering the number of employees work long hours(from April 2016)• Enforce continuous “Go Home at the Same Time Day.”• Promote employees to use paid holidays of special promotion holiday system.
• Implement training courses, etc. to improve line supervisor awareness.

Major Measures
Goal
Proactive hiring of female
employees

MeasureIncrease the ratio of female new graduate hires
Hiring activities that include information about the active roles played byfemale employees
Setting a 3-year target (by fiscal 2019) for increasing the promotion of
women for managerial positions

Active promotion and expansionof opportunities to develop theabilities of female employees

7% or higher for Yamaha Group and 17% or higher for the Group
Enhancing various education and training programs
Implementing selective training programs

Improving systems to support
work-life balance

Responding to the Equal Employment Opportunity Act, the Child Careand Family Care Leave Act, the Act on Advancement of Measures to
Support Raising Next-Generation Children, and the Act on Promotion of
Women’s Participation and Advancement in the Workplace
Creating, promoting, updating work-life balance support programs
Preparing to adopt a Tele work system

Changing workplace awarenessand fostering a corporate culture

Conducting educational activities (training, seminars, providing
information through the Intranet, etc.)

36
Yamaha Sustainability Report 2018

An Intranet website
disseminating information on
diversity and work-lifebalanceMajor results and achievements• Nearly an equal average number of years of continuous employment for male and female employees• Nearly 100% proportion of women taking maternity/childcare leave and returning to work after maternity leave/childcare leave• Awarded the fiscal 2006 “Family Friendly Company Award” from the Ministry of Health, Labor and Welfare• Based on the Act for Measures to Support the Development of the Next Generation, acquired the “Kurumin” mark (2008,2014) and the “Platinum Kurumin” mark (2016)• Recognized as “Company Friendly for Raising Children” by Shizuoka Prefecture (2017)

Principal Indicators Related to the Active Role of Female Employees
Ratio of Female Employees

New University Graduate Employment Ratio(Yamaha Corporation)(Yamaha Corporation)

Female10.3%

Female
17.8%
Men
82.2%

Men
89.7%

*As of the end of March 2018

*As of April 1 2018

Workers: Number of Years of Continuous Employment

Female Manager Ratio(vs. Japan nationwide*1)(Yamaha Corporation)*1(years)

25
20

(%)

5
0

6

Japan

15
10

7

YamahaCorporation

YamahaCorporation

19.5

19.8

Japan

13.5

Men

5.8

5
4

4.7

4.8

4.8

2013

2014

2015

5.0

3

9.4

0

Female*1 Nationwide numbers excerpted from results of the 2017
Basic Survey on Wage Structure*2 Statistics for Yamaha Corporation are as of the end of March
2018

2016

2017

*1 As of the end of March each year
*2 From fiscal 2017, includes promotions and hiring for
managerial positions on April 1st of the following year (dueto hiring schedule changing from March 1 to April 1 of thefollowing year)

Annual trends for each data group are shown on the Social Data page.
Social Data

37
Yamaha Sustainability Report 2018

Promoting Employment and Advancement of Foreign Employees
Yamaha Corporation had 41 foreign employees working in the company as of March 1, 2018.. In order to enhance the rolesof diverse personnel regardless of nationality, we set a numerical target for hiring new graduates from foreign countries andprovide information on our English website.
As a company that engages in businesses in countries around the world, the Yamaha Group appoints local personnel
from each base to important posts within the Group. In April 2015, Yamaha Music Europe, our regional sales company inEurope, hired a German president for the first time. In April 2018, Yamaha Corporation of America, our American
headquarters, hired a local president as well. Additionally, we hired local presidents at five overseas companies that wewelcomed into the Yamaha Group through acquisitions. In doing so, we have been promoting the utilization of diverse
personnel across the globe.
(Annual trends are shown on the Social Data page).
Social Data

Establishing Employment Extension and Rehiring Programs
The Yamaha Group believes that enhancing employees' lives at work by ensuring employment opportunities that correspondto motivation and ability contributes to economic and social development. Under this philosophy, we have augmented ourvacation and leave programs with employment extension and rehiring programs that flexibly accommodate employees'
lifestyles.

Senior Partner System
Started in 2004, this is a system at Yamaha Corporation that provides willing employees with the opportunity to continue
working beyond age 60. Employees who wish to continue working may serve as a senior advisor (contract employee)
starting the day after they have reached their retirement date. This one-year contract can be renewed annually until theyreach the age of 65 (utilized by 212 employees as of March 31, 2018).
Group companies have adopted similar measures and are striving to hire retired workers.
(Annual trends are shown on the Social Data page).
Social Data

Re-employment System for Family Members Accompanying Expatriates
As part of its diversity management, the Yamaha Group promotes programs that flexibly accommodate employees' individual
lifestyles. From fiscal 2009, Yamaha Corporation maintains a system to rehire employees who left the company in order toaccompany a spouse on an overseas assignment after returning to Japan. In fiscal 2017, the scope of this system that had
been limited to spouses of Yamaha corporation employees was expanded for those who not working for the Yamaha Group,with a limit of 5 years from their retirement.
Since the program started in fiscal 2009, a total of 21 employees have submitted applications before retiring. Of that
number, 6 (as of March 31, 2018) have been rehired after returning to Japan.

Rehiring Program for Workers Committed to Nursing CareIn July 2016, Yamaha Corporation also introduced a system that allows an employee to be rehired if they retired to provide
nursing care for a family member. In such cases, the valid re-employment period is within 5 years of said retirement date.

38
Yamaha Sustainability Report 2018

Promoting Employment of People with Disabilities
Yamaha Corporation is promoting employment for people withdisabilities as well as developing working conditions conducive toactive participation for these employees. The company strives toencourage independence for people with disabilities and to achieve asociety of co-existence, and works to increase skills and raiseawareness within the company through understanding of individual
characteristics, rational consideration, and job matching. through As of
March 1, 2018, 82 people with disabilities were employed at Yamaha
Corporation, of which 38 were employed at Yamaha Ai Works.
The employment rate has hovered above 2.3% since fiscal 2014,
and is already above the standard of 2.2% set for April 2018 onwards
in the Act on Employment Promotion etc. of Persons with Disabilities.

Employment Rate of People with Disabilities*1,2,3
3.0

2.0

2.38

2.42

2.35

2.43

2014

2015

2016

2017

2.15

1.0

0.0

2013

*1 As of March 31st of each year
*2 Scope of statistics: Yamaha Corporation, Yamaha BusinessSupport Corporation, Yamaha Ai Works Co., Ltd.
*3 The employment rate uses a formula for the annual
employment rate of person with disabilities in the Act for
Promotion of Employment of Persons with Disabilities.

Special Subsidiary* Yamaha Ai Works Co., Ltd.
Established in 1989, Ai Works handles work tasks such as data processing, printing, filling/sealing envelopes, accounting,and benefit program-related tasks from Yamaha Group companies. Additionally, the company dedicates effort to activities for
informing and educating others about employing persons with disabilities, holding learning sessions regarding disabled
employees and workplace tours both internally and externally. ns regarding disabled employees and workplace tours bothinternally and externally. In April 2018 managerial positions for employees were created, and the company is appointing line
managers with an understanding of the perspective of persons with disabilities in order to create workplaces in which
employees can make better use of their skills and perform worthwhile tasks.

Visiting on-site at a special subsidiary

Study session on employing persons with disabilities* Subsidiaries recognized under the Act for Eliminating Discrimination against Persons with Disabilities. Special subsidiaries must meet certain criteria
in connection with the number and ratio of employees with disabilities. People with disabilities employed by such subsidiaries are counted as
employees of the parent company when calculating its employment ratio.

39
Yamaha Sustainability Report 2018

Promoting Work-Life Balance
Basic Policy and Promotion System
The Yamaha Group is actively promoting work-life balance based on the basic policy below. In 2006, we established a WorkLife Balance (WLB) Promotion Committee, jointly run by labor and management, while we are also striving to shorten overall
working hours and create and enhance work-family balance support systems. Furthermore, each department formulates
Work-Life Balance Action Plans and is rolling out activities aimed at work styles that are self-directed and productive.

Basic Policy
In order to realize both expanded business activities and lifestyles that offer personalfulfillment, we will proactively promote work-life balance that respects a wide range ofvalues and lifestyles.
People can use the extra time created by increases in the quality and productivity ofwork in many different ways, which in doing so leads to the enhancement of the overall
quality of life while energizing the body and mind. This energy can provide the power for
new value creation, and serves as a source of continued good work, the enhancement ofcorporate value, and the realization of a fulfilling life. We will work toward the creation ofthis type of virtuous cycle at Yamaha.

Reducing Total Working Hours
In order to reduce total working hours and prevent excessive work, Yamaha Corporation established guidelines for overtime
through labor-management agreement. In addition to annual paid leave days, we are developing a system for assorted typesof leave, including leave related to bereavement or celebration, and consecutive days of leave given upon company transfers,
reaching retirement age, or reaching an auspicious age, for the objective of enhancing the private lives and supporting the
major life events of our employees.
At the same time, we are promoting awareness and building structures toward self-directed, highly productive work
styles. We have programs such as “All Go Home at the Same Time Day,” which encourages all employees to leave work ontime, a flex time system for working hours, and programs to urge employees to fully use their paid leave days. We are
gradually rolling these programs out at domestic Group companies as well.

40
Yamaha Sustainability Report 2018

Major initiatives and FY2018 results
Initiative

Content

Participants

Fiscal 2018 results and follow-up

Full staff paid
leave days

Annual 3-day period (summer)

Yamaha Corporation andsome Group companies

Staff who could not take leave during the period wereencouraged to take substitute days off; implemented asplanned (Yamaha Corporation)

Full use of paid
leave days

Encouragement for employees
and supervisors not fully utilizing
their leave

Yamaha Corporation

E-mail for encouragement sent to those who utilized lessthan 10 days of paid leave the prior fiscal year; those who
utilized less than 5 days requested to submit reports(FY2018 average paid leave taken: 14.4 days)

Go-home-ontime day

At each office, weekly days (orevery other Friday) set as All Go
Home at the Same Time Day

Yamaha Corporation andGroup companies within its
officeApprox. 92% compliance(Yamaha Corporation)

Seminar by a noted expert

Yamaha Group employees–

Information shared on the
Intranet

Yamaha Group employees–

Awareness andeducation

FY2018 Performance Self-Evaluation and Future Planning
The average annual working hours for all companies in the Yamaha Corporation are decreasing each year.
With regard to annual paid leave, we took the target of 15 days from fiscal 2016 onwards, backed by both labor andmanagement. As a result, usage improved to 14.2 days in fiscal 2017 and 14.4 days in fiscal 2018. Although this was below
the 15-day target, efforts by labor and management to actively promote the policy are yielding results.
From FY 2018, we lowered the maximum monthly standards of the labor-management guidelines regarding in-houseovertime hours. In addition, we will monitor the status of monthly overtime hours and preemptively raise the attention of
departments which appear likely to exceed the standards of the labor-management guidelines in order to further decrease
average annual working hours. We intend to continue urging the use of leave for employees who were unable to take theirallotted days in the previous fiscal year as we conduct initiatives such as urging departments to take one planned day ofleave a month in order to reach the target of 15 days of taken annual paid leave.
Annual trends for total working hours and other data are shown on the Social Data page.
Social Data

Initiatives for “Work Style Improvement”
Yamaha Corporation established the “Work Style Reform Project” in May 2017 in order to make further progress as we aim
for a self-directed, highly productive work style. As part of this project, 16 willing workplaces in the Yamaha Groupparticipated in a “Work Style Reform Trial” for the three months between October and December 2017. Each 16 teams
established themes connected to making Work Style Reform Vision come true.

Work Style Improvement Vision• We will work on our own initiative and increase new interactions and collaborations
both internally and externally.
• With creativities and new challenges, we will continue activities leading to “Sharing
Passion and Performance” and “Creating excellent customer experiences”

Collaborations withrespect for will
Excellent work based on
future oriented• We will work ambitiously on challenging subjects.
Work eagerly, having funs

Action for Vision and Examples of Activities• Improve productivity and strive to do work new way from yesterday• Tap into creativity and produce new value• Share information and visualize tasks (example: make a work manual)• Reduce work and improve efficiency (example: fully implement meeting operation rules)• Create planned rest (example: promote use of paid leave)• Flexible application of work rules (example:Tele work)
After the trial, the activities were published on the Intranet and results and issues were shared internally. The Company
wishes to promote work style Improvement in the future based based on the results of this trial.

41
Yamaha Sustainability Report 2018

Building and Improving Work-Life Balance Support Systems
The Yamaha Group is creating and improving its support systems for work-life balance by building flexible work systems
responsive to the varied circumstances of individual employees. Furthermore, we are spreading awareness and education onthese systems among employees.
Based on the Act on Advancement of Measures to Support Raising Next-Generation Children, Yamaha Corporation
formulates and carries out an action plan.
As a result of the third phase of the three-year plan beginning in fiscal 2014, we acquired “Platinum Kurumin”*
certification.

Acquisition of certification related to support for developing future generations*Certification

Date acquired

Main measures implemented

Aug. 2008• Extended childcare leave period, etc.
• Adapted the shorter work hours for childcare system• Mandatory group paid leave, etc.

Aug. 2014• Held work-life balance seminar• Adopted “Go Home at the Same Time Day,” etc.

Jun. 2016• Encouraged males to take paternity leave• Shortened working hours, etc.

“Kurumin”“Platinum
Kurumin”“Platinum Kurumin” special certification markrecognizing support for developing future
generations* A Ministry of Health, Labor and Welfare system for certifying companies that provide support fordeveloping future generations. Company action plans are reviewed in accord with the Act for
Measures to Support the Development of the Next Generation. Certified companies are allowed
to carry the “Kurumin” mark. “Platinum Kurumin” is a system that certifies, among thecompanies that have acquired the Kurumin mark, companies that conduct initiatives to support
work-life balance at or above a specific standard.

System for child care and nursing (compared with legal standards)
SystemLegal standards

Yamaha Corporation

Maternity leave

42 days before birth (98 days for multiple birth), 56
days after birth

56 days before birth (98 days for multiple birth), 56 days after
birth

Difficult birth leave–

Number of days instructed by physician during pregnancy orwithin one year of birth

Birth support leave–

5 days within a 14 day before or after birth of a spouse

Child care leave

In principle, until child becomes one year old (inspecial circumstances, this may become one year six
months or two years)

Until child become two years old (however, for children born in
April, until the end of April after the child becomes two years
old)Child nursing leave

Children not yet enrolled in elementary school

Until the end of March of the child’s first year in elementary
schoolReduced work hours
for child care

Until the child becomes three years old

Until the child completes third grade in elementary school

System to remove
overtime hours forchild care

Limits overtime work until the child becomes three
years old

Eliminates required overtime work until the child completes
third grade in elementary school

Applicable scopefor nursing system

Spouse, child, mother, father, spouse’s mother orfather, grandparent, sibling, or grandchild

Relative within two degrees of relation

Leave of absence
due to nursing

Up to a total of 93 days per applicable family
member (possible to split into up to three leaves)

Up to one year per applicable family member (possible topostpone for up to six months)

Reduced working
hours due to nursing

Separate from leave of absence due to nursing; totwo times or more within three years of start of use

Until end of nursing duties

Reduced work week
due to nursing–

Leave for nursing

Five days per applicable family member; 10 days for
two or more persons

Exempt from one work day per week, until end of nursing
dutiesFive days per applicable family member• Usage status of the child care leave system is shown on the Social Data page. Rate of use of maternity leave and rate of
return to work has been at least 90% in recent years.
Social Data
42
Yamaha Sustainability Report 2018

Results of External Evaluations
Recognition as “Company Friendly to Child Raising” by Shizuoka Prefecture
Yamaha Corporation and Yamaha Business Support’s proactive initiatives to create a workplace environment in which it is easy
to raise children have been recognized with the award for “Company Friendly to Child Raising” by Shizuoka prefecture.
The “Company Friendly to Child Raising” distinction by Shizuoka prefecture awards companies which strive to develop a
workplace environment in which it is easy to raise children and nurture “Iku Boss”* managers who create a workplace which
considers work-life balance.
Yamaha Corporation was praised for its expansive support system for employees who wish to raise children and continue
working as well as its efforts to promote the use of child care leave by male employees and improvements to its leave usage
statistics. Yamaha Business Support received this award due to its activities to raiseawareness about work balance internally, including achieving a 100% rate of
employees returning to work after taking child care leave, introducing child careexperiences of employees, and holding seminars to develop managers into Iku
Bosses.
In the future, the Yamaha Group will continue to promote efforts to build aworkplace in which its employees can shine while feeling satisfied in both theirprofessional and personal lives.
* “Iku Boss” refers to a superior (manager) who considers the work-life balance of his/her
subordinates and supports their careers and personal lives while simultaneously enjoying his/herown professional and personal life.

Award Ceremony

Communication with Employees
Basic Policy
The Yamaha Group adheres to the protection of employee’s rights prescribed by international treaties, law, collective labor
agreements and other agreements. Furthermore, in pursuing the Yamaha Corporate Philosophy, employees and theemployer strive to achieve favorable relationships based on ample communication.
3-3 Favorable Employer-Employee Relationships

Labor Unions
In each Group Company in Japan, including Yamaha Corporation, labor dialogues are being held between management andthe labor unions or employee associations set up in each company. At each Group company in Japan, these labor unions andemployee associations form the Yamaha Union Conference*1 and exchange information and interact through regular laborand management liaison meetings that are convened.
Each Yamaha Group company outside Japan also holds dialogues between labor and management following the laborlaws of each country. At the Yamaha Corporation headquarters, we are carrying out monitoring to ensure that favorable
employer-employee communication is taking place at each Group company.
*1 Yamaha Union Conference (established in September 1990) Along with deepening solidarity among those working within the Yamaha Group, theCouncil works to develop each organization, create better working environments, maintain and improve labor conditions, conduct social
contribution activities, and exchange a wide range of information aimed at enriching personal lives.

Rate of Unionization*2(as of March 31, 2018)

Yamaha Corporation (includes employees temporarily posted to other companies)

77%

Yamaha Group in Japan *2,341%

*2 Managers are included in calculated figures*3 Scope of statistics: Yamaha Music Japan Co., Ltd., Yamaha Music Retailing Co., Ltd., Yamaha Music Manufacturing Co., Ltd., Yamaha Fine
Technologies Co., Ltd., Yamaha Business Support Corporation

Data from previous years is shown on the Social Data page.
Social Data

43
Yamaha Sustainability Report 2018

Employer-Employee Communication
At Yamaha Corporation, joint management councils are regularly held so that critical management issues can be examinedand discussed between labor and management. The joint management councils allow participants to hear from labor unions
about current working conditions and engage in lively discussions.
The administration and revision of various programs related to human resources and labor are conducted after thoroughdiscussion based on labor and management's perceptions of the issues at hand. Yamaha Corporation also explains mattersconcerning various corporate policies to labor unions, publishes reports from the discussions whenever necessary, andotherwise works to keep employees informed.
Labor union directors also participate in the running of things such as corporate pension funds, health insurance
societies, the Mutual Aid Foundation, and employee stock ownership plans.

Regular Labor and Management Conferences and Committee Meetings
Name

Frequency Held

Participants

Main Topics

Twice/year(August and February)Company: President, executive officers,
etc.
Unions: Central Executive Committee

Company-wide management issues

Monthly

Company: Director in charge of laboradministration, Human Resources
Division (department managers andpersonnel in charge of laboradministration)
Unions: Central Executive Committee

Monthly topics(reports and labor conditions)

Business Site Labor andManagement Committee

Monthly

Company: Business office managers,
business office division administrators
Unions: Branch Executive Committee(Central Executive Committee)

Monthly production and salesconditions within each division; reports
on labor conditions

Allocation Committee

Twice/year(May and November)Company: Human Resources Division(department managers and personnel incharge of compensation)
Unions: Central Executive Committee

Pay raise and bonus

Any time
Reports published at least
once a year

Company: Human Resources Division(personnel in charge of laboradministration)
Unions: Central Executive Committee

Reducing long working hours,
encouraging the taking of paid vacation
days, constructing and improving
systems to support work-life balanceand various other initiatives related to
WLB

Joint management
CouncilCompany-wide Productionand Sales Committee

Work-Life Balance (WLB)
Promotion Committee* In addition to the above, the Overseas Work Committee, discussions of annual operation schedules, report briefings of the business outlook of eachdepartment, and labor-management discussions to address issues that come to light at union meetings, and that are relevant to company/division
policies, are held.

44
Yamaha Sustainability Report 2018

Health and Safety
Basic Policy and Framework on Health and Safety
Basic Health and Safety Policy
The Yamaha Group believes that one of the most important management issues is ensuring the health and safety of ouremployees. The Yamaha Group promotes health and safety activities based on the Group Health and Safety Management
Standards and we aim to continually enhance the level of our health and safety.

Standards and Basic Policy for the Group Safety and
Health Management Rules
The Management and employees of the Group Companies shall view maintaining the health and safety ofall people connected with Yamaha business activities as “a priority in all work,” and shall work together
toward promoting the creation of labor environments that are healthy, safe, and comfortable.

Health and Safety Management Structure and Activity Guidelines
The Yamaha Group created the Industrial Safety and Health Committee, which is headed by the Director in Charge ofIndustrial Safety and Health (Executive Officer). Committee members include business office managers, representatives ofworksite supervisors, and representatives of major Group companies. The committee promotes a variety of policies related
to managing health and safety.
At the start of each fiscal year in April, Yamaha Corporation and Yamaha Group companies regularly hold a Group-wide
Health and Safety Convention, which is attended by the President and Representative Executive Officer. At the convention,
there is a general overview of health and safety activities in the previous fiscal year, confirmation of policies and activities forthe current fiscal year, and targets for occupational accident prevention are set. Approximately 500 people, including company
representatives, labor union representatives, and representatives from each division and Group company, participated in theGroup-wide Health and Safety Convention held in April 2018. In addition, each Group company attending the Convention
announced examples of activities relating to health and safety. Furthermore, industrial physicians held lectures and useful
information was shared in order to prevent workplace injuries and maintain and improve employee health.

Fiscal 2019 Action Plan
1. Occupational safety: Enforce “Safety And Health Must Be Prioritized Over Everything”
2. Traffic safety: Enforce elimination of accidents largely attributable to negligence and defensive driving
3. Health management: Improve health management and the workplace environment in order to work safely

Fiscal 2019 Yamaha Group Safety and HealthConvention

Announcement of activities to improve
protective equipment at manufacturing centers
in Indonesia

45
Yamaha Sustainability Report 2018

Health lecture about stress by industrial
physicianAcquisition of Certification for Occupational Health and Safety Management System
The Yamaha Group is making progress in acquiring certification for its occupational health and safety management system at
its instrument and audio equipment production sites.

OHSAS18001 Certification Sites (as of March 31, 2018)• Yamaha Music Manufacturing Toyooka Factory• Yamaha Music Manufacturing Kakegawa Factory• Yamaha Musical Products Indonesia• Yamaha Music Manufacturing Indonesia• Yamaha Electronics (Suzhou)• Yamaha Music Manufacturing Asia

Formal Labor Agreement Concerning Safety and Health
The formal labor agreement that Yamaha Corporation has with the labor union sets forth that “The Company must take allnecessary measures to ensure safe, healthy conditions at its factories and improve its work environments while union
members must uphold all rules concerning safety and health. The company and union shall also work together to improve
union members’ knowledge of safety and health.” The agreement also establishes provisions concerning issues such as the
Safety and Health Committee, dangerous and injurious work, medical examinations, and accident compensation.

Preventing Occupational Accidents
The work of the Yamaha Group may entail the possibility of occupational accidents, particularly with regard to production
activities, from operating equipment and machinery, processing products, and handling various raw materials.
The main injuries incurred in the Yamaha Group are cuts, scrapes, getting caught or entangled in factory equipment,machinery, etc., and falling, etc. In fiscal 2018, there were 45 accidents requiring time off of work and no work-related
deaths.

Frequency*1 of Work-Related Accidents over the Past Three Years
FY2016FY2017FY2018

Yamaha Corporation

0.97*31.02

0.83

Group companies in Japan*2

3.18

1.88

1.78

Group companies overseas

1.45

1.19

1.18

*1 Frequency = number of work related deaths/injuries ÷ total man hours×1,000,000*2 The Yamaha Group updated its statistical method for counting the total number of accidents irrespective of their gravity from fiscal 2014. We areaiming to target “from zero accidents to zero danger” through thorough safety measures that include minor accidents.
*3 Revised after recalculation

Risk Assessment
The Yamaha Group positions risk assessment as a fundamental activity for avoiding dangerous situations in the workplace
before they happen and the Group engages in activities to prevent occupational accidents. These activities focus onassessing risks with regard to work content and surrounding environments where the work is performed, while putting inplace measures corresponding to the degree of risk. Currently, the Yamaha Group continues to provide education on, andensure the implementation of, risk assessment at Group companies and production sites in Japan and overseas.

46
Yamaha Sustainability Report 2018

Safety Patrols
Safety patrols are conducted at Group companies under the guidance of the health and safety management lead office(Human Resources Division, Yamaha Corporation), which oversees Group-wide health and safety management. Patrols arecarried out at applicable bases chosen every year, allowing all sites to be visited over a three- to four-year cycle.
These patrols took place at one base in Japan and one base overseas in fiscal 2018 (previous years' patrol numbers areshown on the Social Data page).
Social Data

Content of Safety Patrols• Health and safety level checks following a health and safety management
analysis table (approximately 170 items focusing on the clarification of health andsafety management systems and policies, and the status of regulations andstandards established)• Workplace inspections to check health and safety and to correct and provide
guidance on problematic areas

An on-site safety patrol

Self-directed Health and Safety Diagnosis
Meanwhile, the Group’s non-production companies in Japan carry out a self-directed health and safety diagnosis,*3 which
complies with legal requirements and is based on the number of employees. Based on the results of the diagnosis, Yamaha
Corporation health and safety managers provide feedback and give support for improvement measures.
This diagnosis was carried out at 24 sites in fiscal 2018 (previous years' implementation numbers are shown on the Social
Data page).
*3 A diagnosis used for self-evaluation of approximately 150 items to be understood to ensure compliance and make efforts to improve personal
health and safety.

