Outline of the New Medium-Term Management Plan
February 12, 2025
IWATA, February 12, 2025 - Yamaha Motor Co., Ltd. (Tokyo: 7272) has formulated its new Medium-Term Management Plan (MTP) for the three-year period running 2025 through 2027.
Based on the Company's corporate mission to be a Kando* Creating Company, in 2018, Yamaha Motor announced its Long-Term Vision for 2030 of "ART for Human Possibilities - Let's strive for greater happiness." The new MTP starting this year marks the beginning of the latter six years of this Long-Term Vision.
The basic policy of the new MTP is to "Raise the competitiveness of our core businesses, acquire new technologies that expand human possibilities, and take on uniquely Yamaha challenges to create a world where people's happiness and the environment coexist in harmony."
*Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something of exceptional value.
■ Related URL: Medium-Term Management Plan
https://global.yamaha-motor.com/about/mtp/
■ Business Portfolio
Yamaha Motor implemented portfolio management from its previous MTP. For the new MTP, the Company has rearranged its portfolio contents into three redefined categories: Core Businesses (Motorcycles and Marine Products), Strategic Businesses (Robotics, Smart Power Vehicle, and Outdoor Land Vehicle), and New Businesses. In the future, Yamaha Motor aims to have all its businesses surpassing an ROIC of 12.5%.
■ Core Businesses
Under the new MTP, the Company will reinforce the competitiveness of its core businesses, conducting targeted investments in the motorcycle and Marine Product businesses and offering attractive products and services to secure both growth and profitability.
Motorcycle Business
With the aim of "Bringing joy into mobility and fun into holidays together with our stakeholders," the Company will work to provide an attractive product lineup and strengthen user services by utilizing digital technologies.
In ASEAN and emerging markets, Yamaha Motor will continue to ramp up the premium segment strategy it has been focusing on to date. Additionally, by enhancing its marketing capabilities, the Company will increase customer engagement by leveraging digital technology and providing experiences more tailored to the user. In the electric vehicle field, Yamaha Motor will advance through both in-house platform development and external collaborations.
Marine Products Business
Under the business' Long-Term Vision of a "Reliable and Rich Marine Life: Toward Further Increasing the Value of the Ocean," Yamaha Motor will pursue greater customer value by strengthening its lineup of large outboard motors and its integrated boat business.
In the latter, the Company will further build on the Marine CASE Strategy that it has been engaged in, including the introduction of next-generation boat steering systems, the utilization of connected technologies, the expansion of electric outboard motors, and the provision of product sharing systems, enabling a diverse and enhanced boating experience.
■ Strategic Businesses
Yamaha Motor has designated three businesses with high market potential, i.e., the Robotics business, the Smart Power Vehicle (SPV) business, and the Outdoor Land Vehicle (OLV) business-which integrates our recreational vehicle and golf car businesses-as Strategic Businesses.
Robotics Business
Yamaha Motor will strive to achieve both growth and profitability by supporting a rapidly digitalizing world and transforming mobility with our ONE STOP SMART SOLUTION. By concentrating management resources in expanding sectors and further evolving our trademark ONE STOP SMART SOLUTION, the Company aims to increase its market share and improve business efficiency.
SPV Business
Yamaha Motor will grow our business by supporting people's challenges and offering the eco-friendly mobility that is our electrically power-assisted bicycles. As part of the Company's strategy, it will review the business for selling complete Yamaha eBike models overseas, a point of focus on for some time, and focus the business again on e-Kits and Yamaha eBikes for the Japanese market. For the e-Kit business, the Company will adopt a meticulously customer-oriented approach in order to win the trust of OEM clients by enhancing direct service functions, reducing supply lead times, and accelerating development speed.
OLV Business
Yamaha Motor will leverage its strength in the North American market, i.e., a single brand with a diverse lineup of outdoor recreation products-whether on land or the water-that customers can enjoy for a lifetime, to create new synergies.
The market for the OLV business is expected to expand in the long term, driven by the increasing added value of products. To capture this market growth, the Company's new MTP will focus on developing new a platform adaptable to cross-segment needs towards 2030.
