Q&A on the New Medium-Term Management Plan(Held on May 12, 2022)

A1: Conflicts will arise with existing businesses, so we are thinking of starting with products that are not yet being handled by our distributors and dealers. As for countries, we have already started in India, and we will continue to move forward while keeping an eye on the situation of our sales channels in each market. Our basic idea is not to migrate everything, but to utilize EC for those areas that we have not been able to approach through our existing sales channels.

A2: We have had various membership registration programs in place at each of our locations for some time. Together with the number of those registrants, we currently have contact with about 4 million customers. We have set a target of adding another 1 million registrants to this collective by shifting to a new unified system.

A3: Music schools and music promotion are segregated between Yamaha Corporation and the Yamaha Music Foundation, and there is no change in the concept of business management. The foundation creates the curriculum, operates the school business, and trains the instructors. Our company's directly managed schools in Japan separate themselves from school promotions and school business operations and structure their business within their earnings. While overseas, we are developing Yamaha Music Schools with the cooperation of the foundation, and the actual school operations are carried out by local distributors. In some regions, such as China, we operate the business directly.

A4: Strategic investments have increased as allocations due to an increase in cash inflow. We have secured a larger area of land at our new production bases in Indonesia and India, which we will begin to utilize. Our approach to production has not changed significantly. Although, we are thinking of investing in resilience improvement, such as multi-regional production, based on the reflection that we have sought efficiency too much in the past.

A5: We have examined various projects in the past, but have not found any worthy of investment. Although we do not know if there will be a suitable investment project during the new medium-term management plan, we are presenting this plan in order to make the target area clearer and to make the members promoting the relevant businesses aware of them from an internal perspective.

A6: Sales were affected by semiconductor procurement difficulties to the extent of ¥35 billion, and that portion is the recovery.

A7: We recognize that the selection of a successor is a major mission of the Board of Directors and the Nominating Committee. We have created a program as the evaluation process is underway, starting with the sharing of candidates by the Nominating Committee. We are also working to ensure objectivity and transparency by incorporating evaluations not only by Nominating Committee members but also by outside organizations. Progress is monitored by the Board of Directors and the phase is progressing smoothly.

A8: We believe that we can offer value in both hardware and software. We have launched initiatives and introduced it to make the necessary investment this time. But in terms of sales and profits, we do not expect any large lumps in the current medium-term management plan period. We have a broad concept in software, and while the foundation will continue to operate the specific business of Yamaha Music Schools as before, we believe that we can provide a wider range of other services and will work firmly to create value.

A9: We recognize this as a notable technology and trend. Although we are not at the level of introducing it at this stage, we believe that we can be proactive in this area and are discussing how we can utilize the metaverse in various divisions.