To Our Stakeholders

Changing Monozukuri* and the Way We Work by “Breaking Out of Our Current Norms” and “Pursuing the Unique Style of Yamaha”

* Engineering, manufacturing, and marketing

Developed markets in 2013 saw the economic recovery in the United States continue, while Japan experienced a turnaround to a weaker yen and higher share prices, reflecting in part the policies of a new government. Europe, however, remained in the economic slump that has persisted for the past few years. Emerging market economies also stagnated on the continued effects of the slower economic growth and monetary tightening that began in the previous year.

This was our first year under a new Medium-Term Management Plan, and given this backdrop Yamaha Motor pursued distinctive Monozukuri and marketing initiatives as well as global cost reductions. Notably, we launched products highlighting Yamaha’s unique qualities in both developed markets and emerging markets, and in the course of these launches production commencement dates were brought forward, innovative sales initiatives were implemented, and cost reductions exceeded targets.

Thanks to these efforts, coupled with the positive impact from a weaker yen, consolidated business results for 2013 showed increased sales in all businesses and profit growth at all levels?operating income, ordinary income, and net income.

This year, 2014, is the second year under our Medium-Term Management Plan. In Europe and emerging markets, where the economic outlook remains uncertain, we will closely watch economic developments and trends in demand, supplement and strengthen our business strategies for each market, and work to accelerate the Plan’s implementation. At the same time, we will “pursue the unique style of Yamaha” and “break out of our current norms” to thoroughly change Monozukuri and the way we work.

We sincerely hope that our stakeholders continue to look forward to the latest developments by the Yamaha Motor Group.

April 2014