Social Data

Health and Safety Education
The Yamaha Group conducts health and safety education at the start of the fiscal
year for new employees in Group Companies in Japan in order to deepen our
employees’ knowledge of health and safety, transportation safety, and healthmanagement. This year, these sessions spanned a total of seven hours (over six
sessions) and were attended by 80 participants. In overseas production sites(Indonesia), there is a high incidence of accidents by new employees, so theCompany both reviewed the content of the educational sessions held at each siteand held a conference for employees in charge of health and safety in order tostandardize the educational program. The program adopted at the conference
includes simulations using actual equipment and methods to boost awareness ofpotential dangers.

Health and Safety Supervisor Conference(Indonesia)

Response to Chemical Substances
In the Yamaha Group, there are some tasks which require employees to handlechemicals which may cause bodily harm. As such, the Company is taking a
number of measures to prevent disease, such as improving the workplaceenvironment and equipment, requiring legal medical examinations of its workers,
and supplying protective equipment. Additionally, training is provided to workers toallow them to wear protective equipment correctly. The Company is also
conducting risk assessments of workplaces which handle chemical substances inorder to alleviate risk.
Industrial physician instructing employees onproper protective mask usage (held 2017 in
the adhesion production process at Kitami
Mokuzai Co., Ltd.)

47
Yamaha Sustainability Report 2018

Establishing and Standardizing Group Rules
Yamaha Corporation has, since 1977, gradually established safety rules relating to people and their surroundings such as
employees’ attitude towards health and safety, a basic code of conduct, and equipment standards. These have been
compiled into tools such as handbooks and portable cards, etc. and have been implemented. We are currently striving tostandardize rules across the Group in order to improve the level of health and safety and eliminate any gaps in standards
between Group Companies. We are working to translate each tool into multiple languages as we head toward the Groupwide roll out of the Group standard rules.

Maintaining and Ensuring Employee Health
The Yamaha Group promotes initiatives to maintain and improve employee health based on the concept that the health of
our employees and their families are of the utmost importance to Yamaha. In order to further promote these initiatives, thePresident and Representative Executive Officer issued the Yamaha Group Health Declaration in April 2018.

Yamaha Group Health Declaration“Sound Minds + Sound Bodies = Sound Living”• The health of our employees and their families is fundamental to allowing them tolead fulfilling lives, and is of the utmost importance to Yamaha.
• Yamaha will actively support initiatives in aid of employee well-being, and will create
safe, comfortable workplaces.
• Yamaha employees and their families should maintain an awareness of their physicaland mental health, and take the initiative in acting to improve their wellness.
Takuya Nakata
President and Representative Executive Officer
April 2018

Based on this Health Declaration, the Yamaha Group is working to create safe and comfortable workplaces and promotevarious initiatives, including health examinations, mental healthcare, and a no-smoking policy.

Health Checkups
In addition to diligently offering general health checkups, mandatory under Japanese law, Yamaha uses health checkups asopportunities to try to prevent lifestyle- and work-related diseases. In fiscal 2017, the Yamaha Group offered statutory stressevaluations and, for Group employees in Japan eligible for health checks in the vicinity of the Yamaha Corporation
headquarters, we carried out group education explaining the stress check program. Additionally, we petitioned employees tohelp us meet our goal of achieving a 100% checkup completion ratio for regular health checkups, while also taking thoroughfollow-up measures based on checkup results. In fiscal 2018, Yamaha Corporation and the domestic Yamaha Group both had
a 100% checkup completion ratio, while an industrial physician passed a decision*4 on the best place for the particular
employee to work in 100% of cases for Yamaha Corporation and 99.8% of cases for the Yamaha Group.
*4 Workplace decisions by industrial physicians: based on Article 66.4, 5 of the Industrial Safety and Health Act, the Company is required to seek theopinion of an industrial physician regarding health checkups for eligible employees.

48
Yamaha Sustainability Report 2018

Mental Healthcare
In order to maintain the mental health of workers, Yamaha is promoting mental health activities based on the policies ofJapan’s Ministry of Health, Labor and Welfare. Specifically, by operating a return-to-work support program that connects
industrial physicians, nurses, and contracted psychiatrists working in coordination with an external Employee Assistance
Program (EAP)*5 counselor, we halved the rate at which workers took a subsequent leave of absence, compared with theperiod prior to adopting the program.

Major initiatives• Training for managers, supervisors and new recruits through an internal industrial physician and counselors• Operation of a return-to-work support program that connects occupational health and safety staff, supervisors, managers,
and HR personnel• Operation of a mental health counseling desk staffed by psychiatrists and clinical psychologists from outside medical
institutions• Operation of a counseling desk provided by outside institutions through an external Employee Assistance Program (EAP).
*5 Program provides counseling to employees and their families for mental health issues, helps employees return to the workplace after leave formental illness, and utilizes external specialists such as ones that offer health-related training for managers in charge of with employees working
under them.

No Smoking Policy
Yamaha Corporation makes it a top priority issue to protect the health of workers and implement smoking countermeasures.
At health checkups since 1998, we have continued to advise employees to stop smoking, while, in April 2011, we began
prohibiting smoking throughout the premises during work hours. As a result of these initiatives, the percentage of smokers
among all employees declined from 36.2% in 1998 to 13.3% in 2017.

Transition of Smoking Ratio(Yamaha Corporation)

(%)

40

36.2%
30

(FY1999)

28.2%
20

13.3%
(FY2018)

18.2%

14.9%

10

0

FY2001

FY2006FY2011FY2016*1 As at the end of March every year

We are currently aiming to further reduce the ratio of smokers by reducing the number of smoking areas inside the premises,
thereby preventing passive smoking, and continue to provide individual support to quit smoking. These efforts are also beingrolled out to our Group companies in Japan and the rate of smokers at Yamaha has been low compared to the nation-wide
rate. Data on comparisons of smoking rates for the Group and smoking rates for Japan as a whole are shown on the Social
Data page.
Social Data

Health Support for Employees Stationed Abroad
For each Yamaha Group employee stationed overseas, we have an industrial physician send an email specifically relating tothat individual along with the results of the annual regular health checkup. In 2017, employees stationed abroad received thesame stress check as employees in Group Companies in Japan.

49
Yamaha Sustainability Report 2018

Ensuring the Safety of Employees Stationed/Traveling Overseas
The Yamaha Group believes that the safety of employees working inside and outside Japan is paramount and is taking
various steps to prevent accidents and incidents before they occur.
In order to ensure the safety of employees that are stationed overseas and that go overseas on international businesstrips, measures are being carried out from the perspective of prevention and emergency response in the event of an
accident. Information concerning dangers in each country and region is gathered from sources such as Japan’s Ministry ofForeign Affairs, private security companies, employees stationed at overseas Group companies, and those who havereturned from abroad. It is then analyzed and distributed internally in the form of reminders and business trip regulations.
Safety-related education is also provided to employees prior to being dispatched overseas, while their families also receive
separate education programs.
Furthermore, for those taking international business trips for the first time, an orientation is held that covers safety
education, including basic knowledge and measures to handle emergencies while abroad.

Fiscal 2018 results
Content
Training prior to assignment
overseas
Overseas business trip orientation

TargetFrequency

Number of participants

For employees

9 sessions

30 employees

For employees’ families

6 sessions

16 people

For employees such as those going on an
overseas business trip for the first time

4 sessions

60 people

Results of External Evaluations
Certified as Health and Productivity 2018 (White 500)
In February 2018, Yamaha Corporation was certified under the Health and Productivity(White 500) certification system hosted by the Ministry of Economy, Trade and Industry/
Japan Health Conference for the second consecutive year.
This system certifies those companies that consider employee health management intheir management strategies and work strategically to achieve it.
Yamaha was evaluated on its measures for reducing long working hours and efforts
at the promotion of work-life balance in addition to the regular health check, mental health,and measures to prevent passive smoking.
In addition, Yamaha Business Support also received certification for the first time thisyear.

Human Resource Development
Establishing Education and Training Programs
Under the concept of supporting highly motivated employees who wish to accomplish their “roles,” and aim to makeconstant progress, the Yamaha Group strives to support each employee in exercising their talents to the fullest anddeveloping professionally while working toward self-fulfillment. The Group works to create an education and training systemthat is equally focused on skill improvement and career development as the basis for nurturing human resources that can act
globally. At the same time, each training program implemented is tailored to a specific objective and group of employees. In
tandem with these, the Group also supports employees' autonomous learning projects and lifestyle design.
Total yearly training hours related to human resource development: About 1,500 hours (total 39,000 hours·person)* Target scope: Yamaha Corporation

50
Yamaha Sustainability Report 2018

Main Training and Education Programs and their Status of Implementation (FY2018)
Target/Content

AnnualParticipants

Training Hours per
PersonCumulative
Participants

Stratified Training

Increases individual skills level to match career
stages400

15-30 hrs/yr

2,000/past 5 yrs

Senior Specialist
Institute

Development of personnel to manage production(production base managers, supervisors, etc.)

1550 days89

Yamaha Sales company
Executive College

Development of sales management personnel(sales location managers, supervisors, etc.)

812 days17/past 2 yrs

Yamaha Advanced Skill
SchoolDevelopment of supervisory personnel on
domestic production shop floors

16

260 hrs

716

Yamaha Technology
Training Center

Development of core personnel on domestic
production shop floors

30

230 hrs

1,530

From-to Program

Passing down core technologies relating tomusical instrument manufacturing

12

–

512

GAME 269

20 hrs1,209/past 5 yrs

Function-SpecificTraining

Quality engineering, internationalization training,core technology training (signal processing,
acoustic vibration engineering, materials
engineering), etc.

Technology
academy/coretechnology 196

24 hrs1,241/past 5 yrs

Overseas/Language
Study

Studying abroad to acquire and improve foreign
language skills

3

14 months

32

Yamaha Business School

Supporting autonomous learning by employees(training by correspondence)

257

Autonomous
Learning

1,600/past 5 yrs

Second Life Preparatory
SeminarOpportunity for employees 2 years out fromretirement to contemplate life beyond retirement
and information-sharing

200

8.0 hrs

850/past 5 yrs

English Learning Methods
SeminarInternal seminars inviting external instructors

700

4.0 hrs

700/2017 andbeyondFemale Selective
Development Program

Training to develop the mindset for female
employees qualified to become management
candidates, and training plan formulation skills
training for their supervisors

42

7.0 hrs

42/2017 andbeyondNameDevelopment of Management Personnel
The Yamaha Group strives to develop management personnel who will be the backbone of business activities.
In 2011, the Group started a manager training program for Japanese personnel at production bases, mainly at overseas
production subsidiaries. Subsequently, a training program for managers was started in 2013. Then, from 2014, we haveproceeded to expand and restructure programs to include non-Japanese personnel at overseas production bases, while wehave been training production managers globally since 2016 under a program titled Senior Specialist Institute (SSI).
Additionally, for human resources engaged in sales, we started the Yamaha Sales company Executive College (Y-SEC)
in February 2017 as a program that trains candidates for site managers, mainly at overseas sales companies. Currently, weare systematically establishing programs equally focused on job category and rank as we take a structured approach totraining human resources who will work in management positions. As such, from fiscal 2018, we introduced a managementhuman resource development program (Yamaha Global Management Program) common among all job categories.

51
Yamaha Sustainability Report 2018

Fostering Human Resources to Support Manufacturing
The Yamaha Group aims to create an optimal production system by clarifying the roles and functions of each of its bases. At
the same time, we are promoting the development of human resources that support manufacturing so that we can maintainand improve “Made in Yamaha” quality.
Positioning each plant in Japan as a manufacturing base of high-value added products, we focus on developing
manufacturing technologies that are highly competitive, while ensuring that core skills required to manufacture musicalinstruments are passed on. Plants in China, Indonesia, and Malaysiaare designated as key manufacturing bases for affordably
priced products and we dispatch many technicians and supervisors from Japan to provide support and guidance at thesesites.

Development of Global Personnel
The Yamaha Group appoints local personnel from each base around the world to important posts within the Group andexerts efforts to develop personnel who can play a strong role at a global level. In 2015, the Company established a Global
HR Development Group within its Human Resources Division, and has been promoting the following 4 initiatives since.
1. Identifying global core human resources‘Place the right person in the right position’ regardless of nationality or company of origin.
2. Global Grading
Promotion of personnel transfer among Group companies with Group standards.
3. Assessment and compensation
Consistent evaluations based on Group-wide standards; acquisition and retention of excellent personnel.
4. Succession Plan
Creating succession plans for Group executive management.

Supporting Employee Development through Regular Face-to-Face Meetings
Yamaha Corporation holds regular face-to-face meetings with all employees to both assess performance and support
employee development. The meetings serve to align perspectives of employees and their supervisors with regard to theobjectives and mission of the Company and its divisions, in addition to each person's role and goals. This allows theCompany to confirm levels of achievement, future challenges, and the direction of skills development.
Furthermore, employees (including employees who are hired mid-career) and the Company have face-to-face meetings
to exchange opinions regarding career plans at the one-year and four-year marks after joining the Company. Meetings areattended by HR Department staff in order to assess whether employees are able to find a sense of fulfillment in their work,and to discuss future career plans.
In order to ensure that these meetings are conducive to fair evaluations and effective support for employee growth,
Yamaha Corporation carries out training for managers and staff who serve as evaluators in the meetings.

Establishment of New Personnel System and Related Training
Yamaha Corporation holds assessment training for managers, in order to ensure the appropriate and effective operation of
the human resource system introduced in October 2016. This encourages their understanding of the purpose of theevaluation system, and it also leads to fair treatment of employees and support for growth.
The Company also held a total of 28 training sessions for new 650 assistant managers. This aims to foster leadershipmindset in these personnel and to encourage them to view themselves as central members in their respective workplaces.

52
Yamaha Sustainability Report 2018

The Environment
Environmental Management
Environmental Policy
Recognizing environmental issues as important, the Yamaha Group is committed to continuing its contribution to therealization of a better global environment.
Based on the Yamaha Group Environmental Policy, Yamaha is actively involved in measures related to climate change
on a global scale, including the reducing emissions of hazardous chemical substances and risk of leaking related to businessactivities, the appropriate use of timber and forest prevention.
These resolutions related to environmental issues are incorporated into our mid-term management plan, and we areconducting business according to the action plans in related business divisions.
Yamaha Group Environmental Policy

Environmental Management Systems
The Yamaha Group has created a global environmental promotion system. The board director in charge of environment at Yamaha
Corporation is the representative in charge.
The board director in charge of environment conducts a management review once every half-year to check the progress ofongoing measures, items based on requests by stakeholders and laws and regulations, and information about accidents orcomplains related to environment. Important issues that arise are deliberated in the management meeting.
Based on the “Group Environmental Management
Policies & Rules,” integrated for all domestic business
Enviromental Management Structuresites, each business site overseas has created an
Environmental Management System (EMS).
Enviromental Management Structure
In this system, each business site determines its own
Board director in charge of the environment
environmental goals, develops measures and action plans
YamahaGroup
Enviroment Committee
to achieve them, and executes those measures. We thenWorking Groups
Committee Chairman : Division director in charge of enviroment
management at Yamaha Corporation
verify that each business site is actively pursuing its goals• Energy
Secretariat : Yamaha Corporation Enviroment,• Risk reduction
through internal environmental audits, and process the
Health & Safety Group
Waste,Chemical substances,Environmental facilities
results for continuous improvement and strengthening.
• Product eco design,etc
The Environmental Division of Yamaha Corporation
Group Company
Business Site
supports and leads all activities related to the environment,
Environmental
Environmental
Committees
Committees
such as collecting information on laws and regulations,enacting policies for the entire Yamaha Group, establishing
All Divisions
All Divisions
regulations, conducting environmental audits, and following
Domestic integrated ISO 14001 organization
through on each measure.

Acquisition of ISO 14001 Certification
The Yamaha Group is acquiring ISO 14001 certification for environmental management systems that meet international
standards.
As of the end of March 2018, the Yamaha Corporation and 22 Group companies in Japan and overseas (total of 23
companies) have acquired certification, including approximately 95% of the Yamaha Group with GHG emissions (scope 1 and
2). The Yamaha Group believes the currently acquired certification is sufficient considering its own environmental load, laws
and regulations, and other matters. In the future, when establishing business sites that may have a large impact on theenvironment, they will be added to the certification scope sequentially.
In 2017, the Yamaha Corporation acquired integrated certification in Japan based on the new standards which wererevised on September 2015.

53
Yamaha Sustainability Report 2018

ISO 14001 Certified Sites
Yamaha Corporation Business Sites in Japan
Site

Acquisition Date

Integration Date

Kakegawa Factory

November 1998

November 2010

June 2000

November 2010

February 2001

November 2010

Acquisition Date

Integration Date

March 2001

November 2010

September 2002

November 2010

Yamaha Music Manufacturing Japan Corporation

August 2014

August 2014

Kitami Mokuzai Co., Ltd.

August 2014

August 2014

Site

Acquisition Date

Integration Date

Yamaha Resort Inc, Katsuragi

November 2001

August 2011

Toyooka Factory (including Yamaha Hi-Tech Design Corporation)
Headquarters Area

Group Manufacturing Companies in Japan Site
Site
Yamaha Fine Technologies Co., Ltd.
Sakuraba Mokuzai Co., Ltd.

Resort Facilities

Group Manufacturing Companies Located Overseas
Site

Acquisition Date

Yamaha Electronics Manufacturing (M) Sdn. Bhd.

December 1998

Tianjin Yamaha Electronic Musical Instruments, Inc.

December 1999

PT. Yamaha Musical Products Indonesia

January 2001

PT. Yamaha Music Manufacturing Indonesia

December 2001

PT. Yamaha Indonesia

May 2002

PT. Yamaha Music Manufacturing Asia

July 2002

PT. Yamaha Electronics Manufacturing Indonesia

January 2003

Yamaha Electronics (Suzhou) Co., Ltd.

March 2004

Hangzhou Yamaha Musical Instruments Co., Ltd.

May 2012

Xiaoshan Yamaha Musical Instruments Co., Ltd.

March 2013

54
Yamaha Sustainability Report 2018

Initiatives for Promoting Environmental Management
Environmental Accounting
Yamaha Corporation introduced environmental accounting in fiscal 2000 as a means of quantitatively evaluating theeffectiveness of its environmental conservation activities. These environmental accounting practices are currently
implemented at Yamaha Group production companies and resort facilities in Japan, and have also been implemented atsome overseas Group production sites.
For inter-annual records regarding this data, please refer to the environmental data page.
Environmental Data

Environmental Education and Training
The Yamaha Group offers a variety of training and education opportunities to company employees in an effort to raise theirknowledge and skills with respect to the environment. The Group provides environmental training such as “general
education” to all employees, “specialty education” for instructors and others, and “environmental facilities education andtraining” for individuals in charge of environmental facilities. Training is adjusted according the needs of each site and workrelated duties throughout the year.

Specialized Training for Environmental Preservation Staff
The Group has established curriculum for employees engaged in operations that require specialized knowledge, including
personnel involved in waste management, water treatment, and chemical substance handling operations.
After defining and listing required abilities in regards to operations which have a particularly large impact on theenvironment and examining the educational needs, we are conducting special training sessions. Environmental technology
personnel at headquarters are following up with education for employees in charge of overseas factories.
We also conduct education related to chemical substance management and accident prevention such as the leakage ofenvironmental pollutants. This educational initiative is based on Yamaha Group Chemical Substances Usage Standard or
Yamaha Group Environmental Equipment Standards, and conducted onsite to prepare for emergency response.

Fostering Internal Environmental Auditors
Training the staff who actually perform our self-regulated activities with respect to environmental preservation is essential
for improving the operations of our environmental management system. The Yamaha Group invites lecturers from externalorganizations and holds annual seminars to train internal environmental auditors as an initiative to improve our environmental
preservation activities.
At business sites in Japan, to date, more than 1,164 participants have obtained their internal environmental auditor
qualification and of these, 389 employees are still currently employed at Yamaha. This is about 6% of our employees atrelevant business sites.
With the migration to an ISO 14001 integrated management system since fiscal 2011, we have held an Internal
Environmental Auditor Brush-Up Seminar to improve the skill set of staff members responsible for internal audits.

Promoting Environmental Activities of Employees
The Yamaha Group provides support and training to improve the environmental awareness of our employees and to promote
eco activities that employees can perform as part of their daily routines.

Environmental Awareness Activities in the Home: Smart Life in My Home Commitment and My Eco Commitment Coloring Page
The Yamaha Group has worked with the Yamaha labor union to promote eco-conscious activities in daily life through projects
and tools such as keeping track of eco-conscious household activities, “Smart Life in My Home Commitments” that
accomplish eco-conscious activities suitable to each employees’ home, and the “My Eco Commitment Coloring Page” forfamilies with children.

55
Yamaha Sustainability Report 2018

Examples of Initiatives under the Smart Life in My Home Commitment (Fiscal 2018)
Details of Commitment

Report on Activity

Create a “household garden” to enjoy an eco life with a household
gardenWe created a household garden and disposed of about 30 liters of raw
garbage per month (reduce garbage sent to city).

Converted all household lighting to LED (stage one)

By switching from incandescent light bulbs to LED, we experienced
energy-saving effects. We have decided to switch light bulbs to LED in the
future.

Used less electricity and gas than last year for each month between
July and September

Monitored the electricity and gas meters for the three months between
July and September. Used less of both each month compared to last year.

The Smart Life in My Home Commitment activity report
sent from employees

My Eco Commitment
Coloring Page

Green Eco Curtains Activities in Employee Homes
Beginning in fiscal 2010, the Yamaha Group has encouraged employees to create Green Eco-Curtain in their homes, inparallel with Green Eco Curtain activities at Yamaha business locations.
In addition to providing how-to instructions, Yamaha distributed seeds for bitter gourds to those interested.
Green Eco Curtain activities at Yamaha business locations

Photos of Green Eco Curtains collectedfrom employee families

56
Yamaha Sustainability Report 2018

Prevention of Pollution
Structure for Prevention of Environmental Pollution
In 2014, the Yamaha Group organized the Yamaha Group Environmental Equipment Standards, which defines Group
standards regarding the installation, management and operation of environmental facilities to prevent environmental pollution
from occurring in our business activities. The road map is determined at each individual site and we are on schedule tocomplete adaptation at all sites in fiscal 2021.

Monitoring and Response to Laws and Regulations
The goals of the Yamaha Group include reducing the environmental impact of our business activities and ensuring
compliance with environmental laws. In accordance with the annual plan created by the Yamaha Corporation Environmental
Division and the management divisions of each business site, the divisions in charge of environmental measurement
regularly monitor emissions, wastewater, noise, odors, and other by products of our activities at each of our places ofbusiness, confirming our management status and strictly assessing compliance.
We assess our monitoring according to our own standards, which exceed existing legal standards. In the event thatmeasurements exceed standards or are unusual in some way, we take
immediate emergency and correction measures.
In addition, we are developing our system to make quick responseto the revision of laws and regulations. The Group collects the latest
legal and regulatory information, and the Yamaha Corporation
Environmental Division summarizes, checks, and disseminates theinformation throughout each business site to ensure consistentcompliance as a whole Group. Furthermore, the Group has establishedworking groups made up of the management division and production
division of each business site to reduce risk and determine responses.
The Yamaha Group is carrying out initiatives in both Japan andoverseas. For example, in China, where environmental laws have been
amended frequently in recent years, the Yamaha Group works closelywith Group companies in China to strengthen compliance systems.
Environmental measurements

Environmental Audits
The Yamaha Group conducts internal environmental audits according to the ISO14001 integrated management system. We
also conduct Group-wide environmental audits to prevent environmental accidents or violations of law. These activities serve
to reduce our environmental risk as a corporate group.
Yamaha Corporation’s Environmental Division conduct these audits, using audit staff who have skills and expertise inenvironmental preservation. In addition to certification as an internal environmental auditor based on ISO 14001 standards,
Yamaha audit staff have also received official Pollution Control Manager, Working Environment Measurement Expert andother relevant certifications.
In fiscal 2017, the audit system was adjusted tocomply with the Yamaha Group Environmental
Equipment Standards to reduce risk. The status ofcompliance to equipment standards at each site andenvironmental risks are itemized on a checklist usedthrough the Group. By clarifying priority and items which
require a response, the Company is efficiently making
improvements.
In addition, audits are conducted in direct correlation
to the risk level. In fiscal 2018, we conductedenvironmental audits at four sites in Japan and four sites
overseas.

57
Yamaha Sustainability Report 2018

Environmental audit conducted by audit staff of the Yamaha Corporation’s environmental division.

Preparation for Emergency
The Yamaha Group is working to prevent environmental pollution
caused by the leak of harmful substances and oils from businesslocations by assuming emergency situations.
Yamaha is identifying risks using Group integration evaluation
standards, and as a result, the Yamaha Group is striving to prevent
accidents during assumed emergency situations at business sites byimproving plans and procedures. Additionally, each site has put
procedures, equipment and tools in place to respond to such
emergency situations should they occur and is conducting emergency
response training.

