Yamaha 2011 Annual Report Download - page 27

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Annual Report 2011
Yamaha initiated a new management structure by resolution at
the Ordinary General Shareholders’ Meeting held in June 2010.
The new management structure reduces the number of board
members from nine down to five. The goal of this management
restructuring is to both speed up management decision-making
and further increase transparency. This change in the manage-
ment structure has brought about three advantages. First, by
clearly defining the distinct roles of each director and promoting
greater collaboration with executive officers, we have been
able to speed up management execution of important issues
and measures. In addition, by reducing the number of direc-
tors, board meetings are now easier to convene when they are
needed, and the quality of board discussions has improved.
Further, we have created a structure in which two of the five
board members are outside directors and the ability to exercise
oversight and supervision of management’s execution of duties
is stronger.
Today, with the growth of information technology, the
global market in which we do business is becoming increas-
ingly borderless, and markets are changing at an ever more
rapid pace. If we are to understand these changes and further
ensure the achievement of YMP125—a near-term management
challenge—we must speed up management performance.
Interview with the President
What about the new management structure that was initiated with a five-member
board of directors?
Q
A
The Yamaha Group distributes profits on a stable and continuous
basis, while setting aside necessary amount of retained earnings
to strengthen the Company’s management position through
investments in R&D and other areas to drive corporate growth
based on prospective levels of medium-term consolidated earn-
ings. We also set a consolidated dividend payout ratio of 40% as
a guideline.
Based on this policy, Yamaha paid a total dividend of ¥10
per share for fiscal 2011, including interim dividend payments of
¥5 per share.
When formulating YMP125, the Yamaha Group defined its medium-
to long-term management direction under three management
visions. Specifically, the three visions are, 1) to be a trusted and
admired brand, 2) a company whose core operations are cen-
tered on sound and music, and 3) a company with growth driven
by both products and services.
Becoming an admired brand is not something that can be
simply achieved by launching innovative cutting-edge products
and rolling out public relations campaigns. An “admired brand”
is founded on “trust.” Yamaha’s history dates back more than
120 years. The only reason our predecessors were successful
was because of the repeated efforts they made, which has led
to greater confidence in the Yamaha name and earned society’s
trust over those many years.
For the Yamaha Group to continue earning society’s
trust, not only must customers want to buy and experience the
products and services that it supplies to the world under the
Yamaha brand, they must continuously feel confidence in the
Yamaha name. To gain customers’ trust, we must establish a
solid foundation for growth by building up our expertise in our
core operations of sound and music while taking on the chal-
lenge of creating new value in response to changing times. In
the end, this is the best and the only way for the Yamaha Group
to become a “trusted and admired brand.”
What are Yamaha’s views on the distribution of profits to shareholders?
Please describe what you mean by becoming a “trusted and admired brand?”
Q
Q
A
A
Dividends per Share / Dividend Payout Ratio
�
�
0
60
40
20
0
45
30
15
07/3 08/3 09/3 10/3 11/3
(%)(Yen)
� Regular dividends � Special dividends Dividend payout ratio