■ New Businesses
Until now, Yamaha Motor has directed its efforts to commercialization in the focus areas of mobility services, low-speed automated vehicles, and labor-saving in the agriculture and medical & healthcare sectors. Going forward, the Company will narrow its focus down to agriculture, mobility services, and low-speed automated vehicles, while evaluating opportunities for business expansion.
■ Financial Indicators and Shareholder Return Policy
Yamaha Motor's goal is to continuously generate returns exceeding cost of capital, with ROE, ROIC, and ROA in the 14%, 8%, and 9% ranges, respectively (three-year average for all). For shareholder returns, the Company's basic policy will be to emphasize making consistent and ongoing dividend payments while taking into consideration the outlook for business performance and investments for future growth, distributing returns to shareholders in a flexible way based on the scale of our cash flows. We will set a target total payout ratio of 40% or more (cumulative period of the new MTP) for shareholder returns.
■ Environmental Planning
The environmental plan in Yamaha Motor's new MTP is built on three pillars: Climate Change, a Circular Economy, and Biodiversity. For Climate Change, the Company aims to achieve carbon neutrality by 2035, targeting a 74% reduction in CO₂ emissions from its corporate activities compared to 2010 levels. Additionally, the Company will reduce CO₂ emissions generated from product use by customers and employees through a multi-pathway approach.
For Circular Economy, the Yamaha Motor aims to achieve 100% use of sustainable materials by 2050. In the new MTP, Yamaha Motor will increase the usage rate from the current 14% to 18%.
For Biodiversity, the Company will explore solutions that provide mutual benefits for both people and ecosystems.
■ Human Capital Management
Yamaha Motor will introduce global personnel engagement as a metric and maintain a high level as a key indicator of human capital management. In addition to moving forward with DEI initiatives, the Company's talent management moves will be to expand its global HR training program. By giving its diverse workforce opportunities to take on challenges, Yamaha Motor wants to create organizations where both employees and the company can grow and pave the way to future success.
■ Risk and Compliance Management
Yamaha Motor positions the enhancement of risk and compliance management as a key policy and will identify and appropriately control potential risks in its management and business operations based on three pillars: Global, Integrated, and Agile.
Through these efforts, the Company will further promote management that swiftly adapts to environmental changes while advancing the globalization of responsibilities and authority.
Based on the Company's corporate mission to be a Kando* Creating Company, in 2018, Yamaha Motor announced its Long-Term Vision for 2030 of "ART for Human Possibilities - Let's strive for greater happiness." The new MTP starting this year marks the beginning of the latter six years of this Long-Term Vision.
The basic policy of the new MTP is to "Raise the competitiveness of our core businesses, acquire new technologies that expand human possibilities, and take on uniquely Yamaha challenges to create a world where people's happiness and the environment coexist in harmony."
*Kando is a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something of exceptional value.
■ Related URL: Medium-Term Management Plan
https://global.yamaha-motor.com/about/mtp/
■ Business Portfolio
Yamaha Motor implemented portfolio management from its previous MTP. For the new MTP, the Company has rearranged its portfolio contents into three redefined categories: Core Businesses (Motorcycles and Marine Products), Strategic Businesses (Robotics, Smart Power Vehicle, and Outdoor Land Vehicle), and New Businesses. In the future, Yamaha Motor aims to have all its businesses surpassing an ROIC of 12.5%.
Under the new MTP, the Company will reinforce the competitiveness of its core businesses, conducting targeted investments in the motorcycle and Marine Product businesses and offering attractive products and services to secure both growth and profitability.
Motorcycle Business
With the aim of "Bringing joy into mobility and fun into holidays together with our stakeholders," the Company will work to provide an attractive product lineup and strengthen user services by utilizing digital technologies.
In ASEAN and emerging markets, Yamaha Motor will continue to ramp up the premium segment strategy it has been focusing on to date. Additionally, by enhancing its marketing capabilities, the Company will increase customer engagement by leveraging digital technology and providing experiences more tailored to the user. In the electric vehicle field, Yamaha Motor will advance through both in-house platform development and external collaborations.
Marine Products Business
Under the business' Long-Term Vision of a "Reliable and Rich Marine Life: Toward Further Increasing the Value of the Ocean," Yamaha Motor will pursue greater customer value by strengthening its lineup of large outboard motors and its integrated boat business.
