March 25, 2010
We are determined to rapidly return to profitability, paving the way for sustainable growth into the future. Ultimately, we envision ourselves evolving into an excellent engineering and manufacturing enterprise with a prominent presence in the global market.
As of March 25, 2010, I took office as President, Chief Executive Officer and Representative Director of Yamaha Motor Co., Ltd. Together with Senior Managing Executive Officer and Representative Director Takaaki Kimura, I will be leading the Yamaha Motor Group Management.
We registered very disappointing business results in the fiscal year ended December 31, 2009. As the global financial crisis took its toll on the economy, our businesses were also seriously impacted, by sharply shrinking demand for leisure products in Europe and the United States, coupled with the stronger yen against major currencies.
In the face of this challenging environment, we are determined to take initiatives to better implement Group management strategy and meet our stakeholders’ expectations.
Engineering Excellence and Prominence
In pursuit of our corporate mission — becoming a Kando* Creating Company — we are committed to surprising, exciting and satisfying, delivering enjoyment and a more fulfilling life to people all over the world through our products and services. At the same time, we seek harmony with the communities we serve and the natural environment. In line with these guiding principles, we are dedicated to becoming an excellent engineering and manufacturing enterprise with a prominent presence in the global market.
Creating customer-oriented products is at the root of successful manufacturing. With this in mind, we must get back to basics and focus on maximizing value for our customers, optimizing our product appeal, reliability and pricing. In addition, we will redouble our efforts to hone our competitive edge by creating value that surpasses customers’ expectations. We are certain our drive for excellence can also raise our corporate value. One key is the focus on “real” needs — both in the workplace and the market — characterized by a bottom-up approach to management. It involves stepping back from the limited perspective of our own theories, offices or policies and looking at the big picture: what is actually going on. The philosophy encourages us to see things from the customer viewpoint, and to deliver what customers really want, where they will really enjoy them.
*Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that people experience when they encounter something of exceptional value.
New Medium-term Management Plan
We expect business conditions to remain harsh for quite some time. However, we are taking an aggressive approach to overcoming these circumstances, accelerating the structural reforms we initiated last year and striving to regain profitability. Furthermore, we intend to lay the groundwork for future growth. To achieve these objectives, we formulated a new three-year medium-term management plan for the period starting in 2010. Specifically, the plan calls for a return to profitability on a consolidated operating income basis in fiscal 2010 and a consolidated operating income margin of 5% in fiscal 2012. Success will see us become an excellent engineering and manufacturing enterprise with a prominent presence in the global market.
Meeting Challenges, Growing Stronger
All of us across the Group — executives and employees alike — are resolved to combine efforts to achieve the new plan’s targets. At the same time, we are committed to fulfilling our social responsibilities by strictly observing laws, regulations, and corporate ethics, as well as vigorously pursuing an array of environmental preservation and social action programs. Steady implementation of these policies and initiatives will no doubt quickly restore our business performance, returning us to a sustainable growth track, and earning greater trust from our stakeholders.
We will grow stronger as we meet and overcome the challenges ahead. As we embark on the journey to a brighter, more powerful future, we thank you for the ongoing understanding and support that make it possible.
Yamaha Motor Co., Ltd.
President, Chief Executive Officer and Representative Director
(March 25, 2010)