O U R V A L U E C R E A T I O N
I. Value Creation by Yamaha
Yamaha's Path of Ambition | 06 |
Yamaha's Business | 08 |
Management Vision and Value Creation Story | 10 |
Special Feature: | |
Enactment of Yamaha's Value Creation Story | 12 |
Performance Highlights | 16 |
Yamaha by Creation Value
04 | Yamaha Group Annual Report 2021 | Yamaha Group Annual Report 2021 | 05 | ||
YAMAHA'S PATH OF AMBITION
The origins of the Yamaha Group date back to 1887, when company founder Torakusu Yamaha repaired an imported reed organ. Since then, Yamaha has aimed to create excitement and
1980
Advancement of Technology
Yamaha promoted the in-house production of semiconductors with the aim of improving the sound quality of its digital musical instruments. This process led the Company to develop new digital musical instruments and audio equipment with proprietary LSIs, thereby greatly expanding the scope and geographical breadth of its operations. The Company adopted its current name of Yamaha Corporation in conjunction with its centennial anniversary in 1987, becoming a global company in both name and substance.
DX7 digital synthesizer
SILENT™ Series
cultural inspiration together with people around the world while centering its business on sound and music. This spirit has continued to live on in the Yamaha Group throughout the course of its history that spans over 130 years, granting it strength and constantly driving it toward growth.
1887 | 1887 |
Domestic Production of Musical Instruments Beginning with Organ Repair
Following the repair of a single organ, Company founder Torakusu Yamaha succeeded in creating domestically produced organs in Japan. This success prompted him to establish Nippon Gakki Co., Ltd. (currently Yamaha Corporation), and commence the domestic manufacture of pianos. Through this undertaking, he created the foundations for the musical instruments business that is the core business of Yamaha today, while also proposing the culture of enjoying musical instruments to the people of Japan. This is the point of origin of Yamaha's 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."
The three tuning forks of the Yamaha brand logo repre- | |||
sent the cooperative relationship that links the three | |||
Origin of Yamaha's Competitiveness | pillars of our business-technology, production, and | ||
Symbolism of the Yamaha Brand | sales. They also evoke the robust vitality that has | ||
forged our reputation for sound and music the world | |||
over, a territory signified by the enclosing circle. In | |||
addition, the mark symbolizes the union of three essen- | Founder Torakusu Yamaha |
tial musical elements: melody, harmony, and rhythm. The spirit of our founder expressed in this logo lives on today, spurring us forward to continue enhancing the Yamaha brand.
20001990
2010
Yamaha has amassed acoustic technologies in tandem with technological progress since its | |
Origin of Yamaha's Competitiveness | founding. By combining these technologies with digital technologies, we have been able to |
create new products that are distinctively Yamaha. Digital technologies were embraced not | |
Value-Creating Combination of | |
only in product development but also in production activities, massively increasing produc- | |
Acoustic and Digital Technologies | tion efficiency and greatly contributing to today's acceleration of digital transformation. |
Next Growth Stage Arrived at through Selection and Concentration and Structural Reforms in Core Business
The following years were characterized by massive changes to the operating environ- | |||||||||||
ment, including ongoing yen appreciation, a shift to digital technologies, the special- | |||||||||||
ization of industries arising from the globalization trend, and global financial crises. | Active field control hall | VOCALOID™ | |||||||||
Amid this change, Yamaha undertook selection and concentration of its diversified | |||||||||||
acoustics design system | |||||||||||
businesses to focus more on its core business centered on sound and music. This | |||||||||||
move saw us reorganizing and consolidating domestic and overseas production and | |||||||||||
sales bases, merging the diverse technologies we had accumulated thus far, and | |||||||||||
acquiring overseas companies to accelerate growth. This was the start of business | Acquisition of overseas companies | ||||||||||
reorganizations aimed at taking our business to the next growth stage. | |||||||||||
Origin of Yamaha's Competitiveness | Yamaha proceeded to develop growth foundations in its core business while conducting | ||||||||||
M&As. For example, Germany-based Steinberg Media Technologies GmbH, Austrian-based | |||||||||||
Strengthening of Growth | L. Bösendorfer Klavierfabrik GmbH, and French-based Nexo S.A. were acquired in the 2000s. | ||||||||||
Foundations and M&As in | These business combinations had a ripple effect that strengthened our foundations and | ||||||||||
spurred the growth of our business. The benefits included the ability to merge our hardware | |||||||||||
Core Business | |||||||||||
and software in the music production field, the enhancement of our | presence in the premium |
piano market, and the provision of comprehensive solutions in the audio equipment business.
