Please give us an overview of Yamaha Motor’s business results for fiscal 2013,
the first year under the Medium-Term Management Plan.

What initiatives are the motorcycle business pursuing in developed markets?

Yamaha’s motorcycle shipments in developed markets had been declining since the global financial crisis, but turned around in 2013 to a 6% increase from the previous year, to 370 thousand units. New product launches included the new 950cc BOLT cruiser in North America, the new 850cc, three-cylinder MT-09 sports bike in Europe, and the Majesty S, our first 155cc sports commuter in Japan, and all three of these models recorded solid sales.

In addition to this solid progress under the MTP, which emphasizes new product development and enhanced product strength, there was a positive effect from yen depreciation, and I am pleased with our improved earnings.

Looking ahead to 2014, we expect the size of the market to be flat with 2013 in Europe, and to grow in Japan and North America, and are forecasting an 11% increase in Yamaha Motor’s shipments, to 410 thousand units.

We will strengthen our product lineup in 2014 by continuing to proactively release new models like the MT-07 from 2013, highlighting their high performance, light weight, low fuel consumption, and superior design.

What about the motorcycle business in emerging markets?

With slowing economies and fiscal tightening, the lull in emerging economies’ motorcycle markets continued in 2013. Nevertheless, we enhanced our product competitiveness with new model launches, and sales grew in all markets with the exceptions of Thailand and Vietnam, which were affected by economic slowdowns. The growth was led by solid scooter sales in India, and sales in Indonesia, which is experiencing a recovery in demand. Cost reductions and yen depreciation also contributed to improved earnings.

In terms of sales, we beefed up promotional events, including large-scale test-drive events in Indonesia and India. We also strove to provide even greater value-added solutions, we added to our sales network, and we pursued marketing activities that aim to create a “Yamaha world.” On the production side, we moved forward with preparations for the start-up of a new factory in Chennai, India (scheduled for October 2014).

By market, initiatives for 2014 will include strengthening our position in the scooter category in India with additional launches of new models, including the CYGNUS α, and creating demand by introducing new models in the deluxe category. With the new factory in Chennai scheduled to commence operations in October 2014, we will work to cultivate markets and customers and expand sales from cities to the countryside.

In Indonesia, where demand is recovering, we will strengthen our position in the sports category by launching the R15 in addition to the GT125, to offer new value.

For the entire ASEAN region, we will also release global models and develop new platform models featuring next-generation engines. We plan to release the R25 superbike that you can ride every day, and the TRICITY, which offers both a lightweight, sporty drive as well as a feeling of stability. These models will offer unique features in terms of being high performance and lightweight with low fuel consumption, combined with a superior design and cost performance, and we will strive to cultivate new customers by promoting these models beyond Asia to the rest of the world.

What initiatives are being pursued in marine products?

New model launches in 2013 included the F200F and F150C large outboard motors, as well as the Helm Master outboard motor control system jointly developed with Volvo Penta. With strong demand for these types of large models in North America, sales grew. The previous year’s solid sales of personal watercraft continued as well, and the domestic boat business benefited from an invigorated market and the weaker yen. Earnings showed a significant improvement as a result, and the marine products business once again achieved profitability.

In 2014, we will accelerate our new product launches for outboard motors in developed markets, and reduce costs by moving production of small outboard motors from France to Thailand, optimizing the geographic location of manufacturing. In China, we aim to enter the fishing boat market and have a new local factory scheduled to start production, and are targeting further sales and profit growth based on an integrated marine products growth strategy.

What are your activities in other businesses?

What progress was made in the area of management reforms during 2013?

What is your long-term strategy?

The Yamaha Motor Group is pursuing new business segments by introducing new concepts in personal mobility. The exploration of a growing world of personal mobility has led to an expansion of technologies and customers from two wheels to three and to four, and we are positioning this as one part of our long-term development strategy for new businesses.

In 2013, we developed the leaning multi-wheel TRICITY concept three-wheeled commuter, and we are working toward a 2014 market launch. Further building on the multi-wheel concept, we are researching and developing the small four-wheeled MOTIV, which we exhibited at the Tokyo Motor Show.

Going forward, we will pursue original and innovative concepts, technologies that achieve superior performance and functionality, and design that expresses refined dynamism, incorporating Yamaha’s unique engineering, manufacturing, and marketing, to vastly expand the world of personal mobility.

What are your management targets for fiscal 2014, relative to the achievement of the MTP?

The current MTP covering the three years from fiscal 2013 through fiscal 2015 sets fiscal 2015 targets of consolidated net sales of \1,600.0 billion and an operating income margin of 5% (operating income of \80.0 billion), along with expanding the Group’s business scale and enhancing its financial strength and corporate strength.

The current operating environment includes a continuing trend of yen depreciation relative to developed market currencies, but also concerns of a delayed economic recovery in Europe, and economic slowdowns and weaker currencies in emerging markets. In fiscal 2014, the second year under the MTP, we will address these changes in the operating environment and supplement our business strategies with a close eye on the economic situation and product demand in each market, as we work to achieve the MTP’s targets ahead of schedule.

We are forecasting an increase in consolidated net sales in fiscal 2014, from aggressive new product launches in motorcycles, marine products, and power products. We are also projecting profit growth, with sales growth and cost reductions more than absorbing increased outlays for the future in the form of R&D expenses and selling expenses.

Would you give us more detail with regard to returns to shareholders?

Do you have any message for stakeholders?