Yokogawa IR Day 2021

AG2023 Life Business

Vice President

Life Business Headquarters

Hiroshi Nakao

December 3, 2021

S e c u r i t i e s C o d e : 6 8 4 1 Yokogawa Electric Corporation

| December 3, 2021 | © Yokogawa Electric Corporation

Self-introduction

Vice President

Head of Life Business Headquarters

Hiroshi Nakao

Apr. 1989

Joined the Company

Apr. 2004

Solution Business Headquarters, Solution Sales Division 2, Head of Sales DepartmentArea : China

KoreaTaiwan

Feb. 2004

Yokogawa (Shanghai) Instrumentation Co., Ltd. Head of Sales Department

Jan. 2006

Yokogawa (China) Co., Ltd. Head of Sales Department 1

Jan. 2007

Solution Business Division, Sales Division 3, Head of Account Sales Department 2

Apr. 2016

Yokogawa Solution Service corporation

KANSAI Area Headquarters, Head of KANSAI Sales Department 1

Apr. 2019

Vice President

Head of Life Innovation Business Headquarters

Apr. 2021

Vice President

Head of Life Business Headquarters (present)

| December 3, 2021 |

2

© Yokogawa Electric Corporation

AG2023 Life Business

  1. TF2020 Review
  2. Life Business Overview / Vision for 2030
  3. AG2023 Life Business Basic Strategy

3-1

Market Environment

3-2

Scale of Business

3-3

Segment Strategy

Life Science

Bio Process

Pharmaceutical

Food & Beverage

Water

| December 3, 2021 |

3

© Yokogawa Electric Corporation

1TF2020 Review

| December 3, 2021 |

4

© Yokogawa Electric Corporation

TF2020 Review Basic strategies - Achievements & Issues

In a dramatically changing business environment, we took on the challenge of transforming Yokogawa, but these efforts now need to be accelerated.

Basic strategy

Achieve

ments

Issues

Transformation of

Creation of new businesses and

existing businesses

transformation of business model

Received DX integration project order in collaboration

Acquired NKS corporationexpansion of validation

with KBC (Middle East)

business

Grew our remote business (CI Server, etc.)

Acquired Fluid Imaging Technologies, a provider of

Signed strategic alliance agreement with SABIC

flow imaging particle analysis solutions

Received geothermal power plant project order and

Started water level meter and edge gateway

business (recurring business model)

participated in demonstration of virtual power plant that

utilizes industrial batteries

etc.

etc.

OPEX annual growth rate outside Japan

Target 7~10 %

Result

(3.0)%

Life Innovation business sales

Growth in target industries* (per year)

Target 2~3 times*

Result 1.8 times

Target 3~5 %

Result

10%

Compared to FY2017 result of approx. 12 billion yen

Chemical and renewable energy industries (control orders)

  • Provision of DX solutions to meet customer needs for increased productivity and remote, safe, and secure operations

Breaking away from dependence on fossil-fuel energy

Provision of solutions to increase productivity

industry

throughout pharmaceutical and food industry value

Expansion of energy supply chain business including

chains

renewable energy and storage batteries

Expansion of use of recurring business model

Focus on high-growth functional chemicals sector

foundation

Improvement of productivity

through Group-wide optimization

  • Expanded use of global delivery centers
  • Optimized procurement and logistics costs
  • Accelerated business process outsourcing
  • Increased utilization of YOKOGAWA University

etc.

Cost reduction activities through the above efforts

Approx. 6.5 billion yen

  • Transformation of SG&A structure
  • Reduction of fixed costs
  • Achievement of further improvements in the efficiency of business processes
  • Transformation of human resources

| December 3, 2021 |

5

© Yokogawa Electric Corporation

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Yokogawa Electric Corporation published this content on 02 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2021 04:10:09 UTC.