Integrated Report 2021(For the year ended December 31, 2020)

From the Presidentlockdown restrictions in developed markets. Yamaha Motor boasts a diverse product lineup and this recovery became a tailwind for us, leading to more customers buying our prod-ucts for the first time in such fields as motorcycles, all-terrain vehicles (ATVs), recreational off-highway vehicles (ROVs), outboard motors, and personal watercraft. Of particular note was the significant rise in sales of off-road motorcycles and entry-model ATVs as well as the higher ratio of first-time buyers of marine products. Given these trends, to first allow new customers to fully experience the fun of our products firsthand, we moved to promote our initiatives that help customers who chose to buy a Yamaha enjoy our products with peace of mind for a lifetime, such as our bLU cRU*1 support program run primarily in Japan, the United States, and Europe.Also, the shift away from using public transportation in Europe and Japan has prompted a reappraisal of the value of personal mobility. In certain parts of Europe, customers can ride the Tricity 300 Leaning Multi-Wheel (LMW)*2 model we launched in fiscal 2020 with just an automobile license, thereby opening up a customer segment entirely different from ours to date. Furthermore, demand for electrically power-assisted bicycles has rebounded sharply in Europe, where concern for the environment is high.Meanwhile, we encountered some situations on the Monozukuri front lines during the COVID-19 pandemic that could not be addressed by human workers. We recognize there will be a growing need for collaborative robots that help resolve labor shortages and prevent closed, crowded, and close-contact settings, and we are stepping up our initiatives to develop such robots accordingly. I view this business environment as a positive one for Yamaha Motor and an opportunity for the Company to enhance its pres-ence by offering uniquely Yamaha value.*1 A support program for amateur racers using Yamaha motorcycles*2 Leaning Multi-Wheel: Yamaha Motor’s designation for vehicles with three or more wheels that lean like a motorcycle through turns (Japan Patent Office Trademark #5646157)Driving Our Digital Transformation to Create New Value by Capturing NeedsYamaha Motor is promoting a digital transformation (DX) leveraging the latest digital technology and data in a strate-gic manner. Amid restrictions on going outdoors and dif-ficulties in maintaining physical customer touchpoints, we are accelerating our DX efforts based on the understanding that using DX to capture customer needs rapidly and accu-rately is a pressing task.With this in mind, we launched an online sales website for motorcycles in India in fiscal 2020. Everything from product selection to purchase can be completed entirely online and those making a purchase can also choose their preferred dealership as well as other options on the website. This service also addresses the needs of consumers wishing to avoid going outdoors by offering vehicle delivery right to their door.We are also advancing product innovation with the Internet of Things (IoT). In Indonesia, we launched a new connected version of the NMAX commuter vehicle equipped with IoT technology. Through a dedicated smartphone app, we are building a system that connects our customers, prod-ucts, and dealerships. Users can check the state of their engine oil and track fuel consumption via their smart devices, and we have created a service whereby in the event of a breakdown, the date, time, and location are sent via email to notify a dealership or a contact registered in advance. For marine products, we offer outboard motor boat control systems using IoT technology. By installing a data communi-cation module (DCM) on boats, we are helping facilitate the early discovery of quality issues and preventing problems before they occur.Meanwhile, we are working to promote DX on our pro-duction floors. By monitoring operating equipment, manag-ing production data in a centralized manner, and carrying out data analysis using artificial intelligence (AI), we have clarified issues that had not previously come to light, leading to productivity and quality improvements. Looking ahead, we will go global with these efforts, beginning in ASEAN markets, and share best practices through the centralized management of global production floor data to realize high-quality, cost-competitive Monozukuri.The greatest source of Yamaha Motor’s new value creation is the creativity of its people. However, it is not possible to fully apply such creativity while under a variety of constraints. I hope that all our employees will be able to fully flex their creative muscles by devoting the time freed up through DX to discussing new value creation and improving their work–life balance.14Toward Sustainable GrowthYamaha Motor Co., Ltd. Integrated Report 2021

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