Yamaha 2008 Annual Report Download - page 5

03Annual Report 2008
Completing the First Year of the Medium-Term
Management Plan
Yamaha has completed the first year of “Yamaha Growth Plan
2010 (YGP2010),” a medium-term management plan that con-
cludes in fiscal 2010.
Under “YGP2010,” we have redefined our operations into two
business domains: “The Sound Company” business domain and
the “Diversification” business domain. “The Sound Company”
business domain consists of musical instruments, audio, music
entertainment, AV/IT and semiconductors, which are all based on
sound, music and network technologies; we are intending to
actively invest management resources in this domain to expand
business. In the “Diversification” business domain, which covers
lifestyle-related products, recreation, and metallic molds and com-
ponents, we are looking to boost earning power by establishing a
strong industry position. Our quantitative targets for fiscal 2010
under the plan are net sales of ¥590.0 billion and operating income
of ¥45.0 billion for the Yamaha Group as a whole.
During fiscal 2008 (the year ended March 31, 2008) we made
steady progress overall, and achieved substantial success in
making the shift to a growth footing, as well as in further increas-
ing earnings potential. Our progress was underpinned by dra-
matic sales growth—particularly within the musical instruments
segment, where commercial audio equipment and emerging
markets performed favorably—as well as production base
realignment. Nonetheless, an issue remains to be addressed in
the second year of the plan: we were unable to sufficiently realize
the growth potential of new products and businesses, such as
our promising new semiconductor device and the conferencing
system business.
The Yamaha Group achieved tangible success
in fiscal 2008, the first year of our current
medium-term management plan. In the coming
years we will continue to take advantage of
Yamaha’s unique strengths to provide our
customers with high-value-added products
and services.
To Our Shareholders
Leveraging Yamaha’s Strengths to Accelerate
Growth Globally
To achieve the targets in “YGP2010,” we must accelerate growth
on a global scale with a focus on “The Sound Company” busi-
ness domain by responding flexibly and rapidly to changes in the
business environment and steadily implementing the policies and
measures set forth in the plan.
Above all, I am aware that fiscal 2009, the second year of the
plan, is going to be crucial in achieving the targets for the plan’s
final year. We face an increasingly adverse business environment
with competition intensifying in markets worldwide, and mounting
uncertainty surrounding the economic future of North America and
the world as a whole. Still, Yamaha is a unique company that
combines superb craftsmanship with leading-edge digital tech-
nologies, founded on a 120-year tradition of high-quality manufac-
turing. By leveraging these unique Yamaha advantages, we intend
to continue proposing high-value-added products and services.
In closing, I would like to thank our shareholders for their
continued understanding and support, and I look forward to
another year of cooperation with you as we share the joy and
inspiration of music with people everywhere and strive toward
our corporate objective: “Creating ‘Kando’ Together.”
June 2008
Mitsuru Umemura
President and Representative Director