Medium-term Business Plan
Hitoshi Nara
President and CEO
Yokogawa Electric Corporation
May 7, 2024
| GS2028 | May 7, 2024 | © Yokogawa Electric Corporation
Agenda
- Long-termBusiness Framework
- Review of Accelerate Growth 2023
- Medium-termBusiness Plan
- GS2028 Targets
- Basic Strategies for Value Creation
- Business Segment Strategies and Key Measures
- Achieving the Plan
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Long-term Business Framework
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Overview of long-term business framework and medium-term business plan
FY21~FY23 | FY24~FY28 | |||
2021 | 2024 | 2029 | 2030 | 2050 |
Yokogawa's Purpose / The Yokogawa Philosophy
Three Goals
for sustainability
Net-zero | Well-being | Circular |
emissions | economy | |
Long-term business framework (including Vision statement)
Aim for growth through the provision of shared value to society
Medium-term business plan
Establish a business structure centered on addressing broad social issues to enable growth
Medium-term business plan
Speed up growth based on the business structure established in AG2023
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Vision statement
Through autonomy and symbiosis, Yokogawa will create sustainable value and lead the way in solving global issues.
The operational autonomy that Yokogawa aims to achieve will help to increase productivity, avoid risks, reduce workloads, and ensure worker safety.
This operational autonomy will extend beyond the boundaries of individual organizations, companies, and industries.
Yokogawa's vision is to bring about a symbiosis between industry and society in which these entities function autonomously, yet in a coordinated way.
By realizing this vision and continuing to create value, Yokogawa will take the initiative in addressing social issues.
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The presence we wish to have as a company in 2030
Aiming to contribute to society
as a trillion-yen company
Through ESG management and a focus on the SDGs,
Yokogawa will contribute to society.
To have a greater impact on society,
a strong market presence is also required.
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Review of Accelerate Growth 2023
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Accelerate Growth 2023: Four basic strategies
Expansion of value provided
Move IA2IA concept to the | 1 |
implementation phase | |
Expand the scope of smart | |
Implement | |
manufacturing solutions provided | |
IA2IA & smart | |
for customers | |
manufacturing | |
and transform | |
Strengthening | value provision |
3 | Profitability and growth | ||
in value provision | |||
Ensure profitability | Aggregate knowledge and improve | ||
and sound growth | efficiency with large projects | ||
2 | Focus resources on product groups that | ||
deliver high value | |||
Generate profits from software and | |||
Strengthen | engineering | ||
industry | |||
responsiveness | |||
and expand | Expansion of | ||
cross-industry | |||
business | value provided | ||
the corporate base |
- Strengthen strategic planning functions
- Cultivate a corporate and organizational culture that encourages entrepreneurial spirit
- Carry out internal DX and business model transformation
Optimize
internal operations and transform mindsets
4
- Provide new value to customers who are making the shift to being integrated energy companies
- Expand other industry and cross- industry business
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Accelerate Growth 2023: Four basic strategies
3
Ensure profitability and sound growth
1
Implement IA2IA&&ssmart manufacturing andtransform valueprovision
2
Strengthen industry responsiveness and expand cross-industry business
Implement IA2IA & smart manufacturing and transform value provision
Materializing value: Rising confidence in our growth prospects based on numerous PoCs and value co-creation with customers
Achievements
- IA2IA*1/smart manufacturing*2 business development initiatives
Release of new solutions: Cumulative 3-year total of 151 (target: 150)
Overseas order count: Cumulative 3-year total of 566
- Increased orders for MAC/MAIC*3 projects requiring high project execution and integration capabilities
- World's first: Autonomous control AI*4 officially adopted for use at a customer's chemical plant
Optimize
internal operations and transform mindsets
4
*1 The transition from industrial automation to industrial autonomy by incorporating DX-related technologies such as AI, digital twins, and robotics
*2 The achievement of autonomy and improvement of productivity in production operations, enterprises, and supply chains through DX and IA2IA
- Cosmo Oil and Yokogawa begin exploring opportunities for refinery digitalization
Issues
- Scaling up businesses with new business models (recurring revenue etc.) and new solutions
- Developing solution talent
*3 Main automation contractor / Main automation and information contractor
*4 Based on the Factorial Kernel Dynamic Policy Programming (FKDPP) autonomous control AI protocol that makes use of reinforcement learning technology. Jointly developed by Yokogawa and the Nara Institute of Science and Technology (NAIST)
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© Yokogawa Electric Corporation |
Accelerate Growth 2023: Four basic strategies
1
Implement IA2IA & smart manufacturing and transform value provision
3
Ensure profitability and sound growth
2
Strengthen industry responsiveness andexpand crosss-industry- businesss
Optimize
internal operations and transform mindsets
4
Strengthen industry responsiveness and expand cross-industry business
Business growth in the focus industries was limited, but the improved organizational capabilities have led to positive results.
Achievements
Orders received in focus industries
Renewable energy: ¥5.9 billion (1.5 times vs. FY20)
Specialty and fine chemicals (outside Japan): ¥14.6 billion (2.5 times vs. FY20)
Pharmaceuticals, food & beverage: ¥24 billion (1.3 times vs. FY20)
- Increased orders for carbon neutral projects (hydrogen, ammonia, etc.)
- Increased mining and battery orders through collaboration across regions
- Increased orders for advanced solutions for water projects
- Entered new markets through M&A and alliances (new fields in renewable energy, biotech, and pharmaceuticals)
Issues
- Expanding presence and accelerating business expansion in growing markets
- Enhancing portfolio through M&A and alliances
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© Yokogawa Electric Corporation |
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Disclaimer
Yokogawa Electric Corporation published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 08:57:01 UTC.