The Yamaha Group and the Great East Japan Earthquake

  In the wake of the Great East Japan Earthquake that struck the nation on March 11, 2011, we wish to convey our sincerest condolences to those persons who lost their lives and our heartfelt sympathies to their families as well as all other persons suffering from the aftereffects of the disaster. We would also like to take this opportunity to report on the impact of the earthquake on the Group and its operations as well as provide details of activities in support of relief and recovery efforts.

  In the immediate aftermath of the earthquake, the Yamaha Group set up a disaster countermeasures task force within its head office. Steps were then taken to promptly collect and collate information and to implement appropriate countermeasures. At the same time, similar task forces established in each region worked diligently to implement security measures, confirm the safety of employees and their families, ascertain the status of damage and prevent further suffering. Drawing on disaster reserves of essential commodities, goods including food items were distributed from the Group's head office to devastated areas. Fortunately, none of the Group's employees suffered personal injury.

  The Yamaha Group launched steps to ascertain the extent of damage to its nationwide network of business sites, buildings and facilities on the day of the disaster. As a result, we were able to identify cracks and damage to certain buildings mainly in the Tohoku region. Thereafter, on confirming the safety of these and all other buildings, every effort was made to recommence operations. Turning to the Group's information infrastructure including its communications systems, we experienced temporary interruptions to our office network particularly in the Tohoku and Kanto areas. By March 19, communications across approximately 90% of affected bases had been restored with full recovery completed by April 10.

  On April 1, 2011, the Great East Japan Earthquake Emergency Committee was established. Led by Yamaha Corporation's president, this task force has been charged with the responsibility of ascertaining the impact on the Group's business activities by the earthquake disaster as well as subsequent issues including instability in the supply of electric power and putting forward essential countermeasures.

  There was no direct damage to the Yamaha Group's principal factories in Japan including the Saitama Factory and those production facilities in the Enshu region located more than 400km from the areas hardest hit by the earthquake disaster. Turning to the procurement of components and raw materials, responsibilities were allocated to specific departments and individuals based on supplier location information shared between business divisions and steps taken to confirm the status of damage. While there was no major impact on the production of acoustic instruments including pianos, the production of electronic devices including electronic instruments and audio-visual equipment have been affected due to difficulties with respect to procurement.

  As a part of efforts aimed at confirming product safety following incidents resulting in concerns with respect to radiation, dosimetric measurements are undertaken at the time of factory packaging and shipment as required.

  The Yamaha Group is doing everything in its power to bring smiles to the faces of those sufferers in affected areas as quickly as possible. In addition to donations by Group companies both in and outside Japan, the Group is promoting the inspection and repair of musical instruments through its network of dealers, endeavoring to reopen music schools and conducting charity concerts across devastated areas together with other support activities.

  Led by the Japan Musical Instruments Association, the School Music Revival Fund was established in July with the Company's president Mitsuru Umemura serving as chief promoter. Under the Fund, steps are being taken to inspect and repair the musical instruments of kindergartens, elementary, junior and senior high schools located in devastated areas.

  The Yamaha Group established targets for the reduction of electric power consumption at its business sites and implemented working shifts during weekends and holidays to help reduce consumption during peak weekday periods. These and other initiatives are aimed at addressing shortfalls in the supply of electric power as a result of the earthquake.

  The Company has set the target of reducing electric power consumption by 15% or more on an hourly compared with the previous year at business sites^*1 located within the areas serviced by the Tokyo Electric Power Company, Incorporated (TEPCO) and Tohoku Electric Power Co., Inc. with contract demand exceeding 500kW. This reduction target applies to the period between July and September and specifically to weekdays between the hours of 9:00 and 20:00. Among a host of measure, each business site will reduce lighting and regulate air conditioning. Business sites within the aforementioned operating area other than those mentioned above will also establish targets in accordance with the previously identified target. Every effort will be made to reduce maximum consumption during peak periods.

• *1 Saitama Factory (Fujimino-shi, Saitama Prefecture), Tokyo Office (Minato-ku), Yamaha Ginza Building (Chuo-ku, Tokyo Prefecture)

  In order to reduce electric power consumption during peak weekday periods, business sites^*2 located in areas serviced by Chubu Electric Power Co., Inc. suspended operations for five Mondays during July and August. Work on each of these days was shifted to Saturdays and public holidays.

• *2 Yamaha Headquarters and factories located in the western region of Shizuoka Prefecture

  Taking seriously the lessons learned from the Great East Japan Earthquake, Yamaha undertook a Group-wide review of its disaster countermeasures and contingency planning. Focusing particularly on bases located in the Enshu region which is in close proximity to the Tokai area considered prone to major earthquakes, the Yamaha Group is taking steps to put in place an appropriate structure and systems including the stockpiling of essential items.

  As an initial measure, the Group is working to secure multiple means of communication while at the same time reviewing reporting systems by base and organization. In addition, a specialist group has been established led mainly by administrative divisions. Drawing on the Group's experiences during the Great East Japan Earthquake, Yamaha is putting in place all appropriate procedures and methods to ensure greater efficiencies in restoring basic infrastructure.

  While at this stage estimates indicate no major damage to bases located in the Enshu region as a result of the tsunami^*3, both national and prefectural governments are reassessing damage estimates. Steps will then be taken to consider appropriate countermeasures.

  Furthermore, efforts are being made to provide employees and their families living in coastal areas with information regarding predetermined actions to be taken at times of evacuation.

  In order to ensure the utmost safety of its employees and to minimize the impact of disasters on the Group's ongoing operations, Yamaha periodically reviews its BCP^*4 Guidelines formulated in 2009 taking into consideration each of the aforementioned.

• *3 Source: Shizuoka Prefecture damage estimates
• *4 BCP: Business Continuity Plan

•  Support for Those Affected by the Great East Japan Earthquake