Press release -
Yamaha Motor Outline of Long-term Vision & New Medium-term Management Plan
IWATA, December 11, 2018 - Yamaha Motor Co., Ltd. (Tokyo:7272) announced today that it has formulated its long-term vision until 2030, and a New Medium-term Management Plan for the three-year period starting in 2019.
For its long-term vision, Yamaha Motor has created the slogan “ART for Human Possibilities” and devised a growth strategy heading for 2030. For increasingly diversifying people's values and the environment around societies, the Company will implement its growth strategies while promoting solutions to social issues based on its own historical values.*
While maintaining the earning power from existing businesses, the new medium-term management plan will allocate resources to strategic growth areas such as new business, and work toward achieving consolidated net sales of 2-trillion yen and a consolidated operating income of 180 billion yen.
*Yamaha Motor plans to issue an integrated report in May next year, and plans are underway to disclose the Company’s integration strategy centered on its long-term vision.
Long-Term Vision
Since its founding, the motorcycle “vehicles that are the closest company to people”, we have grown by creating new value under the name “Kando Creating Company” as our universal corporate mission. In fact, the Company’s tradition and pride to fuse technology with sensitivity is the very foundation in providing “Kando”to our customers.
Going forward, we can expect that people's values will become increasingly diverse throughout the world, and issues surrounding the global environment and society will become more serious and complicated. Here, Yamaha Motor applies its cultivated technology and sensibility to “Human-like” and “Expanding human possibilities.” In this way we believe we can respond to the needs of society.
The phrase “ART for Human Possibilities” has been created with this concept in mind.
The Company’s aims of expanding people's possibilities and making better lives with society are reflected in our ideals of “Advancing Robotics”, “Rethinking Solutions - Taking on social issues according to the unique style of Yamaha,” and “Transforming Mobility.”
Under the flag “ART for Human Possibilities” we will promote reforms as we continue to work toward 2030.
Medium-to long-term-Growth Strategies
■ Four sections by technology and markets
1. Existing markets
| Existing technological fields: | Continually work toward steady growth and inorganic expansion |
| New technological fields: | Promoting electric motorization, the sharing of mobility, and marine system supplier strategies, etc. |
2. New markets
| Existing technological fields: | Focus on markets such as agriculture, medical care, and automated driving |
| New technological fields: | To not allocate resources to new areas that are not synergistic with existing technology and markets |
■ Three focus areas and growth strategies
*The following shows specific examples of each focus area, of which we will continue to promote with various initiatives going forward.
Transforming Mobility
| - LMW： | Expanding our customer base by offering a model that combines safety, comfort, and FUN |
| - Control: | All riders look to acquire their own core skills by reexamining the fundamental values of being “able to ride with confidence” and “riding enjoyment.” |
| - EV: | Amid the accelerating trend towards electric motorization, the Company provides a range of products in the unique style of Yamaha. |
Rethinking Solution
|
- Low speed automated operation systems: |
Providing low-cost last-mile mobility solutions for social issues such as depopulated-areas, an aging society, and a shortage of manpower while also considering future automatic operations |
| - Marine: | Making full use of state-of-the-art technology, to help transform your marine life into a more safe and comfortable experience |
Advancing Robotics
| - Agriculture: | Accelerating the development of unmanned solutions for a manifesting shortage of workers in the agricultural sector |
| - Medical: | Contributing to labor savings at various steps of the drug discovery process, speeding up the process, and improving the success rate of new drugs. |
■ Funding Establishment
‘Accelerating innovation, fostering synergies’
- The Company started its Yamaha Motor Exploratory Fund, LP, a facility with a total investment of US$100million, and an operation period of 10 years with the aim of further accelerating activities in realizing our long-term vision
- Accelerate strategic investment in early stage venture companies from a global view point
■ Innovation Promotion Acceleration
‘Vision creation and working together with like-minded people’
- We aim to speed-up innovation in order to offer higher value at faster time through collaborations with companies that share Yamaha Motor’s vision.
■ Taking on important social issues
‘Unique Style of Yamaha based social issue solutions’
- With an awareness of “contributing to society through business”, we identify important issues that the Company should be helping with
1. Environmental & resources issues
- Reducing the CO2 emitted from manufactured products by 50% by 2050
- Safer water supply
2. Transportation, education &·industrial issues
- Promotion of the fishing industry in developing countries
- Offering last-mile mobility solutions
3. Innovation issues
- Proposing new styles of mobility
- Accelerating innovation through collaboration
4. Work method issues
- Safe and more secure work environments
- Diversity and inclusiveness
New medium-term management plan
Aiming at the challenge once more for sales of 2-trillion yen, and an operating income level of 9% while promoting new business development.
- With existing business (Land Mobility, Marine, Robotics), net sales increases totaling 325-billion yen
- Strategic growth (mobility expansion and financial services), net sales increases totaling 25-billion yen
- Securing growth strategy expenses of 70-billion yen
■ Numerical Targets
■ Financial Strategies
Taking on the balance of growth investment and shareholder return within the scope of cash flow while maintaining the power to earn from existing business.
- The Company will actively allocate resources to growth areas and plans to secure a total of 140-billion yen over three-years (including M&A options) for the next medium-term
- Increasing the stability and continuance of stock dividends (standard 30% payout ratio)
- Expanding the regional and business domain of financial services, and aiming toward a receivables balance of 450.0-billion yen
■ Key Business Strategies
1. Land Mobility:
“Establishment of Business Infrastructure for a new age in mobility”
- ‘Update current abilities’
Streamlining manufacturing and sales functions
- ‘Agile management’
Improve decision speeds using management systems
- ‘Shifting to new areas’
Taking part in emerging new mobility related economic zones.
2. Marine:
“Strengthening the high-profit structure and establishing a sustainable growth platform”
- ‘Layout of global outboard motor production’
Improving production capacity and flexibility
- ‘Expansion of an integrated marine business strategy’
Evolution as a system supplier
- ‘Product development strategies’
Offering attractive items and services
- ‘Marine Long-Term Vision’
Toward the business of further increasing reliability and promoting a rich marine life and higher value of the ocean
3. Robotics:
“Expansion of business scale and business areas, and strengthening profitability”
- ‘Growth strategies’
Optimization of whole factories, logistics, agriculture, and medical work
- ‘Strengthening Business Infrastructure’
Strengthening our in-house manufacturing technology and systems
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