YASKAWA Electric : Business Model

OUR PHILOSOPHY​

Toward the Realization

of the Automation Revolution

Since its establishment in 1915, Yaskawa Electric has focused on the field of electric motors and their applica- tions, and has always supported the cutting-edge industries of the age with its products and technologies.

The aspirations of our founder, Daigoro Yasukawa, have been passed down and taken root through management principle in Yaskawa Group.

With management principle always at the center of our business activities, we will utilize the core technologies we have cultivated to contribute to solving our customers' management issues and to solving environmental and other social issues.

Yaskawa Group Principle of Management

At Yaskawa our mission is to leverage the pursuit of our business to contribute to the advancement of society and the well-being of humankind.

We will realize our mission by executing these core tenets:

1．Develop and enhance world-class technologies, with an emphasis on our foundation of quality.

2．Boost management and operation efficiency and achieve the returns necessary for the successful growth of the company.

3．Satisfy the needs of the market and dedicate ourselves to serving our customers as a customer centric organization.

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Contents

Business Model

1. Our Identity

1. History

1. Industry-Leading Global Network

1. Presence of the Yaskawa Group

1. Value Creation Process to Realize Long-Term Business Plan "Vision 2025"

1. Solution Concept "i3-Mechatronics"

Vision and Strategy

1. Message from the President

1. Sustainability Management

1. Message from the Management

1. Environmental Management of the Yaskawa Group

1. Disclosure of Climate Change-Related Information Based on TCFD Recommendations

1. Review of Mid-Term Business Plans

1. Mid-term Business Plan "Challenge 25 Plus"

1. Special Feature: Enhancing Development Capabilities

Management Capitals

33 Financial Capital

1. Manufactured Capital

1. Intellectual Capital

1. Human Capital

1. Social and Relationship Capital

1. Natural Capital

Corporate Governance

45 Corporate Governance

1. Members of the Board of Directors

1. Executive Officers

Business Promotion

55 At a Glance

57 Business Strategy

Financial and Corporate Information

65 10-Year Financial Data

1. Disclosure Policy and IR Activities
2. Corporate Information and Stock-Related Information

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Our Identity

OUR IDENTITY

Six DNAs that have been nurtured since

our founding (Corporate Culture)

• A company founded on technology

Continuing the founder's desire to "make efforts to design and produce products unique to our company," rather than imitating the precedent of the West, we always create cutting-edge technologies and products based on our corporate motto to be a company founded on technology.

• Pursuing customer satisfaction

We implement the sales policy from the time of the company's founding that "The first priority shall be to never forget our ideals for the sake of temporary profits and to satisfy our customers with all our sincerity."

• Quality-oriented

We apply the concept of quality that has been fostered through the construction of customer production facilities that do not stop 24 hours a day to products and

and aim for overall customer satisfaction.

• Mechatronics

We proposed the concept of "mechatronics (mechanism + electronics)" for the first the world in 1969 based on the idea to achieve higher performance by combining

customer machines with Yaskawa motors and controllers.

• Policy management

In the 1980s, Yaskawa established a management system based on TQC (Total Quality Control) as a tool to shape the entire company toward the Mechatronics business vision and established it as a corporate culture.

• Glocal management

In addition to management based on a global concept, we implement "glocal" manage- ment, including local production for local consumption and global sales networks, so that we can respond appropriately to local needs anywhere in the world.

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Business Model	Vision and Strategy	Management Capitals	Corporate Governance	Business Promotion	Financial and Corporate
Information

Our Strengths

R & D focused on the world's first

and best technologies

Customers' trust

Ability to create innovation

Ability to execute business

Global management rooted

in local communities

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History

OUR HISTORY

Since its establishment in 1915, Yaskawa Electric has constantly strived to take on

Promoter

Keiichiro Yasukawa

Keiichiro Yasukawa, the promoter of Yaskawa absorbed new knowledge and philosophies from the West. He engaged himself in mining, later expanding his business to spinning, steel, railway and banking. He personally funded the opening of Meiji College of Technology, a vocational school for training engineers. The school later became Kyushu Institute of Technology, and continues to produce numerous engineers to this day.

the latest technologies of the times, upholding its corporate motto of being "a company founded on technology" and defining its business domain as "electric motors and their applications." Over the past 100 years since its founding, the six DNAs that have been nurtured as a result of the wisdom of the people in each era and the bold challenges made without fear of failure have become the key corporate cultures that give Yaskawa Group its strength today.

1915

Founding

Electric motors were starting to advance into all industrial segments as replacements for steam engine at the beginning of the Taisho period. Daigoro Yasukawa, the fifth son of Keiichiro, was among those who learned the fundamentals of such leading-edge tech- nology. In 1915, with his father promising "to provide financial support, but not interfere with the way you run the business," Daigoro founded our predecessor, Yaskawa Electric Manufacturing Co. The company started its business by manufacturing electric motors for mining, where the imported products dominated and domestically produced motors were scarce. Daigoro wished to contribute to the nation by exporting domestically produced motors to overseas as "motivation of establishment," and aimed at undertaking the business with the company's own technolo- gies, not by copying the leading Western products.

Founder

Daigoro Yasukawa

Three-phase induction motor Yaskawa's first

commercial product

The first VS motor 5HP	Minertia motor
A motor that became the basis for the servo motor available today.
Variable speed motor
A revolutionary product that had a response rate 100 times greater
	than conventional motors.

Development of society and industry

Developments in management

Six DNAs that have been nurtured since our founding (corporate culture)

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Electric Motors and their Applications

1915-

Startup period

Coal mining equipment shifted from steam engines to electricity (motor)

• In addition to various motors, a variety of prod- ucts such as switches and transformers were developed, but the Company was in the red for 17 years since its establishment.
• Focused management resources on "electric motors and their applications"
• Set forth a business policy stating that "the first priority shall be to never forget our ideals for the sake of temporary profits and to satisfy our customers with all our sincerity."
• Focused on motors as hardware and intelli- gence as software to control motors

Company founded on technology

Pursuing customer satisfaction

Motion Control

1950-

Motor manufacturer

Energy shifted from coal to oil, and the heavy and chemical industries developed

• Shifted business to production facilities (pro- cess automation) for materials such as steel manufacturing and spinning, which require stable operation 24 hours a day
• Achieved results in blast furnace electric prod- ucts and Increased market share
• Proposed concept of "Mechatronics" ahead of the world (1969)

Quality-oriented