January 6, 2011
Shifting our Footing toward Growth
For the Yamaha Motor Co., Ltd., the fiscal year ended December 2010 saw steady progress in resolving issues such as operating losses in developed nations, rationalizing the company's domestic production systems and reducing costs. Progress was also made in reorganizing administrative frameworks by re-examining the management system, administrative policies and business operations.
Looking to 2011, the business environment is likely to remain much the same. Markets in developed nations will remain sluggish while emerging nations see market growth. Further measures will be needed to deal with the appreciation of the yen. Making our company profitable on an unconsolidated basis will be another important task. As we prepare to tackle these issues in the coming year, I would like the entire company to share the same vision of the company Yamaha Motor should be. This vision has three main pillars that can guide us toward sustainable growth with a strong corporate identity.
Pride in the company's strengths
In 2009 we experienced the largest losses in our corporate history. In contrast, our projected business results for 2010 show recovery to 1,300 billion yen in net sales, 64 billion yen in ordinary income, and 26 billion yen in net income. We succeeded in reforming the profitability structure of our businesses rapidly by focusing on reducing deficits in the developed nations and increasing profits in our businesses in emerging nations and other business sectors. All this was achieved by prioritizing, addressing and sharing important issues as a global corporate group. To continue to be a company that is strong in the face of adversity, we should take pride in our corporate strengths.
Acting with speed, a spirit of challenge and persistence
We must constantly make efforts to change the way we work and keep the company moving forward. Individuals who understand the importance of speed, are willing to take on challenges and work persistently will have important roles to play. Groups of such individuals create a strong corporate climate. I will work to make Yamaha Motor a company where every employee and group shares the values that these three action guidelines embody.
Being "an excellent engineering, manufacturing and marketing enterprise with a prominent presence in the global market"
Throughout its 55-year history, Yamaha Motor has manufactured splendid products and brought Kando* to customers all over the world. The key to this success has been excellence in engineering and manufacturing, backed by combined strengths in planning, development, production, procurement and marketing. We must continue to exceed the expectations of our customers by pursuing the next breakthroughs in engine technology, inventing new types of mobility and branching out into new business fields. By working toward these goals, we aim to be an excellent enterprise that takes on engineering, manufacturing and marketing challenges and has a prominent presence in the global market.
In 2011 we will continue to tackle key issues to ensure corporate stability and shift our footing to one that is solidly aimed toward growth. The entire management will be working with diligence and commitment to meet the expectations of all our stakeholders. I hope you will give Yamaha Motor your ongoing support as we build toward the future.
*Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intense excitement that people experience when they encounter something of exceptional value.
Yamaha Motor Co., Ltd.
President, Chief Executive Officer and Representative Director
(January 6, 2011)