Emergency response training

58
Yamaha Sustainability Report 2018

Response to Pollution and Toxic Substances
The Yamaha Group has conducted cleanup measures at two sites withsoil and groundwater contamination due to chlorine-based organic
solvents. We have already completed the groundwater cleanup at the
Yamaha Corporation Toyooka Factory. The Yamaha Headquarters
business site has been restored to near-standard levels, and wecontinue cleanup activities at present. We have completed soil
contamination cleanup activities at both sites.
Surveys focusing on water quality and biodiversity in waterways
where the waste is discharged are periodically conducted, andconstantly monitored for evidence that water discharged from businesssites does not exert a negative impact on the watershed and related
habitat.
Additionally, as of April 2015, all Group sites in Japan disposed oflarge machinery, like transformers or condensers that contained highdensity PCBs. We have completed shipment packaging registration ofsmall size high-density PCB wastes such as fluorescent lamp
stabilizers, and we are organizing proper disposal.
Our activities to remove devices containing low-density PCBs
started in fiscal 2017.

Groundwater purification equipment at the headquarters
officeAt the headquarters factory of Yamaha Music Manufacturing Japan, theCompany updated the wastewater processing equipment in March2018 in order to improve earthquake resistance and processing
capabilities. This new equipment can process twice the wastewater ofthe previous equipment and has been designed to withstand anearthquake with an intensity of 6-strong to 7.
Wastewater processing equipment at the headquarters
factory of Yamaha Music Manufacturing Japan

Chemical Substance Management and Reduction of Emissions
When utilizing chemical substances, the Yamaha Group strives tominimize adverse impact on people and the environment by thoroughlymanaging chemical substances such as those designated under the
PRTR*1 Law, and reducing emissions of substances from production
processes and products. In 2013, the Group reviewed management
regulations regarding chemical substance use in factories andestablished Yamaha Group Chemical Substances Usage Standard to
reduce environmental load and improve the work environment at all
major factories in Japan and overseas.
At present, the chemical emissions that occur in the course of
production processes in companies of the Yamaha Group mainly
consist of volatile organic compounds (VOCs)*2. The Group isconstantly monitoring VOC emissions and is working to replace andreduce VOCs. (For inter-annual records regarding VOC emission, pleaserefer to the environmental data page.)In accordance with the Yamaha Group Chemical Substances
Usage Standard, from fiscal 2016, Yamaha began activities to abolish alluse of dichloromethane and reduce the use of 1-bromopropane. In
fiscal 2017, two business sites eliminated the use of dichloromethaneand replaced the use of 1-bromopropane by 80% through theintroduction of an alternative substance. Additionally, our factory in
China introduced a VOC disposal facility to reduce emissions.

Yamaha’s VOC disposal facility in Tianjin*1 PRTR: An abbreviation for Pollutant Release and Transfer Register. The PRTR Law is an abbreviation of the Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof*2 VOCs (volatile organic compounds): These compounds, contained as thinning agents for coatings and adhesives, are believed to be one factor in
the release of photochemical oxidants and suspended particulate matter (SPM).

Environmental Data
59
Yamaha Sustainability Report 2018

Reducing Chemical Substance Emissions in Coating Processes
In the coating processes that give musical instruments and automotive interior components their beautiful appearance anddurability, Yamaha continues to research and introduce coating methods that reduce the environmental impact by reducing
the use of paints and the emission of organic solvents.
To date, we have developed applications for electrostatic coating, powder coating and flow coater in accord with eachproduct and are making use of them in our production process.
Yamaha Music Manufacturing Co., Ltd. began switching the coating materials for parts from one containing an organic
solvent to a water-based coating in the piano manufacturing process. Water-based coating also has the positive effect ofimproving the work environment.
Similarly, Yamaha Fine Technologies Co., Ltd. developed an in-mold coating method that completes the coating processinside of the mold, and has adapted this method for automobile interior components. By switching from traditional spraycoating to in-mold coating, more than 90% of adhesion efficiency*3 is achieved, less organic solvents are released into theatmosphere, and less paint is used owing to high coating efficiency. Ventilating operations in the workplace have been
reduced as well. This, in turn, contributes to a significant reduction in the amount of energy used.
*3 Adhesion efficiency: ratio of materials adhering as coat compared to total used.

In-mold coating process (YMC: Yamaha Mold Coating)Spray coating process

Protecting the Ozone Layer
The Yamaha Group has historically worked to reduce usage of fluorocarbons to protect the ozone layer. We eliminated theuse of all special chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). After we eliminated the use of all
special CFCs used in manufacturing processes in fiscal 1994, we used HCFCs, which have a lower ozone depletion potential
compared to special CFCs, in the degreasing process for metal materials. However, we also eliminated the use of all HCFCs
by fiscal 2006 because of its large impact on global warming.

Environmental Accidents and Litigation
During fiscal 2018, the Yamaha Group did not violate any laws, receive fines, pay fees, or be named in any lawsuits withrespect to environmental concerns. The Yamaha Group did not experience any accidents having an effect on the outsideenvironment, nor did we receive any significant complaints.

60
Yamaha Sustainability Report 2018

Environmentally Friendly Products and Services
Environmentally Friendly Design and Green Procurement
The Yamaha Group has positioned efforts to develop technologies and offer products and services that minimize any
burdens on the environment under its Yamaha Group Environmental Policy.
With respect to the various product groups, we perform product life cycle assessments (LCA) that cover all product life
cycle stages, including material procurement to production, transport, use, and disposal to identify what aspect of a productgroup life cycle has the largest environmental impact and to tackle environmentally friendly design from multiple angles.
For chemical substances contained in our products, we have created containment standards and a management
system, and perform green procurement.

Primary Product Characteristics According to Life Cycle Assessments, and Initiatives(Note: The size of each circle indicates the relative environmental load associated with that stage in the product life cycle.)

Acoustic Instruments

Characteristics:• There is no energy consumption during use, and products have a long life and may be used for
decades.
• The environmental load at the materials production stage is low in terms of CO2 emission if
lumber is the primary material. However, there is a need to consider deforestation and toprotect scarce natural materials to prevent resource depletion, which means the environmentalload of producing raw materials is higher than other stages.
• During product use, VOCs emitted from wood materials may have an environmental impact.
• While products are characterized by their long life, products may be left idle depending on thecircumstances of customers and later disposed of.

Measures:• In order to ensure appropriate lumber procurement, “Yamaha Timber Procurement Policy” areto be established and efforts strengthened.
• Reduce VOC emissions from wood materials (during product use) and take steps to establish
a mechanism for product reuse.
• Add functions and continue use.
Lifecycle of acoustic
instruments

Electronic Musical Instruments

Characteristics:• Many do not consume electricity when not in use, and there is a growing demand for efforts
to be devoted to products with a comparatively small environmental burden when used.
• Large products require a lot of materials in the material production phase, creating acomparatively large environmental load. Difficulties may also occur at local bodies andelsewhere at the time of disposal, necessitating consideration of how better to promote
recycling.
• The many different materials used in these products necessitate management of chemicals
contained in materials used in material production and efforts to promote recycling at the timeof disposal.
• Need to take measures for environmental pollution due to substances that exert environmentalload in waste materials.

Measures:• Resource-saving design that allows longer use of electronic instruments through upgrade kits,
and energy-saving design using new technologies such as digital amplifiers and switching
power supplies.
• Stricter efforts to control substances with an environmental impact in products via green
procurement, etc.
• Reduce the amount of substances that exert environmental load when products become
waste.

61
Yamaha Sustainability Report 2018

Lifecycle of electronic musicalinstruments

AV Equipment, IT Equipment

Characteristics:• Some IT devices operate constantly, while AV devices also consume electricity during standby,
thus making the environmental load of the use phase comparatively large.
• The many materials contained in these products make necessary management of thechemicals contained in materials during material production and efforts to promote recycling attime of disposal.
• The environmental load is comparatively small during material production because there are
not many large products.

Measures:• Stricter efforts to control substances with an environmental impact in products via green
procurement.
• Miniaturization, integration and other resource-saving designs, new technologies such as
digital amplifiers and switching power supplies; the use of energy-saving designs to reduce
standby power consumption.

Lifecycle of AV and IT
equipment

Management of Chemical Substances Contained in ProductsSome chemical substances contained in products have an environmental impact and therefore required proper treatment on
disposal. Such substances may have potential health impacts to their users depending on application. For that reason,
countries around the world have been strengthening restrictions for chemical substances contained in products and requiring
data disclosure.
In February 2003, Yamaha established its own Standards for Chemical Content in Products. These standards are used
to manage chemical substances in products during design and development to help ensure legal compliance and reduce
environmental load. The standards are revised when necessary in response to legislative changes, the accession of voluntarystandards, and other factors.

Creation of the Management System for Chemical Substances Contained in Products
In order to manage chemical substances contained in products, it is imperative to identify and control the chemical substances
contained in the parts and materials making up finished products.
In fiscal 2009, the Yamaha Group established a management system and the Yamaha Group conducts a survey of its
chemical-containing parts and materials with the cooperation of its suppliers, thereby contributing to improved managementof these substances.
In fiscal 2011, Yamaha renewed its chemical substance management system, and adopted the AIS,*1 a standard industry
format for the identification of chemical substances in products. The new system was likewise designed to comply flexibly
with the European Union’s ever-growing chemical substance regulations, such as SVHC*2 under REACH. Yamaha also holds
briefing sessions in Japan and internationally to explain to and gain the cooperation of suppliers in implementing its new
chemical management system.
*1 AIS: An abbreviation for Article Information Sheet. A basic communication sheet standardized by JAMP (Joint Article Management Promotionconsortium) for providing information on chemical substances contained in products. Parts makers can use the information on chemical containedthat they receive from material makers to pass on to those they supply, ensuring the fluid transmission of information downstream.
*2 SVHC: An abbreviation for Substance of Very High Concern such as carcinogens. Under the REACH regulations, if a product contains more than acertain amount of an SVHC-designated substance, there is an obligation to disclose information and manage the product.

Promotion of Green Procurement
The Yamaha Group formulated and published the Green Procurement Standards in 2002. Data on the substances containedin materials and the status of initiatives for managing chemical substances provided by suppliers plays a role in confirming
the status of restricted substances contained in products and assessing the influence of environmental regulations. For thisactivity, we set the core issue connected to human health and environment. We strive to procure materials and parts thathave minimal load on the environment, and review Green Procurement Standards as required in line with changes in global
environmental regulations.
Green Procurement Standards

62
Yamaha Sustainability Report 2018

Yamaha Eco-Products Program
The Yamaha Group launched the Yamaha Eco-Products Program in 2015 to promote the creation ofenvironment-friendly products. This program aimed to clarify environmental standards and promote
environmentally friendly products.
A Yamaha Eco-Label is affixed to those products meeting our environmental standards, thus
certifying them as Yamaha Eco-Products. Our objective is to provide straightforward information on ourenvironmental efforts and support our customers in the decision-making process when selecting a
product. As of March 31st 2018, the number of certified products, including older products, has surpassed
320, 30 of which are newly developed products bearing the Eco-Label.

Yamaha Eco-Label

Yamaha Eco-Products Program
Sustainable Consumption

Products Supporting the Reduction of Environmental Load
The Yamaha Group products are not only for general consumers, but also for businesses. Some of the products help toreduce the environmental load of our customers’ business activities or can be used to reduce environmental load whenusing products manufactured by the customer. The Yamaha Group works to reduce environmental load throughout society
through the development and promotion of such products.
Application of environmental technologies

Use of Sustainable Resources
Initiatives for Timber Resources
Among the instruments that the Yamaha Group produces, including
pianos as well as string, percussion, and woodwind instruments,
many require a primarily wood construction for acoustic reasons.
Large amounts of timber are also used when making electronic
musical instruments, speakers and soundproof rooms, due to themerits of wood in terms of acoustic performance, function, design,and texture.
Considering the diverse variety of timber used in our business
operations, the Group established the “Yamaha Group Timber
Procurement Policy,” which indicates the direction of our timber
usage in order to better conserve this precious resource, as well as
ensure its availability for continued use in the future. The YamahaGroup also established the Yamaha Supplier CSR Code of Conduct,
which clearly stipulates points related to the harvesting and tradingof timber resources, that Yamaha suppliers are requested toobserve.
The Policy and Code of Conduct help the Yamaha Group accomplish
sustainable procurement that is friendly to the environment and thebiodiversity within its ecosystems, and meet its aim to maximize theuse of timber as a first-rate recyclable resource without waste.
Yamaha Group Timber Procurement Policy

Ratio of Yamaha Timber Resources Origin by Country(fiscal 2018)

Excludes some products that are not Yamaha brand andOEM/ODM products.

Yamaha Supplier CSR Code of Conduct
For figures regarding volume, please refer to the environmental data
page.
Environmental Data

63
Yamaha Sustainability Report 2018

Initiatives for Sustainable Timber Procurement
It is necessary to consider the environment in a way that ensures timber is utilized in a sustainable way. Operations must
consider forest conservation and timber resource volumes, sustain the economic viability of the supply chain, and contributethe advancement of the community through creating jobs and encouraging infrastructure. The Yamaha Group has establisheda due diligence system to prevent procuring timber from illegal sources as it promotes a strict confirmation process fortimber procurement legality through site visits and surveys of documents for procurement sources. In addition toenvironmental considerations, the Group is expanding the use of certified timber, which is produced in societally andeconomically sustainable forests and contributes to the advancement of the community.
From fiscal 2016, Yamaha began investigating African Blackwood, which is an important material used for wood wind
instruments, specifically regarding the ecology, amount of resources, and forestry management status in the United Republicof Tanzania where the timber was being procured at that time as Yamaha aimed to conserve the tree, and secure a stableprocurement source.
This tree is classified as Near Threatened by the IUCN Red List and in recent years the resource volume has been
trending down. As a result of investigating the management status of these forests and ecological status, including
distribution, growth, and natural regeneration, we discovered that sustainable procurement is possible with proper
management. Following these results, from fiscal 2016, Yamaha aimed to construct a business model which could
sustainably use African Blackwood as a material for musical instruments. Yamaha is continuing surveys and is proposing
initiatives as a BOP cooperation business with the Japan International Cooperation Agency (JICA).
In fiscal 2018, we cooperated with local NGOs and the local community to begin tree planting activities for AfricanBlackwood as we aim to secure future resource volume. In addition, Yamaha formed a partnership with local timber
producers and is conducting initiatives aimed at the efficient use of existing resources, including procuring timber fromsustainably managed forests, and improving the usage efficiency of wood materials.

African Blackwood seedlings

Built tree nursery facilities, such as pump, watertank, and well in corner of local agricultural village

Ecological survey

Creation of a Circulating-type Forest
Kitami Mokuzai Co., Ltd., a Hokkaido-based company that manufactures
piano sound boards using natural Picea glehnii, signed an agreement toestablish “Piano Forests” in cooperation with the Okhotsk Subprefectural Bureau and the town of Engaru, Monbetsu-gun, Hokkaido
Prefecture in March 2016. Since then, these organizations have beenworking together to create a circulating-type forest and expand thedemand of artificial Picea glehnii.
In recent years, due to a decrease in natural forest timber, it has
become essential to secure a stable supply for the timber grown in
Hokkaido. As a result, to secure a stable supply of Picea glehnii, thethree parties established “Piano Forests” in the forestlands owned by
the Okhotsk Sub-prefectural Bureau and the town of Engaru. The aim is
to preserve the forests and to ensure that the Okhotsk “tree culture” ispassed on to future generations.
Moreover, in the future, we will work to grow high-quality timber in thisforest and use it to manufacture piano sound boards.

A Picea glehnii plantation

64
Yamaha Sustainability Report 2018

Use of Timber Resources in Environmentally Friendly Products
The Yamaha Group is proactively introducing wood cultivated specifically for industrial purposes on planned plantations aswell as certified wood, which is properly managed so that the lumbering process does not harm the forest or the ecology.
These measures aim to use the excellent renewable resource of trees on a sustainable basis.
In addition, the Group focuses on developing alternative materials that accurately reproduce the sound quality of rare
wood materials best suited for instruments.
Case examples are introduced in the application of environmental technologies page.
Application of Environmental Technologies

Reduction and Sustainability of Raw Materials
Resource-Conservation in Products
The Yamaha Group is striving to conserve resources used in its products from a variety of standpoints, such as reducing
product size and weight, integration of several products into one and by reducing product packaging. Further, the Group isalso taking efforts in its piano renewal business, and is aiming to extend the longevity of its products that will ultimately lead
to less use of resources.
Environmentally Friendly Products and Services
Initiatives to Extend Longevity of Products
Piano Renewal Business

Utilization of Sustainable Materials
Yamaha conducts initiatives to develop alternative materials that can be substituted for scarce timber, and adopts sustainable
materials such as biomass-derived resins for use in its products
Environmentally Friendly Products and Services

Making Effective Use of Timber Resources
Yamaha is working to reduce waste by improving the yield ratio in timber processing, and reusing and recycling wood chips
from processes. The Company is both selling offcuts to building material makers as raw material for hard board, and creatingother components using offcuts. In recent years, the Company has also begun unique initiatives, such as using wood chips
produced in the wood manufacturing process at the Kakegawa Factory, which manufactures pianos, as bedding for cows.

Some timber offcuts previously disposed of as waste are instead reused as angle rafters (reinforcing
materials inside guitar bodies)

Briquettes made from sawdust left over fromthe piano manufacturing process (pellet)

Recycling as a material for wood plastic
composite (WPC)65
Yamaha Sustainability Report 2018

Waste Reduction and Resource Recycling
The Yamaha Group (in Japan) has established systems to perform recovery/separation in order to reduce waste produced atfactories and offices and promote recycling. The Yamaha Group (in Japan) has a recycling rate of about 99%.

Examples of Waste Reduction
Business-site

TimingDescription of activity

Nov.
2010

Introduced vacuum concentration equipment for liquid waste and reduced the amount of waste acids
and waste alkali generated in the wind instrument manufacturing process by about 80%.

Fiscal2012

Began processing waste from the R&D Department, which includes rare metals, as valuable resourcesand effectively utilizing it.

Sep.
2009

Installed more wastewater processing equipment and began the in-house processing of wastewater
including adhesive agents generated in the piano manufacturing process. This has led to a waste
reduction of around 900 tons annually.

Sep.
2012

Increased ability to process wastewater including adhesive agents. This has led to a waste reduction ofaround 270 tons annually.

Xiaoshan Yamaha MusicalInstrument Co., Ltd.

Fiscal2014

Reduced paint process-related waste by keeping the circulating water used in the musical instrument
painting booths clean to enable longer usage. Reduced waste by about 120 tons/year.

Yamaha Fine Technologies
Co., Ltd.

Fiscal2012

Reduced car part rejects by reducing equipment defects and quality defects. Reduced the factory's overall
waste generation by 16% and achieved energy savings and resource savings by improving productivity.

Toyooka Factory

Kakegawa Factory

Vacuum concentration equipment (Toyooka Factory)

For data related to waste, please refer to the environmental data page.
Environmental Data

Recycling of products and packaging
The Yamaha Group is striving to both respond to laws and ordinances related to recycling products and packaging in eachcountry and region, including the WEEE directive of the European Union, and efficiently use resources in Japan byestablishing nationwide recovery points for used Electone products to conduct recovery and recycling.

Preservation of Water Resources
The Yamaha Group uses water to wash products and cool facilities. The Group evaluates water-related risks through its
comprehensive risk assessment conducted throughout the Group as well as surveys and water-related risk evaluation tools
at every work site. These measures are used to evaluate “physical water stress,” “water quality,” “regulatory risks related
to water resources,” and “reputational risks.” The Group does not have large-scale production activities in areas wherewater resources are poor, so we believe there is not a large impact on the environment due to water use.
On the other hand, in the manufacturing processes of wind instruments, much water is used in the plating and washingprocess. Because of this, since the first half of the 1970s, the Yamaha Group has been recycling cooling water andwastewater from production processes using a reverse osmosis (RO membrane) device, as well as actively pursuing a policy
to prevent leakage in water facilities.
Protection of Biodiversity (water quality preservation)
Prevention of pollution (monitoring and compliance to laws and regulations)
For data related to water usage and reuse, please refer to the environmental data page.
Environmental Data
66
Yamaha Sustainability Report 2018

Initiatives for Conservation and Recycling Use
Xiaoshan Yamaha Musical Instrument Co., Ltd.
Xiaoshan Yamaha Musical Instrument Co., Ltd., which manufactures wind instruments and percussion instruments in China,
installed a wastewater treatment facility that purifies wastewater to the level of pure water. As a result, approximately 80%of the wastewater is now being reused for manufacturing processes. (In compliance with legal provisions for the inspection
and improvement of corporate pollution resulting from electroplating in Zhejiang Province.*4)
In January 2015, a change was made to the cooling method for the annealing furnaces used for heat treating the copper
tube components of wind instruments. The new cooling method uses a circulating water supply. As a result, water used forcooling was reduced by approximately 5,700 tons from the previous fiscal year.
*4 Legislation passed in Zhejiang Province aims to enhance environmental preservation in electroplating factories. Companies engaged inelectroplating processes must conform to 56 items related to environmental preservation system and equipment. Standards for metals such ascopper and nickel are stricter than those for general factory wastewater.

Wastewater treatment facility (Xiaoshan
Yamaha Musical Instrument Co., Ltd.)

Cooling unit using circulated water (Xiaoshan
Yamaha Musical Instrument Co., Ltd.)

P.T. Yamaha Musical Products Indonesia
The Group also introduced a wastewater treatment facility that enables the reuseof 60% or more of the wastewater at the wind instrument manufacturer P.T.
Yamaha Musical Products Indonesia (YMPI). Furthermore, wastewater treatment
processes are rationalized to reduce the use of chemicals.
In 2017, the Group introduced equipment to allow cyclical reuse of washwater used in the recorder production processes. This equipment has reduced
water use by about 12,000 tons per year.

Wastewater treatment facility at YMPI

Hangzhou Yamaha
In response to increasingly stringent wastewater standards, Hangzhou Yamaha introduced a new wastewater treatment
facility in May 2016.
This facility enables us to clean wastewater for reuse. The wastewater treated in this facility is reused for cooling water,etc., enabling 10,000 tons of water to be saved in fiscal 2017.

Wastewater treatment facility (Hangzhou
Yamaha)Reusing wastewater for cooling water(Hangzhou Yamaha)

67
Yamaha Sustainability Report 2018

Climate Change Mitigation and Adaptation
Basic Measures and Targets/Achievements
Regarding measures against climate change, the Yamaha Group endeavors to reduce its greenhouse gas emissions throughoptimization of production methods and equipment configuration, improving air conditioning equipment operational methods,
installation of equipment with high energy efficiency, and extensive energy management, including adjustments to facility
operating hours and thermostat settings. The Group has also introduced cogeneration systems and fuel switching.
Emission volumes are controlled in accordance with the GHG Protocol*1. The calculation and management of the wholeprocess, including the supply chain (Scope3), began in fiscal 2017. We will continue advancing our reduction measures while
improving the accuracy of GHG calculations. From fiscal 2017, the Group has executed third-party verification of GHG
emissions for Scope1 and Scope2, as well as portions of Scope3.
*1 Standard for the calculation and reporting of greenhouse gas emissions

Verification Statement

Initiatives and Achievements to Date
The Yamaha Group recognizes that the “2°C Target” of the “Paris Agreement” is a standard with science-based evidencewith regard to Scope1 and Scope2 GHG emissions, and intends to use the industry-specific calculation tools from the “SBT
(Science Based Targets)” international initiative determine its medium-to-long-term reduction plan.
Science Based Targets/Companies Taking Action
As an energy-saving initiative, the Yamaha Corporation and its production sites in Japan set the goal to reduce CO2emissions
intensity by 1% each year, and overseas production sites have set their goals using numerical values corresponding to eachsite, and all locations are proactively working to achieve their targets.

Scope 1, 2 Achievement (Yamaha Corporation and all production sites)

Scope 3

Total GHG emission (site / yearly emission coefficient)Use of sold products

20

Total GHG emission[10,000tons-CO2](fiscal 2018)
End-of-life treatment ofsold products
Purchased products /services

15
10

16.1

15.7

14.0

13.3

13.5

5
0

3.6

3.3

2.6

2.5

2.3

FY2013

FY2014FY2015FY2016FY2017

Scope 1

Transportation,delivery(downstream)
EmployeecommutingWasters from Business trip
businesses

Scope 2

Capital goods
Not included in Scope 1 and2 Activities related to fueland energy
Transportation, delivery (upstream)*GHG … Green House Gas- Combined value of indirect emission through purchased electricity
and steam, direct emission of carbon dioxide through in-house power
generation heat usage, and GHG emission through manufacturing
processes. (Scope 1+2)
- This data was collected from Yamaha Group headquarters, major
manufacturing factories, and resort facilities on a worldwide basis.
(estimated to consist over 90% of all Yamaha Group sites)

CO2 Absorption through Tree Planting Activities in Indonesia
After conducting “Yamaha Forest” tree planting activities between fiscal 2006-2017 in Indonesia, in fiscal 2018 the Company
confirmed the growth status of the forest by satellite imagery and estimated the CO2 volume absorbed by the trees. The
Company estimates that approximately 42,000 tons of CO2 was absorbed until now.
Protection of Biodiversity
Environmental Data

68
Yamaha Sustainability Report 2018

Reduction of Greenhouse Gases
Manufacturing Process Initiatives
Energy Conservation Activities at String and Percussion Instrument Factory
Yamaha Music Manufacturing Japan Corporation, which manufactures string and percussion instruments, established theEnergy-saving Promotion Committee, and since then has been engaging in initiatives to reduce CO2 emissions. Measurestaken included ensuring the appropriate pressure for compressors, partitioning work booths, introducing power usage
monitors and installing mosquito screens in offices. The company implemented measures to save space and improve energy
efficiency by consolidating equipment inside factories and rationalizing equipment layouts. In fiscal 2016, the company
applied a thermal-barrier coating on the roof of the factory, improving air conditioning efficiency as a result. The company willcontinue to conserve energy through appropriate management of air conditioning and process integration.

