President's Message: OUR SUSTAINABLE FUTURE INITIATIVES ARE HELPING SOCIETY ACHIEVE SUSTAINABLE DEVELOPMENT GOALS

Working Toward Sustainability And Creating New Opportunities

The environment that the Yanmar Group operates in has undergone considerable changes in recent years. While global population is on the rise, there are not enough new farmlands to keep up with the population increase, and the number of people working in the ag sector is expected to decrease. As a result, there will be a bigger need for food production improvements, including in the fishing industry.

Meanwhile, greater urbanization around the world means that the demand for construction equipment, climate control and power generation used in urban infrastructure will increase. With the spread of technologies such as IoT, all sorts of different things and businesses are becoming connected, and this is giving rise around the world to new forms of value that were never even imagined before.

While threats associated with changes in the business environment exist, such as new power sources, demand is increasing in a number of our business areas in food production and urban infrastructure, meaning that for the Yanmar Group, we can look forward to greater business opportunities.

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, is our duty and corporate social responsibility here at Yanmar. As a tech company that "realizes the maximum prosperity using the minimum resources" , we are committed to making innovations that help our customers and the wider community overcome challenges.

Achieving A Sustainable Future

Our vision for A SUSTAINABLE FUTURE is broken down into four areas: "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". Through research and development and other activities, we are committed to achieving these four visions.

Take for example, our duel fuel engines used in commercial marine engines that are contributing to an "energy-saving society" . In addition to this, we are researching hydrogen as a next-generation energy. No CO2 is emitted when using hydrogen. For the time being, our research is focused on fuel cells in boats. We will continue promoting initiatives for reducing environmental impact, and developing highly-efficient, clean engines.

In relation to creating "a society where people can enjoy safe and plentiful food," Yanmar research and development is working on minimizing farm work through the use of telematics. Recently we launched an autonomous tractor. Another area that Yanmar is working on is food. Building on our technology background, Yanmar is connecting farmers with consumers in the Yanmar Premium Marché project, and driving demand for rice products by developing Rice Gelée, a gluten free rice product that can be used in a wide range of foods.

Working Toward SDGs by Helping Society Overcome Challenges

Three years ago, the United Nations General Assembly established sustainable development goals (SDGs) to be achieved by 2030. In 2018, countries, governments and corporations have been carrying out a range of initiatives to achieve these goals.

The four visions of society that Yanmar is working toward in A Sustainable Future, share a lot of similarities with the sustainable development goals. By working toward A Sustainable Future, we will be working toward achieving the SDGs as well.

In July of 2018, we created the Yanmar Group Environment Vision 2030 to contribute to the sustainable development goals. In an effort to reduce global warming, our goal is to reduce CO2 intensity by 30% compared to 2005 levels.

Providing Solutions That Exceed Customer Expectations

Since our founding in 1912, we have made innovative technology, products and services with a genuine desire to help our customers. Rather than just selling machines, it was always about delivering solutions. Even as the times change and our markets expand beyond Japan and over the world, providing solutions is our mission and key to our continued success.

To realize A Sustainable Future on a global scale, we are committed to deliver solutions that make life easier for our customers.