Yamaha Motor Integrated Report 2022

Based on our business portfolio management, we will push with our growth investments and further our progress toward achieving our Long-Term Vision.Review of the Previous Medium-Term Management PlanDirection of Our Financial Strategy34Fiscal 2021 was the final year of the previous Medium-Term Management Plan (2019–2021) and the Company posted the highest performance figures in its history, with net sales of ¥1,812.5 billion, an operating income of ¥182.3 billion, and a net income attributable to owners of parent of ¥155.6 billion. In terms of the financial indicators we set as KPIs, the Company in fiscal 2021 achieved an operating income ratio of 10.1%, a three-year average ROE of 12.8%, and an equity ratio of 46.9%. However, Yamaha Motor’s corporate mission is not to maximize profits but to be a Kando Creating Company, and it can be said that the new Medium-Term Management Plan dutifully points us in the right direction for achieving our Long-Term Vision for 2030 of “ART for Human Possibilities: Let’s strive for greater happiness.” I believe that we must not allow ourselves to be content solely with our busi-ness results and instead ask whether or not we made clear forward steps toward our Long-Term Vision over the last three years. Keeping that in mind, I will go over our business performance in fiscal 2021. Like in fiscal 2020, the COVID-19 pandemic continued to cast a dark shadow on the global economy, but demand for our main products, such as motorcycles and outboard motors, remained robust. With these and other external factors serving as a tailwind, the self-driven and on-target decision-making done by each of our major subsidiaries and various departments led to successfully capturing In the new Medium-Term Management Plan, we set the targets for our financial indicators from the three perspectives of growth, profit-ability, and efficiency. With growth, the goal is to record over ¥2,200 billion in net sales and a CAGR of over 7%. For profitability, our target is a three-year average operating income margin of over 9%, and for efficiency, we set a goal to continuously generate returns exceeding an assumed WACC in the 7% range on average over a three-year period. In addition, we aim to construct a corporate structure for sustainably delivering an ROE in the 15% range, an ROIC in the 9% range, and an ROA in the 10% range.demand, while the Company as a whole also worked to improve on our break-even-point management style. Additionally, the expenses saved due to the travel restrictions put in place helped effectively raise the figures for both net sales and profits well above those from the previous fiscal year. In terms of improving profitability and putting our financial foundations on surer footing, the higher efficiency and pro-ductivity levels yielded through digitalization as well as the structural reforms made to the Company’s global production scheme were major contributors. With the effects of the pandemic shrouding the world in a sense of seclusion, Yamaha Motor’s products drew attention not only as tools for personal mobility but also as items for leading a more fulfilling lifestyle. It was a year in which we were able to realize anew that our products do indeed contribute to the happiness of people worldwide, and this truth was shown in our business performance. However, the shortage of semiconductors, the rising cost of raw materials, logistical issues, and other developments were significant factors in us being unable to meet the full expectations of our customers. Under the new Medium-Term Management Plan (2022–2024), we will unfurl our sails to catch the current gusting tailwind of demand and further our progress toward achieving our Long-Term Vision. Next, regarding our balance sheet management, our policy in the previous Medium-Term Management Plan was to strike a balance between investments for growth and returns to shareholders within the range of our cash flows while maintaining the earnings power of existing businesses. Based on this policy, we emphasized making consistent and ongoing dividend payments, particularly in step with improvements to our financial health. As a result, our financial founda-tions were significantly reinforced, but at the same time, a factor in this achievement was our inability to make investments for future growth exactly as we had planned.From the Director in Charge of Corporate Planning and Financial AffairsMotofumi ShitaraDirector and Senior Executive Officer

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