Value Creation Story

Yamaha enhances corporate value and fulfills its mission by creating social value.

Yamaha is strengthening all of its capitals by creating Yamaha value and social value through its business activities. In this way, Yamaha aims to realize its management vision and fulfill its mission by pursuing a cycle that improves both brand and corporate value.

Value Creation Process

To achieve our management vision of "Becoming an Indispensable, Brilliantly Individual Company - Boost brand power to become a highly profitable enterprise" and to realize our mission of "Well-Being of People around the World," we will repeat the cycle of value creation, promote the creation of social value, and enhance our corporate value.

INPUTS
Yamaha's Capital
BUSINESS ACTIVITIES
Businesses and Value Chain
OUTPUTS
Products and Services
OUTCOMES
Corporate Value Improvement

INPUTSYamaha's Capital

Customers	Supply products to 161 countries and region Operate music schools for children and adults in over 40 countries and regions (More than 5 million graduates)
Finance	Credit Ratings R&I:A+ JCR:AA-
Technology	Various technologies that serve as sources of competitiveness (Acoustic technologies, Digital technologies, Sensibility evaluation technologies, Analysis and simulation technologies, Manufacturing technologies) Design capability to express the Yamaha design philosophy (five conceptual key words) A global intellectual property strategy (Approx. 4,900* patents, Approx. 1,600* design rights, Approx. 10,700* Trademarks)·*Global totals
People	Diverse global staff of 29,000 employees (Of the Group's 58 consolidated subsidiaries, 44 are foreign corporations, of which 24 are manufacturing and production companies, with principal bases of operation in China, Indonesia, Malaysia, and India)
Brand	Yamaha Philosophy Brand Promise “Make Waves” “Best Japan Brands 2023” 28th (Interbrand Japan, Inc.) Japan Branding Awards 2020” Winners (Interbrand Japan, Inc.)
Environment, Society and Culture	Environment Promote energy conservation with measures including the installation of electric power monitoring systems (fiscal 2023) Increased new adoption of certified timber (fiscal 2023) Society Installed the Listening Care function that protects ear health to all new headphones and earphones (fiscal 2023) Culture Providing instrumental music education opportunities to a cumulative total of 2.02 million children in seven countries (Cumulative total for the fiscal year ended March 31, 2023)

BUSINESS ACTIVITIESBusinesses and Value Chain

Yamaha Philosophy

The Yamaha Philosophy expresses the core framework of the Yamaha Group's management and consists of four elements: the Corporate Philosophy, Customer Experience, Yamaha Quality (criteria for quality), and Yamaha Way (mindset and manners).
We utilize the Yamaha Philosophy as a foundation to draw from, try to think from the customer's viewpoint, and consistently provide high-quality products and services that exceed the expectations of our customers, and to create excitement and cultural inspiration together with people around the world.

Brand Promise

A brand promise expresses clearly and simply the value Yamaha offers its customers.
The expression “Make Waves” captures the moment when customers feel enthusiastic excitement. Yamaha wants to be a company that inspires its customers' passion and helps them make a step forward to express their individuality, emotion, and creativity.

Corporate Governance

The Yamaha Group has issued the Yamaha Philosophy and our Promises to Stakeholders, which outline our commitment to ensuring strong profitability while upholding our social responsibilities as a company, and thereby to achieving sustainable growth and improving corporate value over the medium- to long-termand achieve transparent, high-quality management under our Basic Corporate Governance Policy.

Global Business Management Foundation

The Yamaha Group comprises 58 consolidated subsidiaries, of which 44 overseas corporations and 24 are manufacturing and production companies with principal bases of operation in China, Indonesia, Malaysia, and India and expanding our business globally (As of March 31, 2023)

Our Businesses

Musical Instruments Business

Pianos, Digital musical instruments, Wind, string, and percussion instruments, Guitars, Music schools

Audio Equipment Business

PA equipment, Home audio products, Network devices, Voice communication equipment, Content production and streaming equipment

Industrial Machinery and Components Business / Others

Electronic devices (such as semi-conductors), Factory automation (FA) equipment, Automobile interior wood components

Discover More about Our Businesses

Our Value Chain

Musical Instruments Business

Audio Equipment Business

Industrial Machinery and Components Business / Others

Research and Development Combining technologies and sensibilities to create new value