Yamaha by Creation Value
1940
Resolution of Social Issues and Improvement of Corporate Value to Become an Indispensable, Brilliantly Individual Company
1950
Spread of Music Culture, Diversification of Business, and Expansion Overseas as a Comprehensive Musical Instrument Manufacturer
Inspired by a desire to communicate the joy of music to as many people as possible, Yamaha began efforts to promote the spread of music, such as organ classes (predecessor of the Yamaha Music School). Meanwhile, the technology and sensibilities cultivated through the manufacture of musical instruments was adapted to broaden product lines to include audio equipment and to develop new businesses such as motorcycles, which would lead to the creation of Yamaha Motor Co., Ltd., and also sports equipment.
- In 1958, Yamaha established its first overseas subsidiary in Mexico, marking the start of its global expansion as a comprehensive musical instrument manufacturer.
Yamaha has been engaged in an ongoing effort to establish a competitive edge and achieve improvements in profitability. Steps to this end have included transitioning from organizations based on business lines to organizations arranged by function. In addition, we have been optimizing prices while developing products with distinctive individuality and entering into new markets by merging our technologies. We have also been advancing global branding strategies, establishing the management vision of "Becoming an Indispensable, Brilliantly Individual Company" in 2016 and the brand promise of "Make Waves" in 2019. Furthermore, Yamaha is supplying new solutions that respond to recent changes in the social climate through sound and music. Examples of these solutions include the SYNCROOM online remote ensemble performance service, the Remote Cheerer powered by SoundUD remote cheering system, and the Distance Viewing next-generation live viewing service. By delivering these solutions, we aim to contribute to the resolution of social issues and improve corporate value.
SYNCROOM online remote | Distance Viewing next- |
ensemble performance service | generation live viewing service |
Yamaha Ginza Building | Charlie™ communication |
reopened as an experience- | robot that matches its |
1960 | |||
Yamaha expanded its global sales network | |||
Origin of Yamaha's Competitiveness | with the establishment of Yamaha de México, | ||
S.A. de C.V., its first | overseas subsidiary in | ||
Laying of Groundwork | |||
Mexico, in 1958, and developed a production | |||
1970 | as a Global Company | basis in Taiwan in 1969. This groundwork | |
served as a springboard for the aggressive | |||
overseas expansion of the Company begin- | |||
ning in the 1970s. Having quickly solidified its | global network, Yamaha was able to leverage this | ||
network to exhibit significant competitiveness, supporting the growth of the Company, which | |||
has more than 70% of its revenue generated overseas today. | Yamaha de México, S.A. de C.V. |
2020
oriented brand shop in 2021 cadence to melodies |
Origin of Yamaha's Competitiveness | The transition to organizations arranged by function | |
allowed for the consolidation and cross-organizational | ||
Creation of Synergies and | utilization of the previously separate management | |
Refinement of Strengths through | resources that had been accumulated thus far. We were | |
thereby able to further refine our existing strengths, | ||
Consolidation of Insight | ||
including our production technologies, which combine | ||
our craftsmanship with core and other technologies; our | ||
music promotion, sales, and personal connection networks, which are several steps ahead of those of | ||
competitors; and our healthy financial position. | Meanwhile, various unique, new products are being born |
out of synergies between our various insight and technologies at the Innovation Center, established in 2018. Centered on the combination of technologies and sensibilities, Yamaha is able to heighten its
development capabilities in new sound and music fields that make use of physical sensibility evaluation | Innovation Center |
technologies for quantifying sensibilities, material element technologies, artificial intelligence (AI) tech- | |
nologies, and elemental technologies. In this manner, we are capable of proposing new value. |
06 | Yamaha Group Annual Report 2021 | Yamaha Group Annual Report 2021 | 07 | ||
YAMAHA'S BUSINESS
"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."
