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

Cash Flows (Excluding Sales Finance)Growth Strategies and Fortifying Our Financial Health Our ability to supply products has not been able to keep pace with the strong demand. In other words, product inventory levels continue to remain low. This situation has continued since the second half of fiscal 2020 and is greatly inconveniencing our customers and distributors. From a financial perspective, however, this situation is positive for our cash flows, as lower inventories brought lower working capital and thus higher cash. Also, limiting our sales promotion expenses has raised profitability and these factors have led to positive turns for all of the figures comprising our profit factor, balance sheet, and cash flows. In fiscal 2020, all our businesses and bases were forced to reacknowledge the benefits of low inventories in light of the COVID-19 pandemic. We will take this as an opportunity to make appropriate inventory and cost management a part of our corporate constitution. Meanwhile, we have seen massive improvements in the various metrics and cash conversion cycle (CCC) we introduced as key performance indicators (KPIs) for driving our financial strategy that emphasizes cash flows and our bal-ance sheet. We will look to entrench these items as critical indicators of performance for management at our major bases going forward.At the moment, we still hold the additional on-hand funds amassed as part of the crisis response measures enacted in fiscal 2020, and we are looking at the possibility of flexibly allocating this cash toward achieving our growth strategies. The crisis response measures we took this time emphasized flexibility and primarily consisted of fund procure-ment by borrowing from banks, but we are looking to diversify our methods for procuring funding in the future. Our policies regarding portfolio management centered on growth (compound annual growth rate (CAGR)) and capital efficiency (return on invested capital (ROIC)) are being reexamined as part of the process of formulating the next Medium-Term Management Plan, and these policies will thus be imple-mented in fiscal 2022.Pursuit of Sustainable Growth From the outset, sustainability was considered a factor when selecting the targets for growth investments to carry out our medium- and long-term strategies. However, the recent acceleration of decarbonization efforts has led us to introduce contributions toward carbon neutrality as a new criteria for guiding decisions on mobility-related investments. We have also been made glaringly aware that our current organizational structure is insufficient for achieving our growth strategies. For this reason, we are examining the possibility of bolstering the organizations dedicated to accomplishing these growth strategies and of making intent-driven fund allocations that transcend the boundaries of standard business management decisions by clarifying the growth fields to be targeted in each of our core businesses and creating management frameworks to that effect.I believe that pursuing carbon neutrality will require us to go beyond merely responding to the associated trends and to instead take the initiative and go on the offensive. At the same time, the pursuit of carbon neutrality presents opportunities for Yamaha Motor to expand its fields of operation as a comprehensive personal mobility manufacturer. Motorcycles and three-wheeled vehicles make sense as mobility options for their flexibility in movement, and they also boast a substantially lower environmental impact than cars due to their compact size. I think transforming motorcycles and three-wheeled vehicles into carbon-neutral forms of mobility through electrification and other means will likely make them extremely welcome options among highly eco- conscious consumers who value logical solutions, particularly among younger generations worldwide. Yamaha Motor will also branch out from these vehicles to introduce completely new forms of carbon-neutral mobility in order to realize its Long-Term Vision of ART for Human Possibilities.Going forward, the Company will work to build stable financial foundations and carry on its existing businesses while also aiming to expand into new business domains.2019 Results2020 ResultsCash-InCash-OutCash-InCash-OutCash-InCash-Out2021 Forecast(FY) Net income for the period   Increases and decreases in working capital and other items   Depreciation expenses  Growth investments  Stock dividends  Capital expendituresImprove our earnings power and reallocate cash toward growth investments and shareholder returns+¥9.2 billion+¥64.6 billionCash Conversion Cycle*(days) Consolidated  United States  Europe  Indonesia  India* Excluding sales finance2019 2020 2021 Forecast(FY)06012018031Yamaha Motor Co., Ltd. Integrated Report 2021

元のページ  ../index.html#33