Medium-Term Management Plan
The Yamaha Group hereby announces that it has newly formulated the “Rebuild & Evolve” Medium-Term Management Plan, to cover the three years from April 2025, following the “Make Waves 2.0” plan that concluded in March 2025.
Review of Previous Medium-Term Management Plan and Business Trend Recognition
Review of Previous Medium-Term Management Plan
“Make Waves 2.0,” the previous medium-term management plan, was to cover a three-year period to enhance sustainable growth capability in the post COVID-19 new society. Under this plan, the Yamaha Group has been implementing various measures based on three policies: “further strengthen the business foundation,” “set sustainability as a source of value,” and “enable Yamaha colleagues to be more valued, more engaged, and more committed.” As for financial indicators, the Group was unable to fully keep pace with the rapid changes in the market and environment, and despite progressing with structural reforms, it did not achieve the targets. This has made it clear that “quick adaptability to environmental changes and investments in growth” have become issues for us to address. As for the non-financial indicators set forth in the previous medium-term management plan, although investment targets in production infrastructure were not realized due to production structure reforms, mainly for pianos, the Group was able to generally achieve other targets.
Business Trend Recognition
Throughout the previous medium-term management plan period, the business environment surrounding Yamaha changed at an unprecedented speed. In addition to changes in the macro environment, such as economic fluctuations, price hikes, currency risks, and geopolitical risks, customers' values and lifestyles have been diversifying and their purchasing behavior is rapidly shifting to online buying. It is no exaggeration to say that technological innovation, especially the evolution of generative AI, is fundamentally changing the way business is done.
In this kind of environment, companies are expected to do more than maintain the status quo. Yamaha must be quick and flexible, unafraid of dynamic change, and instead be willing to use it as an opportunity for growth. As a Group centered on sound and music, Yamaha recognizes this situation as a chance to expand business opportunities by taking on the challenge of creating new unique value, as well as providing experiential value that is in tune with diverse lifestyles and values.
New Medium-Term Management Plan
Rebuild & Evolve
April 2025 - March 2028
Management Vision
Material Issues
To realize our management vision and achieve sustainable growth, we must sincerely address social issues and enhance the significance of our company’s existence. Based on this approach, we have identified material issues, that Yamaha should address within society.
By integrating these issues into our management strategy, we aim to become a company that grows together with society.
Key Issues and Outline of the Strategies
A review of the management vision, management material issues, and previous medium-term management plan identified several issues. The first one, Yamaha's top priority, is to restore the falling earning power of existing businesses to pre-pandemic levels and return them to a growth trajectory. The next issue is to cultivate and commercialize adjacent and new areas through strategic investments for medium- to long-term growth. The final challenge is to increase capital and asset efficiency, strengthen human capital and governance to create a stable management foundation supporting sustainable growth. The title of the new medium-term management plan is “Rebuild & Evolve,” and the word “evolve” was specifically chosen with the intention of making “evolving to create the future” not merely an expansion of the Group's domains, but a qualitative change in Yamaha's overall business.
Key Issues 1
Top priority is to restore reduced profitability of
current mainstay existing businesses, to prepandemic levels
Key Issues 2
Must cultivate and commercialize adjacent and new business areas
through strategic investments for medium- to long-term growth
Rebuild
Improving profitability of existing businesses and returning to a growth trajectory
Evolve
Expanding business and market domains through aggressive investment
Strengthening capital efficiency, human capital, and corporate governance for sustainable growth
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Rebuilding a strong business foundation（Rebuild）
Yamaha will conduct a fundamental review of the state of existing businesses, with the aim of rapidly remolding them into what they should be, adapting them to the business environment. Firstly, the Group will thoroughly review the profit structure of challenging businesses.
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Evolving to create the future（Evolve）
Yamaha aims to expand its business into new domains toward sustainable business growth. We will promote initiatives from a medium- to long-term perspective, such as creating new customer experiences and establishing mechanisms for launching new businesses.
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Strengthening the management foundation
To achieve sustainable growth, Yamaha will strengthen its management foundation. We will work to improve capital and asset efficiency, strengthening human capital, and enhancing corporate governance.
Strategic Policy and Key Themes
The following is an overview of the key themes based on each strategic policy. We aim to achieve our management vision by promoting initiatives in line with these three policies.
Creating a future where individuality shines through the power of sound and music
Enhance corporate value through the co-creation of social value
Management Targets
We aim to achieve CAGR of 5% and ROE of 10% in the final year. These are our top management goals for the 3 year medium-term plan. In addition, we have established multifaceted KPI indicators to monitor the degree of achievement of each key strategy. By balancing efforts to improve short-term profitability with building a strong foundation for medium- to long-term growth, we will strive to achieve sustainable enhancement of corporate value.
Financial targets
Revenue growth rate (CAGR)
ROE
Core operating profit ratio
Total return ratio
KPIs measuring achievement of each key strategy
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Rebuilding a strong business foundation
Indicator for Expansion of Existing Business Scale
Revenue growth rate
(CAGR) by segmentMusical instruments4% Audio equipment7% Indicator for Profit Improvement
Core operating profit ratio by segment Musical instruments14% Audio equipment12% -
Evolving to create the future
Indicators for Domain Expansion
Strategic investments ¥60billion Yamaha Music IDs 10million IDs India and Philippines
growth rate (CAGR)18% Indicator for New Value Creation
Number of commercializations
and service adoptions
in new/adjacent areas20 -
Strengthening the management foundation
Indicators for Capital and Asset Efficiency
ROIC by segment
(% increase)Musical instruments+7% Audio equipment+3% Indicators for Strengthening of Human Capital
Investment in human capital 1.5x Percentage of female managers 24% -
Setting sustainability as a source of value
Environmental Indicators
Sustainably sourced timber 80% Elimination of plastic packaging -25% *1
CO2 emission reduction rate -30% *2
Social Indicators
Use cases for resolving social issues 20 On-site supplier audits 60companies Cultural Indicators
Music culture support activities 12,000 Children in school projects (cumulative) 7million
- 1Styrofoam (vs. FY2022)
- 2Scopes 1+2 (vs. FY2017)
- 3Activities to create opportunities for people to connect through music
Business Portfolio
Yamaha positions our core businesses in three areas based on profitability and growth rates. We're building strategies for existing business areas by clearly dividing them into two categories: those where it will strengthen efforts to accelerate growth and those where it will focus on improving profitability. In addition, we will strengthen its efforts to generate new growth and develop them into future pillars.
Cash allocation and strategic investments
We will allocate cash generated from operations in a balanced manner to strategic investment in growth areas and new business development, as well as to shareholder returns.
Growth Factors
In terms of sales growth rate, audio equipment has surpassed musical instruments. However, an increase in core operating profit for musical instruments is expected due to the recovery of profit margins, which declined during the previous medium-term management plan.
Revenue (3-year sales CAGR for the mid-term plan)
Core operating Profit
Presentation of New Medium-Term Management Plan (April 1, 2025 to March 31, 2028)
| Date | Thursday, May 8, 2025, 5:00PM [JST] |
|---|---|
| Presenter | Atsushi Yamaura, President and Representative Executive Officer |
| Documents | |
| Video Presentation |
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![[thumbnail] Sustainability](https://www.yamaha.com/en/common/images/bnr_sustainability_img.png)
![[thumbnail] Philosophy & Vision](https://www.yamaha.com/en/common/images/bnr_vision_img.png)
![[thumbnail] Learn About Yamaha](https://www.yamaha.com/en/common/images/bnr_individual_img.png)