YASKAWA Electric : FY2019-FY2022 Mid-term Business Plan “Challenge 25 Plus”

FY2019-FY2022Mid-term Business Plan

"Challenge 25 Plus"

April 9th, 2021

© 2021 YASKAWA Electric Corporation

Progress of Mid-term Business Plan

"Challenge 25"

© 2021 YASKAWA Electric Corporation	1

Progress of Mid-term Business Plan "Challenge 25"

・Social and environmental assumptions significantly changed due to US-China trade conflict and the impact of Coronavirus (COVID-19)

・The market environment surrounding Yaskawa was worse than expected

		Revenue	Operationg profit	Operating profit ratio
	11.2%	(bn. JPY)	(bn. JPY)	13.0%
6000		5.9%	7.0%	540.0	1000.0
474.6
5000	411.0	389.7	70.0	800.0
4000	53.1
			600.0
3000
2000		24.2	27.2		400.0
1000					200.0
0	FY2018	FY2019	FY2020	FY2021(Goal)	0.0
ROE	17.9%	6.6%	8.0%	(Announced in June 2019)
15.0% or more
ROIC	17.7%	5.9%	7.0%
15.0% or more
Dividend
33.4%	87.5%	33.1%
payout ratio	30.0% or more

Dash 25 (FY2016-FY2018)	Challenge 25 (FY2019-FY2021)
Note 1.	IFRS standards for FY2018-FY2020 results
Note 2.	FY2021 plan were at the time of "Challenge 25" release (June 2019)
	© 2021 YASKAWA Electric Corporation	2

Achievements and Challenges of Mid-term Business Plan "Challenge 25"

Achievements of "Challenge 25"

Basic Policy 1. Transform Business Model through i3-Mechatronics

・Establishment of "i3-Mechatronics CLUB"

・Strengthened service structure by group reorganization ・Started operation of "Yaskawa Technology Center"

・Launched new AC servo, drives and integrated controller

・Established i3 DIGITAL Corporation, a joint venture for IoT solutions ・Started robot production Slovenia factory

Basic Policy 2. Maximize Profitability in the Growing "Robotics" Business Field

・Expanded robot lineups (collaborative robot, SCARA, semiconductors, etc.)

・Strengthened initiatives with market-specific joint venture partners

Basic Policy 3. Expand New Domains by Strengthening Resources through "Selection and Concentration"

・Reorganization of System Engineering business ・Launched new PV inverters

Enhancement of Management Foundation

・Establishment of Sustainability Policy

・Unified global data and promoted integration of business processes ・Introduction of flexible working styles such as remote work

© 2021 YASKAWA Electric Corporation

Management issues of

"Challenge 25"

Develop successful

i3-Mechatronics cases

Expand sales of new products of Motion Control and Robotics

Stabilize profits of

Environmental business

Improve productivity by making full use of ICT

3

Yaskawa Group's Sustainability Challenges and Targets (Materiality)

Identify Materiality with newly established Sustainability Policy, and develop initiatives for solutions in the Mid-term Business Plan

Yaskawa Group's Materiality

Create Social Value and Solve Social Issues through Business Activities

Realize revolutionary industrial automation through i3-Mechatroncis

Build clean social infrastructure and foundation for safe and comfortable living

Develop new technologies and business domains through

open innovations

Strengthen Management Foundation that Contributes to Sustainable Society/Businesses

Sustainable and productive manufacturing

Create a rewarding workplace and human resource development

Fair and transparent governance system

© 2021 YASKAWA Electric Corporation	4