Yamaha 2012 Annual Report Download - page 85

or eliminate the possibility of recalls in the future.
Consequently, the group is covered with product liability
insurance, but there is no assurance that the maximum
amount of compensation provided by the insurance policy
can provide the total amount required. Furthermore,
situations may arise in which the group is unable to continue
purchasing the insurance policy under acceptable conditions
for the group. Should a large-scale recall or a product defect
trigger a product liability case, the group could incur major
expenses, and its credibility could be damaged. Such a
development may decrease sales and negatively affect
business results of the group. In order to provide for the
payment of liabilities that may not be covered by product
liability insurance, the group allocates an accrual for product
liabilities at an estimated amount of payment, based on the
actual results in past years. Such provision notwithstanding,
however, the development of product liability lawsuits could
adversely affect the group’s business performance.
Environmental and Other Regulations
In many countries and regions where the group operates,
the group and its products are subject to a wide range of
environmental and other regulations, encompassing product
safety, fuel economy, exhaust emission levels and the levels
of pollutants generated from manufacturing facilities. These
regulations may be revised and made stricter in the future.
The group has been promoting environmental preservation
activities, in accordance with the “CSR Policy” and the “Year
2010 Yamaha Motor Group Environmental Plan,” such as
formulating green procurement guidelines to reduce
environmentally hazardous emissions from products and
factories, and establishing dedicated teams. Nevertheless,
major changes in the regulations or laws in the countries and
regions where the group does business may necessitate
significant further expenditure.
Protection of Intellectual Properties
The group protects its many patent rights, trademark rights
and other intellectual properties, which help differentiate the
group’s products from others, through legal measures and
procedures. However, in some nations and regions where
the group operates, complete protection of intellectual
property rights may not be possible, or intellectual property
rights may only be protected on a limited basis. In such
nations and regions, the group may not be able to exercise
its intellectual property rights to effectively prohibit the
production of similar products.
Nankai Trough Megaquake (Including Tokai Earthquake)
The group’s main Japanese factories are concentrated in an
area subject to “intensified measures against earthquake
disasters” in anticipation of a potentially severe predicted
earthquake, referred to as the Nankai Trough Megaquake
(including the Tokai Earthquake). The group has been
promoting seismic retrofitting for its main buildings and
structures, establishing systems that will facilitate early post-
earthquake restoration, and regularly reviewing these
systems and measures with the aim of minimizing damage
and achieving early restoration in the event of an earthquake.
However, an earthquake exceeding the group’s predicted
magnitude could occur. The buildings and inventories owned
by the group are covered by earthquake insurance policies,
but earthquake damage may exceed the maximum
compensation limits for such assets and properties.
Information Management
Protection of personal and/or confidential information,
including customer information, is essential for maintaining
a company’s credibility and ensuring smooth business
operations. The group takes extensive measures to protect
information assets, such as establishing corporate regulations,
conducting in-house education, and constructing information
security systems. However, there is no guarantee that leaks
or unauthorized transfers of information will not occur.
Should such an incident occur in the group, the reputation
of the group would be damaged considerably, and the group
could be held liable for damage caused to customers.
Dependence on information systems, as well as their
importance in the group’s business activities, continue to
grow. Therefore, if an information system should fail to
function properly, the group’s operations, business
performance and financial conditions may be negatively
impacted.
Yamaha Motor Co., Ltd. 󱚈 Annual Report 2012 83
Snapshot
Interview with the
President
Special Features
Overview of
Operations
CSR Section
Corporate
Information
Financial Section