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Annual Report 2014
Year ended December 31, 2014

Table of contents

  • Page 1
    Annual Report 2014 Year ended December 31, 2014

  • Page 2
    ... management base for continuous growth, to evolve Yamaha Motor into an excellent engineering, manufacturing and marketing enterprise, with a prominent presence in the global market. Corporate Philosophy Stakeholders Customers Shareholders and Investors Communication Employees Business Partners...

  • Page 3
    ...3-Trillion-Yen Global Marine Market 3. Commitment to Unique Versatility CSR Customers Employees Shareholders and Investors Business Partners The Community The Environment 3 12 14 16 18 20 CORPORATE INFORMATION Corporate Governance Directors, Audit & Supervisory Board Members, and Executive Officers...

  • Page 4
    ... of motorcycles. 2014 The TRICITY, our first LMW*, offers mobility that combines the maneuverability of a conventional two-wheeled motorcycle with a new sense of excitement. This new concept model is set to attract new customer segments. * Leaning Multi-Wheel Yamaha Motor Co., Ltd. Annual Report...

  • Page 5
    ... outstanding technologies to maximize pleasure and surety 1961 6 Yamaha Motor Co., Ltd. Annual Report 2014 The P-3, our first product in the outboard motor market to earn major critical acclaim, was the result of a development process that included determined efforts to reflect the views of users...

  • Page 6
    ...horizontal image of a silhouette in pursuit of being the earth's "fastest." Expressing the essence of the incorporated YZR-M1 MotoGP machine technology, this completely new type of pure sports bike enables the rider to experience this concept firsthand. Yamaha Motor Co., Ltd. Annual Report 2014 9

  • Page 7
    ...us to tailor our after-sales services to local needs. 2014 Yamaha Motor began as a motorcycle manufacturer, but today the Yamaha brand is known in a range of fields. People around the world will continue to ride with us-a Kando Creating Company that offers new excitement and a more fulfilling life...

  • Page 8
    ... current Medium-Term Management Plan (MTP) as we approach the next MTP. We will continue to aim to be an excellent engineering, manufacturing and marketing enterprise with a prominent presence in the global market, and strive to further increase Yamaha Motor's corporate value. April 2015 Hiroyuki...

  • Page 9
    .... Total demand Yamaha Motor (Ten thousand units) Motorcycle Business Solid results in both developed and emerging markets Unit sales in developed markets rose in 2014, as total demand bottomed out and new products were launched. In emerging markets, unit sales rose in India on an increase in total...

  • Page 10
    ... new models during the three years from 2013 to 2015. No.1 The boat business had the largest share of the Japanese market and the No. 1 share of the global market for outboard motors and personal watercraft. Yamaha Motor Co., Ltd. Annual Report 2014 Overseas 89.3 % Overseas sales in 2014 totaled...

  • Page 11
    Financial Highlights Yamaha Motor Co., Ltd. and Consolidated Subsidiaries Years ended December 31 Net sales Net sales grew 7.9% as a result of an increase in unit sales, owing to an expanded product lineup and an increase in the number of higher-priced products, coupled with yen depreciation versus...

  • Page 12
    ...Medium-Term Management Plan in 2014, a year ahead of schedule. In this section, President and Chief Executive Officer Hiroyuki Yanagi summarizes the Yamaha Group's business results in fiscal 2014 and outlines growth strategies the Group will implement and management issues it will address in 2015 to...

  • Page 13
    ...promoted a variety of efforts in line with our MTP, formulated to guide our efforts from 2013 through 2015, with a focus on such considerations as greater product competitiveness, changes to Monozukuri *, structural reforms and growth strategies. All business segments reported increases in net sales...

  • Page 14
    ... of "unique new products" into the market Pleasure Oceania 347 17 165 366 19 162 Model Brand Positioning 206 191 Europe Sports North America Japan 71 94 2012 76 109 2013 79 92 Utility 123 2014 125 2015 Forecast Commuting 24 Yamaha Motor Co., Ltd. Annual Report 2014 Yamaha Motor Co...

  • Page 15
    ... units) 420 Thailand Vietnam Malaysia Philippines Motorcycle Business: Indian Market 2014: Total demand increased (112%); sales increased (123%) thanks to new product launches. 2015: Carrying out product lineup expansion and implementing cost reductions through the new business structure. Main...

  • Page 16
    ...Boat Strategy (U.S.) Parts etc. Boats Water Vehicles Outboard Motors 196.3 25.7 28.6 25.9 26-31Ft 160.9 170.0 14-16Ft 10Ft Jet engine Jet propulsion control Outboard Integrated controls; information technology 116.1 138.5 19-24Ft Personal 2012 2013 2014 2015 Forecast * Net sales of sport...