Groupwide Business Overview and Consolidated Revenue and Core Operating Profit
Major Products and Distribution of Revenue of Yamaha's Three Core Businesses
Yamaha is the world's largest comprehensive musical instrument manufacturer, producing and selling a complete lineup of products ranging from acoustic to digital musical instruments. We are developing wide-ranging, global operations spanning from businesses related to sound and music, encompassing musical instruments, professional audio (PA) equipment, and audio equipment, and component businesses focused on network equipment and semiconductors.
Global Business Scale, Ratio of Overseas Revenue, and Market Share (Fiscal 2021, IFRS)
Revenue Composition and Number of Employees by Region
Yamaha by Creation Value
Musical Instruments Business
For information on the strategies of the musical instruments business, please refer to page 60.
¥239.0 billion (64.1%)
Fiscal 2021 (IFRS)
Revenue
¥372.6 billion
Audio Equipment Business
For information on the strategies of the audio equipment business, please refer to page 64.
¥103.8 billion (27.9%)
Commercial audio
equipment
Other regions | Japan | Japan | |||||||
¥57.5 billion (15.4%) | ¥108.2 billion (29.0%) | Other regions | 5,672 employees | ||||||
Number of | |||||||||
China | Revenue | 7,478 employees | |||||||
employees | |||||||||
¥57.7 billion (15.5%) | ¥372.6 billion | 20,021 | North America | ||||||
Europe | North America | China | 742 employees | ||||||
¥73.2 billion (19.6%) | ¥76.0 billion (20.4%) | 5,018 employees | Europe | ||||||
1,111 employees | |||||||||
Network devices | AV products |
Core operating profit | |
¥40.7 billion | |
Voice communication | Music production |
equipment | equipment and software |
Others (Industrial Machinery and |
Overseas Revenue Driving Growth
Ratio of Overseas Revenue
(%) |
Distribution of Musical Instruments and Audio Equipment Sales by Region*
Digital musical instruments | Components Business, etc.) |
For information on the strategies of the industrial machinery | |
and components business, please refer to page 66. |
¥29.8 billion (8.0%)
100 | ||||||||
75 | ||||||||
71.0% | ||||||||
62.9% | ||||||||
50 | ||||||||
47.3% | ||||||||
41.4% | ||||||||
25 | ||||||||
0 | 05/3* | 10/3* | 15/3* | 21/3 |
Overseas Japan
Other regions
16.9%
China
18.4%
Europe
24.2%
Japan
16.7%
North America
23.8%
Wind, string, and | Guitars | Music schools | Electronic devices Factory automation | Automobile interior | Golf products, |
percussion instruments | (FA) equipment | wood components | resort facilities |
* Ratio of overseas revenue (J-GAAP)
* Excludes revenue from music schools and other services
Breakdown of Core Operating Profit (Operating Income) and Core Operating Profit Ratio (Operating Income Ratio)
(Billions of yen) | (%) | ||
80 | J-GAAP | IFRS | 40 |
60 | 48.8 | 56.0 | 52.7 | 30 | ||||||||
44.3 | 46.4 | 47.0 | ||||||||||
40.7 | 40.7 | |||||||||||
40 | 26.0 | 30.1 | 10.9% | 12.8% | 12.1% | 11.2% | 20 | |||||
9.3% | 11.8% | |||||||||||
20 | 9.2 | 6.3% | 11.3% | 10.9% | 10 | |||||||
2.5% | 7.0% | |||||||||||
0 | 0 |
(20) | 13/3 | 14/3 | 15/3 | 16/3 | 17/3 | 18/3 | J-GAAP | IFRS | 20/3 | 21/3 | 22/3 | (10) |
(Forecast) | |
19/3 | |
Core Operating Profit (Operating Income) Musical instruments business Audio equipment business Others
Core Operating Profit Ratio (Operating Income Ratio) (right)
Core Yamaha Products Boasting High Market Shares
Global Market Shares of Major Products (Fiscal 2021, monetary value basis, based on surveys by Yamaha)
All Musical Instruments | Pianos | Digital Pianos | Portable Keyboards |
26% | 39% | 47% | 52% |
Wind Instruments
31% |
Guitars
9% |
08 | Yamaha Group Annual Report 2021 | Yamaha Group Annual Report 2021 | 09 |
MANAGEMENT VISION AND VALUE CREATION STORY
Value Creation Story
Enhance Corporate Value and
Realize Vision 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 by pursuing a cycle that improves both brand and corporate value. Yamaha's current value creation process is as described in the table below.