We have inherited the craftsmanship capabilities and sensibilities toward sound creation that Yamaha has cultivated over its long history, which spans generations. With these capabilities and sensibilities as our foundation, we possess a deep understanding of and vast insight related to sensibilities for determining a good sound and a good sound environment. These serve as our unique strengths and enable us to differentiate ourselves from our competitors. We have established sensibility evaluation technologies as a means to effectively utilize our insight and understanding. Leveraging these technologies, we are striving to meld our various other technologies, such as our acoustic, digital, and electronic technologies, which in turn will enable us to offer unique products and services that cannot be imitated by competitors. Our foundation of organizational insight and understanding regarding sound, which has been cultivated over our long history, and sensibility evaluation technologies serve as a major source of our competitiveness in the global market.

[Image] Combining technologies and sensibilities to create new value

What Does the Combination of Technologies and Sensibilities Entail?

Determining what a good sound or a good sound environment is cannot be achieved by quantitative data analysis alone. The source of our competitiveness lies in our deep insight and understanding regarding sensibilities that we have cultivated through our long history, which started with the creation of musical instruments. Leveraging our core competence pertaining to sensibilities as our foundation, we are able to combine a wide variety of technologies, including acoustic technologies, digital technologies, data analysis technologies, cloud technologies, AI technologies, and network technologies. This in turn enables us to provide unique products and services that cannot be imitated by competitors while also creating new experience value.

Production Fusion of craftsmanship and technology / Global production structure

Craftsmanship and technologies

During our long history of producing musical instruments, we have refined the craftsmanship skills in the finishing touches that enable us to continue making ever-better musical instruments. Craftsmanship involves creating products through the vision and handiwork of people, and our craftsmanship is a significant element in differentiating ourselves from other companies. We also develop technologies incorporating implicit knowledge through proprietary research in techniques to analyze the qualitative and quantitative relationship of human sensibilities and an instrument's physical characteristics. Linking this to our craftsmanship adds another layer of differentiation for our products. Our detailed scientific research of the production processes and the application of cutting-edge techniques has also given us a foundation of industry-leading manufacturing technologies. Our ability to maintain and integrate refined craftsmanship and advanced technologies at a consistently high level sets our production processes apart from other companies and is a primary source of our competitiveness.

* Technology that quantitatively and qualitatively evaluates and analyzes the tacit relationships between human sensitivities and physical properties of products

Global production structure

From early on in our history, we have established overseas production bases. Currently, we have key production bases in Japan, China, Indonesia, Malaysia, and India. Our global production structure optimized for each business domain is another factor that contributes to our overwhelmingly high level of competitiveness.

Sales and Marketing Global sales and marketing activities that are deeply rooted in local communities

We have a worldwide network of sales and marketing offices in over 30 countries and regions. In key markets, we have direct sales networks of local subsidiaries. In emerging markets, we approach customers through our authorized distributors. Our sales networks catering to local characteristics span a wide range of outlets, including specialty stores, chain stores, mass retailers, and e-commerce. The ability to ascertain local music cultures and customer needs through these sales networks and promote sales and marketing strategies in accordance with local characteristics represents one of our major strengths.

[Image] Global sales and marketing activities that are deeply rooted in local communities

OUTPUTSProducts and Services

Musical Instruments Business

Revenue: ¥302.7 billion　
Core operating profit: ¥36.2 billion
(Fiscal 2023)

Pianos

We offer the distinctive Yamaha pianos melding acoustic and digital technologies and designed to be inviting to customers ranging from top-level professional pianists to beginners.

Share of the global
piano market

33 %

((Fiscal 2023, monetary value basis, based on surveys by Yamaha))

Distinctive product line-up fusing a wide range of technologies

TransAcoustic™ piano introductory video

Digital musical instruments

Our product lineup spans from digital pianos and portable keyboards, for which we boast world-leading market share, to synthesizers, stage pianos, Electone™ electronic organs, and hybrid products that meld acoustic and digital technologies.

Share of the global
digital piano market

47 %

Share of the global
portable keyboard market

45 %

((Fiscal 2023, monetary value basis, based on surveys by Yamaha))

Distinctive product line-up fusing a wide range of technologies

Clavinova™ digital piano introductory video

Stage keyboards introductory video

Wind, string, and percussion instruments

We provide a wide range of products, from over 15 different kinds of wind instruments, such as trumpets and saxophones and string instruments such as violins, to acoustic and digital drums and timpani.