  • Page 17
    ... a strategy to steer our full-scale entry into the market for high-speed mounters and concluded an agreement for the transfer of certain related assets previously owned by the Hitachi High-Tech Group. Having established a new development, production and sales configuration, in 2015 we will promote...

  • Page 18
    ... income. In the marine products business, we will endeavor to create a business model capable of sustaining annual net sales of ¥300.0 billion and an operating income margin of around 20% by promoting a growth strategy centered on expanding key components of this business, namely, a combination of...

  • Page 19
    ... of hull/engine strategy and peripheral equipment. Our third objective is to "commit to unique versatility." To this end, we will work to create new business models and expand our customer base. Fourth, we will "advance innovation," that is, the development of new fundamental technologies, in such...

  • Page 20
    ..., the Yamaha Motor Group seeks a unique experience that exceeds customers' expectations for value, satisfaction, and excitement, and provides a "growing world of personal mobility." 1LR-GUE The outcome of joint development efforts involving engineering, manufacturing and front-line production staff...

  • Page 21
    ..., at one with the motorcycle, for a truly exhilarating riding experience. We have introduced this technology across our entire motorcycle lineup in our efforts to provide this unique riding experience in all of our models. PR O D U C C U S T OM E R Yamaha Motor Co., Ltd. Annual Report 2014 39

  • Page 22
    ... a highly profitable business through a combination of hull/engine strategy and peripheral equipment 2013 2014 VF165 VF175 2015 2016 2017 Market volumes in global marine businesses Japan/Emerging countries Pleasure boats (Large models) 11% 26% 43% Net sales (Billion ¥) Outboard motors Rigging...

  • Page 23
    ... boating business Group companies with Yamaha Motor's capital contribution Companies with Yamaha Motor's technical support Outboard Personal 10Ft Jet engine Jet propulsion control Integrated controls; information technology Russia G3 YJBM Skeeter Colombia East, South America, Asia and Africa...

  • Page 24
    ... the unit's speed and altitude. Yamaha's newest model, the FAZER, was launched in 2013. Along with a higher engine output and a new control system for better operability, this next-generation industrial-use unmanned helicopter is equipped with a 4-stroke engine with fuel injection, providing...

  • Page 25
    ... gear position, and a triple sensor system. These drive units will be used in Yamaha's main models being launched from 2015, beginning with the PAS Natura series, and will also be supplied to domestic electrically power assisted bicycle manufacturers. 0 2011 2012 2013 2014 100 200 300 Sales volume...

  • Page 26
    CSR Customers Employees Shareholders and Investors Business Partners The Community The Environment 50 52 54 55 56 58 Basic Policies of CSR The Yamaha Motor Group strives to contribute to the sustainable development of society through our business activities based on our corporate philosophy and to ...

  • Page 27
    ... purpose of each activity, and are now set to move ahead as one in terms of quality improvement and customer satisfaction, and to continue supplying good quality parts to global Yamaha. * Yamaha Motor Taiwan Trading Co., Ltd. Offering New Excitement The "TRICITY" is a next-generation city commuter...

  • Page 28
    ... manager training programs and skill improvement programs for supervisors, as well as holding occupational safety and health meetings, we are focused on developing human resources that can support occupational safety. 52 Yamaha Motor Co., Ltd. Annual Report 2014 Yamaha Motor Co., Ltd. Annual...

  • Page 29
    ... support local communities, the Yamaha Motor Group is building a sales network that provides common value. In Japan, dealers mainly in Yamaha Sports Plaza (YSP), an official Yamaha sports bike dealer system, and Yamaha Motorcycle Sales Japan Activities in Supply Chains Materials from the business...

  • Page 30
    ...elementary school to high school students. In addition to motorcycles, YRAs for all-terrain vehicles, snowmobiles, and personal watercraft are held in some regions. Activities Developing Future Leaders Supporting women's increased social participation To raise the social position of women in India...

  • Page 31
    ... key issues relating to environmental management. Heat pump at factory in Chennai, India Japan Indirect emissions (Electricity consumed on an equivalent basis) Amount of CO2 emissions by region 23% North America 10% Asia Europe 58% 1% Oceania 0% 58 Yamaha Motor Co., Ltd. Annual Report 2014...

  • Page 32
    ...all of our business activities including product development and manufacturing. We began working to reduce global utility costs in 2013, with the aim of 200 600 400 Yamaha Motor Group CO2 Emissions CO2 emissions (1,000t/CO2) 1,000 800 TOPICS Development of electrical power drive units for bicycles...

  • Page 33
    ... INFORMATION Corporate Governance Directors, Audit & Supervisory Board Members, and Executive Officers Comments from an Outside Director and Outside Audit & Supervisory Board Member Organization 77 78 74 64 62 Yamaha Motor Co., Ltd. Annual Report 2014 Yamaha Motor Co., Ltd. Annual Report 2014...

