OpportunitiesRisks• Growing need for automation due to labor shortages in Japan and rising labor costs in emerging nations• Pursuing more advanced automation in line with the development of new fields like the Internet of Things (IoT) and “Connected, Autonomous, Shared & Services, Electric” (CASE) vehicles• Deterioration of demand due to changes in the global situation• Intensifying competition resulting from new forces entering the marketWe are increasing value to customers by strengthening our solutions for the broad customer base in our existing markets.In our existing markets, we will pursue both tangible and intangible commonalities under our platform strategy while also refining equipment functionality to strengthen Monozukuri. We will also contribute to reducing equipment upkeep costs for customers, installing common operations, and enhancing Cost Performance Index (CPI), to expand the scope of our business and strengthen profitability.Our surface mount technology (SMT) business has a broad customer base, and with a focus on the automotive applications segment, we are providing the strengths that we have acquired at customer sites in the form of “variable type, variable quantity production” and “guarantees of quality and traceability” while at the same time focusing on expanding our SMT peripheral business, where new growth can be expected. At the industrial robot (factory automation (FA)) business, which is growing significantly and has a wide range of applications, we are working to strengthen variations, including using collaborative robots, to provide total solutions similar to the SMT business.In addition, we are incorporating functions like machine-to-machine (M2M) cooperation, remote support, and autonomous control to contribute to overall factory optimization.Priority initiatives under the new Medium-Term Management PlanProducts/ServicesNewExistingStrengthening solutionsExistingNewMarket/Customer• In-house manufacturing technologyStrengthening Business Platforms• SystemsOptimization of the entire factoryNew business area challengesNew field automation• Strengthening variations (collaborative robots)• M2M cooperation, remote support• Autonomous control• Platform strategies• Expansion for automotive applications• SMT peripheral business expansion• Integration with core technology• Logistics (drones, unmanned helicopters, unmanned ground vehicles)• Precision agriculture• Medical fieldsLabor saving/AutonomizationRoboticsBusiness StrategyWe will contribute to labor savings and autonomization in fields including Monozukuri, agriculture, and medical research by researching and developing robotics and strengthening our production system.Hiroyuki OtaExecutive OfficerChief General Manager of Solution Business OperationsYamaha Motor Co., Ltd. Integrated Report 201836

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