We are realigning our global production system for outboard motors in response to strong sales of large outboard motors.In North America and Europe, our main markets for outboard motors, demand for large outboard motors of more than 100 or 200 horsepower is showing large growth. This is because propulsion units such as inboard motors and stern drives are being replaced by outboard motors. We see this trend continuing and expect solid growth in demand for large outboard motors.We are, therefore, realigning our global production system for outboard motors. We are working to respond quickly and flexibly to market changes by designating our currently operating Yamaha Motor Iwata Main Factory, Yamaha Kumamoto Products Co., Ltd., and Thai Yamaha Motor Co., Ltd., as our outboard motor plants for large outboard motors, medium-sized outboard motors, and small outboard motors respectively, and by making our production more flexible through parallel production and by making these facilities mutually complementary.From engine supplier to system supplierAdvancing the business by shifting from products to experiencesUnder the previous Medium-Term Management Plan, we pursued an “integrated marine business strategy” by which we transitioned from being an engine supplier to a system supplier. This was an effort to provide more reliable boats by shifting from an outboard motor-focused business to growing the peripheral systems business, including boat control systems. Under the new Medium-Term Management Plan, along with pursuing a system supplier strategy, over the long term we will introduce products such as highly reliable and high-value-added automated boat control systems to evolve the business from one that provides products to one that provides experiences, with the aim of providing fulfilling marine lifestyles.Priority initiatives under the new Medium-Term Management PlanProduct Development StrategiesContinuing the provision of attractive items/servicesTechnical capabilitiesValue PropositionEXULT43 cruisersNext-generation steering systemsSolutionsIoT“Smart Package” boatsElectric propulsion unitsLarge 425 horsepower outboard motorsMarine ProductsBusiness StrategyWe are realigning our global production system and pursuing a system supplier strategy to provide fulfilling marine lifestyles.Hirofumi UsuiSenior Executive OfficerChief General Manager of Marine Business OperationsOpportunitiesRisks• Growing demand for large outboard motors mainly in developed markets• Expansion of peripheral equipment business due to enhancement of integrated control technology• Creation of production/supply system to meet demand for large outboard motors• Achieving speedy development in integrated control field• Creation of business structure unaffected by changes in exchange rates and regulationsYamaha Motor Co., Ltd. Integrated Report 201834

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