  • Page 34
    ... meetings held as needed. To ensure accountability, Directors and Executive Officers serve for one-year terms. In addition, a Global Executive Committee has been established to deliberate on important management policies and issues related to the Group's management. As of March 27, 2015, the Global...

  • Page 35
    ... interests in the Company other than Company shareholdings. 4) Support structure for Outside Directors and Outside Audit & Supervisory Board Members When the Board of Directors' meetings are held, the relevant Executive Officer or business department will provide Outside Directors with explanations...

  • Page 36
    ... activities include quarterly financial results briefings, "IR road shows" for overseas investors, briefings to explain the Company's businesses, efforts to improve information disclosure on the IR website, individual meetings with analysts and media interviews. 2. Audit & Supervisory Board Members...

  • Page 37
    ...a Director, Executive Officer, or employee of another company in the Group. 5. The section with oversight for financial information offers guidance and training to subsidiaries to ensure that they handle financial information appropriately. 6. The section with oversight for risk management provides...

  • Page 38
    ... Concerning the Continuation of Takeover Defense Measures Against Attempts of Mass Acquisition of the Company's Shares," for details of the Plan. http://global.yamaha-motor.com/news/2015/0326/prevent.html 72 Yamaha Motor Co., Ltd. Annual Report 2014 Yamaha Motor Co., Ltd. Annual Report 2014 73

  • Page 39
    ...of Marine Business Operations July 2014: Executive Vice President and Representative Director, Chief General Manager of Technology Center and Chief General Manager of Marine Business Operations (to present) MC: Motorcycle SyS: System Supplier AM: Automotive WV: Water Vehicle GEM: Global Engineering...

  • Page 40
    ... Officer Masaki Asano Managing Director of Yamaha Motor India Sales Pvt. Ltd. Corporate management requires a balance of centripetal force and centrifugal force. Overall management vision, and strategic direction and policies, represent centripetal force and are the responsibility of headquarters...

  • Page 41
    ..., 2012, 2013 and 2014 General Meeting of Shareholders Audit & Supervisory Board Board of Directors President & CEO* Management Committee Risk Management and Compliance Committee Audit & Supervisory Board Members' Office *Abbreviations: CEO: Chief Executive Officer IT: Information Technology PF...

  • Page 42
    Financial Data by Market Yamaha Motor Co., Ltd. and Consolidated Subsidiaries Years ended December 31, 2013 and 2014 Motorcycle unit sales by market Thousand units Thousand units % change Motorcycle unit sales 2013 2014 109 76 162 5,077 590 6,014 123 79 191 4,819 587 5,799 2014/2013 Japan Japan ...

  • Page 43
    ... in total demand and 2014 was model switch timing. Many new model launches are expected in 2015. Overall unit sales in the motorcycle business fell 4%, to 5.8 million units. Key new product introductions included the MT-09 and MT-07, additions to the MT series, a product line unique to Yamaha; the...

  • Page 44
    ... of new medium-speed and high-speed mounters. In addition, the Company prepared a strategy for full-scale entry into the high-speed mounter market from a transfer of assets from Hitachi High-Tech Group. Other Products Overall net sales of the other products business rose ¥6.2 billion, or 7.7%, year...

  • Page 45
    ... marine products business was ¥45.8 billion, a ¥14.0 billion, or 44.1%, increase year on year. This was driven by higher sales of large outboard motors, cost reductions and the impact of yen depreciation, as well as the introduction of new personal watercraft and boats. The power products business...

  • Page 46
    ...2012 2013 Equity ratio (%) 0 2014 Net assets per share 0 2010 2011 2012 2013 2014 Total assets Return on assets (%) 0 0 2010 2011 2012 2013 2014 0.0 2010 2011 2012 2013 2014 0.0 2010 2011 2012 2013 2014 0.0 2010 2011 2012 2013 2014 88 Yamaha Motor Co., Ltd. Annual Report 2014 Yamaha Motor...

  • Page 47
    ... process, as well as purchasing costs for products and merchandise, SG&A expenses, working capital and capital expenditures. The Group made investments of ¥65.9 billion in total during fiscal 2014. In the motorcycle business, investments of ¥41.4 billion were made for new products in domestic and...

  • Page 48
    ... Services Bank, Ltd. (trust account 9) Yamaha Motor Employee Shareholding Association Yamaha Motor's Share Price and Trading Volume on the Tokyo Stock Exchange Share price (Yen) 3,000 2,000 1,000 0 2010 Trading volume 2011 2012 2013 2014 (Million shares) 300 200 Interest coverage (Times...

  • Page 49
    YAMAHA MOTOR CO., LTD. 2500 SHINGAI, IWATA, SHIZUOKA, JAPAN www.yamaha-motor.co.jp Printed in Japan