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

Technology lossesTheoretical-Value-Based Energy Concept for Generating Energy Value The growing severity of global warming is placing increasing importance on reducing the emissions of greenhouse gases like CO2. In response, the Japanese government announced its goal of achieving carbon neutrality by 2050, sparking unprecedented concern and efforts among companies to achieve a carbon-free society.With these movements in the external environment, Yamaha Motor announced its own goal of achieving carbon neutrality by 2050 and is working not only to minimize the energy consumed in its business activities but also to increase its use of renewable energy sources.Toward minimizing energy consumption in its business activities, the Company is putting in place initiatives based on a “theoretical-value-based energy” concept. This frames only the energy used to transform materials into products as having value while considering all other types of energy consumption as targets for improvement. Applying this theoretical-value-based approach to the energy consumed in production processes, we will identify the types of energy use that are truly necessary. Instead of using a buildup approach by looking at energy losses, this looks at the absolute targets presented by theoretical ideal values and allows us to produce a vision of the ideal energy consumption scheme. We then work to bridge the gap between our current situation and this ideal. The Company first launched this unique approach for theoretical-value-based energy in fiscal 2013. Now imple-mented at subsidiaries around the world, the program has led to substantial success and we began encouraging our business part-ners to also adopt this approach in fiscal 2019. To date, we have visited four Japanese companies and two overseas companies to collaborate in minimizing their energy consumption. These visits entailed diagnoses of equipment using measuring instruments and analyzing energy losses based on the theoretical ideal to identify and explain areas for potential improvement. Plans were then formulated to guide co-run improvement activities over the next year or two. In this manner, we aim to help business partners enhance their own Monozukuri operations by reducing their CO2 emissions and energy costs.These efforts have resulted in a 41% reduction of CO2 per unit compared with fiscal 2010 in Groupwide CO2 emissions in fiscal 2020. This reduction translates to an average annual reduction of around 5%, an achievement several times over previous figures.Furthermore, as these efforts have progressed, they have gener-ated synergistic benefits, such as increased ease of conversation due to lower equipment noise, cooler and more comfortable workplaces with equipment producing less heat, and longer maintenance intervals as equipment is used less. In that sense, these activities not only save energy but also bring added value welcomed on the production floor, such as making factories quieter during breaks, increasing workplace comfort, and extend-ing the useful life of equipment. The Company also aims to make these energy-saving initiatives more engaging so that employees take part in them of their own volition.Through these initiatives, Yamaha Motor will strive to create ultra-energy-efficient factories, contribute to preserving the global environment, enhance the Monozukuri of its business partners, and create more comfortable, worker-friendly production sites.ValueMinimize losses by identifying essential valueQuasi-valueDefinition of Theoretical-Value-Based EnergyWorksite theoretical valueManufacturing and Production (Monozukuri)We create high-quality products interweaving our technologies and sensibilities with the combination of our craftsman-ship that brings added value to our products and our production processes that eliminate waste. Moreover, we will further strengthen our production schemes through the application of new production and manufacturing technologies.No valueEmployees of Group company in Thailand enacting our theoretical-value-based energy approachTransformation into productsTheoretical equipment efficiencyEquipment lossesOperational lossesMinimum required energyTechnological theoretical value44Foundations for Creating CompetitivenessYamaha Motor Co., Ltd. Integrated Report 2021

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