Energy Conservation Measures at Piano Factory
Yamaha Music Manufacturing Japan Corporation* is conducting a range of ongoing
efforts to conserve energy.
Specific activities include the removal of unnecessary lighting, changing fromrapid-type fluorescent lighting to Hf-type lighting, replacing compressors with inverter
compressors, updating distribution transformers and air-conditioning equipment,
improving air-conditioning control, and others. With these activities, we haveachieved our goal, including reducing CO2 emissions by approximately 198 tons, andreducing electricity usage by approximately 383MWh for the cumulative total overfour years from fiscal 2015.

Cogeneration equipment at Kakegawa Factory

Reduction of Peak Power at Factory
At Yamaha Fine Tech Co., Ltd., power consumption was reduced by efficiently managing air-conditioning and sprinklingwater on the factory roof during the period of peak power consumption. In fiscal 2015, a summer system (July-September),whereby the start time is moved two hours ahead to 6:00 a.m., was introduced for the automobile interior parts painting
process where the air-conditioning load is high. Through these measures, the peak power point was shifted from 2:00 p.m.
to 11:00 a.m. Peak power consumption was reduced by approximately 310kWh in the hotter part of the afternoon, andpower consumption by 200,000kWh during the three-month period. Moreover, improved labor efficiency enables thecompany to save electricity by shortening facility operating hours.
We will continue efforts to reduce power consumption through a range of measures, such as reducing the number of
air-conditioning and heating units required, by reviewing workplace layout the use of steam during the winter.

Energy Conservation Activities at a Factory in China
Hangzhou Yamaha Musical Instruments Inc. introduced various energy-saving measures that include making technologicalimprovements and enhancing everyday management to suppress growing energy consumption as a result of increased
production.
Recognizing these energy-saving efforts to help the environment, Hangzhou City officials presented the company with
“Cleaner Production Certification*1” in accordance with China’s Cleaner Production Promotion Law at the end of 2011.
Since then, the company has implemented measures to reduce energy usage as follows:• The appropriate operation management of dust collectors• Reducing water supply operation times, the strategic use of lighting, and reducing the amount of time lights are used
• An automatic control system for dust collectors was introduced and digital electricity meters were installed in switchboards
to further minimize energy consumption, thereby reducing downtime for machinery at night• Sequential shift of electric light to LEDs.

Notice board of environmental activities suchas those for saving energy

Environmental education for employees

69
Yamaha Sustainability Report 2018

Environmental Initiatives at Resort Facilities
Yamaha Resort Inc. is working to reduce CO2 emissions as follows:
Introduced a means of concentrating on work (Katsuragi Kitanomaru)
Established fixed dates of closure. Power consumption reduced approximately 10%.
Reduced power consumption of golf course operations (Katsuragi Golf Club)Green fan (greens maintenance) and air-conditioning in the facilities were adjusted, resulting in an approximately 25 MWhdrop in power consumption per year
Introduced electric golf carts (Katsuragi Golf Club)
Gasoline-powered golf carts have been replaced with electric models.. Eliminated more than 8 tons of CO2emissions a year.
Changed lighting to LEDs.
Implemented in prioritized areas where business necessitates keeping lighting on, resulting in a yearly reduction of around
25 MWhInitiatives at Offices
Key Measures to Conserve Electricity
Efforts included reducing the amount of lighting (after examination of luminance), introducing LED lighting, turning off
advertising lights, suspending elevators and notifying employees of power consumption to raise awareness.

The Move to LED Lighting
The Yamaha Corporation headquarters saved about 38MWh of power per year by replacing approximately 830 florescentlights and mercury lamps with LED lighting in offices between fiscal 2014 and 2018. In fiscal 2015, the Yamaha Toyooka
Factory saved approximately 44MWh by changing outside lighting to LEDs. Moreover, in fiscal 2017, 1,100 units of indoor
fluorescents lights were changed out to LED lights, resulting in a power savings of approximately 15MWh per year. Further
efforts will be taken to systematically install more LED lighting in factories and business sites in the future.
In fiscal 2018, the initiative to save electricity every day at the headquarters office was recognized as the Company
received the “2017 Excellence in Energy Management Company” award by the Chubu Electricity Use Rationalization
Committee in February 2018.

Implemented “Cool Biz” and “Warm Biz” initiatives
Summer (May to October): Encourage light attire such as no necktie and set air conditioning temperature to over 28°C
Winter (November to March): Wear warmer clothes so as not to rely too heavily on heating equipment and set temperatureof heaters to under 20°C

In-house educational posters promoting the Cool Biz and Warm Biz programs

Participated in the Ministry of the Environment’s Lights Down Campaign
The Yamaha Group’s offices and facilities have participated on an individual basis in the Lights Down Campaign, wherebusinesses turn off illuminated outdoor advertising. The campaign raises awareness of saving electricity and realizing use ofdaily lighting.
Performance in fiscal 2017: 20 facilities conducted and cut back electric power consumption by approximately 2,600kWh
while reducing CO2emissions by approximately 1.0 ton.
Performance in fiscal 2018: 20 facilities conducted and cut back electric power consumption by approximately 1,100kWh
while reducing CO2emissions by approximately 0.5 tons.

70
Yamaha Sustainability Report 2018

Green Eco Curtain Activities
These activities conserve energy and boost awareness in employees by planting “curtains” of morning glories, bitter gourd
and other vine-type plants along the windows and walls of the buildings.

Green Eco Curtain at Yamaha
Corporation’s headquarters office

Green Eco Curtain at Yamaha Labor
Union office

Initiatives in Logistics
Saving Energy and Reducing CO2 Emissions in Logistics
The Yamaha Group is working to increase energy efficiency and reduce CO2emissions in logistics operations. Guided by abasic policy of raising transport efficiency, we continually review transport routes, adopt routes that incorporate more
efficient modes of transport, raise container loading ratios, streamline loading sites and warehouse facilities, and conduct
joint transport with other companies. Efforts are also being made to reduce CO2 emissions by disposing of waste locally andswitching from air to sea for international shipping.
The Yamaha Group’s total domestic transport volume and CO2 emissions in fiscal 2018 remained about the same
compared to the previous fiscal year, reaching 1,859 million ton-kilometers, while CO2 emissions also resulted similar to lastyear’s figures reaching 2,820 tons. Reducing CO2 emissions from logistics requires the cooperation of transport companies,
so we are working with them to develop appropriate systems by requesting transportation companies we work with tocooperate in environmental efforts and incorporating environmental matters into questionnaires.
Environmental Data

Reduced Resources and CO2 Emissions in Piano Frame
Previously, Yamaha used disposable iron packing racks when transporting piano frames from Japan to overseas factories.
We are gradually introducing returnable packing racks for piano frames that can be used multiple times in order to encourageconservation of resources. In addition, by shortening the transportation route and improving load efficiency, the Company
achieved a 100-ton reduction in CO2 emissions associated with the disposal of iron packing and a 1,600-ton reduction in ironresource consumption for the year. Going forward, we will examine the possibility of shortening transport distance andreducing disposable packing materials, including for parts aside from piano frames.

Flow chart of logistics of returnables

Japan

China / Indonesia

Function integration & centralization
Yamahapiano frame factory

Packing+export+import
Logistic operator
25km

Piano frame production

Packing rackwith piano frame

Yamaha's China Factory /Yamaha's Indonesia Factory

70km

Packing+vannig+export
Empty packing rack

Port of
Shimizu

Import & devanning &maintenance / repair

71
Yamaha Sustainability Report 2018

Port ofNingboPort of
Jakarta

Returnable rack for grand piano frames

Folded packing rack (when being returned)

Conserving Resources and Reducing CO2 Emissions by Standardizing Packing Materials for Shipping Components and Materials
The Yamaha Group designs and standardizes packing boxes according to container size used in transportation, thereby
improves the loading ratio of the container. This has let us reduce the number of containers used and eliminate 3 tons ofassociated CO2 emissions a year. The Group has also cut down on paper resource usage by designing packaging that uses
as little cushioning and other packaging material as possible.
Our assumption is that the supply of materials and components from overseas locations to Japan will increase.
Therefore, we first designed the standard packing boxes for piano components that can be used between China and Japan,
and we are conducting validation for its practical use.

Loading container with packing boxes prior to standardization (left), Loading container using
standardized packing boxes (right)

Protection of Biodiversity
Responsibility as a Company Using Timber
The Yamaha Group conducts business activities supported by natural resources and an ecosystem that produces theseresources, such as using timber as a raw material to make a variety of products including acoustic musical instruments.
The Group promotes applicable business activities, appropriate timber use and environmental preservation activities basedon its commitments for the preservation of forests and biodiversity, as stated in our sustainability and environmental policies.
Yamaha Group Sustainability Policy
Yamaha Group Environmental Policy
Use of Sustainable Resources

72
Yamaha Sustainability Report 2018

Initiatives for Environmental Preservation/Protection of Biodiversity
Measures for Chemical Substances
In an effort to inhibit the impact of chemical substances on the environment and ecosystem, Yamaha is working tostrengthen management and reduce usage, and implementing measures to prevent leakage.
Prevention of pollution

Water Quality Preservation
We build treatment facilities, and monitor and audit them so that the wastewater from processes will not contaminate public
water systems, land and groundwater.
Prevention of pollution

Evaluation of the Impact of Factory Wastewater on the Ecosystem (Toyooka Factory)
In 2016, Yamaha Corporation’s Toyooka Factory conducted an evaluation to assess the impact of factory wastewater on theecosystem. At the Toyooka Factory, Yamaha Music Manufacturing Japan Corporation produces wind instruments, anddetoxifies wastewater generated in production processes before releasing it into waterways. In this investigation, we
evaluated the effectiveness by using the WET Method*, and confirmed that the impact on the ecosystem is minimal.
* WET method: Whole Effluent Toxicity. This is the wastewater management method to evaluate whether the wastewater from factories/businesses
is harmful to ecosystems by measuring the impact on the existence, growth and reproduction of aquatic organisms, such as algae, water fleas, andfish in diluted wastage.

Preservation of Forests/Natural Environments
Yamaha Forest Activities in Indonesia
Yamaha Corporation and six local Indonesian subsidiaries*3 carried out Yamaha Forest
activities in the form of planting in Indonesia from fiscal 2006 to 2017, thus contributing to
the regional society. Indonesia is a treasure trove of diverse world species. In recent years,
however, the forests that produce the bounty of biodiversity have been in rapid decline.
Phase 1 activities of the Yamaha Forest project begun in fiscal 2006 involved planting
approximately 110,000 saplings over approximately 127 hectares of public land in Sukabumi, West Java in efforts to restore
the functionality of the forest together with Yamaha Motor Group. This area is designated by the provincial government as“HUNTAN KOTA” (city forest preserve), and is managed appropriately. In Phase 2, which commenced in fiscal 2011, theproject involved planting approximately 50,000 saplings over approximately 50 hectares of arid land in Ciremai National Parkin Kuningan, West Java to regenerate the forest and recover the ecological system.
Yamaha worked with the Japan International Cooperation Agency (JICA), the Ministry of Forestry of the Republic ofIndonesia, and the Forestry Department of the University of Kuningan. These initiatives involved planting tree types selectedbased on academic studies in order to restore natural forests and rehabilitate ecosystems in accordance with regional
characteristics. A tree planting event was held annually and various local parties participated. The event consisted ofcommemorative tree planting and educating the children involved about the environment.
Yamaha transferred control of this area to Ciremai National Park in fiscal 2017 and it will be preserved for future
generations through the management of the local government and people involved.
In fiscal 2018, the Company both confirmed the status of forest growth using satellite imagery, and estimated the CO2
emissions absorbed by the forests in both Yamaha Forest areas for both Phases 1 and 2. The Company estimated thatapproximately 42,000 tons of CO2 have been absorbed until now.

73
Yamaha Sustainability Report 2018

Achievements of Indonesia Yamaha Forest Activities
Phase 1 (FY2006 — FY2010)

Phase II (FY2011 — FY2015)

Yamaha Corporation and six local Indonesian subsidiaries
Yamaha Motor Co, Ltd. and two local Indonesiansubsidiaries

Yamaha Corporation and six local Indonesian subsidiaries

OISCA

Japan International Cooperation Agency (JICA)), Local
National Park Management Office, National Kuningan
University Forest Department

Location

Sukabumi Regency, West Java, Indonesia

Chiremei Mountain National Park, Kuningan Regency,
West Java, Indonesia

PeriodFrom December 2005 to March 2010

From December 2010 to March 2015 (planting activities)
April 2015 to March 2017 (Maintenance)

Destructive timber practices

Forest firePurposeRecovery of biodiversity, recharge water source,
prevention of soil erosion, CO2absorption and fixation

Recovery of biodiversity, recharge water source,
prevention of soil erosion, CO2absorption and fixationArea

126.7ha

50ha

Number of trees

115,11052,870Type of tree

Mahogany, teak, Paraserianthes falcataria, eucalyptus,
Melina, Meranti etc. Total of 21.

Based on domestic vegetation research (Bayur, Peutag,
Salam, AcaciaMimosa, Teurap, etc.) Total of 46.

Content of Activities• Planting and management• Planting ceremony (total 9,180 participants)• Environmental education activities (farmers’ group orplanting activity at schools, etc.), Education support(support of desk, chair, etc.), Regional support(construction of community water area)• Planting and management (participated in JICA’s
Rehabilitating Degraded Lands Project for protection of
biodiversity)• Planting ceremony (total 1,300 participants)• Environmental education for elementary school students

SponsorCooperation

Main cause of forestloss

CO2 Absorption
Volume Fiscal

11,542 tons (7 years)
People related to Yamaha totaled 120

30,929 tons (12 years)(FY2018 estimate)

Left: Start of planting (2011) , right: Steady growth (2017)

Planting area satellite imagery (right: 2009, left: 2017/survey: Kokusai Kogyo Co., Ltd.)

74
Yamaha Sustainability Report 2018

Enshunada Coastal Forest Recovery Support
As one part of our environmental preservation activities, Yamaha Corporation signed on as a “Shizuoka Forests of the Future
Supporter” with Shizuoka Prefecture and Hamamatsu City in March 2007.
Based on this agreement, Yamaha works to support reforestation of the Enshunada Coastal Forest in Hamamatsu City.
This activity is to continuously plant young trees in the coastal forest that was seriously damaged by pine weevils. Trees
planted have been growing steadily.
In October 2017, the 10th planting event was planned jointly, with Yamaha Motor Co., Ltd. participants, including
employees of Yamaha and Yamaha Motor and their families, members of the community, and related parties intended to join
the event. However, it was cancelled due to an approaching typhoon. After the weather cleared, the in-house personnel incharge of the environment, the Hamamatsu City Park management staff, and parties related to garden maintenance planted
trees.

Planting achievement

After planting

TimingNumber of trees

1st year 2008115

2nd year 2009180

3rd year 2010150

4th year 2011155

5th year 2012160

6th year 2013200

7th year 2014300

8th year 2015

480

9th year 2016245

10th year 2017

330

Total

2,315

Staff who planted trees

75
Yamaha Sustainability Report 2018

These activities were given the certification label (smile label) by the “Shizuoka Future Forests Supporter” office in theForest Resources Division of the Environmental Protection Bureau of Shizuoka Prefecture’s Community and Environmental
Affairs Department. This certifies that these activities serve as a physical contribution (smile 1), a financial contribution (smile2), and a partnership with the region (smile 3).

Smile 1: Physicalcontribution

Smile 2: Financial
contribution

Smile 3: Partnership withthe region

Preservation Activities for Protecting Scarce Species
In September 2017, the “Baby Sea Turtle Observation and Sustainable Beach Strategy” event planned by Yamaha Motor Co,
Ltd. was held at Enshunada Beach in Hamamatsu City, Shizuoka Prefecture. A total of 82 employees from the YamahaGroup participated. Since 1991, Yamaha Motor Co, Ltd. has continued these preservation activities to save the baby
Carettinae turtles, which were categorized as an endangered species.
On the day of the event, members learned about the habitat and costal environment of the Carettinae, released baby
Carettinae to the sea, and removed waste from the beach. Vegetation not natural to the area was also removed from thebeach to protect the chaetodera laetescripta, scarce organisms that live on the sandy beach.

Releasing baby Carettinae to the sea

Removal of alien vegetation

76
Yamaha Sustainability Report 2018

Application of Environmental Technologies
Products supporting the reduction of environmental load

Products/Services

Micro prober(a conduction and insulation
inspection device produced by
Yamaha Fine Technologies Co.,Ltd.)

Helium Leak Tester(Yamaha Fine Technologies Co.,
Ltd. product)

Hydrogen leak detector(Yamaha Fine Technologies Co.,
Ltd. product)

Environmental feature/effectAppearance

Related pages

Reduce waste and saves
resources by improving yield rateof test objective products

Micro proberComply with automobile
environmental regulations.
Reduces environmental load whiledriving.

Helium Leak Tester

Promote hydrogen as next
generation energy

Table-top snifferhydrogen detector

Products Considering Timber Resources
Protection of Natural Forests
Products/Services

Electric guitar “RGX-A2”

OutlineAppearance

Related pages

RGXA2

Use afforested timber in place of
natural timber(Japanese Only)

77
Yamaha Sustainability Report 2018

Substituting Parts for Scarce Timber
Products/Services

OutlineAppearance

Related pages

Glass- strengthened plastic
resin “Acoustalon™”

Substitute Marimba sound board
parts made from scarce timberusing alternative material–

Ebony-style natural wood

Substitute piano black key parts
made from scarce ebony using
alternative material–

Carbon bow

Substitute for Brazilwood andother rare woods used–

Chemical Substance Use Control (timber reform using A.R.E.)
Products/Services

OutlineAppearance

Related pages

YVN500S acoustic violin,
L Series acoustic guitar, etc.,

Using A.R.E. *treatment on bodymaterials to improve soundfeatures without using chemical
substances

YVN500S

Yamaha Hall in the Yamaha
Ginza Building

Using A.R.E.*treatment on stage
floor to improve the soundcharacteristics without usingchemical substances

Yamaha Hall
(Japanese Only)* A.R.E.: Acoustic Resonance Enhancement
Yamaha’s proprietary technology for aging wood in a short time to improve its acoustic characteristics. Through precise control of temperature,humidity, and atmospheric pressure, the acoustic properties of the wood can be manipulated into a more ideal condition, similar to the acoustic
characteristics of wood materials in instruments that have been played for years. Existing timber reform technologies are achieved utilizing chemical
agent-based reforming method; however, A.R.E. does not use chemical agents in the processing stage at all. Therefore, this technology has a lower
environmental impact.

Yamaha Eco-Products Program78
Yamaha Sustainability Report 2018

Fair Operating Practices
Prevention of Corruption
Anti-corruption Policy
In accordance with the United Nations Global Compact, the Yamaha Group has declared its intention to work against
corruption, which is one of the Global Compact’s principles. The Group also stipulates in its Compliance Code of Conductthat it rejects improper relationships with customers, governments, local governments and public institutions and that it will
engage only in fair dealings.
5-4 Elimination of improper relationships (gift giving, business entertainment, etc.)
7-1 Transactions with governments, local governments and public institutions
7-2 Prohibition against gift giving to and entertainment of government officials, etc.
8-5 Prohibition against gift giving to foreign government officials

Efforts to Be Thorough in Preventing Corruption
The Yamaha Group has established and implements rules on entertainment and gift-giving for each department, based on
the Yamaha Compliance Code of Conduct. In addition, Yamaha’s legal department conducts activities to raise awarenessamong Group companies concerning international conventions and regulations to prevent corruption, such as the prohibitionof bribery of public servants. At Group companies overseas, we make an effort to understand risks related to corruption,such as indirect gift-giving by our business partners, not only by the Group itself.

Risk of Gift-Giving in Business Activities
In countries where specific business activities for educational institutions and public venues or construction of factories
require approval from government bodies, the Yamaha group is required to negotiate with government institutions. Yamaha
is aware that the risk of gift-giving is high in business domains and countries such as these, and is engaging in efforts as a
response to this risk.
In regards to specific regions, Yamaha particularly focuses its efforts on the BRICs countries, which rank high in thecorruption perception index run by Transparency International, an NGO for the prevention of corruption, and Indonesia,
where Yamaha has many group companies.

Preventing Gift-Giving to Public Servants in Japan and Overseas
Yamaha’s overseas group companies have a particularly high awareness of the issue of giving gifts to public servants.
Practically all of our overseas group companies (31 out of 33 companies) either have measures in place to discipline
employees who commit bribery, or the ability to discipline employees.
Meanwhile, only around 30% of our overseas group companies have established concrete countermeasures regarding
the risk of gift-giving by their business partners, an issue that we know requires attention in the future.

System, Measures, and Training for the Prevention of Corruption
In order to prevent unfair trade practices such as bribery, Yamaha Group companies, mainly overseas, take various measures.
Also, we require both Japanese and overseas group companies to conduct self-assessments in order to assess
compliance status including prevention of corruption.

Discovered Cases of Corruption
There were no reports of bribery at Yamaha in fiscal 2018 by any person claiming to be a Yamaha supplier or employee.
Compliance (Helpline system)

79
Yamaha Sustainability Report 2018

Responsible Participation in Politics
Relationships with Governments, Local Governments and Public Institutions
With respect to involvement in politics and policies, the Yamaha Group aims to demonstrate good faith in formulating andpromoting policy that benefits not only our stakeholders but society as a whole.
Guided by this philosophy, we maintain appropriate relationships with the governments and politicians in accordancewith prescriptions concerning relationships with such in the Yamaha Compliance Code of Conduct.
7-1 Transactions with Government and Public Officials
7-2 Prohibition Against Gift Giving to and Entertainment of Government Officials, etc.
7-3 Political Contributions
7-4 Response to Government Authorities

Political Contributions
The Yamaha Group takes a neutral stance toward political parties and politicians, and it complies with the Public OfficeElection Law, the Political Funds Control Law and other laws and ordinances related to politics. It prohibits contributions toan individual politician since it is prohibited by law, and to a political organization or party in excess of the permissible amountunder the law.
Under authoritative regulations for political contributions of 500,000 yen or more, it is mandatory for Yamaha Corporation
to obtain approval of the company president, consult with the General Administration Division, the Corporate Finance
Division and the Legal Division, as well as confirm the contribution with the Executive Officers in charge of internal audits.
Group companies are also required to conform to the restrictions placed on each country’s political fund control laws when
making political contributions or payments of any kind to politically-related persons or persons belonging to public institutionsin addition to the same regulations as Yamaha Corporation.
Furthermore, the Executive Officers in charge of internal audits carry out an audit of political contributions every Apriland determine whether or not these rules are being appropriately obeyed throughout the Group.
7-3 Political Contributions

Fair Trade Practice
Basic Policy
The Yamaha Group does not engage in any unfair trading practices or unjust practices designed to restrict competition, andmakes every effort to ensure fair competition, the bedrock of healthy development in a market economy.
Moreover, as a partner working closely with its suppliers, Yamaha strives to maintain trusting relationships byproactively practicing fair trade. Yamaha familiarizes all its employees with rules governing corporate practices concerningmarket competition and rules regarding the maintenance of fair relationships with suppliers as laid out in the Yamaha
Compliance Code of Conduct.
5. Relationship with Business Partners
6. Relationship with Competitors

Mechanisms and Policies for Ensuring Fair Competition and Trade
Our accounting system employs mechanisms that allow for managing business conducted with subcontractors and preventing
payment delays.
Furthermore, through opportunities that include conferences with Procurement Department employees, we inform internal
departments of related standards and notifications from the government regarding the Subcontract Act as part of measures tostay abreast of and familiarize employees with legal requirements.

80
Yamaha Sustainability Report 2018

Legal Training for Fair Trade Practices
In Japan, the manufacturing industry in particular heavily relies upon subcontracting and, as such, fair trade is an important
topic. Every year, the Yamaha Group conducts training on laws and regulations including the Subcontractors Act, theAntimonopoly Act, and consumer laws. In fiscal 2018, a total of approx. 140 employees from domestic group companies
participated in the Antimonopoly Act and the Subcontractors Act training programs.
In addition to this, within a personnel development program suited to career stages, we disseminate knowledge
regarding compliance points specifically relating to fair trade.
Overseas, even in sales and business companies, we promote training for fair trade. For instance, in Europe, weprevent unfair trade practices such as resale price fixing among retailers by stipulating this clearly in business agreements
and educating employees.

Legal training* (Yamaha Corporation and domestic Group companies)

Legal training participants

FY 2016

FY 2017

FY 2018

About 180

About 220

About 140

*Total participants

Legal training

Fair Competition Violations
In fiscal 2018, the Yamaha Group is cooperating with written inquires from the Small and Medium Enterprise Agency and the
Fair Trade Commission in Japan. The Group has not received an order or warning due to violations of laws and ordinances.

Promotion of Social Responsibility in the Value Chain
Basic Policy
The Yamaha Group promotes sustainability throughout the entire value chain in areas such as product and service
development, materials procurement, manufacturing, selling and recycling.
Sustainability Issues in the Value Chain

Promoting Sustainability in the Supply Chain
Yamaha products are primarily manufactured by Yamaha Group companies with manufacturing facilities in Japan, China,
Indonesia, and Malaysia. Each production site adheres to Yamaha policies related to procurement when procuring raw
materials and components. Suppliers are selected according to the standards set in the Yamaha Group Purchasing
Philosophy. When transactions begin, suppliers are requested to comply with the Yamaha Supplier CSR Code of Conductand conduct a self-assessment. Suppliers may be asked to take action when areas of improvement are recognized as aresult of the assessment.

