Executive Message

2016MAR 10

Repeated dialogue with all stakeholders
Corporate Planning & Finance Center, Deputy Chief General Manager, Ryouichi Sumioka

March 10, 2016

The year 2016 sees the start of YAMAHA's new medium-term plan. Let's all aim to be a unique company that continues to achieve dynamic milestones!

First, let's consider the environment in which we have recently found ourselves from the perspective of the Corporate Planning and Finance Center. Last year the Corporate Planning and Finance Center introduced a corporate governance code. This code aims to stimulate the market by improving corporate "earning power = ROE" and enhancing corporate value through corporate governance reforms. Naturally, YAMAHA also stated a target of 15% ROE as an indicator in the medium-term plan. (An ROE of 15% is generally considered to be an extremely high.)

However, while the recovery of the US economy and weakening of the yen could be considered good for us, the business environment that surrounds YAMAHA recently remains tough, following the decline in emerging countries' currencies, the economic slump resulting from the rapid slowdown of the Chinese economy, and the sudden drop in the price of crude oil.

"Isn't it somewhat difficult to go ahead with the new medium-term plan in this situation?"

It's okay!

Companies like YAMAHA that operate on the global stage are always facing difficulties somewhere in the world. We can overcome this situation if we all work together based on the direction provided in the medium-term plan.

To overcome this situation, the Corporate Planning and Finance Center will not stop at providing support to each division and function, but will also work to communicate with stakeholders with a sense of unity with all divisions.

We will engage in repeated dialogue with customers, employees, business partners, shareholders, investors, local communities, and all stakeholders on a global scale through various means, emphasizing what we are doing, what we are trying to accomplish, and our aims. I believe that such initiatives will link to the success of the medium-term plan.

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I enjoy looking at pictures.
This hobby started when I lived in Europe, and I still make sure to find time to visit museums. I thoroughly recommend this hobby. Men who surround themselves by pictures are enriched from the inside while women who surround themselves by pictures get more and more beautiful. I am sure of this. For certain.

* In the event of inconsistency between this version and the Japanese version, please refer to the Japanese version.