In the latter, the Company will further build on the Marine CASE Strategy that it has been engaged in, including the introduction of next-generation boat steering systems, the utilization of connected technologies, the expansion of electric outboard motors, and the provision of product sharing systems, enabling a diverse and enhanced boating experience.
■ Strategic Businesses
Yamaha Motor has designated three businesses with high market potential, i.e., the Robotics business, the Smart Power Vehicle (SPV) business, and the Outdoor Land Vehicle (OLV) business-which integrates our recreational vehicle and golf car businesses-as Strategic Businesses.
Robotics Business
Yamaha Motor will strive to achieve both growth and profitability by supporting a rapidly digitalizing world and transforming mobility with our ONE STOP SMART SOLUTION. By concentrating management resources in expanding sectors and further evolving our trademark ONE STOP SMART SOLUTION, the Company aims to increase its market share and improve business efficiency.
SPV Business
Yamaha Motor will grow our business by supporting people's challenges and offering the eco-friendly mobility that is our electrically power-assisted bicycles. As part of the Company's strategy, it will review the business for selling complete Yamaha eBike models overseas, a point of focus on for some time, and focus the business again on e-Kits and Yamaha eBikes for the Japanese market. For the e-Kit business, the Company will adopt a meticulously customer-oriented approach in order to win the trust of OEM clients by enhancing direct service functions, reducing supply lead times, and accelerating development speed.
OLV Business
Yamaha Motor will leverage its strength in the North American market, i.e., a single brand with a diverse lineup of outdoor recreation products-whether on land or the water-that customers can enjoy for a lifetime, to create new synergies.
The market for the OLV business is expected to expand in the long term, driven by the increasing added value of products. To capture this market growth, the Company's new MTP will focus on developing new a platform adaptable to cross-segment needs towards 2030.
■ New Businesses
Until now, Yamaha Motor has directed its efforts to commercialization in the focus areas of mobility services, low-speed automated vehicles, and labor-saving in the agriculture and medical & healthcare sectors. Going forward, the Company will narrow its focus down to agriculture, mobility services, and low-speed automated vehicles, while evaluating opportunities for business expansion.
■ Financial Indicators and Shareholder Return Policy
Yamaha Motor's goal is to continuously generate returns exceeding cost of capital, with ROE, ROIC, and ROA in the 14%, 8%, and 9% ranges, respectively (three-year average for all). For shareholder returns, the Company's basic policy will be to emphasize making consistent and ongoing dividend payments while taking into consideration the outlook for business performance and investments for future growth, distributing returns to shareholders in a flexible way based on the scale of our cash flows. We will set a target total payout ratio of 40% or more (cumulative period of the new MTP) for shareholder returns.
■ Environmental Planning
The environmental plan in Yamaha Motor's new MTP is built on three pillars: Climate Change, a Circular Economy, and Biodiversity. For Climate Change, the Company aims to achieve carbon neutrality by 2035, targeting a 74% reduction in CO₂ emissions from its corporate activities compared to 2010 levels. Additionally, the Company will reduce CO₂ emissions generated from product use by customers and employees through a multi-pathway approach.
For Circular Economy, the Yamaha Motor aims to achieve 100% use of sustainable materials by 2050. In the new MTP, Yamaha Motor will increase the usage rate from the current 14% to 18%.
For Biodiversity, the Company will explore solutions that provide mutual benefits for both people and ecosystems.
■ Human Capital Management
Yamaha Motor will introduce global personnel engagement as a metric and maintain a high level as a key indicator of human capital management. In addition to moving forward with DEI initiatives, the Company's talent management moves will be to expand its global HR training program. By giving its diverse workforce opportunities to take on challenges, Yamaha Motor wants to create organizations where both employees and the company can grow and pave the way to future success.
■ Risk and Compliance Management
Yamaha Motor positions the enhancement of risk and compliance management as a key policy and will identify and appropriately control potential risks in its management and business operations based on three pillars: Global, Integrated, and Agile.
Through these efforts, the Company will further promote management that swiftly adapts to environmental changes while advancing the globalization of responsibilities and authority.