81
Yamaha Sustainability Report 2018

Yamaha Policies Related to Procurement
Yamaha Group Purchasing Philosophy
Yamaha Group Timber Procurement Policy
Green Procurement Standards
Response to Conflict Minerals

Sustainability-related Requests to Suppliers
We require suppliers to comply with the “Yamaha Supplier CSR Code of Conduct,” which documents requests made bysuppliers in writing, and to conduct a self-assessment.
Furthermore, Yamaha clearly stipulates the Yamaha Supplier CSR Code of Conduct in every business agreement.

Sustainability-related Requests to Suppliers (Yamaha Supplier CSR Code of Conduct)*1
Category

Labor and Human
RightsOccupational
SafetyRequests
No forced labor
No child labor
Appropriate working hours
Fair wages and benefits
No inhumane treatment
Non-discrimination
Freedom of association
Handling of conflict minerals
Safe workplace
Accident prevention and emergency
preparedness
Prevention of occupational injury and illness
Management of physically-demanding work
Machine & equipment safety measures
Healthy and safe facilities

Category

Requests

Environmental
Conservation

Compliance with environmental regulations
Resource and energy saving
Wastewater management
Air emission management
Proper disposal of solid waste
Management of chemical substances
Management of hazardous substances
Biodiversity conservation

EthicsProhibition of all forms of corruption andbribery
Prohibition of anticompetitive behavior
Information disclosure
Provision of appropriate product information
Fraud early detection and prevention
Protection of intellectual property
Protection of personal information*1 In addition to the above, suppliers of lumber are requested to procure sustainable timber resources.

Yamaha Supplier CSR Code of Conduct

Yamaha Supplier CSR Self-Assessment Questionnaire

Status of Supplier CSR Self-Assessment
From fiscal 2016 to fiscal 2017 we requested Yamaha Group’s tier 1 suppliers (totaling 4,044 companies*2) to conduct selfassessment. Based on responses from 3,981 companies, we requested correction in writing to four companies specifically inneed of improvement and verified those corrections.
In fiscal 2018, self-assessments were conducted at 79 companies which began new transactions. We plan to conduct thenext overall survey in fiscal 2020.
*2 The overall number is given as some suppliers may have conducted more than one self-assessment due to having multiple local production
companies.

82
Yamaha Sustainability Report 2018

Education for Employees in Charge of Procurement
The Yamaha Group promotes internal training for its employees in charge of procurement to ensure to fair trade, such as the
Act against Delay in Payment of Subcontract Proceeds, etc. (Subcontract Act), laws related to contracts, and various
regulations related to trade and procured goods. Also we held orientation meetings for our employees who request suppliers
to adhere to the Yamaha Supplier CSR Code of Conduct and introduce self-assessment. In fiscal 2018, a total of 26
employees participated in study sessions related to sustainable procurement of timber at the Yamaha Corporation
headquarters, gaining a deeper understanding of CSR procurement.

CSR procurement orientation meetings(Malaysia)

CSR procurement orientation meetings(Indonesia)

Study session about sustainable procurementof timber (Japan)

Responsible Raw Material Procurement
In the procurement of various types of raw materials, such as natural resources, it is important to practice responsible
procurement with a view to the impact on the environment and society. The Yamaha Group is focused on themes that
include green procurement and the sustainable procurement of timber, an important natural resource for instruments andother products.
Click here for our efforts at sustainable timber procurement.
Click here for our green procurement activities.

Combating conflict minerals
Mineral resources such as tin, tantalum, tungsten, gold and others mined in the Republic of the Congo and neighboring
countries are called “conflict minerals” as they may be the source of funds for armed groups violating human rights throughinhumane acts including violence and plunder. Aiming to procure minerals that play no part in the violation of human rights orenvironmental destruction, the Yamaha Group promotes efforts to stop the use of conflict minerals. To satisfy clients who
demand that we investigate the sources of raw materials, we promote initiatives for our suppliers to avoid the use of conflictminerals based on the Yamaha Supplier CSR Code of Conduct.

Communication with Business Partners
The Yamaha Group promotes communication with its business partners and subcontractors. In Japan, we share information
about management, production, sales trends, suppliers that provide us with raw and processed materials, parts, andequipment, and subcontractors that provide construction and other services. In addition to cooperating in worker safety andenvironmental conservation, we also strive to foster an atmosphere in which it is easy to share thoughts through activities
that tighten bonds of friendship. Furthermore, we tour the waste treatment subcontractors that come to our domestic
production bases, inspecting the environment and discussing issues.

Events held in fiscal 2018
Annual general meeting - Three times a year (once each with suppliers, distributors, and subcontractors in equipment/
construction, etc.)
Briefing session on trends in production and sales - Once a year with suppliers
Safety and health inspection patrols - Site construction work at 2 factories
Waste management subcontractors - Site tours taken at 24 companies

83
Yamaha Sustainability Report 2018

Respect for Property Rights (Protecting Intellectual Property)
Basic Policy and Framework
The Yamaha Group has worked hard to acquire patents and other intellectual property rights for the intellectual capital wehave built up since our founding, and are taking a variety of measures aimed at maximizing the business benefits ofintellectual property. We also respect the intellectual property rights of third parties, and have made this clear in ourCompliance Code of Conduct.
Under the guidance and support of Yamaha Corporation, all the group companies respectively manage their intellectual
property to promote intellectual property strategies in collaboration with business strategies and R&D strategies. Moreover,
Yamaha has or encourages to have 1) provisions for handling intellectual property rights, such as patents and design rights,
related to creation that occurs in the course of business duties and 2) a compensation system in place.
6-3 Respect for Intellectual Property Rights

Measures to Protect Intellectual Property
The Yamaha Group works to protect intellectual property based on respect for third parties’ intellectual property rights while
proactively acquiring rights to new intellectual property that is created in the course of business activities. When conducting
a preliminary survey upon acquiring intellectual property rights, the Yamaha Group strives to avoid infringing on existingrights by improving the precision of its surveys through the implementation of tools that utilize AI technology.
In addition, Yamaha holds educational sessions for employees so that they may appropriately use intellectual property
held by Yamaha or other companies. In addition to training upon hiring, Yamaha Corporation has in fiscal 2017 beenstrengthening its position-based training, including sessions related to the general management of intellectual property for
management and mid-career employees.

Patents
We have formulated a patent strategy to match the characteristics of our business and are aiming to build a strong patentportfolio.
With regard to each business, we are engaged in patent activities with the main aims of differentiation from othercompanies as well as acquisition and maintenance of business superiority, and we are moving forward with licensing to third
parties in some business areas.
What’s more, regarding all patent rights retained in Japan and overseas, every year we conduct evaluations, including
the state of current utilization and future possibilities, and rigorously categorize and organize intellectual property which cancontribute to Yamaha’s unique product development and the establishment of a competitive advantage. By promoting the
optimization of the content and numbers of held rights, we are aiming for the rational use of intellectual property rights.
The total number of patents and utility models for practical use held by the Yamaha Group in Japan as of March 31,2018 was approximately 4,000. The total number it holds overseas, principally in the United States, European Union, andChina, is 4,000.

DesignIn the Yamaha Group, we see design as an important element of product differentiation, and are working to protect and use
it appropriately. As part of this effort, the Yamaha Group has been strengthening its acquisition of design rights in countries
and regions in which there are many victims of counterfeiting.
As of March 31, 2018, we held approximately 1,170 design rights, with 400 in Japan and 770 overseas.

Copyright
In addition to patents, designs, and trademarks, the Yamaha Group creates and owns a large number of copyright works insound, music, and other fields. In particular, music-related copyrights are important intellectual property, and Yamaha tries tomanage and fully utilize these rights (including through legal action).
Education and training on the proper use of copyright works are also provided to employees. In addition to holding
annual copyright seminars, we invite experts from various industries relating to copyrights, to give lectures once a year. In
fiscal 2018, Yamaha invited Ms. Ayuko Hashimoto, a lawyer at Kotto Dori Law Office, to give a lecture.
In addition, the Company has been revising as needed the “Copyright Guide,” an in-house training tool related tocopyrights, to respond to recent laws, regulations and societal trends. The next revision is planned for fiscal 2019 inaccordance with the revision of the Copyright Act in Japan.

84
Yamaha Sustainability Report 2018

Copyright lecture

An in-house training tool related
to copyright

Brand
Our brand has been an important asset since the establishment of our company.
The Yamaha Group has been advancing the creation of rules governing how our brands are shown, and working tomaintain and improve brand value by achieving appropriate use based on management standards related to Yamaha Brands
and the companywide brand management organization (Brand Committee).
Furthermore, Yamaha has trademarked its brand in almost every part of the world, and conducts preliminary
investigations and acquires rights via the appropriate methods for the sub-brands of its products, services, and technologies.

Measures to fight counterfeit goods
By continuing measures against unauthorized usage and counterfeit products, which are on the rise across the globe, theYamaha Group continues to take action against these problems in order to eliminate the economic disadvantage for
consumers while ensuring safety and, by extension, maintain trust in the Yamaha brand. With efforts focused on China inparticular, we are strengthening measures to stop the sale of counterfeit goods over the Internet and social media in recent
years, while filing lawsuits and requesting administrative disciplinary action. We are also strengthening measures in otherregions, including Africa.

85
Yamaha Sustainability Report 2018

Consumer Issues
Product/Service Information Disclosure
Structure of Information Disclosure
The Yamaha Group takes all possible measures to prevent any damage on the lives or physical well-being or the belongingsof customers caused by products, services, facilities, etc. provided by the Group. In the unlikely event of an accident, theGroup notifies relevant authorities according to the laws and regulations, undertakes a product recall for customer safety,
and conducts proactive disclosure of information without delay.
The Group painstakingly convey information to customers using methods that range from information posted on the
Company’s website to press releases, notification through newspapers and industry magazines, direct mail and telephone.
The type of customer contact is determined by the level of gravity and urgency as well as the status of customer productuse.

Situation Regarding Incidents such as Product Defects
In fiscal 2018, a total of 33 cases were recorded as product accidents or defects within the Yamaha Group.
In November 2017, an accident involving a marching carrying holder occurred in which a bolt on a shoulder strap broke,with another incident involving a bass drum falling. Yamaha provided a free remedy to all customers beginning in December.
All of the customers to whom the product was delivered were listed and identified, and were immediately contacted bydirect mail or telephone for support.
Status of Violation of Laws and Regulations Regarding Accidents and Safety Involving Products and Services

Initiatives for Awareness of Safety
The Yamaha Group provides information through media that is easy for customers to access such as instruction manuals,
catalogues as well as its website to promote the safe use of its products, and works to enlighten people on safety to prevent
accidents from occurring.
Yamaha posts information to promote safety on its catalogues for school-use musical instruments and devices, and also
publishes individual product information on its website.
For the safe use of products. (Japanese only)

Proper Product Labeling and Advertising
The Yamaha Group conducts advertising and promotions that accurately convey the details of products and services tocustomers. At the same time, we strive to provide accurate information related to our products and services in accordancewith laws and regulations. To achieve this, we have stipulated our Compliance Code of Conduct and are implementing it.
Furthermore, the labeling is validated based on the quality management system.
1-3 Proper Advertisement and Publicity and Accurate Presentation of Information

Status on Violation of Laws Regarding Labeling and Advertising
In fiscal 2018, 17 incidents of law or regulation violations regarding product labeling were detected (5 cases of noncertification in regulations/period lapse, 5 cases of improper labeling, 4 cases of exceeding standard levels, and 3 othercases). All of the incidents were handled appropriately. No fines were imposed regarding these regulation violations.

86
Yamaha Sustainability Report 2018

Ensuring Product/Service Safety
Basic Policy
The Yamaha Group believes that the safety of its products, services and facilities falls under the concept of fundamental
quality that must be provided.
The Group define how we ensure the safety of products and services in our Compliance Code of Conduct. To put this
into practice, we are working to organize the structure, and strengthen design processes towards essential safe design.
1-2 Ensuring Safety of Products and Services

Structure and Correspondence to Ensure Safety
The Yamaha Group endeavors to ensure and improve product safety through the safety-conscious designing of products,
and correspondence to safety inspections and Laws and Regulations related to its products.

Safety-Conscious Product Design
The Yamaha Group pursues safety-conscious designing of its products, and its efforts include incorporating a risk
assessment process into the design review at the time of development.
Through the risk assessment process, we identify and hypothesize potential risks involved in each product and mannerof using it, allowing us to consider the minimization or removal of these risks during the product design process.
In fiscal 2018, we aimed to establish the “R-Map,” method*, a risk assessment process. We are proceeding withactivities to further enhance the efficiency of our risk assessment activities using this method.
* The R-Map method is a method proposed by the Union of Japanese Scientists and Engineers, and visualizes risk on a 6x5 matrix. It is utilized forrisk reduction during designing processes and evaluation of product risk. The Ministry of International Trade and Industry, and National Institute ofTechnology and Evaluation (NITE) also evaluate risks by using the R-Map method.

Safety Reviews of Major Products
The Yamaha Corporation Quality Assurance Division conducts labeling confirmation and safety inspections of the YamahaGroup’s major products (approx. 50 products per year) that are actually being sold, and provides feedback of the results tothe department in charge, and strives to improve safety.

Corresponding to Product Regulations and Standards in Each Country
Yamaha monitors trends in information for regulations and has decided on an internal policy and developed a structure forfull compliance with each country’s regulations and standards pertaining to product quality and safety as well as
environmental protection.
Based on recent strengthening standards that apply to electromagnetic waves, Yamaha Corporation has installed
electromagnetic wave measurement equipment and various other kinds of measurement, analysis and evaluation equipment
at this facility. This equipment is used to evaluate products for compliance, mainly in development divisions, with respect tothe regulations of relevant countries. Regulations for chemical substances have also become more stringent in each country,
and in line with this, Yamaha has created and implemented a management
system for chemical substances contained in products and established its own
Standards for Chemical Content in Products. These standards have been used to
manage chemical substances in products during design and development andhave helped facilitate legal compliance as well as minimize the environmental
impact of products. The standards undergo revisions as and when necessary, in
response to legislative expansion and change, the accession of voluntarystandards and other factors. In order to respond to changes in regulations in eachcountry promptly and in an appropriate manner, going forward, Yamaha will work
closely with overseas subsidiaries to coordinate information, and will improve
An anechoic chamber used forsystems to manage information on regulations.
electromagnetic wave measurement

87
Yamaha Sustainability Report 2018

Taking Immediate Action When Faced with a Product Safety Issue
The Yamaha Group has put in place a system that places top priority on ensuring the safety of customers. In the event of a
product safety issue in the marketplace, employees who receive notification of a safety problem report it immediately to the
responsible department and the Quality Assurance Department. The department that receives the report immediately
notifies top management of the occurrence of an issue. At the same time, the head of the Quality Assurance Department
convenes the relevant departments from across the company, moving to respond to affected customers, notify theappropriate government authorities, and initiate measures aimed at preventing recurrence.

Training for Product Safety
Since 2010, the Yamaha Group has initiated product safety training courses in human resource training. From fiscal 2018, theGroup established a product safety risk assessment course. In addition to introducing case studies of specific safety issues,
the Group has commenced training courses in risk management from the product development stage to post-development,
essential safety design policies as well as statutory and regulatory requirements with respect to product safety. During theeight years between fiscal 2011 and fiscal 2018, there were approximately 1,404 hours of lectures for these courses
attended by a total of 257 employees comprised mainly of engineers and personnel from development areas.

Status of Violation of Laws and Regulations Regarding Accidents andSafety Involving Products and Services
In fiscal 2018 there were three responses to incidents involving a Yamaha product.
In November 2017, an accident involving a marching carrying holder occurred in which a bolt on a shoulder strap broke,with another incident involving a bass drum falling. Yamaha provided a free remedy to all customers beginning in December.
All of the customers to whom the product was delivered were listed and identified, and were immediately contacted bydirect mail or telephone for support. Inspection was 95% complete by the end of April 2018.
One regulation violation regarding product safety was discovered (excess amount of lead contained in instrument casestraps), which was corresponded with appropriate measures. No damage to customers due to this issue has occurred so far.
Product/Service Information Disclosure (Situation Regarding Incidents such as Product Defects)

Quality Assurance
Quality Management System
The Yamaha Group strives for quality improvement through the operation of a quality management system to ensure theproduction of high quality products and the provision of high quality services.
Quality policies and objectives as well as important quality-related measures being implemented by the Yamaha Groupare deliberated by the Quality Committee and then sent to business divisions by instruction of the president andrepresentative executive officer. Each business division sets its own division objectives in line with the quality policies andobjectives set by the president. The
Yamaha Corporation Quality Assurance
Division confirms whether each businessdivision achieves its goals and monitors
quality audits (refer to the next section.)
In addition, the “Group Quality
Management Policies & Rules” aims tostrengthen governance of quality
management in the overall Yamaha Group,and requires that quality information fromeach Group Company is to be concentrated
to the head of the Quality Assurance
Division of the Yamaha Corporation.

88
Yamaha Sustainability Report 2018

The Site Acquiring ISO 9001 and TS16949 Certifications (As of the end of March 2018)
ISO 9001: acquired in six business domains
ISO/TS 16949: acquired in one business domain

Quality Audit
Auditors of the Yamaha Corporation Quality Assurance Division conduct quality audits to check whether or not the quality
management of each business QMS unit, as well as the quality of products and services, matches the target level set by
Yamaha Group. While urging improvements if needed, the results of these audits are taken into account in improving thecompany-wide quality management system. On the other hand, each business QMS unit instructs and audits the factories
they oversee, both inside and outside of Japan. Every effort is made to further enhance product quality.
In order to further improve the effectiveness of quality audits, the Yamaha Group is striving to make improvements on
both the quality audit results and its process.

Quality Training
The Yamaha Group’s employee quality training program is comprised of expert training and general training for each job
position. The goals of this program is to raise awareness and enhance skills with respect to quality control. In addition toexisting quality engineering, and product safety courses, in fiscal 2018 the Yamaha Group held a new course for productsafety risk assessment (R-Map). The Yamaha Group is considering to re-structure the quality training program to encourage
mid-level employees in the engineering field to acquire experience with quality related skills and to raise awareness tomanagement level employees on quality control.

Sustainable Consumption
Provision of Information Related to Environmental Consideration in Products
In order to spread products and services considering environment and society, and meet rising awareness toward
environmental preservation among customers, the Yamaha Group discloses examples of environmental consideration
initiatives of its products on its website.
In 2015, the Group began attaching the Yamaha Eco-Label to products certified as Yamaha Eco-Products in order to promote
product development which considers environmental issues. The aim of the program is to provide customers withenvironment-related information and facilitate recognition that our products meet the Eco-Products standards when they are
selecting an item to purchase.
Yamaha Eco-Products Program
Environmental Friendly Products and Services

Status of Yamaha Eco-Products Program (as of March 31, 2018)
In fiscal 2018, the Yamaha Group newly certified 16 models, bringing the total number of models
certified as of March 31, 2018 to more than 320, with 31 bearing the Yamaha Eco Label.

Initiatives to Improve Longevity of Products

Yamaha Eco-Label

It is possible to use high quality instruments for many years with proper maintenance and repairing or replacing parts.
Yamaha is striving to improve the longevity of its products by developing a system for instrument maintenance/repair
technicians and services, operating a piano renewal business, and upgrading Electone products through a parts exchange sothat they can be used for many years.

Development of system for instrument maintenance and services
We are taking efforts to develop a system for maintenance and repair services for acoustic instruments such as pianos andwind instruments.

89
Yamaha Sustainability Report 2018

Technician training
Piano Technical Academy
Wind Instrument Technical Academy

Maintenance support for musical instrument users
We are providing knowledge and skills regarding musical instruments by offering a maintenance guidebook and holding
maintenance workshops to ensure that musical instruments are consistently maintained in the best condition.

Piano Renewal Business
After collecting Yamaha pianos which are no longer used in the home, etc., Yamaha Piano Services repairs, repaints, tunes,
and adds additional muffling materials before returning the instrument to market as a renewal piano. These refurbishedpianos perform the same as new pianos. This process saves precious resources by allowing the product to be used again.

Yamaha Renewal Piano

Electone Vitalize/Grade Up Unit
Based on the desire for our customers to be able to continue using a beloved Electone unit for a long time, we offer aservice to upgrade products to the newest model through unit exchanges.

Vitalize/Grade Up Unit

Improving Customer Satisfaction
Basic Concept
The Yamaha Group declares in its corporate philosophy structure, the Yamaha Philosophy, to continuously produce products
and services that exceed our customers’ expectations, and to keep creating excitement, by focusing on the viewpoint of ourcustomers. We specifically define our commitment to our customers through a particular principle referred to as the“Customer Experience.” All Yamaha employees continually remember that the purpose of their day to day work is to realize
this “Customer Experience.”

The diagram of the Yamaha Philosophy

1-1 Realization of Customer Satisfaction
90
Yamaha Sustainability Report 2018

Business Based on the Customer’s Viewpoint
Focusing mainly on our musical instrument and audio divisions, customers’ comments are distributed and shared globally bye-mail the Intranet, company magazines, and posters. Furthermore, focusing mainly on the musical instrument and audio
product development divisions, we are implementing training to develop the mindset which grasps the true desires ofcustomers.
Through these efforts, our aim is to nurture an organizational culture that utilizes a customer-oriented approach andfocuses on each customer’s evaluations and requests.

Samples of opinions received from customers

91
Yamaha Sustainability Report 2018

Structure for Improving Customer Satisfaction
To comprehensively understand our customers’ evaluations and requests, each business division of the Yamaha Group
conducts customer satisfaction surveys using various formats.
In particular, our musical instruments/audio divisions have been globally collecting and utilizing feedback from the voicesof our customers not only through customer support services, but also through various forms of daily communication. In
order to further connect with customers in our major markets, Japan, the US, and Europe, we switched to a new online
member system and revised the product registration questionnaire so that we can reflect customer opinions in the planningand development of our products.

ExampleVoice of the Customer (VOC) - Visualization (in Japan)
In Japan, we collect in a database then collate and analyze opinions and requests from customers inour customer support department, discussing the results in monthly meetings attended by productdevelopment and quality assurance managers from each business division. Also, we established asystem to visualize the voice of the customer (VOC), which shares information on customer opinion
and requests internally in real time, and allows us to rapidly reflect customer feedback in our sales
activities and product development.

Structure of VOC Visualization

92
Yamaha Sustainability Report 2018

Improving Usability
The Yamaha Group conduct usability tests* with the aim of improving the user-friendliness of our products and making
manuals easier to understand, and we conduct product evaluations with the cooperation of actual customers.
Results are reflected in our product specifications and manuals.
The development and other departments involved in products and services work together to conduct usability tests andproduct evaluations by users in order to swiftly share information about problem areas. This makes it possible to quickly takethe steps necessary for improving the usability of existing products and uncovering operability issues with new products indevelopment.
* Usability test: Having likely customers actually use a product to determine the product’s ease of use (usability). Since 2004 Yamaha has used
employees as volunteer testers.

Example of Product Development
Product Category

Model Name

Feature of Usability

Release Date

Digital Mixing Console

Rivage PM10
Series• Improved flexibility and utility when connecting various input/output devices• Enhanced flexibility for sound engineering• Shorten work time

December 2015

Alto Saxophone

YAS-875• Improved the size and shape of the key buttons for a better ‘feel’ regardless ofthe player’s hand size
• Enhanced operability for effortless playability

September 2015

Synthesizer

reface DX• Verified electrostatic sensor operability by carrying out usability tests• Improved keyboard feel
• Reduced malfunction

September 2015

Portable keyboard

NP-32
NP-12

• Enhanced playability for both males and females of all ages

February 2016

Digital mixer

TF RACK• Improved portability/installation by compacting the “TF series”• Full control of the main unit through multi touch display/special GUI• Verified operability by carrying out usability tests

December 2016

Unified communication
speakerphone

YVC-300• Audio guide installed for easy initial setting

October 2015

Synthesizer

MONTAGE• Improved continuous usability by implementing UI upgrade system• Improved operability for live playing and sound editing based on usability test

May 2016

Processor forequipment iPadapplication for “MTX/
MRX series”

ProVisionaire
Touch V1.2

• Improved display allowing users to easily customize the control panel• Reduction of errors regarding network settings between connected devices

November 2016

Electronic piano

CLP-600
series• Reorganized screen display to make sound changes easier• Tested visibility from a user’s perspective and revised specifications

May-July 2017

Evaluations by Third Parties
Selected First Place in the Educational Service Industry in Japanese
Customer Satisfaction Index (JCSI) for the Second Consecutive Year
Yamaha(Music School • English School)was selected as first place in the educational service industry for the 4th Japanese
Customer Satisfaction Index (JCSI) research in 2017 for the second consecutive year.

Selected First Place of the Network Device Category in Nikkei
Computer Customer Satisfaction Survey for Second Consecutive Year
Yamaha Corporation was selected as first place of the network device category in Nikkei Computer Customer Satisfaction
Survey 2017-2018 for the second consecutive year.
Related pages (Japanese Only)

93
Yamaha Sustainability Report 2018

Initiatives for Improved Customer Response and Support
Customer Response and Support Structure
The Yamaha Group has established an After-sales Service structure for customers. The organization is working to respond to customer
inquiries and requests with integrity. The Yamaha Corporation has established an After-sales Service Management section and has
shared the After-sales Service plans and policies regarding the overall Yamaha Group with sales companies and manufacturing
companies. Manufacturing companies have established sections to provide service parts and are storing and providing service parts.
Sales companies have developed systems, including establishing customer support divisions and are providing after-sales services.
For example, in Japan, the musical instruments and audio products divisions set up a Customer Support division in Yamaha Music
Japan Co., Ltd., which is a sales company, and organizes customer service by product. Overseas, we created an After-sales Service
network for each region. This network serves as a point of contact for customers and includes Yamaha Group Service Centers, Yamaha
Authorized Service Centers, distributors and contracted engineers.
The customer support sections develop customer support systems that make use of telephone, website and social networking
services in order to respond smoothly to inquiries. Some of these departments have introduced a customer management system using
cloud computing.
1-6 Offer of After-sales Services and Response to Customer Inquiries

Customer support system (after-sales services)
Customer

Service center
Yamaha Authorized Service Center

Store / Shop

Telephone

WebsiteSNS, etc.

