Q&A on the Yamaha Evolve Day: New Business Briefing (Held on March 19, 2026)

A1: As a comprehensive musical instrument manufacturer, our greatest strength lies in the broad customer base we have cultivated, spanning keyboards, wind instruments, and guitars. For instance, we have one of the largest guitar user bases in the world, and many new customers join us every year, particularly in the entry-level to intermediate segments. Having such a broad customer base and diverse points of contact with creators and musicians generates significant synergy in driving user engagement with our services.
Regarding our directly-owned Japanese stores, we are advancing the data visualization of customer behavior and sales data through Yamaha Music ID. We will continue to pursue initiatives that increase sales by combining AI-based behavioral predictions with marketing strategies. Furthermore, we have confirmed synergistic effects for both parties in terms of sales increases through collaboration with partners. Conversely, while our internal processes are still in the developmental stage, our corporate awareness and culture are undergoing significant changes as we promote initiatives to foster new business development. There is a growing mindset that shifts from the traditional in-house approach to expanding business more quickly through open innovation.

A2: Non-incremental factors driving growth in Yamaha Music ID registrations include integrating members from Yamaha Music Schools in Japan and launching the service in the Chinese market. Meanwhile, constant factors include simplifying registration with QR codes for instrument purchases and initiatives to expand customer touchpoints, such as event sign-ups and ticket management, which contribute to steady membership growth.
In addition to expanding our customer base, we are working to build a high-quality customer base that prioritizes active users, focusing on maximizing LTV.

A3: As part of our efforts to connect musical instrument hardware with our services, we are working to create new value and experiences by integrating hardware and software on our marketplace. For instance, we are developing a platform where portable keyboard users can upload and share their original sound sources with other users. However, connecting with hardware is not our primary objective. First and foremost, we aim to develop truly meaningful services for our customers. By incorporating not only our own services, but also excellent services from our partners, we intend to provide the value that customers truly seek.

A4: The 5 billion yen figure does not include sales of musical instrument hardware. Just under half of this amount comes from in-house developed services, with online lessons being the core component, and the remainder comes from growth driven by M&A and external partnerships. Additionally, we aim to generate additional instrument sales through services provided via the Yamaha Music ID membership. We are currently collecting data and have established a system to track customer behavior through the ID. We intend to establish the Music Connect business as a driver of instrument sales by leveraging this data for marketing.

A5: This online lesson service is an initiative by Yamaha Corporation to provide lessons, not solely to sell musical instruments. Our ultimate goal is to provide a hybrid lesson format that integrates both online and offline elements. To establish the value of online lessons, we plan to gradually roll out the service, starting with our directly owned stores in Japan.
Regarding the business's scale, our current medium-term management plan targets 1.5 billion yen in revenue and 15,000 users. Since we are launching the service in Japan and gradually expanding the business while training instructors, the initial growth will be moderate. However, we aim to reach 3 billion yen in revenue within the next five years.

A6: While our primary focus is on growth through recurring revenue, we also aim to increase overall group revenue through hardware and software sales, including those from Steinberg.
Since Yamaha Creator Pass is a completely new business model for us that targets a new customer base, we have set a temporary goal for the initial launch phase. We are currently in the beta phase and plan to verify the validity of this goal over the next six months by collecting data on customer demographics, churn rates, and other metrics.
We plan to report on the progress of new business development, including the Yamaha Creator Pass, at regular Yamaha Evolve Day events.

A7: Through our Music Connect business, we target individuals interested in playing musical instruments. Through the Yamaha Creator Pass, we target individuals seeking various forms of self-expression, including video content and non-musical forms. Through our Virtual Entertainment business, we target individuals primarily interested in listening and watching. We are advancing initiatives to connect these diverse audiences to Yamaha’s assets.

A8: AI offers the advantage of scaling business operations without increasing fixed costs. It plays a significant role in service development and business operations. For instance, Yamaha Creator Pass leverages AI to launch new businesses with a small team in a short period, significantly reducing costs and improving efficiency.
In contrast, in the field of music education, AI usage is still in the trial phase compared to the music production sector. We are exploring effective ways to utilize AI through collaboration with startups.

A9: Currently, we cannot predict the full impact that AI will have on the music industry. However, as a company dedicated to supporting music culture, Yamaha aims to build a society in which people effectively use AI to unleash their creativity rather than a society in which AI replaces human workers. To that end, we intend to provide creators with tools that leverage AI.