Medium-term Management Plan

Medium-term Management Plan can be viewed from here

New Medium-Term Management Plan

Based on the Company’s corporate mission to be a Kando* Creating Company, in 2018, Yamaha Motor announced its Long-Term Vision for 2030 of “ART for Human Possibilities - Let's strive for greater happiness.” The new MTP starting this year marks the beginning of the latter six years of this Long-Term Vision.

The basic policy of the new MTP is to “Raise the competitiveness of our core businesses, acquire new technologies that expand human possibilities, and take on uniquely Yamaha challenges to create a world where people’s happiness and the environment coexist in harmony.”

■ Business Portfolio

Yamaha Motor implemented portfolio management from its previous MTP. For the new MTP, the Company will work on three redefined categories as portfolio management: Core Businesses (Motorcycles and Marine Products), Strategic Businesses (Robotics, Smart Power Vehicle, and Outdoor Land Vehicle), and New Businesses. And in the future, Yamaha Motor aims to have all its businesses surpassing an ROIC of 12.5%.

Figure: Quickly identify changes in the business environment and flexibly agjust portfolio atrategy. Aim for ROIC of 12.5% or higher in all businesses.

■ Financial Indicators and Shareholder Return Policy

Yamaha Motor’s goal is to continuously generate returns exceeding cost of capital, with ROE, ROIC, and ROA in the 14%, 8%, and 9% ranges, respectively (three-year average for all). For shareholder returns, the Company’s basic policy will be to emphasize making consistent and ongoing dividend payments while taking into consideration the outlook for business performance and investments for future growth, distributing returns to shareholders in a flexible way based on the scale of our cash flows. We will set a target total payout ratio of 40% or more (cumulative period of the new MTP) for shareholder returns.

■ Environmental Planning

The environmental plan in Yamaha Motor’s new MTP is built on three pillars: Climate Change, a Circular Economy, and Biodiversity. For Climate Change, the Company aims to achieve carbon neutrality by 2035, targeting a 74% reduction in CO₂ emissions from its corporate activities compared to 2010 levels.
Additionally, the Company will reduce CO₂ emissions generated from product use through a multi-pathway approach.
For Circular Economy, the Yamaha Motor aims to achieve 100% use of sustainable materials by 2050. In the new MTP, Yamaha Motor will increase the usage rate from the current 14% to 18%.
For Biodiversity, the Company will explore solutions that provide mutual benefits for both people and ecosystems.

Figure: Drive the decarbonization of business activities, address climate change, and continue to explore and invest in new technologies promoting biodiversity by leveraging our Yamaha Motor Sustainability Fund, L.P.

■ Human Capital Management

Yamaha Motor will introduce global personnel engagement as a metric and maintain a high level as a key indicator of human capital management. In addition to moving forward with DEI initiatives, the Company’s talent management moves will be to expand its global HR training program. By giving its diverse workforce opportunities to take on challenges, Yamaha Motor wants to create organizations where both employees and the company can grow and pave the way to future success.

Figure: Mission Challenge & Growth Provide employees of all stripes with opportunities to take on challenges! Spur growth of the individual as well as the company with uniquely Yamaha Motor challenges! Improve global engagement: Positive score of 80% or higher.

■ Risk and Compliance Management

Yamaha Motor positions the enhancement of risk and compliance management as a key policy and will identify and appropriately control potential risks in its management and business operations based on three pillars: Global, Integrated, and Agile.
Through these efforts, the Company will further promote management that swiftly adapts to environmental changes while advancing the globalization of responsibilities and authority.