Sales company
Customer support division

Service parts

After-sales services
system / development

SupportManufacturing company

Yamaha Corporation

Service Parts section

After-sales Services
Management section

Service parts

Yamaha Music Japan Co., Ltd.

Policy / plan

Yamaha Corporation of America

Yamaha Music Europe GmbH94
Yamaha Sustainability Report 2018

Yamaha Music & Electronics China

Yamaha Group After-sales Service Management System
The Yamaha Group has created an After-sales Service Management System and is working to continually improve the qualityof our customer response and support based on the slogan “ONE YAMAHA.” The Yamaha Group policy is shared at theannual Service Management Meeting and each sales company and manufacturing company with a service parts center inJapan and overseas set target values for improving After-sales Service quality. Each Group company conducts activities
according to its plans, and Yamaha Corporation’s Quality Assurance Division monitors their progress. In this way, the entire
Yamaha Group works to make improvements to continuously enhance response to customers and customer support.
After-sales Service representatives from 25 Japanese and overseas companies participated in fiscal 2018’s Service
Management Meeting, and discussed a management program related to After-sales Service.
Furthermore, in order to provide standardized high-quality after-sales support to the customers all over the world, theYamaha Group established the After-sales Service Management Standards, which outlines the basics of after-sales services
that need to be shared in the Group. We established an instruction manual to systematically apply these standards to theoperation. The Group also began monitoring operational status by a check sheet.

Yamaha Group After-sales Services Management System

Service Management Meeting

Initiatives
Evaluation of Customer Service Call Centers from the Customers’ Perspective
Yamaha Music Japan Co., Ltd. worked to once again determine helpline evaluation targets which display customers’
feelings towards the response helpline since its establishment in 2013. It adopted “Thank you Rate” in 2014 and“Net Promoter Score (NPS) in 2015.
Thank you Rate counts the number of times a customer says “Thank you” to support staff from all inquirycases. Points are added when a customer genuinely expresses thanks or offers the staff a compliment. By adopting
the Thank you Rate, not only can the Company quantify customer satisfaction toward support responses, the helpline
staff themselves become more aware of how much they connected with the customers. This generates a positive
cycle in which staff more happily respond to customer inquiries, which in turn boosts customer satisfaction further.
The Net Promoter Score (NPS) is an index in which customers are asked the likelihood of recommending acompany, product, service, etc. to their family, friends, and acquaintances, measuring their loyalty towards them. The
Company is striving to improve operations by deriving positive examples from both the rate of recommendation andhigh ratings by asking customers the reason for their rating. As a result, the Company saw NPS improve from 13
points in fiscal 2017 to 20 points in fiscal 2018. Furthermore, the Company was able to confirm the strong link
between support recommendation rate derived from customer questionnaires and loyalty to Yamaha Brands. Yamaha
is working every day to forge an even closer relationship with everyone by improving the quality of customer
response helplines.

95
Yamaha Sustainability Report 2018

Education/Training Related to After-sales Services
Yamaha Corporation is striving to develop and fulfill an After-sales Service network in which customers can continue using
our products at ease. We periodically hold technical training for After-sales Service skills for employees of Group sales
companies in Japan and overseas, and the participants then teach the same skills to the repair technicians in each region.
We also visit overseas sales distributers in areas where there are no Group companies, and hold technical training for Aftersales Service skills.

Personal Information Protection
Policies and System for the Personal Information Protection
The protection of personal information is an important social responsibility.
The Yamaha Group complies with laws and regulations regarding personal information protection and has developed a
Privacy Policy and internal regulations regarding personal information protection in order to appropriately handle the important
information we have in our custody, such as the personal information of customers using its products and services. These
regulations are revised as needed based on revisions of laws and societal trends. Based on these regulations, we havedeveloped a manual that explains key considerations when handling personal information and have put it into practice.
In addition, the Yamaha Group has established a position responsible for supervising the handling of personal
information in the Group as well as a position responsible for managing such information in each division. The Group has
established a system to respond quickly during incidents such as information leaks.
In fiscal 2016, we established an information security working group in the Risk Management Committee which has
considered measures to improve operations, collected reports regarding incidents, and conducted monitoring of complianceto regulations regarding personal information protection. In fiscal 2018, the Group confirmed the storage and handling statusof Group Companies which hold large amounts of personal information. The Group identified issues requiring improvement
and promoted a response.
Privacy Policy

Training and Education Regarding Personal Information Protection
We are strengthening efforts to enhance and round out awareness of employees by conducting personal information protection
training, education and audits for divisions handling personal information. In fiscal 2018, staff belonging to Yamaha’s Legal Division
gave an explanation of laws and regulations regarding personal information protection to employees, including members of thedevelopment division.

Status of the Execution of Training Related to Personal Information Management (fiscal 2018)(Yamaha Group)
Training theme

TargetNumber of participants

Explanation of revised Personal Information Protection Act

Development Division50

Explanation of EU General Data Protection Standards

Quality Assurance/Customer Support Divisions

30

Customer Personal Information Service Desk and Handling Status
In compliance with the law, the Yamaha Group has appointed an office to manage the personal information collected fromits customers. The Group will respond to requests from customers or their proxies to disclose, change, delete, or stop usageof customer personal data held by Yamaha.
About Procedures to Respond to Requests to Disclose or Correct Personal Information (Japanese Only)

Initiatives for Customer Information Management
The Yamaha Group promotes the information security management of personal information at a practical level based on “GroupIT Management Standards” specifying IT management of personal information. From fiscal 2017, we have provided an autoencryption feature for the storage of personal information. In the unlikely case of an information leakage, the system isstructured so that only authorized personnel can view or use the personal information, improving the security of this system.
Incidentally, there were no large incidents concerning loss of personal information in fiscal 2018.

96
Yamaha Sustainability Report 2018

Enhancing Products and Services
Music Education BusinessConveying the joy of playing music to people throughout the world, the Yamaha Group operates a music education businessboth in and outside Japan as a part of efforts to contribute to the enrichment of society. Since opening an experimentalorgan class (a predecessor of Yamaha Music Schools) in Tokyo in 1954, the Yamaha Group has provided music education to
help enrich the growth of children and established and developed the Yamaha Music Education System, a unique education
method. Yamaha provides courses that meet the needs of each generation. These include Yamaha Music Schools forchildren between age 1 and junior high school/senior high school age, Yamaha Music Lessons for Adults, etc., for bothmusic enthusiasts and individuals interested in learning to play a musical instrument as a hobby.

Yamaha Music School Expanding to more than 40 Countries and Regions in the World
Yamaha Music School provides lessons that focus on nurturing a love of music based on the three features ofcomprehensive music education, timely education and group lessons. Our aim is to empower children with the ability to
express themselves freely with music through our unique musical methods which include elements such as listening,
singing, playing, reading and creating.

Comprehensive
Music
EducationGroup
Lessons

TimelyEducation“Yamaha Music School” logo

Yamaha Music School

Yamaha Music School enrollment in JapanJapan

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

350,000

320,000

300,000

280,000

271,000*As of June, in each fiscal year

Overseas, currently around 199,000
students are given the opportunity tolearn the joy of music at a YamahaMusic School in over 40 countries andregions, including Asia, Europe, North
America and Latin America. Eachcourse is developed in light of theculture and character of each region
while being based on a philosophy andcurriculum for music education
developed in Japan.

Countries in which Yamaha Music School operate

97
Yamaha Sustainability Report 2018

(As of June 2018)

Music School enrollment overseas
FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Asia, Oceania (including China)

148,000

144,000

146,000

144,000

146,000

Europe27,00026,00031,00033,00034,000

North, South America

21,00020,00020,00019,00019,000

Total

196,000

190,000

197,000

196,000

199,000*As of June, in each fiscal year

Spreading Yamaha’s Music Education Philosophy Around the World
Yamaha holds the Yamaha Junior Original Concert (JOC), an event which calls for children under 15 years of age studying at
Yamaha Music Schools to turn their feelings into music and perform their own compositions. We now receive around 35,000
original compositions from children every year. The concerts are held not only in Japan but throughout Asia, Europe andother regions as well. In addition, the International JOC event has been held in Japan since 1972. Through the common
language of music, Yamaha’s philosophy of music education is spreading throughout the world.

Responding to Various Needs, “Yamaha Music Lessons for Adults”
Yamaha provides Yamaha Music Lessons for Adults for a wide range of age groups, from junior high/senior high school
students, to adults, at around 1,300 locations throughout Japan. We provide a variety of courses to meet our customers’
diverse needs, from musical instruments such as the saxophone or guitar to vocal (currently 37 courses, 107,000 students
enrolled).
Each course is basically comprised of small group lessons and is designed to allow students to improve their skills with
the instrument while enjoying their time with their friends through materials, and features a curriculum which overcomes any
discrepancies in musical experience. Events are planned within each school or course, and provide a platform for exchange
and the further spreading of the joy of music. Convenience is another benefit for students as they can come after school orwork, since the location of the music schools are close to the station and they do not need to bring anything.
In addition, we are developing health programs for seniors, making use of the effect which music has on health,through programs such as “Music and Health” and “Sing for Health.”

Yamaha Music Lessons for Adults“Music and Health” Program

Yamaha Music Lessons for Adults enrollment
FY 1987(started)

FY 1991

FY 1996

FY 2001

FY 2006

FY 2011

FY 2016

FY 2018

6,000

40,00050,00092,000105,000

110,000

110,000

107,000*As of June in each fiscal year

Development of New Program and Its Introduction into Market
Based on the catch-copy “More than Karaoke, Less than a Lesson,” Yamaha
developed the “Seishun Pops” course for seniors which allows even
unexperienced seniors to participate in a casual setting. This course was launchednationwide in 2017 and is enjoyed by 6,000 persons in 490 sites (as of June 30th,2018). This course mainly features popular Japanese pop music or folk songs fromthe 1960s to 1980s that senior people enjoyed in their youth. Without using ascore, participants can enjoy songs by singing in harmony or step to the music
along with their friends while watching originally made videos.

98
Yamaha Sustainability Report 2018

“Seishun Pops” ProgramPromoting Universal Design
The Yamaha Group is keen to create an environment in which all people can enjoy the pleasures of music, and we promote
universal design to realize a society that is both rich in communication and that allows people of diverse backgrounds andattributes to live comfortably and harmoniously.

The Yamaha Group promotes initiatives that give product developers and designers a better understanding and greaterawareness of universal design. As one of these initiatives, we hold exhibitions or in-house seminars on universal design toenhance employee understanding and awareness.
In fiscal 2018, we participated in the planning of “Company UD Visiting Lectures,” part of the program by Hamamatsu City
to continue from last year in promoting town-building through universal design (UD). We held UD visiting classes for local
elementary students.
These classes explore how consideration for various people are reflected in products/services and thoughts toward UD incompanies. These classes aim to guide children to look at society and create an image of their future occupation.
Yamaha will further continue to cooperate with the initiatives to widely transmit the ideas of universal design and the joy ofmusic to society.

UD Plus in Hamamatsu 2016

Electronic musical instruments and PA equipmentthat takes visibility into consideration (in-house
exhibition)

99
Yamaha Sustainability Report 2018

In-house seminarOMOTENASHI GUIDE—A Sound Support System Implementing
Since 2015, Yamaha Corporation has performed verification tests of the
OMOTENASHI GUIDE—a service supporting the creation of an
extremely convenient multi-language voice and character guidefrequently used at businesses, public facilities, and tourist facilities thathave inbound tourism promotion and barrier-free initiatives.
It is important to effectively transmit Japanese announcements in
multiple languages due to the growing number of foreign tourists
coming to Japan. It is also necessary to convey verbal information in aneasy-to-understand format that enables the realization of a society
where senior citizens with hearing disabilities and the hearing-impaired“OMOTENASHI GUIDE” image
can live comfortably. With the OMOTENASHI GUIDE, people canreceive text translations of Japanese announcements in their native
language after downloading and installing the application on theirsmartphone or tablet.
This enables easy communication of the appropriate information in
Japanese announcements to foreigners who do not understandJapanese, the elderly, and those who have hearing disabilities.
In 2017, the Group established the “Sound UD Promotion
Consortium” for the objective of further promoting a “society using
sound for universal design,”“ where there are no concerns about
language or hearing ability. Over 200 companies and organizations are
already participating in this consortium. This organization wasestablished for many Japanese companies and organizations topromote initiatives for the utilization of sound in universal design
together. In order for major Japanese facilities to handle the use ofsound in universal design by 2020, Yamaha released a portion of the“Concept diagram for universal design of sound societal
structure” image
technology of the OMOTENASHI GUIDE to the consortium members
to become the new open standard. Through these efforts, Yamaha will
also promote innovation generation and a new business model for
Japan.
See here for the latest information on OMOTENASHI GUIDE
Contributing to the Development of Inbound Tourism by Supporting the Use of Sound in Universal Design

Casual Wind Instrument “Venova”
The Yamaha Corporation released the “YVS-100” model of the casual wind instrument
Venova, a newly developed product based on the desire for “more people to enjoy wind
instruments more easily and freely.” This product is easy to pick up and start playing
because of the simple fingering similar to a recorder and the easy-to-care for design. Users
can enjoy an expressive sound similar to that of a saxophone.
In order to create a product that was both easy to play and which produced a soundsimilar to a real saxophone, Yamaha used a unique meandering pipe shape, which had notbeen used in the past, as well as a “branched pipe design*.” This created a product which
both produces the rich, broad sound of a saxophone and the simple fingering of a recorder.
The meandering pipe design shortens the distance between the tone holes and makes it
possible to play any note using very few keys. This unique design also made the producteasy to care for, light, compact, and durable.
Furthermore, the ABS resin body makes the instrument light, durable and washable inwater. It is easy to use and maintain, making it possible to take it anywhere with ease andenjoy playing the instrument in various places, such as outdoors or during a casual jam session.

Venova “YVS-100”* “Branched pipe design” is a design which branches out the cylindrical pipes in the body, giving the product the characteristics of a cylindrical wind
instrument, which does not require large tone holes, while producing the sound of a conical instrument.

Music Education Solution Utilizing ICT - “Smart Education System”
Remote Classes Using Online Meeting System
Education Solutions Utilizing ICT

100
Yamaha Sustainability Report 2018

Proposing Solutions that Utilize Sound Technologies
Since achieving success in manufacturing the piano in 1900, Yamaha has been developing its technologies to keep up withthe changing times, and has also been continuing to develop traditional acoustic musical instruments as well as musicalinstruments/technologies using the latest electronic technologies.
In addition, the Yamaha Group has been continuing to create better listening environments through research anddevelopment regarding sound fields and related control systems while pursuing superior sounds through the manufacturingof sound-generating products. We also have been proposing solutions utilizing technologies such as our sensor technologies,
etc. cultivated through product development.

case example
Creating Better Sound Environments
Products

Feature of sustainability

Speech Privacy System™

Camouflages conversation with an “information
masking sound” synthesized from human speech.

Acoustic Conditioning Panel

Alters reverberations in the room, and provides a clear
and comfortable acoustic environment.

Related pictures

Conference room built using acoustic
conditioning panels

Avitecs™ Soundproof Room

Easily realizes a reverberant and soundproof space.

Sensor Technology Application Proposals
Products

Thin-film Strain Sensor

Feature of sustainability

Related pictures

Monitors human motion in real time by mounting thesensor on body supports or training wear.

example use

Hydrogen Leak Detector

Features high-speed response and high sensitivity overa wide, dynamic range and supports various forms andleakage volume.

101
Yamaha Sustainability Report 2018

Proposing Applications of Sound Technology
Products

SoundSignage™ TLF speaker

Feature of sustainability

Electrostatic, thin, light, and flexible.

SilentBrass™

Makes practicing and performing possible anywhere atany time.

TransAcoustic™ Piano

Enables volume adjustments to be made just like anelectric piano.

In-vehicle communication module
for automotive emergency
notification system

Enables automatic notification during emergencies andhands-free calling.

102
Yamaha Sustainability Report 2018

Related pictures––

Community Involvement and Development
Connection to Local Communities
Responsibility to Local Communities
The Yamaha Group acknowledges that a corporation is a member of society and we endeavor to be a “good corporate
citizen,” while fostering socially acceptable values and conduct. We are working to have dialogue with the members of local
communities so that we can assess our impact on them and pursue business with low environmental impacts.
At each of our offices and factories, we regularly hold information exchange sessions with surrounding municipalities
and solicit opinions at neighborhood council meetings.
When we build or retire a Yamaha office, we report and explain the matter to the head of the local government in thearea, while also using our exchange sessions with surrounding municipalities to make reports, as appropriate, and ask fortheir opinions and requests. Furthermore, when we retire a Yamaha factory, we carry out soil and ground water surveys toassess environmental impacts on the area. In the event that an impact, such as contamination, is discovered, we takeprompt and appropriate measures for decontamination or removal.
4-3 Harmonization with Society

Examples of Communication with Local Communities
The Yamaha Group makes efforts to have ongoing communication with local governments and residents to maintain good
relations with communities.

Examples of exchange sessions with neighborhood councils(Yamaha Corporation)

OfficeFrequency

Participants

Details

Headquarters

Annually

8 local neighborhood councils

Business status update, soliciting requests/concerns,
exchanging opinions

Kakegawa Factory

Annually

7 local neighborhood councils

Business status update, soliciting requests/concerns,
exchanging opinions

Toyooka Factory

Annually

3 local neighborhood councils

Business status update, soliciting requests/concerns,
exchanging opinions

Tenryu Factory

Annually

10 local neighborhood councils

Business status update, soliciting requests/concerns,
exchanging opinions

Examples of the communication efforts conducted at business sites and factories in fiscal 2018
• Holding regular information exchange sessions with neighborhood councils• Accepting factory tour visitors• Accepting local elementary school students for community study trips; accepting local middle and high school visitors forhands-on workplace experiences and tours• Holding summer festivals to strengthen relationships with communities• Signing of memorandums to open up facilities to the public during disasters• Participating in local events and celebrations• Lending of facilities, parking lots, etc.
• Regional safety patrol activities• Cooperation with regional environment activities, including participation in regional cleanup efforts by employees• Participation in joint disaster drills led by municipalities• Donating books, household goods, sweets, etc. gathered through charity bazaars and donation campaigns for local elementary
schools and groups• Donating food stockpiled for emergencies to food bank Fujinokuni• Lending instruments to local governments (concerts offered)103
Yamaha Sustainability Report 2018

Information exchange sessions at local
neighborhood council meetings

Summer festival

Regional cleanup effort

Donation ceremony for picture books andpicture-card shows to local kindergarten
through charity bazaar

Charity concert co-hosted with labormanagement

Tours of Grand Piano Manufacturing Process
At our Kakegawa factory, which is our domestic manufacturing site for grand pianos, we open our doors to public visitors sothat they can see the process for making grand pianos and experience the appeal of instruments and music.
Visitors to the factory see how we use modern techniques and some traditional, more than 100-year-old manufacturing
processes. They get to pass through the show room, where we display an early model grand piano that has been recognizedas part of Japan's Heritage of Industrial Modernization, while also seeing our environmental protection initiatives that are partof our craftsmanship. A total of 11,600 people took the grand piano tour in fiscal 2018.

Visitors observe a grand piano being madeAn exhibition at the show room

Kakegawa, the home town for Yamaha Piano Manufacturing (Japanese only)104
Yamaha Sustainability Report 2018

Promoting Music Culture
Supporting Aspiring Musicians
The Yamaha Group contributes to the
spread and development of music
culture at various music contests andclinics both in Japan and overseas. The
Group not only provides musicalinstruments to those pursuing a highartistic standard, but also assists withthe running of the events.
Hamamatsu International Wind Instrument
Academy and Festival

Performance by a prize winner (China)

Additionally, the Yamaha Group has
set up scholarship systems in different
regions of the world as support for
aspiring musicians. Yamaha also teams
up with music education institutions,continues to support the educational
curriculum, and provides seminars for
instructors.
Yamaha Asia scholarship (China)

Propping Up School Music Education
The Yamaha Group supports music education at schools in various regions of the world. Efforts are made to contribute to
the enrichment of course content by providing instruments, giving courses on methods of instruction to music instructors,
and providing music-related information.

Yamaha “School Projects” Providing Opportunities to Play Instruments
The educational effects of learning toplay musical instruments are so well
documented that such instruction isstandard in schools around the world.
However, in some countries, lack ofequipment or trained teachers, orinadequate curriculum often limits towhat extent schools can offer. As aproject to provide the chance for as
many children to experience the joysof playing instruments, Yamaha iscurrently expanding the School Project.

Music classes in Indonesia

Recorder lessons in Vietnam

The “Musuc Time” Program at Public Schools Around the World
Enriching Education in Vietnamese Schools through the Introduction of Instrumental Music Education

105
Yamaha Sustainability Report 2018

Music Popularization Program in the GCC and Africa
Yamaha Music Gulf (YMGF), a Yamaha subsidiary tasked with sales in the GCC and other countries in the Middle East,
Africa, the CIS, and Western Asia, regions where western music education has not taken root, is implementing music
promotion activities in schools based on the local circumstances of the country.
Especially in the Middle East and Africa, while there are music classes in schools, the lack of musical instruments,
instructors, and know-how means that in most cases such classes are limited to chorus and theory. In 2012, YMGF started aschool music education promotion project in order to support the education and growth of children through musicalinstrument education. YMGF promoted this project in collaboration with local branches and demonstrated the importance ofmusic education by holding classroom visits of Japanese elementary schools for education officials in each country.
After starting with one school in South Africa in 2016, YMGF expanded recorder classes to about 3,300 students in 33
schools in South Africa, Nigeria, Kuwait, UAE, and Kenya in fiscal 2018. YMGF plans to add Pakistan, Morocco, and Uganda
in the future and expand its activities to start pianica classes in Pakistan.

Recorder lesson in South Africa

Recorder lesson in Nigeria

Band Clinics & Band Directors’ Clinics
Since 2010, Yamaha Music & Electronics (China) Co., Ltd. has dispatched
instructors to school bands in major cities in Japan and overseas. The number ofworkshops and participants are increasing every year, with 46 workshops held in
fiscal 2018 and approximately 5,300 students receiving guidance from prominent
instructors. Yamaha also holds clinics for band directors so that general musicteachers can teach band music.

A band clinic in Shaoxing cityStudent Band Maintenance Seminar
In Korea, music activities, such as band (wind instruments) or orchestra particiaption are extracurricular activities in schools.
However, in some schools (local schools in particular), students do not have much opportunity to learn about musicalinstrument maintenance and there arise situations in which the students own high quality instruments, but the instruments
become damaged and do not produce a good sound.
To support the music performing environment at these schools, Yamaha Music Korea Ltd. (YMK) has been offering
their support since 2013 by visiting schools that have an orchestra, holding seminars on musical instrument maintenance,and offering to repair instruments free of charge. Since this activity started, YMK has visited over 250 schools to provide
instrument maintenance, teach students how important it is to maintain their instruments in good condition, and contributeto the development of music culture in Korea by supporting music activities in these schools.

A maintenance seminar

A lecture on the importance of musicalinstrument maintenance
106
Yamaha Sustainability Report 2018

“Music pal” School Music Education Support Website
Yamaha Corporation established the website “Music pal” to support school music education. The site has a wealth of
information that is useful for music coursework and covers the history of music, musical composition, and a variety ofdifferent instruments. Additionally, in order to let visitors further deepen their musical knowledge, the website “MusicalInstrument Guide Plus” provides content useful for music coursework and investigative learning, including the origin andmakeup of instruments and a full encyclopedia of musical instruments including playing style.
“Music pal” website supporting school music education (Japanese Only)

Efforts to Spread Music Through Events and Contests
The Yamaha Group takes steps to spread music in the different regions of the world through events and contests. This
includes proposing new ways to enjoy musical instruments and music for all ages as well as planning and providing spaces
for performances by amateur musicians looking to make the next step up.

Hamamatsu Jazz Week
Each year, Yamaha Corporation holds “Hamamatsu Jazz Week” in cooperation with the city of Hamamatsu, where ourheadquarters is located, and other co-organizers. The event, which started in 1992, is part of the Hamamatsu city
government's efforts to create a city with music at its core.
The unique regional gathering strives to have music throughout the city, and to have music help create the fabric of thecity. United under jazz that can be enjoyed by people of all ages, the government and the community come together to hostthe event and produce something appreciated by participants whether they are jazz fans or not.
The 26th Hamamatsu Jazz Week in 2017 featured talk events based on the theme of the 100th anniversary of the jazzrecord, concerts that featured top-notch domestic and international artists as well as school students from outstanding big
bands throughout Japan, combined with events organized in collaboration with civic groups and local jazz clubs, and in-school
jazz concerts at Hamamatsu elementary and middle schools.

“Student Jazz Festival”“Yamaha Jazz Festival” held on the final dayof Hamamatsu Jazz Week

Asian Beat
The Yamaha Group plans and runs the amateur band contest “Asian Beat”, which aims to promote popular music anddevelop amateur musicians in the Asia region. The winning bands from the regional competitions in each country go on to
the grand final where they perform and compete to be the top amateur band in Asia.