The global COVID-19 pandemic is having a massive impact on our lives and on the global economy. Yamaha, however, sees this adversity as an opportunity to further its evolution. Accordingly, we are endeavoring to respond to the constantly changing social needs and issues with the aim of continuing to help resolve social issues through our businesses, and thereby improving corporate value.
Please refer to the following website for more information on Yamaha's value creation story. https://www.yamaha.com/en/ir/story/
Management Vision
Becoming an Indispensable,
Brilliantly Individual Company
Boost brand power to become a highly profitable enterprise
Corporate value improvement
Customers
Finance Brand Technology
Yamaha by Creation Value
Customers
Finance Brand Technology
People
Culture, Society, and
Environment
Value Creation Process
Yamaha value creation | |
Value creation process | Social value creation |
Measures for Preventing Erosion of Value
Yamaha is ramping up its sustainability and risk management initiatives to minimize the potential negative impact of its business activities on the environment and society as well as the impacts of risks that could seriously threaten the Company's performance and financial condition.
Please refer to page 42 for more information on sustainability management initiatives and page 94 for information on risk management initiatives.
People
Culture, Society, and
Environment
Yamaha Philosophy and Brand Promise
Research and | Production | Sales and Marketing | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
P.72 | P.74 | |||||||||||||||||||||||||||||||
P.68 | ||||||||||||||||||||||||||||||||
Musical | Global | |||||||||||||||||||||||||||||||
Instruments | Craftsmanship | |||||||||||||||||||||||||||||||
Business | Acoustic technologies | network | ||||||||||||||||||||||||||||||
P.60 | ||||||||||||||||||||||||||||||||
Integration | ||||||||||||||||||||||||||||||||
Sensibilities | ||||||||||||||||||||||||||||||||
Businesses and | ||||||||||||||||||||||||||||||||
Value Chain | pervading Yamaha technologies | |||||||||||||||||||||||||||||||
Understanding | ||||||||||||||||||||||||||||||||
Technologies | Customer interface | |||||||||||||||||||||||||||||||
Audio Equipment | of high-quality sound | |||||||||||||||||||||||||||||||
(Broader, deeper, and longer) | ||||||||||||||||||||||||||||||||
Business | ||||||||||||||||||||||||||||||||
Sales networks and | ||||||||||||||||||||||||||||||||
P.64 | Digital | store strategies | ||||||||||||||||||||||||||||||
Bases for R&D activities, | ||||||||||||||||||||||||||||||||
technologies | ||||||||||||||||||||||||||||||||
artist relationships, and | ||||||||||||||||||||||||||||||||
service center | ||||||||||||||||||||||||||||||||
Industrial | Customer data platform (CDP) | |||||||||||||||||||||||||||||||
Machinery and | ||||||||||||||||||||||||||||||||
/ Digital marketing | ||||||||||||||||||||||||||||||||
Mass production technologies | ||||||||||||||||||||||||||||||||
Components | ||||||||||||||||||||||||||||||||
Business / Others | and cost strategies | Activities to popularize music | ||||||||||||||||||||||||||||||
Innovation Center | Overseas base strategies | |||||||||||||||||||||||||||||||
P.66 | ||||||||||||||||||||||||||||||||
Corporate Governance P.84 / Global Business Management Foundation
Products and Services
P.08
Products and Services Centered
on Sound and Music
Musical instruments
Audio equipment
Music schools
Other products and services
Output
Yamaha Value Creation
Achieving the management targets adopted under the Make Waves 1.0 medium-term management plan (2019-2022)
Corporate value (market capitalization):
¥1 trillion +
Financial targets (IFRS)
Core operating profit ratio*: 13.8%
Return on equity (ROE)*: 11.5%
Output | Earnings per share (EPS)*: ¥270 | ||||
Non-financial targets | |||||
Corporate brand value: +30% | |||||
Music popularization for learning musical instruments | |||||
in emerging markets (cumulative total): | |||||
1 million people | |||||
Certified timber use: 50% of total use | |||||
Investment and shareholder returns | |||||
Total return ratio: 50% | |||||
Social Value Creation |
Contributing to emotionally enriched lifestyles and a more comfortable society through sound and music
10 Yamaha Group Annual Report 2021
* Based on the impacts on the operating environment from the COVID-19 pandemic, the consolidated performance forecasts for fiscal 2022 announced at the financial results briefing for fiscal 2021 held on May 10, 2021, call for a core operating profit ratio of 11.8%, ROE of 10.0%, and EPS of ¥233. These forecasts assume foreign exchange rates of U.S.$1 = ¥105 and €1 = ¥125.
