Yamaha Medium-Term Management Plan

  • Yamaha Medium-Term Management Plan - NEXT STAGE 12

Corporate Slogan
Sharing Passion & Performance

Corporate Philosophy

With our unique expertise and sensibilities, gained from our devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world.

Becoming an indispensable,brilliantly individual company
Boosting brand power to become a highly profitable enterprise

Yamaha Now
Reviewing Previous Medium-Term Management Plan (YMP2016)

Business restructuring (sales and production in Japan, electronic devices) produced results, and profits grew sharply as costs were reduced and gross margins improved in the key musical instruments business

Final Year of YMP125
FY2016.3 Projections
Growth YMP2016
Net Sales (billions of yen) 366.9 437.0 119% 430.0
Operating Income (billions of yen) 9.2 41.0 446% 30.0
Operating Income of Musical Instruments/ Audio Equipment 6.4/4.6 31.6/8.4 494%/183% 18.5/8.5
Operating Income Ratio 2.5% 9.4% 376% 7%
ROE 1.9 % 10.0 % 526% 10%
Earnings Per Share(EPS) ¥21 ¥179 852% -
Free Cash Flow (FCF) over 3 years (billions of yen) 10.0 69.6 696% 50.0*
Market Capitalization (billions of yen) 184.2 668.7** 363% -
  • *YMP2016 FCF target does not include M&A investment
  • **As of end of March 2016
Net Sales, Operating Income and ROE, FY2013.3 Net Sales: 366.9 / Operating Income: 9.2 → FY2016.3 YMP2016 projections, Net Sales:437.0 / Operating Income: 41.0 ROE10% → YMP2016 targets, Net Sales:430 / Operating Income: 30 /  ROE10%


  • ¥151.9 billion of sales increase
    Sales in the electronics business domain grew from ¥102.1 billion (as of March 2013) to ¥151.9 billion (March 2016). Sales exceeded the target of ¥134.6 billion.
  • ¥16.4 billion (gross) of cost reduction
    To strengthen cost competitiveness, Yamaha realized cost reductions totaling ¥16.4 billion (gross), thus attaining its goal of lowering costs by ¥15.0 billion.

Issues Remaining

  • Challenging sales growth in China and emerging countries
    Sales rose from ¥77.1 billion (March 2013) to ¥109.9 billion (March 2016), but fell short of the target of ¥110.2 billion because of economic weakness in Latin America and Russia and delays in investments for growth.
  • Slow start in new business development
    Although Yamaha acquired two companies and readied its in-house incubation systems, it is taking time to show results.

Outline of Medium-Term Management Plan

Yamaha aims to attain an operating income ratio of 20% in the long term, as a company with a strong brand value. To move up to the next step and work toward "Becoming an Indispensable, Brilliantly Individual Company," Yamaha positions the coming three years as a time to "boost brand power to become a highly profitable enterprise."

Investment and Return to Shareholders

Cash generated will be allocated to strategic investment,the remainder is proactively returned to shareholders


Capital expenditure: ¥40 billion

Baseline investment to support existing business (same level as depreciation)

Strategic investment: ¥50 billion

Strategic investment to create new value

  • Investment in reorganization of production bases
  • Construction of new R&D building to spur innovation
  • M&A and capital tie-ups to expand business and acquire new technologies

Investment in strategic marketing and strategic R&D: ¥10 billion (included in operating cash flow)

Strategic investment to expand customer contact and technology innovation

Operating cash flow ¥150 billion (Over 3 years) → Capital expenditure
¥40 billion / Strategic investment ¥50 billion /  Target for consolidated dividend payout ratio 30% and over / Return to shareholders, etc.

Return to shareholders

  • The basis of shareholder return policy is to provide continual and stable dividents, but is implemented flexibly to enhance capital efficiency while considering a proper balance with retained earnings needed for making investment for future growth
  • The target consolidated dividend payout ratio is 30% and over

In this report, the figures forecast for the Company’s future performance have been calculated on the basis of information currently available to Yamaha and the Yamaha Group. Forecasts are, therefore, subject to risks and uncertainties.

Accordingly, actual performance may differ greatly from our predictions depending on changes in the economic conditions surrounding our business, demand trends, and the value of key currencies, such as the U.S. dollar and the euro.