Brass Jamboree
The Yamaha Group holds the Brass Jamboree, in which wind and percussion instrument enthusiasts gather together in one
large venue to enjoy playing music together. The Brass Jamboree offers a place to perform to people who want to casually
enjoy playing musical instruments. With experienced musicians, beginners, parents and children, families, and friends
participating, it is a day for everyone to enjoy music and is aimed at enthusiasts of all wind and percussion instruments. At
the 9th Brass Jamboree in 2018, conductor Daisuke Soga gave a conducting method seminar on how to study conducting
music. More than 550 people, ranging from elementary school children to seniors in their 70s, participated in the concert,where they enjoyed meeting other people through music and playing music with many others. They created a special,large-scale performance playing altogether during the concert.
Brass Jamboree (Japanese Only)

107
Yamaha Sustainability Report 2018

Large ensemble with all of the event
participants

Ensemble director and conductor Daisuke Soga
(left), special guest Chihiro Yamazaki (center),and saxophone player Ryota Miura (right)

Wind Instrument Karaoke Contest (China)
Yamaha Music & Electronics (China) Co., Ltd. holds a wind instrument karaoke competition every year, which provides anopportunity for beginners and others that have just started learning music to enjoy playing simple tunes with a wind
instrument on stage. The music is played together with a sound source as musical accompaniment that has been madesolely using wind instruments. Some 7,300 children took part in 33 cities nationwide in fiscal 2018.

Preliminaries in Shenzen city

Preliminaries in Anyang City

Providing Opportunities and Places to Come in Contact with Instruments
Piano Placement in National Railway Stations in France
Yamaha Music Europe GmbH, France has placed pianos at more than 100 premises in major French National Railway
stations since 2015. Yamaha proposed this idea to France’s National Railway, the SNCF (Société Nationale des Chemins de
Fer Français), as they realized that this would allow many people to freely experience playing the piano. Several million
people utilize the National Railway each day. Following this initiative we have received many positive comments about thejoy discovered by playing the piano or listening to the music. Along with placing pianos, we also established a video contest
where users record their music then upload it to social media and get a chance to show their performance to viewers all over
the world. We set up a terminal with a “like” button for visitors who felt an affinity for the piano thanks to this experience.
Over one million visitors have pressed this “like” button. The installation has also garnered attention from various local media
outlets.

Piano attracting people

The Yamaha stage in Lyon station, Paris, witha terminal for submitting “likes”

108
Yamaha Sustainability Report 2018

Providing Opportunities for New Ways to Enjoy Music at “Yamaha Music & Life”
In April 2016, we established Yamaha Music & Life, which is a business directly operated by Yamaha Music & Electronics
Taiwan Co., Ltd. and is located in a department store in Taiwan. In this store, introductions to each instrument, free trial
lessons, and free hands-on testing are provided in four display areas: the Experience Zone, the Living Room Zone, the Studio
Zone, and the Break Zone. This store allows visitors to test out instruments and AV equipment free of charge. The servicesof the store help provide stress-free opportunities to customers who are interested in musical instruments but not yet readyto buy one or start taking lessons. For those who are interested, it is possible to purchase an instrument and pay for lessons.
In Taiwan, it is expected that demand for casual hobbies will increase among adults. By providing new opportunities toexperience musical instruments, Yamaha can showcase the appeal of music to more people, while aiming to increase thesize of the music playing population.

The Experience Zone where customers can try
out instruments

The Living Room Zone where recommendations for pianos and AV
equipment are made to suit different lifestyles

Contribution to Regional Community Development
Regional Contribution Activities through MusicThe Yamaha Group aims to contribute to regions and community activities by planning and holding music events in different
regions.

Creating Community through Music
Yamaha Music Japan Co., Ltd. developed the “Oto-Machi Project for Creating Musical Towns.” Oto-Machi Project aims torevitalize the community and helps create shared value of companies and society by harnessing “the power of music toconnect people.” To solve the issues faced by communities and companies, Yamaha proposes and supports citizen
participatory projects, events, and programs for community planning with music as a tool by using Oto-Machi Projectmechanism.
Yamaha aims to create sustainable, independent communities. The Oto-Machi Project promotes a new-style of social
contribution project which supports early stages of community planning through building a scheme to provide the place andtime for local people to participate freely and continue these activities.
Urban Development Project Through Music (Japanese only)

Jozenji Street Jazz Festival Swing Carnival

Funabashi Mori no City “Forest City Big Band”

109
Yamaha Sustainability Report 2018

“Kashiwa facilitator training lecture”

Regional Contribution Activities by the Yamaha Symphonic BandThe Yamaha Symphonic Band, which was established in 1961, is an amateur band whose members are Yamaha Group
employees. The band's activities include holding regular musical performances and pop concerts, supporting the Yamaha
Baseball Club, and performing regularly and appearing in contests in Japan and overseas. The band also actively participatesin events rooted in the local region, while cooperating with the “city of music” vision promoted by the city of Hamamatsu,
and by participating in the Symphony Band Parade of the Hamamatsu Festival as well as the Promenade Concert held infront of JR Hamamatsu Station. Furthermore, the band also performs to support, through music, areas affected by natural
disasters.

Promenade Concert

The Wind Instrument Parade, part of theHamamatsu Matsuri festival

Supporting Activities of the Yamaha Symphonic Band in Affected Areas
Yamaha Symphonic Band website

Supporting Youth Development in Central and South America
The Yamaha Group contributes to the healthy development of youth and the development of music education and culture
through activities that include bringing music and musical instruments to local communities, in addition to activities topopularize music.
In many countries in Central and South America, crime and poverty as well as social inequality are serious social
problems. In order to enable the children in such environments to grow up with a healthy spirit instead of leaning towards
crime, delinquency or violence, music education activities are provided free of charge as a country policy, including forming
regional youth orchestras and band groups. In Latin America, Yamaha’s local subsidiary companies have been providing
support to these activities.
However, in promoting these activities, some issues of lack of maintenance for many musical instruments andtechnicians to repair damaged instruments have arisen. Therefore, in cooperation with each subsidiary in fiscal 2015, Yamaha
Corporation began a new project to teach maintenance of musical instruments as well as to train repair technicians. We
contribute to further development of music education and culture, and to solving social issues, by providing technologies for,and knowledge of, musical instruments to many people.

Cooperating with “El Sistema”
Yamaha Music Latin America, S.A. (YMLA) has been supporting El Sistema*1, a music education project promoted by the
Venezuelan government. YMLA has supported “Fundación del Estado para el Sistema Nacional de las Orquestas Juveniles e
Infantiles de Venezuela (FESNOJIV),” which has run the project, for more than 15 years and has provided musical instruments andtechnical seminars. El Sistema is a delinquency prevention and poverty eradication system to stabilize society by promoting music
activities and securing jobs for children. The number of children and young adults participating in El Sistema has reachedapproximately 780,000, mostly from poorer demographics. Through music study, participants enhance their moral character andtake part in constructive social events such as orchestras and teaching opportunities throughout the country.
The fostering of skilled people who can maintain wind and percussion instruments in the country is a way to help create job
opportunities. For this reason, YMLA dispatches band instrument experts from Japan, Europe, and U.S. and holds experts
seminars to contribute to job creation. Additionally, the program has purchased and put to use a cumulative total of approximately
10,000 Yamaha brass instruments to date.
Currently, YMLA is collaborating with the Yamaha Corporation headquarters to design and implement a new El Sistema
program called the Venezuela Musical Instrument Post-Purchase Service Network Development Program.
*1 A music education system that started in 1975 to promote the sound development of less fortunate youngsters through the practice of music insymphony orchestras by providing free lessons and instrument rental.

110
Yamaha Sustainability Report 2018

Children with El Sistema founder José Antonio
Abreu
Courtesy of FUNDAMUSICAL

Band instrument maintenance seminar

Model CFX piano in the Sala Simón Bolívar
concert hall in Caracas, Venezuela
Courtesy of FUNDAMUSICAL

Supporting the Activities of “Cauca Wind Orchestra”*2
YMLA established the Cauca Wind Orchestra (OCV) in cooperation with the Polifonia Foundation*3 and Incolmotos S.A.*4 andsupports its activities. Cauca, Colombia is an unsettled region known for cocaine smuggling and frequent bombings andkidnappings.
Given this situation, the aim of OCV's activities is to change the lives and hearts of children through music, to protect thedaily lives of general citizens, and to give children positive futures. OCV aims to advance the sound development of youngsters
in the Cauca region of Colombia through orchestra activities.
*2 FESNOJIV: Fundacion del Estado para el Sistema Nacional de Orquestas Juveniles e Infantiles de Venezuela*3 This foundation in Popayan in the southern part of Colombia works toward the sound development of youth by drawing them into musicalactivities.
*4 This company is a group company of Yamaha Motor Co., Ltd. and sells products from Yamaha Motor Co., Ltd. as well as musical instruments from
Yamaha Corporation.

Cauca Wind Orchestra (OCV)

Young students with a passion for music

Cauca Wind Orchestra (OCV) logo

Recorder Music Popularization Seminar by “Sopro Novo”
Yamaha Musical do Brasil Ltda. (YMDB) formed the volunteer organization Sopro
Novo in 2005, and it is holding seminars all over the country to train musicteachers and popularize recorder music. These seminars provide lessons giving
participants comprehensive training and include instruments, textbooks, andteaching methods. Starting with how to read music and ending, ultimately, withensemble performance, seminar members learn music performance techniques,
so that they can begin giving music instruction to beginners after completing thelessons. In Brazilian schools, there is no regular music education in the compulsory
curriculum and the Sopro Novo activity is a precious opportunity to offer many
people, from children to adults, their first music learning experience. Lessons
offered through the project, which involves NGOs, churches, and regional social
activities, also function as platforms for children to experience society. Over the
past 12 years, Sopro Novo has held seminars nearly 1,600 times in 189 cities, andhas trained over 5,000 teachers. The number of children taught by those teachers
has reached more than 550,000.
In 2017, we established the non-profit organization Fundação Sopro Novo
Yamaha. We also started to lobby the government to adopt direct music education
and worked toward leading music teacher training and music education in publicschools.

Teacher training seminar

Annual national gathering

111
Yamaha Sustainability Report 2018

Support that Helps Foster Future Generations
Cooperating with On-Site Tours and Hands-On Learning
As part of our local contribution activities, the Yamaha Group accepts requests from regional educational facilities in parts of
the world where we have business sites and opens our workplaces for visitors to experience hands-on learning. We alsooffer internships and accept tours at our workplaces and factories.

Accepting Students for
Workplace Hands-On
Learning
The Yamaha Group contributes to thegoals and future work ambitions ofyoung people by providing
opportunities such as hands-on work
experience for young visitors who are
the country's next generation of
citizens. In fiscal 2018, we continued
to accept junior high school students
visiting for hands-on learning, as wellas high school students interested ininternships.

High school students participating in aninternship at a factory

Junior high school students getting hands-on
experience at a sales store

Work Training for New High School Graduates
Yamaha Musical Products Indonesia (YMPI) offers vocational training to new high school graduates. This project was createdin response to requests by high schools and the government of Indonesia to help solve the issue of educating students
before starting to work in society.
In the company’s training facility, lectures are offered on basic factory operations, understanding what it means to be amember of society, 5S* methodology, safety and health issues, making improvements, communication, and traffic safety.
All of these items are also lectured to educate Yamaha employees. The 5S methodology of YMPI and its employee education
system are well-received in the region. The vocational training receives high praise from the government and high schools as
well. In fiscal 2018, 973 people in nine schools experienced this training.
In addition, YMPI also offers factory tours and hands-on experience to high school and university students.
* 5S is the name of a workplace organization method that uses a list of 5 Japanese words: seiri, seiton, seiso, seiketsu, and shitsuke, all of whichstart with the letter “S.” They mean organizing, picking up after oneself, cleaning, cleanliness and discipline, respectively.

Work experience participantsStudents participating in a lecture

Support for Exhibits at Learning Facilities
Hamamatsu Science Museum (Hamamatsu City, Shizuoka Prefecture) opened in 1986 to develop science-oriented minds
and includes a planetarium and participation-type exhibits that people can touch to aid in learning. Many parts of the exhibits
can be attributed to the participation and support of regional companies and groups, and Yamaha Corporation has also played
a role since the museum opened. The following items are currently on display in the “sound” corner. (They were donated in2012.)

112
Yamaha Sustainability Report 2018

Exhibit Items Provided in the “Sound” Corner
SectionDetails

Variable acoustic room

Exhibit using audio signal processing technology. Visitors can experience sound vibrations virtually in such
simulated settings as a theater, echo room, cave and church simply by flicking a switch.

Cutaway models of musicalinstruments

Exhibit where the cross-section of eight different kinds of musical instrument, including wind, string andpercussion instruments, can be observed close-up.

Supporting Child Education
The Yamaha Group provides a variety of programs to help support child development. Every year, we respond to requests
from local governments and educational institutions when offering classes outside the Company and providing childprograms focused on the themes of manufacturing and science. The Yamaha Baseball Club also participates by offering
youth baseball clinics and other activities.

Manufacturing Classes and On-site Lessons
Throughout the year, Yamaha Corporation works with local educational institutions to offer classes teaching children about
manufacturing. We held a handmade guitar class in which children created their own handmade one-string guitars using
everyday items such as cardboard boxes and toothpicks. Another class taught children how to make a folk instrument fromAfrica called a kalimba using off-cuts from piano and marimba manufacturing. In another class, children made a mini clapper
the size of a key holder so that they can carry it around and form a bond with the instrument.
These classes use musical instruments to offer students a way to experience the process of manufacturing. Upon
request, we also offered on-site lessons that included ion plating and universal design (UD) classes.

Handmade guitar class

Handmade kalimba classMini clapper class

Manufacturing class jointly held with Yamaha
Motor Co., Ltd.

An on-site lesson on “plating”

UD visiting class based on the theme of the“universal design of professional tools”

113
Yamaha Sustainability Report 2018

Efficiently Using Piano Off-cuts to Make Wooden Blocks for Children
Yamaha Piano Manufacturing Japan Co., Ltd offers off-cuts generated in piano manufacturing as wooden blocks tokindergartens, elementary schools, and public facilities in Kakegawa City, Fukuroi City, Iwata City, and Hamamatsu City.
Continuing since 1998, this program is a chance to contribute to the community while simultaneously finding a useful
purpose for waste material.
Other uses for the off-cuts include selling them to local companies that make woodcraft products and providing them tolocal people at summer festivals after making them into items such as wooden mouse pads, shoe horns, and folding chairs.
The off-cuts are also turned into woodcraft kits that Yamaha Corporation uses in its manufacturing classes for children.

Using manufacturing off-cuts for woodcrafts

Children playing with wooden blocks

The Yamaha Baseball Club Provides Baseball Clinics for Youth TeamsThe Yamaha Baseball Club holds clinics for local youth baseball teams in its home region of western-central Shizuoka
Prefecture as part of its efforts to contribute to the community and the development of young people in the area. At theseclinics, members of the Yamaha Baseball Club provide guidance and instructions, teaching young ball players techniquessuch as how to shift their weight, stance, basic posture when fielding infield and outfield, play combinations and batting. The
clinics help foster healthy young baseball players and the dreams and development of young people. From fiscal 2017, theCompany also participated in Hamamatsu City’s “Top Athlete Partnership Business*” and helped instruct pitchers andcatchers in middle schools.
A total of 60 such clinics have been held since the program started in 2000. In fiscal 2018, they took place at fivelocations in four different cities in Shizuoka Prefecture, which included 1,155 elementary and middle school students form
89 teams.
Furthermore, the Junior Baseball Instructing Club, made up of many former members of the Yamaha Baseball Club,
gave baseball health examinations to children during the clinics. As part of the exams, sports medicine doctors help children
with baseball injuries and give them advice to help prevent injuries and accidents.
* This is a business run by Hamamatsu City from fiscal 2017 which holds sports classes by sending local top athletes to sports organizations andschools. By imparting the skills and experiences of top athletes, the objective is to uncover the next generation of top athletes, and increase thenumber of children participating in sports.

Baseball clinics

Baseball physical examination

114
Yamaha Sustainability Report 2018

Education Solutions Utilizing Information andCommunications Technologies (ICT)The active use of ICT in school education is increasing year by year. In Japan, the Ministry of Education, Culture, Sports,
Science and Technology has set a target for a tablet terminal to be available for every student in schools by the end of 2020.
Today, utilizing ICT in the classroom is popular.
Seeing the movement of ICT, Yamaha Corporation is proposing new means of learning in the classroom.

Music Education Solutions Utilizing ICT Smart Education System
Since 2014, Yamaha Corporation has been operating the Smart Education System(SES) as a music education solution which utilizes ICT in the educational setting ofschools. Utilizing its skills related to music which have been developed over many
years, as well as its knowledge about music education, Yamaha has repeatedly
conducted trial classes with the help of elementary and middle schools across thecountry, resulting in the development of its digital classroom teaching materials.
In February 2017, the Company released VOCALOID for Education, Guitar Class,and Koto (a traditional Japanese musical instrument). Following this, in fiscal 2018, theCompany launched Alto Recorder Class and Chorus Practice. Primarily aimed atelementary and junior high school students, these materials are content packages
covering how to lead the class following the course curriculum guidelines, cautionary
tips to keep in mind when teaching, and videos of foundational knowledge needed for
performance. Teaching class while following this system helps foster students'
imaginative and theoretical skills.
Additionally, Yamaha has been making progress in joint projects with othercompanies, and led the production and development for the digital classroom
materials “Music Edutainment Application: Learn to Read Sheet Music! Vol.1 Rhythm
Training,” which teaches users how to read sheet music and was planned and sold by
KYOIKU GEIJUSTSU SHA Co., Ltd., a company which publishes textbooks andclassroom materials.
Through the Smart Education System, Yamaha plans to not only provide these
digital music classroom materials, but also to support the new generation of musiceducation by providing comprehensive solutions, including support for instruments,
network equipment, cloud services, and human support.

Practice using Alto Recorder ClassA screenshot from Chorus PracticeDistance Learning Using a Web Conference System
As the utilization of ICT grows in classrooms, distance learning is being proposed more frequently thanks to its ability to bringclasses of different schools in the same city together, support meetings between sister schools, and provide collaborativeclasses in under-populated areas with a shortage of specialized teachers. As Japan’s Ministry of Education, Culture, Sports,
Science and Technology recognizes distance learning programs and grants accreditation in high schools, more forms of
distance learning programs are expected to be offered in the future.
In corporation with each prefecture’s Boards of Education, education institutions and other companies, Yamaha
Corporation promotes the use of sound communication devices, such as speakerphones for distance meetings.

English conversation class using a tablet
terminal and remote teaching system (Koga
Daiichi Municipal Junior High School, Koga City,
Ibaraki Prefecture)

A presentation utilizing ICT (Komagamine
Municipal Elementary School, Shinchi Town,
Fukushima Prefecture)

115
Yamaha Sustainability Report 2018

Donations and Social Welfare Activities
Promoting Employee Volunteer Activities
The Yamaha Group promotes its employees’ participation in volunteer activities. Along with establishing various programs,
we use the Company intranet and other means to share information on available volunteer opportunities, while also
publicizing examples of previous volunteer activities.

Voluntary Philanthropic Activities by Employees
Yamaha Corporation of America launched Yamaha Cares in 2003 as a way for employees to implement voluntaryphilanthropic activities. Yamaha Cares aims to contribute to the regions in which employees live and work through donations,collecting contributions, providing Yamaha products, and so on. Among these is an activity benefitting a children's hospitalresearching the treatment of Type 1 juvenile diabetes. Every year employees participate in the Southern California Half
Marathon and solicit contributions, which have exceeded $110,000 in total. Yamaha Cares continues to support the hospital,
one of the few institutions researching the treatment of childhood diabetes.

Major Yamaha Cares activities• Fundraising efforts for a pediatrichospital• Donations, including donating Yamaha
products, to after-school programs (runby United Sound, Inc.) providing
musical performance experiences tochildren with intellectual disabilities• Participation in Making Strides Walk,an activity supported by the American
Cancer Society

Funds raised from a half marathon were donated to Children's Hospital of Orange County (CHOC)

United Sound website
American Cancer Society website
Making Strides Walk

Fundraising activities and donating the Company's products to many other programs

Regional welfare activities
The Yamaha Group carries out welfare activities rooted in local communities by efforts that include donating instruments tolocal schools and organizations.

Donation of Musical Instruments for the Children of Migrant Farmers
Commemorating its 10th anniversary, Yamaha Music & Electronics (China) Co., Ltd. (YMEC), and four of its local
manufacturing companies and major sales agents, began donating instruments to schools for the children of migrant farmers
all over China in fiscal 2014. This is a five-year project to show gratitude toward local areas for the development of businessin China.
This activity is carried out with the idea that, by donating musical instruments and AV equipment for music classes inthe schools, more children will have the opportunity to experience music and learn the wonders of music, thereby helping
them to develop artistic sensitivity. In fiscal 2018, instruments worth a total of 200,000 yuan were donated to two schools in
two cities, with the objective of strengthening relationships with agents in local cities and expanding regional contributions.
Over the past five years, 54 schools have received donations all total, and the cumulative amount has reached approximately
4.2 million yuan.

116
Yamaha Sustainability Report 2018

Major Donations and Their Recipients
Date

RegionNo. of schools

Mar 2013

Shanghai

2

2 pianos, 40 portable keyboards, 2 AV systems

Sep 2013

Beijing2

2 pianos, 72 portable keyboards, 2 AV systems

Oct 2013

Tianjin7

7 pianos, 210 portable keyboards, 7 AV systems

Dec 2013

Hangzhou18

15 pianos, 13 digital pianos, 360 portable keyboards, 18 AV systems

May 2014

Suzhou5

5 pianos, 150 portable keyboards, 5 AV systems

Oct 2014

Guangzhou

2

2 pianos, 70 portable keyboards, 2 AV systems

May 2015

Shanghai

2

2 pianos, 60 portable keyboards, 2 AV systems

Dec 2015

Hangzhou5

5 pianos, 150 portable keyboards, 5 A systems, PA systems

Apr 2016

Qingdao1

Portable keyboards worth approx. 100,000 yuan

Sept 2016

Yiwu

1

Portable keyboards worth approx. 100,000 yuan

Nov 2016

Lu'an

1

Portable keyboards worth approx. 100,000 yuan

Dec 2016

Pingdingshan

1Portable keyboards worth approx. 100,000 yuan

Mar 2017

Beijing

1

Portable keyboards worth approx. 100,000 yuan

June 2017

Chengdu1

Portable keyboards worth approx. 100,000 yuan

Oct 2017

Jinan

1

Portable keyboards worth approx. 100,000 yuanMusical instrument presentation ceremony(Chengdu)

Donations

Donated portable keyboards

Donating Food for Disaster Stockpiling to Food Bank FUJINOKUNI
Food bank FUJINOKUNI is a charitable organization seeking to help build a mutually supportive society. The food bank hasdeveloped and runs a system for accepting donations of food that is safe to eat but would otherwise be discarded fromcompanies, organizations, and individuals, and equitably distributes this food to people who need it. The Yamaha Group fully
supports the organization. At each of its offices in Shizuoka Prefecture, Yamaha stockpiles food to be distributed in the eventof a disaster. One month before the food is due to be replaced, Yamaha donates it to the food bank.

Support for Areas Devastated by Earthquakes
For the purpose of supporting restoration and recovery in areas affected by the Great East Japan Earthquake, the YamahaGroup provided school musical instruments and other products through its sales agents, held a variety of charity concerts,
and supported the activities of the School Music Revival. Going forward, we will continue to provide support in the hope thatrecovery from the disaster can be achieved as soon as possible.

117
Yamaha Sustainability Report 2018

Yamaha Symphonic Band Helps Support Activities in Disaster Affected Areas
The Yamaha Symphonic Band is devoted to supporting victims of the Great East
Japan Earthquake. To date, the band has held charity concerts and other activities
across the Tohoku region to help promote the recovery. The Yamaha SymphonicBand also donated part of the proceeds of its CDs “Yamaha no Oto Kanaderu
Takumi no Oto 1,” which was released in October 2015, and “Yamaha no Oto
Kanaderu Takumi no Oto 2” to the affected areas through the Japanese Red Cross
Society. They are continuing such activities in order to support recovery fromdisasters.
The Yamaha Symphonic Band
Concert to support the disaster afflicted area

Contributing to Local Regions andHosting an Environmentally Conscious EventContributing Locally through the Yamaha Ladies Open Katsuragi
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. At the tournament,
efforts are made to address global warming by asking visitors to use public transportation or carpool, sort and separate
garbage, recycle plastic bottles, and use disposable chopsticks made with timber from thinned forests. These and otherenvironmentally conscious efforts are undertaken in order to help reduce waste and efficiently use resources. Also, holding
this major event is made possible with the support of volunteer staff from across Japan and the support of many local
residents and regional governments.
Since the first tournament in 2008, Yamaha has given donations to local governments that have backed the tournament
as a token of our appreciation to local residents for their cooperation and support of the event. At the April 2018 tournament,
we donated a total of ¥6 million, comprising ¥1 million each to Shizuoka Prefecture and five cities in the region. These
donations will be used to revitalize the region and improve social welfare, such as maintaining sports facilities and buying
vehicles for volunteer activities. The total amount donated to date stands at ¥59 million.
In addition, a total of 316 new Group employees from Yamaha Corporation and Yamaha Motor Co., Ltd. took part as
tournament operations staff alongside 1292 volunteer staff.