Distinctive product line-up fusing a wide range of technologies

Digital saxophone introductory video

Guitars

We offer a broad lineup of acoustic guitars, electric basses, amplifiers, and peripheral equipment.

Distinctive product line-up fusing a wide range of technologies

TransAcoustic™ guitar introductory video

Music schools

Yamaha music schools for children and adults in over 40 countries and regions have produced over 5 million graduates.

Yamaha music school introductory video

Audio Equipment Business

Revenue: ¥107.6 billion
Core operating profit: ¥3.5 billion
(Fiscal 2023)

Consumer Products

In addition to conventional audio equipment such as AV receivers, soundbars, earphones and headphones, we offer equipment for production, streaming, and gaming, proposing a various ways to enjoy music to match diversified music lifestyle.

Distinctive product line-up fusing a wide range of technologies

Headphone introductory video

Streaming and gaming equipment introductory video

B2B Products

We provide a wide variety of professional audio equipment used in prominent halls, concert halls and commercial facilities around the world, as well as conferencing systems for comfortable remote communication, and network equipment that is widely introduced at small-to-midsized companies and retail shops.

Distinctive product line-up fusing a wide range of technologies

PA equipment introductory video

Speaker phone introductory video

Industrial Machinery and Components Business / Others

Revenue: ¥41.1 billion
Core operating profit: ¥6.2 billion
(Fiscal 2023)

Electronic devices (such as semi-conductors), Factory automation (FA) equipment, Automobile interior wood components

Automotive sound concept introductory video

OUTCOMESCorporate Value Improvement

Yamaha Value Creation

Social Value Creation Contributing to emotionally enriched lifestyles and a more comfortable society through sound and music

Achieving the management targets adopted under the Make

Waves 2.0 medium-term management plan (2022–2025)

Non-financial targets

Further strengthen the business foundations

Yamaha Music ID registrations : 5 million IDs
Number of new concept products introduced : 20 models
Investment in production infrastructure : ¥35 billion

Set sustainability as a source of value

Spread of instrumental music education in emerging countries : 2.3 million students(cumulative total)
Sustainably sourced timber use rate : 75% (Company standard)
Reduction of CO₂ emissions by energy conservation at business sites: 5% (CO2 emissions ÷ Production volume; compared with fiscal 2018)

Enable Yamaha colleagues to be more valued, more engaged and more committed

Positive response rate for job satisfaction in the employee engagement survey : continuous improvement
Percentage of female manager : 19%
Positive response rate for workplace environment in the employee engagement survey: continuous improvement

Financial targets

Revenue growth : 20%
Core operating profit ratio : 14%
ROE : 10% or more
ROIC : 10% or more

Investment and shareholder returns

[Investment] For 3 years

Regular investment ¥40.0 billion
Strategic investment ¥65.0 billion

[Shareholder returns] For 3 years

Shareholder returns and dividends ¥65.0 billion
A total return ratio of 50%

Discover More about Medium-Term Management Plan

Value Creation Process

INPUTSYamaha's Capital

BUSINESS ACTIVITIESBusinesses and Value Chain

Yamaha Philosophy

Brand Promise

Corporate Governance

Global Business Management Foundation

Our Businesses

Musical Instruments Business

Audio Equipment Business

Industrial Machinery and Components Business / Others

Our Value Chain

Musical Instruments Business

Audio Equipment Business

Industrial Machinery and Components Business / Others

What Does the Combination of Technologies and Sensibilities Entail?

Craftsmanship and technologies

Global production structure

OUTPUTSProducts and Services

Pianos

Digital musical instruments

Wind, string, and percussion instruments

Guitars

Music schools

Consumer Products

B2B Products

OUTCOMESCorporate Value Improvement

Yamaha Value Creation

Social Value Creation Contributing to emotionally enriched lifestyles and a more comfortable society through sound and music

Achieving the management targets adopted under the Make

Waves 2.0 medium-term management plan (2022–2025)

Non-financial targets

Financial targets

Investment and shareholder returns

You may also be interested in

Enactment of Yamaha’s Value Creation Story

Special Feature

Unique Value Creation