Under its corporate slogan, "Sharing Passion & Performance," the Yamaha Group seeks to contribute to the enrichment of people's lives through its business activities. Since its founding in 1887, Yamaha has provided a variety of products and services centered on sound and music. We have created excitement and cultural inspiration together with people around the world by responding in many life scenes to wide-ranging needs related to music, education and culture. We are always aware of the need to create customer value by offering products and services that draw on Yamaha's technology and know-how as well as sensitivities. These are strengths that Yamaha has accumulated over its long history and are key to addressing new challenges with a passion and going beyond our customers' expectations, to give them renewed inspiration. To accomplish this, we want to interact proactively with each of our customers and to propose products and services from their perspectives.
In April 2016, Yamaha embarked on its new medium-term management plan "NEXT STAGE 12," which states that Yamaha's basic strategy is to consolidate competitive superiority through adding new value and differentiation. As part of these initiatives, to continue to offer new value that only Yamaha can provide, we made the decision to establish an "Innovation Center," which will be a new base for R&D. By concentrating technical divisions in a single location we aim to increase the efficiency of development activities as well as accelerate innovation by promoting interchange among technical personnel and collaboration both internally and with related parties outside Yamaha.
To realize growth by tapping into the expected rising demand for musical instruments and audio equipment in the emerging markets, we have decided to build new factories in Indonesia and India. In Indonesia, we will newly establish a manufacturing subsidiary, PT. Yamaha Musical Products Asia (YMPA), which will work to strengthen profitability and increase production capacity working together with our five existing factories in Indonesia. In India, consolidated subsidiary Yamaha Music India Pvt. Ltd. (YMI) will build our first manufacturing facility in that country to make and sell products that meet the unique needs of the Indian market.
Looking ahead, we will be making every effort to ensure that Yamaha becomes "an Indispensable, Brilliantly Individual Company," continuing to enjoy long and close relationships with its customers. I would greatly appreciate your ongoing support.