Direction and Vision of the New Medium-Term Management PlanOverview of Fiscal 2021In fiscal 2021, the final year of the previous Medium-Term Management Plan, Yamaha Motor posted record-breaking net sales and operating income together with a massive improvement in our operating income margin. Fiscal 2021 saw a phased lifting of the restrictions imposed on economic activity in response to the COVID-19 pandemic centered on developed countries. In addition, people’s bank accounts received boosts from the relief payments issued by some governments around the world in the wake of the pandemic’s effects. These factors drove increases in demand for outdoor family recreation, which in turn created a favorable operating environment for Yamaha Motor. Another major contributor to our strong perfor-mance was our ability to limit the impacts of reduced production volumes from global supply chain disruptions and the ensuing difficulties in procuring parts. These disrup-tions were a result of global semiconductor shortages, delays in logistics, and the higher demand seen in response to the resumption of economic activities. It is impossible to The COVID-19 pandemic, climate change, and other con-temporary issues are fundamentally altering people’s values and substantially increasing the interest in and concern for sustainability around the world. Against this backdrop, we chose to add bolstering sustainability initiatives as a new guiding theme of the new Medium-Term Management Plan, which covers fiscal 2022 to fiscal 2024. This will comple-ment ongoing themes from the previous Medium-Term Management Plan, including the creation of new businesses and the reinforcement of management foundations for improving profitability. Guided by the new plan, we will seek to strengthen the earnings power of our core businesses while investing in new businesses and growth businesses that contribute to the realization of a more sustainable deliver a swift response to developments that simultaneously impact operations across the globe, such as the aforemen-tioned supply chain disruptions, if frontline organizations simply wait for specific orders from above before acting. Yamaha Motor, therefore, took a different approach. In response to the disruptions, senior management put forth broad policies while information on supply chain issues was shared among our procurement, production, and sales operations. Frontline organizations then exercised autonomy in addressing the issues based on the information they had received, and I believe this approach was highly effective. I also want to express my appreciation for the diligent efforts of our employees on the front lines. When faced with parts shortages, securing sufficient capacity to produce and supply products is of utmost importance. Given our success in this regard, fiscal 2021 truly was a year in which we were able to witness the resilience of Yamaha Motor’s foundations that are rooted in our frontline operations.world. We will also look to accelerate growth through digital transformation and co-creation initiatives. Yamaha Motor handles a vast and global lineup of products, and the processes spanning the production to the sale of these products are becoming more diverse and multifaceted. This inherent diversity in its operations has allowed the Company to continue growing overall, even as the circumstances individual businesses face may fluctuate. However, we also recognize that creating new value that contributes to the resolution of societal issues will require us to identify fields in which we can anticipate growth and to then focus the allocation of manage-ment resources on such fields. It is for this reason that we have positioned diligent portfolio management as a core strategy of the new Medium-Term Management Plan.5Yamaha Motor will practice diligent portfolio management with a focus on growth areas and our strengths to create new value contributing to a more sustainable world.