An “eco-station” for separating garbage

Volunteer staff at the tournament in 2018118
Yamaha Sustainability Report 2018

Charity donation presentation ceremony
conducted after the tournament award
ceremonyExpenditures for social contributions
In fiscal 2018, the Yamaha Group spent 591.26 million yen on social contributions, including activities contributing to the
popularization and development of music and music culture, and contributions to the region and to welfare of society.
* The above expenditures do not include actions taken by the Yamaha Music Foundation.

Expenditures for social contributions made: 591.26 million
Job creation andtechnology development,
employment aid
5.5%

Culture andthe arts
14.9%

Education and social education
53.0%

Health/medicine,
sports8.5%

Education andsocial education
25.9%

Others13.3%

Local community activities, protection ofhistorical sites and traditional culture
4.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

* “Others” includes environmental activities and assistance to disaster stricken areas, etc.

Number of social contributions made: 875

eation andy development,
oyment aid
5.5%

Education andsocial education
25.9%

Others13.3%

Local community
activities, protectionof historical sites andtraditional culture
17.8%

Culture andthe arts
16.5%

30%

50%

Health/medicine,
sports12.3%

Socialwelfare8.0%

Others19.4%

ity activities, protection ofes and traditional culture
4.8%

80%

90%

100%

0%

10%

20%

40%

60%

70%

80%

90%

100%

* “Others” includes environmental activities and assistance to disaster stricken areas, etc.

119
Yamaha Sustainability Report 2018

0%

10%

20%

Feature

Preserving the Tones of Yamaha
for the Next Generation- Sustainable Procurement of Timber and Community-focused Forest Management Many musical instruments, including pianos, woodwind, string, and percussion instruments, are made with wood.
The Yamaha Group uses a variety of wood materials in its business activities, including the production ofmusical instruments. The Yamaha Group is engaged in new initiatives in order to manage and conserve theseprecious wood resources so that they can be used for the next 10, 50, and 100 years.

Feature 1 Preserving the Tones of Yamaha for the Next Generation

1

Yamaha Sustainability Report 2018

Feature“African Blackwood” - A Vital Component of Woodwind Instruments
African Blackwood (commonly known as grenadilla) isused in making woodwind instruments such as theclarinet, oboe, and piccolo. This tree is mainly found ineastern Africa, primarily in Tanzania and Mozambique. Its
wood is dense and hard, and possesses excellent acoustic
attributes. As such, it has been used for many years inwoodwind instruments, and it is difficult to substitute its

unique appearance and properties with other wood
products. In the musical instrument industry, AfricanBlackwood is treasured as an important resource. In recent
years, it has decreased in volume to the point of being
designated as “Near Threatened” on the IUCN red list,
making its sustainability a concern.

Tanzania

Issues facing African Blackwood
A characteristic of woodwind instrument production,
which is the primary use of African Blackwood, is that it
requires high quality wood which does not break, rot, orform knots. As such, only 5 to 10% of African Blackwood
timber is actually used as materials. As the resource has
been dwindling in recent years, there have been manycases of excessive logging to procure the limited supply ofhigh quality wood. There are concerns about thesustainability of this resource given that African Blackwood

trees require a lengthy period of growth (approximately 70
to 100 years) before they can be harvested. Furthermore,
local communities facing the ongoing challenge of poverty
have less of an incentive to engage in forestry comparedto agriculture and livestock raising, which have a more
direct impact on their livelihoods. It is currently difficult for
local communities themselves to systematically manage
forests.

Grenadilla logs abandoned in harvesting site

2

Feature 1 Preserving the Tones of Yamaha for the Next Generation

Yamaha Sustainability Report 2018

Feature

Making African Blackwood a Sustainable Resource
In order to help resolve these issues, Yamaha began
conducting investigations of forest management conditions
and African Blackwood resource volumes in Tanzania, withthe aim of conserving the species and achieving stableprocurement.
In fiscal 2016, as a part of the Japanese Forestry
Agency’s “Promotion of Sustainable Forestry Managementin Developing Countries” program (September 2015
- March 2016), Yamaha conducted a preliminary survey
with the cooperation of a local NGO (MCDI*), and is
working towards sustainable forest conservation based on
FSC-certified forest in Tanzania. Yamaha received anumber of ecological findings related to the distribution,
growth, and natural regeneration of African Blackwood andthe status of the local forest management system. Until
then, it had been difficult to obtain accurate local
information. However, as a result of this survey, Yamaha

discovered that sustainable procurement of the resource
would be possible with proper management(1) (2) .
Based on these results, in fiscal 2017 Yamaha began
full-scale activities in partnership with the Japan
International Cooperation Association (JICA) as a private
cooperative business (BOP business; December 2016 November 2019). In these activities, the relationships
between environmental factors and African Blackwood
distribution and quality have been studied. Based on theobjectives of “efficient use of existing resources” and“sustainable forest management with tree-planting
activities in order to secure future resource volumes,”
Yamaha is continuing investigations and implementing
measures with the aim of building a business model which
can use this resource for musical instruments on asustainable basis.

* MCDI (Mpingo Conservation Development Initiative): An NGO engaged in community forestry in the Lindi region of southern Tanzania and insustainable forest management through international forest certifications (FSC-certification). MCDI urges self-sustaining forest management by thecommunities participating in these activities. Each community is paid a portion of the revenue gained through the harvested timbers, as public
capital for the community

Results and issues from forest survey
Results related to African Blackwood habitat(3) (4)Content

Results

Considerations

Environment and tree growth• High environmental adaptability; able to grow in
unfavorable conditions not suited to other species

Comparably easy to grow in a range ofconditions

Relationship between natural habitatand growth conditions• In high density-forests, tree numbers decline but
growth conditions are improved• In open forest, tree numbers increase, but growth
conditions decline

It is possible to continually produce highquality wood materials by controlling
forest conditions to create an appropriate
environment

Relation between local environment
and wood characteristics• There are no clear changes in wood characteristics
due to local environmental changes

Wood characteristics are stable
regardless of environmental factors

Issues• Systemization of knowledge gained insurveys; forest management for productionof high quality materials(for producing
musical instruments)• Construction of system/framework for local
leadership to manage forests on asustainable basis• Construction of system for stable supply of
FSC-certified wood materials• Improvement of material yield from harvested
trees for efficient use of timber resources

Forest surveys in Tanzanian natural forest

Sources(1) Current status of African Blackwood in Tanzanian natural forests and potential for sustainable material
utilization; 67th The Japan Wood Research Society, Fukuoka, 2017.
(2) Report on 2015 Forestry Agency Subsidy report “Sustainable forest management promotion businessin developing countries,” subsidized by the Forestry Agency 2016.
(3) The relationship between environmental factors and the growing conditions of grenadilla treesin
Tanzanian natural forest; 68th The Japan Wood Research Society, Kyoto, 2018.
(4) Creating sustainable forests harmonized with a business for musical instruments: African blackwood in
Tanzania. (short special edition: Aiming for Sustainable Forest Usage across the Globe); Japanesejournal of international forest and forestry, (101), pp. 9-13, 2018.

Feature 1 Preserving the Tones of Yamaha for the Next Generation

3

Yamaha Sustainability Report 2018

Feature

Sustainable Forests through Cooperation with Local Communities
Current resources/future resources
Yamaha has formed partnerships with local sawmills and is taking initiatives toeffectively utilize existing resources by means such as procuring certified timberfrom FSC-certified forests and improving material yield. Yamaha is also conducting
tree planting to secure future resource volumes. In fiscal 2018, the company planted
about 1,500 trees on 1.5 hectares of a community forest. Furthermore, in fiscal
2019, the company plans to plant about 3,000 trees on 1.0 hectares of the forest.

Goals through Coexistence with Local Communities
In order to achieve sustainable forest management,
Yamaha must aim for self-sustaining forests throughcooperation with the communities which own the forests.
With the aim of boosting incentives for local
communities, and conserving forest resources, Yamaha
started a African Blackwood tree-nursery project incooperation with MCDI and local communities. In thisproject, Yamaha didn’t just plant young trees, but also
conveyed to local people know-how on raising high quality
trees and the importance of forest conservation, throughsessions about a range of management tasks, including
raising seedlings, weeding, planting, pruning, and thinning.
This would allow the local communities to continuously
produce valuable timber resources in their own forest.
Local children and the village
Furthermore, Yamaha expects these initiatives to create
water tanklocal jobs and boost profits for the local communities.
Yamaha installed tree nursery facilities, such as wells, water tanks, and pumps, ina corner of local villages in the region that are participating in MCDI activities.
Yamaha is investigating these possibilities for a pilot project.
A great deal of time is required for seedlings to grow large enough tobecome the wood material in musical instruments, and these trees will struggle
with a number of hurdles. Yamaha wishes to preserve the tones of its instruments
for every customer in future generations. In order to achieve this goal, Yamaha
has responsibility as a musical instrument manufacturer to engage sustainable
forest management as well as timber use.
Moving forward, Yamaha intends to continue working together with local
communities as it aims to achieve sustainable timber procurement.

African Blackwood seedlings

Preparation of seedlings in the tree nursery area

Planting area in the natural community forest

Three Pillars to Achieving Business Model
Efficient use of existing resources(forest management)• Quality improvement throughappropriate forest management• Efficient resource utilization throughimprovements of material yield

Creating resources for the future(planned tree planting)• Management and conservation of resource
volume through treeplanting activities• Acceleration of the resource cycle by usingmaterials from planted trees effectively

Aiming for sustainable forests(boosting incentives)• Active cooperation with local communities
that are central to local community forestry• Creating a bridge between forests and musicalinstruments (local areas and the world)comment
Everyone is extremely grateful for the range of support Yamaha is providing to conserve the forests,
including instruction on forest management, and financial support for our local communities.
Yamaha actually came to the local villages, investigated the status of the forests and villages, andfulfilled their responsibilities as a user of these timber resources. Furthermore, they did not simply plant
new trees in order to enlarge the forests, but rather gave us the valuable opportunity to rediscover theimportance of planting activities. I hope to pass these precious forests on to the next generation.
Mpingo Conservation & Development Initiative(MCDI) Local NGO Representative

Makala Jasper

4

Feature 1 Preserving the Tones of Yamaha for the Next Generation

Yamaha Sustainability Report 2018

Feature

Spreading the Fun of Playing MusicalInstruments to Children Across the Globe
Yamaha operates music education programs across the globe, including the “Yamaha Music School”, whichboasts a history of over 60 years. Through music, we have helped to enrich the lives of children as they grow. A
world in which as many people as possible enjoy music, in which people share in the joy of music, and in whichpeople’s lives are enriched through such experiences... as a musical instrument manufacturer, Yamaha recognizes
that it is our mission to contribute to the creation of such a society.
There are still many places around the world where children are not even blessed with the opportunity totouch a musical instrument, due to an educational environment which lacks equipment, teachers, and curriculum,
even in schools.
In order to provide more children with the opportunity to play musical instruments, and to convey to them theenjoyment of music and musical instruments, Yamaha is engaged in activities in multiple countries to spreadmusical instrument education in schools.

5
Feature 2 Spreading the Fun of Playing Musical Instruments to Children Across the Globe
Yamaha Sustainability Report 2018

Feature“School Project” - Providing the Opportunity
to Enjoy Musical Instruments in Public Primary Schools
Since 2015, Yamaha Corporation and related local
corporations have partnered on the “School Project,” aninitiative with a focus on emerging nations. In this initiative,
Yamaha works closely with local educational institutions to
support the development of an environment in whichchildren can experience musical instruments in schools,
providing children who have never even touched a musicalinstrument with the opportunity to play one.
Based around the proprietary program “Music Time,”
which offers Primary schools a package of musicalinstruments, teaching materials, and instructional knowhow, this initiative allows children to enjoy learning
portable keyboards or recorders during primary schoolclasses or extracurricular activities. At the same time, thisinitiative holds various concerts and events to provide
children a platform from which they can demonstrate theresults of these classes.
Showing the fun of music to children through musicalinstrument education not only supports their growth, butalso contributes to the music education and culture of thatcountry.
This initiative utilizes the unique music culture of eachcountry and is currently being conducted in Malaysia,
Indonesia, Russia, and Vietnam. By proposing curricula
which fit the circumstances of each country, Yamaha
hopes that music instrument education will take root andbecome self-sustaining in the future.

Number of schools participating in School Project

Development of School Project (as of March 2018)(schools)(10,000 people)

1,500
1,200

Number of participating schools (total)
Number of students taking classes (total) (right)

Four countries*

12.4
12

*Number of participating countries

933
900

9

600

6

300

Four countries*

Russia: 17 schools

15

933

schools
in four countries
Total 124,000
peopleVietnam: 75 schools3

Two countries*

Malaysia: 211 schools
0

FY2016FY2017FY20180Indonesia: 630 schools

6
Feature2 Spreading the Fun of Playing Musical Instruments to Children Across the Globe
Yamaha Sustainability Report 2018

Feature
Example of Initiative in Indonesia
In 2015, Yamaha began the “Music Time” portable
keyboard (PK) program. All primary school children insecond grade take this program, and the number ofchildren who now enjoy playing musical instruments has
clearly increased. In 2017, Yamaha implemented recorderand pianica programs at 490 schools throughout Indonesia
after signing an agreement to cooperate with“Strengthening Character Education,” an initiative of theIndonesia’s Ministry of Education. Furthermore, Yamaha
held an “Ensemble Video Competition” with Indonesia’s
Ministry of Education to provide children a stage todemonstrate the results of their study and to contribute to
the development of music education in Indonesia.

Signing ceremony for agreement to cooperate with “Strengthening
Character Education”

Keyboard class in Primary school

Example of Initiative in Vietnam
In partnership with the Vietnam’s Ministry of Education
and Training, Yamaha is conducting an initiative to promote
the implementation and establishment of education usingmusical instruments in music classes at primary andsecondary schools.
In Vietnam, instruction with musical instruments is
not included in the course of study at primary andsecondary schools. As such, most children do not have thechance to play musical instruments in school musicclasses. In order to improve the quality of music educationin Vietnam, Yamaha is taking initiatives as it aims for the
implementation and establishment of musical instrument
education in the course of study, which is planned to berevised in 2019. In 2017, Yamaha signed a memorandumof understanding regarding promoting instrumental musiceducation more widely in Vietnam with the Ministry of
Education and Training of the Socialist Republic ofVietnam. For the three years up to 2020, Yamaha isworking to form music clubs that will make use ofrecorders and pianicas in 245 primary schools in 10 cities
nationwide in Vietnam, under government approval.
In 2016, these initiatives were selected as a Certified
Project of the “Public-Private initiative to Disseminate
Japanese-style Education Overseas (EDU-Port Japan)” ofJapan’s Ministry of Education, Culture, Sports, Scienceand Technology. In September 2018, they were again
selected as the same certified support projects.
Furthermore, in June 2018, these initiatives were selected
to receive support from JETRO’s “Rule-creation Support
Project to Solve Social Issues.”*
Under partnerships with governments and related
institutions, Yamaha will continue to provide support forthe creation and development of music culture in Vietnam.

* By strategically implementing rules such as regulations and incentive schemes, in other countries this project can create a market that prioritizes
the products and services of Japanese companies, and supports company initiatives to solve social issues in these countries.

Musical Instrument Education Implementation Support Initiatives in Vietnam
Support for recorder club activities atprimary schools

Support revisions to textbooks

7
Feature 2 Spreading the Fun of Playing Musical Instruments to Children Across the Globe
Yamaha Sustainability Report 2018

Support teacher training

Feature

Trial recorder class

Yamaha Recorder Festival (Hanoi)Musical instrument teacher training course at
Hanoi National Education University

Boosting the Quality of Music Education
As Yamaha promotes activities in each country, we arealso conducting initiatives to test the benefits of musicalinstrument education in collaboration with the College of
Education at Yokohama National University. Throughacademic testing of the educational value of musicalinstrument education and its influence on children, Yamaha
can improve the quality of the education programs we
operate around the world and contribute to thedevelopment of the country, its music education, andculture.

Music Popularization Program in the GCC and Africa
Initiatives to spread music using the know-how of
Yamaha are being conducted across the globe.
Among them, Yamaha Music Gulf (YMGF), a Yamaha
subsidiary tasked with sales in the GCC and othercountries in the Middle East, Africa, the CIS, andWestern Asia, regions where western music education
has not taken root, is implementing music promotion
activities in schools based on the local circumstancesof the country.
Especially in the Middle East and Africa, while
there are music classes in schools, the lack of musicalinstruments, instructors, and know-how means that inmost cases such classes are limited to chorus andtheory. In 2012, YMGF started a school music

Recorder lesson in South Africa

education promotion project in order to support theeducation and growth of children through musicalinstrument education. YMGF promoted this project incollaboration with local branches and demonstrated theimportance of music education by holding classroom
visits of Japanese elementary schools for education
officials in each country.
After starting with one school in South Africa in
2016, YMGF expanded recorder classes to about 3,300
students in 33 schools in South Africa, Nigeria, Kuwait,
UAE, and Kenya in fiscal 2018. YMGF plans to add
Pakistan, Morocco, and Uganda in the future andexpand its activities to start pianica classes in Pakistan.

Recorder lesson in Nigeria

Seminar for instructors in UAE

8Feature2 Spreading the Fun of Playing Musical Instruments to Children Across the Globe
Yamaha Sustainability Report 2018

Feature

Supporting the Development ofYouth Through the Power of MusicIn many countries in Latin America, crime and poverty as well as social inequality are serious social
problems. Children raised in these environments are often dragged into the world of crime,delinquency, and violence. The governments of these countries are promoting free music education
activities, with public and private institutions forming orchestras and bands in various regions inorder to educate young people. Yamaha approves of these efforts, and is engaged in its own uniquesupport activities.

Feature 3 Supporting the Development of Youth Through the Power of Music

9

Yamaha Sustainability Report 2018

Feature

Music—protecting children from crime, delinquency, and violence
It is estimated that the number of students participating inyouth development orchestra and band activities is around
900,000*1, with that figure rising each year. These
activities require a large number of musical instruments forthe various organizations. As a result, there has been an
influx of musical instruments from manufacturers aroundthe world, and the musical instrument markets in theseregions have experienced rapid growth.
However, many of these instruments have not been
properly maintained due to a lack of proper care,knowledge, and customs regarding daily instrument
maintenance. The situation is worsening as there are notechnicians in these regions to fix instruments when they
break. In some instances the activities themselves havecome to a halt because of the dwindling number of usable
instruments.
In response to this issue, local subsidiaries of Yamaha
headquartered in Latin America have taken efforts overmany years to support youth development orchestra andband activities, contribute to these regions, and foster anenvironment in which children can continue to play music.
Beginning in 2014, the Yamaha Group has used the
AMIGO Project*2 to strengthen support for youth
development orchestras and bands.

*1 Estimated by Yamaha. Calculated based on assorted data and information from local organizations and Yamaha subsidiaries*2 AMIGO Project means Apoyo (support)-Music-Institute/Government-Orchestra

MexicoPanamaCosta Rica

Colombia

BrazilCountries where Yamaha has implemented the AMIGO Project
AMIGO Project Initiative
Problems
Instruments break quickly,
and there is no one nearby who
CANlXBROKENINSTRUMENTS

YamahaSpread maintenanceknow-how

Hold maintenanceworkshops

Train technicians
who can repair
broken instruments

Hold technician
training seminars

Propose methods toaddress root
problems

Support for
activities

Youthorchestras/
bands

Develop new instruments
which remain in good condition,
and are resistant to breakage

10

Increase in population
playing music

Feature 3 Supporting the Development of Youth Through the Power of Music

Yamaha Sustainability Report 2018

Feature

Aiming to spread maintenance know-how and technician development
Daily maintenance is needed in order to keep a musicalinstrument in good condition over many years. Even when
an instrument breaks, if a repair technician is nearby, they
can fix it so it can continue to be played. In the AMIGO
Project, Yamaha holds maintenance workshops and repair
technician training seminars in five Latin Americancountries. Through these activities Yamaha contributes tothe construction of local infrastructure.
In the maintenance workshops, staff from local
subsidiaries or dealers use maintenance guidebooks
created by Yamaha to teach local instructors maintenancemethods. After the workshop, these instructors teach thechildren the methods they learned. Having instructors
teach these methods lets Yamaha pass on this instrument
maintenance know-how to many children efficiently in asingle session. For children, learning proper maintenanceextends the life-span of their musical instruments andfosters a mindset of treating these instruments with care.

In training repair technicians, Yamaha aims to educate
the people who will become “key” technicians in eachcountry, with local subsidiaries and dealers gathering
together selected repair technicians, and hold seminars toteach repair know-how and techniques. These key
technicians use the manuals explaining the knowledge,
techniques, and repair methods they have learned to trainother local technician candidates in their countries.
Yamaha believes that spreading and establishingknowledge and techniques related to instrument
maintenance and repair is crucial to further developments
in musical education and culture.
Furthermore, Yamaha is also proactively engaged in
new approaches, such as the development of easy-tomaintain, hard-to-break instruments which would provide asolution to the root problem.

Maintenance guidebook created by
YamahaRepair technician training seminar

Support for technical staff

Maintenance workshop
YamahaLocal Yamaha
subsidiaries/
sales agencies

Training of technical staff able to work with wind, string, and percussion instrument

Youth orchestra and band activities

YamahaWorkshops for instructors

Holds
Seminar, etc.
Technician training, exchange of information and ideas

Use

Participation

MaintenanceguidebookYamaha local subsidiaries
Instructors teach children
maintenance methods

YDM
Key technicians

YMDB
Key technicians

Training
Local
technician
candidates

Feature 3 Supporting the Development of Youth Through the Power of Music

11

Yamaha Sustainability Report 2018

YMLA
Key technicians

Feature

Supporting Música para la Vida -Yamaha de México
Música para la Vida is an organization which wasestablished in 2013 in San Luis Potosí, a medium-sized cityin central Mexico, in order to promote social reforms
through music. This organization now comprises fourorchestras, two wind orchestras and two chorus groups. A
total of 76 instructors lead around 1,500 children (as ofAugust 2018).
This organization does not rely solely on government
subsidies, but ensures its sustainability by securing private
financial sources for its funding.
San Luis Potosí has the largest population of any city
in its state. However, it is not a wealthy city, as around45.5% of its population is below the poverty line (as of2016). While many children are in a disadvantageous
educational environment, Música para la Vida promotes
their healthy development by forming a music communitythat helps to strengthen societal bonds. This organization

is making efforts to give back to society by throughinitiatives to develop culture and education, create jobs,
and improve public safety in the region. Yamaha de México
(YDM) began supporting Música para la Vida in 2014. YDM
has supported an environment in which children canhappily enjoy music through technical support, which
includes maintenance workshops and technician training
seminars, as well as providing various information related
to musical instruments. When Música para la Vida
experienced the theft of its equipment, YDM provided
maintenance kits free of cost.
In the future, YDM plans to continue to support thesmooth operation of Música para la Vida and its musiceducation activities for youth development, using theknow-how and services that YDM has developed overmany years.

Mexico
San Luis Potosícomment
The children have grown a lot through these band andorchestra activities. As their music playing skills
improved, they were able to feel more self-confident, andfurthermore, by finding their place in this organization,
many felt more assured of their self-worth. By developing
communication skills, they were able to improve theirinterpersonal relationships, and we also saw an increasein their motivation toward their studies at school.
Seeing these changes in the children up close, I wasonce again made aware how music education can drive
societal change.
We hope to further strengthen
and develop our music education
activities in order to establish anenvironment in which children canenjoy music as they live
comfortably and securely. In doing so,
we hope to contribute to society.

Up until now, I have wasted a lot of time on an
unnecessarily complex method of repairing
instruments. However, after attending Yamaha’s repair
technique seminar, I have learned how to perform evendifficult repairs smoothly and with a high degree of
quality by using proper tools and the best methods. I
hope to teach everything I have learned from Yamaha
to other people so that they too can easily understandhow to solve problems with instruments. I hope toutilize this knowledge and information to one day havemy own repair workshop in Música para la Vida.
Música para la Vida
Wind instrument repair technician

Jesús Zaragoza Trejo

Música para la Vida General DirectorROCÍO RODRÍGUEZ ROMO

12

Feature 3 Supporting the Development of Youth Through the Power of Music

Yamaha Sustainability Report 2018

Editorial Policy
The Yamaha Group is executing initiatives aimed at the realization of a sustainable society as its corporate social
responsibility.
The Yamaha Group publishes a Sustainability Report on its website to communicate its vision to promote sustainability
as well as its initiatives to the Group’s broad stakeholder base.
Since publishing the Environmental Report in 2000, we have worked to prioritize the disclosure of themes of interestand important issues of Group responsibility, based on our communication with stakeholders.
We have been disclosing a wealth of information in an easy-to-read format since 2014 to reflect ISO 26000, which
provides guidance for social responsibility.
Furthermore, this Sustainability Report (website) has been prepared in accordance with the GRI Standards (2016
Version): Core option. In addition, we referenced the “Environmental Reporting Guidelines (2012 Version)” of the Ministry of
the Environment, Japan.

Organizations Included in the Scope of Reporting
In principle, the Yamaha Sustainability Report comprises Yamaha Group companies (Yamaha Corporation and its 59
consolidated subsidiaries in Japan and overseas). References to “Yamaha” in this report indicate the Yamaha Group.
Certain sections of the report, however, which require a more granular scope, have specific targets.

Reporting Period
April 1, 2017 to March 31, 2018
* The above period is referred to as fiscal 2018 in this report. In the English version, the fiscal year written is based on the year ending March 31.
* Certain initiatives underway prior to March 2017 and information from April 2018 onward are also included in this report.

Date of Issue
Report Published: November 2018
Previous Report Published: September 2017
Next Report to Be Published: September 2019

General Administration Division
Sustainability GroupURL: https://www.yamaha.com/en

Yamaha is a signatory of the United Nations Global Compact.

2018.10