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

Based on our Yamaha One-Stop Smart Solution concept, the Robotics Business Unit helps automate and autonomize opera-tions at client production sites with a robust lineup of products in the surface mount technology field (surface mounters and related electronic component mounting equipment), factory automation (industrial robots), and semiconductor manufactur-ing. Doing so is how we contribute to the resolution of societal issues such as medium- to long-term labor shortages and soaring personnel expenses. To ensure we continue to deliver products and services that allow people to continue working as people as well as attain greater happiness, we are sharing and evolving common-element technologies and insights within the Robotics Group and accelerating the commonization of components. Furthermore, frameworks for developing new technologies are being enhanced to build solid business platforms and drive sustainable growth.Ayako EgashiraExecutive Chief General Manager of Robotics Business Unit, Solution Business OperationsMessage from Management Fiscal 2021 Initiatives To accelerate the offering of bundled product proposals and mutual sales channel utilization by leveraging the synergies born of business integration, the Robotics Business Unit will approach new customers through region- and product-focused cross-selling strategies in fiscal 2021 while developing new products with an eye on the next Medium-Term Management Plan. Meanwhile, we are engaged in joint development with Tokyo Robotics Inc. in the collaborative robot field and will make sure steps forward toward launching products in fiscal 2022, targeting a 10% market share in the future.Also, we carried out an organizational restructuring in January of fiscal 2021 to allow for more robust implementation of growth strategies for the Unmanned Systems business. By positioning the Unmanned System Business Development Section under the direct jurisdiction of our Solution Business Operations, we have created an organization to swiftly provide the unmanned systems the market demands, which will be utilized to improve product competitiveness as well as to grow the business domestically and internationally.We have an approximate timetable for the completion of struc-tural reforms aimed at recovering the financial health of YRH, and we will look to speed up the growth of this company through management integration going forward. Focuses at YRH in fiscal 2021 will be on achieving profitability on a full-fiscal-year basis and developing new models by capitalizing on the recovery of the semiconductor market. Overview of Fiscal 2020 In fiscal 2020, the curbing of investments in the automotive sector in Japan and other markets led to a less beneficial model mix for our mainstay surface mounters. This factor, coupled with the impacts of making Yamaha Robotics Holdings Co., Ltd. (YRH) (name changed from Yamaha Motor Robotics Holdings Co., Ltd. on January 1, 2021) a new subsidiary, resulted in a rise in sales but a decline in profits. Conversely, surface mounter sales grew throughout the year in China, Taiwan, South Korea, and other parts of Asia, and sales volumes began recovering in Europe and the United States in the second half of the fiscal year. In this manner, we are seeing an upward trend in profit margins. Progress was also made with structural reforms at YRH and we have a clear idea of when the company will achieve profitability.• Reinforced sales and service systems for all three fields—surface mount technology (SMT) devices and equipment, factory automation (industrial robots), and semiconductor manufacturing equipment—through reorganization and augmentation of sales bases in South China to grow the business and build foundations• Entered collaborative robot field through a technical tie-up with Tokyo Robotics Inc. with the goal of expanding industrial robot operations• Advanced development of next-generation mounter platforms and released the YRM20 premium, high-efficiency modular• Launched YMR-08AP industrial-use multirotor drone to contribute to laborsavings and higher efficiency in farm work through automatic flightProgress of Priority Initiatives Future Measures for Realizing Our Long-Term Vision Promote Our Platform StrategySolution Business Operations is an organization unique even at Yamaha Motor due to it singularly possessing all of the requisite functions to operate, from development, procurement, and pro-duction to sales and after-sales services. To ensure that we use the organization’s advantages to propose and provide optimal solu-tions to our clients, we are carrying out a platform strategy focused on promoting commonization and raising efficiency in manufacturing. By introducing shared hardware and software, we will not only reduce development lead times and achieve greater part sharing but also provide more value to clients with reduced upkeep costs, standardized operations, and shorter equipment delivery times.Through this platform strategy, we will roll out highly effective products and contribute to fully optimized, labor-efficient and autonomous operations for a wide variety of clients.77Yamaha Motor Co., Ltd. Integrated Report 2021

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