Yamaha Group Annual Report 2021 | 11 | |
SPECIAL FEATURE:
ENACTMENT OF YAMAHA'S VALUE CREATION STORY
SPECIAL FEATURE: ENACTMENT OF YAMAHA'S VALUE CREATION STORY
Yamaha by Creation Value
New Form of Remote Communication
Remote Meeting System Responding to Rising Social Needs
Proposed through Sound and Network Technologies
The global COVID-19 pandemic transformed how we communicate with other people. This transformation also extended to the environments in which we work as teleworking systems were introduced around the world. It can therefore be expected that workstyles unbound by place will continue to become more commonplace and entrenched going forward.
Yamaha has long been expanding its lineup of sound environment products that help make teleconferences and web conferences more comfortable as solutions for supporting workstyle reforms. We continue to combine the sound and network technologies and expertise we have accumulated over the years to propose new forms of remote communication that will be indispensable in this new era.
Teleconferences, web conferences, and other forms of remote meetings have become an indispensable form of communication underpinning teleworking and other diverse workstyles.
At the same time, needs pertaining to office meeting rooms are growing increasingly more diverse as companies seek to allow for layouts to be flexibly rearranged in order to ensure appropriate distance is maintained between participants, to utilize meeting rooms more efficiently based on the number of participants and the goals of meetings, and to install more comfortable sound environments. Against this backdrop, Yamaha's remote meeting solutions, which combine its sound and network technologies, are garnering attention.
-
One such solution is our ADECIA comprehensive remote conferencing solution. Launched in January 2021, ADECIA is a system for medium-sized meeting rooms comprised of components including ceiling array microphones and proces- sors, which enable it to cater to diverse needs by allowing for easy and flexible introduction and utilization of comfortable, high-quality communication environments. One characteristic of ADECIA is its use of multibeam tracking, a technology that effectively captures the voice of speakers while limiting the transmission of unnecessary noise from the surroundings, to realize high-quality communication. In addition, we released the RM-TT tabletop array microphone in June 2021. The ease of deployment this microphone makes it perfect for support- ing diverse remote meeting styles. These offerings use
our proprietary sound signal processing technology to
accommodate simultaneous speech by multiple individuals and thereby transmit the on-site atmosphere of meetings to remote locations intact. Moreover, we provide all of the equipment and functions necessary for remote meetings, and are thereby able to resolve any issue faced with this regard, starting with determining the necessary equipment when considering the introduction of remote meeting systems and moving on to the installation of equipment and the adjustment of acoustics.
- Furthermore, Yamaha boasts a robust lineup of products for all meeting sizes and applications, ranging from its YVC-200 and YVC-330 unified communication speakerphones for small
meetings to its YVC-1000 unified communication microphone and speaker systems for medium-sized to large meetings. We are thereby able to propose a multitude of products that realize comfortable, high-quality remote communication, whether in noisy open spaces or in quiet meeting rooms.
12 | Yamaha Group Annual Report 2021 | Yamaha Group Annual Report 2021 | 13 | ||
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Yamaha Corporation published this content on 25 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2021 04:59:07 UTC.