Message from Yanmar's President: WE WILL REALIZE FOUR VISIONS OF SOCIETY FULFILLING OUR MISSION STATEMENT TO SOLVE THE CHALLENGES FACING OUR CUSTOMERS AND SOCIETY Takehito Yamaoka President Yanmar Co., Ltd.

Aiming to be a Corporation for "Realizing the Maximum Prosperity with the Minimum Resources"

In recent years, the sustainable development goals (SDGs)* defined by the United Nations and the Paris Agreement decided at the 2015 United Nations Climate Change Conference (COP21)** have been adopted as in international framework for solving global social problems.

The global social problems deeply involved in the business of the Yanmar Group are multifaceted, including fears over food shortages caused by explosive population growth, and increasingly high demands for energy plus the climate change accompanied by such. Specific problems in Japan are labor shortages in agricultural and construction work due to the declining birth rate and aging population, the concentration of the population in urban areas and concomitant rural depopulation, and the abandonment of cultivated land.

We believe that we must find ways to deal with these problems through our business operations. Advancing in the areas of food production and harnessing power to build a sustainable society that enriches the lives of people across the world, as declared in our Mission Statement, our duty and corporate social responsibility here in the Yanmar Group.

Based on our brand statement, "A Sustainable Future" and incorporating the perspective of "realizing the maximum prosperity with the minimum resources," Yanmar is transforming into a corporation generating innovation after innovation to solve the problems of our customers and realize a sustainable society.

  • *Sustainable Development Goals (SDGs).
    An action plan and goals for sustainable development by 2030 adopted at the UN Sustainable Development Summit held at UN headquarters in September 2015.
  • **The Paris Agreement
    An international framework for action on global warming from 2020 onward, as agreed on at the December 2015 United Nations Climate Change Conference (COP21).

Realizing Four Visions of Society Through the Power of Technology

In 2017 Yanmar celebrated its 105th anniversary. Throughout these many years we have maintained a commitment to our founding spirit of being "grateful to serve for a better world" and that "to conserve fuel is to serve mankind." Using the technology we have built up and refined over more than a century, we are working to build a society where people and nature can live in plentiful abundance.

We aim to realize four visions of society: We envision "an energy-saving society," "a society where people can work and live with peace of mind," "a society where people can enjoy safe and plentiful food," and "a society that offers an exciting life filled with rich and fulfilling experiences." To achieve these four visions of society, Yanmar is promoting many different initiatives, such as energy systems that make efficient use of energy, using ICT and robotics technology for sustainable agriculture, and the Bio Innovation Center Kurashiki Laboratory, which is engaged in open innovation to push research and development into new fields.

Gaining a Deeper Understanding of Our Customers is Essential

Essential to realizing these four visions of society will be finding solutions on how to better utilize technology. Solving customers' challenges and increasing the customer lifecycle value demands that we gain a deeper understanding about our customers. To provide value we shouldn't just rely on our existing framework and resources. In addition to teaming up with other businesses and units within the Group, we should also be leveraging external resources.

When we share the joys of our customers by working on solutions together with them, they will, I believe, come to recognize us as an essential partner for them.

With this in mind, we are constantly aware of and working on three key points to increase the level of value we provide and give our customers lifecycle value: (1) providing value based on a deeper level of understanding of our customers, (2) transforming our operations to bring higher customer value, and (3) creating an internal corporate culture that encourages an ownership mentality.

Ownership Mentality to Better Serve Our Customers

Above all, the same rule defined in "(3) creating an internal corporate culture that promotes an ownership mentality," also applies to the soccer played by Cerezo Osaka, the team Yanmar has supported for many years. Soccer is a creative sport. While every player's position and role is pretty much decided, each player has the freedom to move about on the field and, at every stage of the game, each player has to make their own decisions and play to the best of their ability. A team that works together productively can deliver strong performance, and strong performance will lead to a goal.

To achieve Yanmar's ambitious goal of creating the society that "A SUSTAINABLE FUTURE" outlines, we cannot just wait for instructions from the team coach; we all need to take ownership and to proactively think about where value lies for the customer. By doing this, we will all feel a sense of purpose in what we do at work. That is the reason why we always make sure our workplaces are ones where our employees feel empowered to work. We look forward to your advice and suggestions to help us achieve our goals.