Priority Themes for 2004
(1) Final resolution of medium-term management issues
To improve profitability, we will strive to achieve a 30 percent cost reduction and to return low profitability businesses to the black. We will work harder to build a system that can withstand and overcome ever-intensifying competition with consistently superior, attractive products.
To solidify the foundation of our businesses in China, India and ASEAN countries, we will continue to be aggressive in launching new products, thus driving both sales and profits beyond planned targets. In particular, we intend to finalize and implement business strategies for our China operations in 2004.
To promote a growth strategy, we are committed to expanding our mainstay businesses, while developing original business models in new domains such as biotechnology.
To enhance our financial structure, we will maximize tangible fixed assets groupwide from a consolidated management standpoint, thus aiming to achieve a higher return on investment.
(2) Unifying the accounting term to achieve far-reaching consolidated business reform
In the next fiscal year, Yamaha Motor Co., Ltd. in Japan will change the date of its accounting term, from the current March 31 to December 31.
More than 80% of our consolidated sales are derived from overseas markets. By accurately reflecting seasonal fluctuations in business performance for our mainstay products in the financial statements, and by unifying the accounting term with other group companies, including consolidated subsidiaries, we can further promote our globalization programs.
Since this unification of the accounting term will renovate the corporate management cycle, we view the change as an aspect of our consolidated business reform program.
(3) Launching the YAMAHA CCS21 campaign groupwide
This year, Yamaha Motor will launch its CCS (Customer and Community Satisfaction) 21 campaign, which links management and employees in a tight web of shared interest and close communication. It is designed to involve each and every Yamaha Motor Group employee in the effort to achieve prosperity for both our business and our people.
In fiscal 2004, we will place special emphasis on developing human resources. We will initiate a program designed to strengthen in-house communication, clarify our view of ethics and standards of conduct, and help employees better understand the "Yamaha Value 21" action guidelines, thus instilling shared values and a unified focus for their efforts.