Yokogawa Electric : Presentation Materials of Financial Results for 1st Quarter of Fiscal Year 2020

Yokogawa Electric Corporation

Financial Results for Fiscal Year 2020 1Q

(April 1 - June 30, 2020)

Aug. 12, 2020

Aug 12, 2020

© Yokogawa Electric Corporation

1

Contents

１. FY20 1Q Results and FY20 Forecast P. 3

Junichi Anabuki

Director, Executive Vice President

Corporate Administration Headquarters

２. Appendix P. 14

• Quarterly Financial Results
• Non-operating /Extraordinary Income and Expenses
• Order Backlog Trend by Segment
• Trend of R&D Expenses, Depreciation, and CAPEX
• Trend of Balance Sheet
• Trend of Stock Price

３. Transformation 2020 P. 22

~ Transform and achieve further growth ~

Hitoshi Nara

President and Chief Executive Officer

Aug 12, 2020

© Yokogawa Electric Corporation

2

Yokogawa Electric Corporation

Financial Results for Fiscal Year 2020 1Q and FY20 Forecast

Junichi Anabuki

Director, Executive Vice President

Corporate Administration Headquarters

Aug 12, 2020

© Yokogawa Electric Corporation

3

Key Points

• FY20 1Q results: Sales declined but operating income was at about the same level as the previous year.
• • Summary: Sales declined due to COVID-19 and the impact of the exchange rate. Operating income was at about the same level as the previous year due to improvement of the gross margin and a decrease in SG&A expenses. Profit attributable to owners of parent increased.
  • Segments:
    Control: Sales were down, but operating income rose. Orders -17.3%, sales -4.8%, operating income
    +8.5% year on year (excluding impact of exchange rate and transfer of a subsidiary's shares).
    Measurement: Sales were up, but operating income declined.
    Aviation and Other: Sales declined and the operating loss increased.
  • Regions: Although conditions in all regions were harsh, orders rose in Central and South America, an sales in China were strong.
  • Industries: Energy-related industries all were adversely impacted by the COVID-19 crisis, and large project orders are down from the previous year.
• FY20 earnings forecast: Due to adverse business conditions, sales and operating income are expected to decline.
• • While the business environment remains uncertain and we do not anticipate a significant recovery, the company believes that business results bottomed out in the first quarter of the fiscal year ending March 31, 2021, and that a gradual recovery can be anticipated toward the end of the fiscal year as we strive for a balance between measures to prevent the spread of COVID-19 and efforts to resume normal business activities. In our forecast, we took into consideration the expectation that a major recovery in market conditions cannot be expected over the course of the fiscal year.
• FY20 dividend forecast: No change from the previous year (total annual dividend of ¥34).

Aug 12, 2020

© Yokogawa Electric Corporation

4

Summary of FY20 1Q Results

• Orders decreased (excluding impact of exchange rate and transfer of subsidiary's shares: -15.9% year on year).
• Sales decreased (excluding impact of exchange rate and transfer of a subsidiary's shares: -4.7% year on year).
• Operating income was at about the same level as the previous year due to improvement of the gross margin and a decrease in SG&A expenses.
• Profit attributable to owners of parent increased.

								（Billion ¥）
			FY19 1Q	FY20 1Q		Difference	Growth	Impact of exchange
				rate	rate and transfer of
							subsidiary's shares
Orders		104.2	83.1		(21.1)	(20.2%)	(4.7)
Sales		90.3	82.0		(8.3)	(9.2%)	(4.1)
Operating income	6.6	6.4		(0.2)	(2.2%)	(0.5)
ROS (%)		7.3	7.8		+0.5 pts	ー	－
Ordinary income	6.8	7.2		+0.4	+6.1%	(0.5)
Profit attributable to	2.1	3.0		+0.9	+42.1%	(0.5)
owners of parent
Exchange		1$=	¥109.67	¥107.52		(2.15)	－	－
rate

Aug 12, 2020

© Yokogawa Electric Corporation

5

Analysis of Operating Income

（FY19 1Q/FY20 1Q comparison）

Exchange rate

（Billion¥）

（¥）

				FY19_1Q	FY20_1Q
			US$	109.67	107.52
Higher gross margin	Decrease in SG&A
EUR	122.87	118.83

+0

+1.6

(0.5)

(1.9)

Transfer of

subsidiary's shares

6.6

+0.6

6.9

6.4

Decrease in gross profit

from lower sales

(excluding impact of

exchange rate)

FY19 1Q

FY20 1Q

FY20 1Q

Operating income

Operating income

Operating income

（excluding impact of transfer of subsidiary's shares

and exchange rate)

Aug 12, 2020

© Yokogawa Electric Corporation

6

FY19/FY20 Comparison for Orders, Sales, and

Operating income by Segment

• Control: Orders and sales declined due to COVID-19 and the impact of the exchange rate (impact of exchange rate and transfer of subsidiary's shares: orders -17.3%, sales -4.8% year on year). Operating income was up due to improvement of the gross margin and lower SG&A expenses (impact of exchange rate and transfer of subsidiary's shares: +¥0.6 billion/+8.5% year on year).
• Measurement: While sales remained strong, operating income was down due to upfront investments in the life innovation business.
• Aviation and Other: Sales declined and the operating loss increased mainly due to sluggish demand for aviation- related equipment.

■ Control ■ Measurement ■ Aviation and Other

（Billion¥）

										Sales						Operating income
			Orders
102.0	104.2
5.0	2.0					88.9	90.3	82.0	(8.3)
6.5		(21.1)
5.8
				83.1			3.4	2.0
				1.9	(0.1)	1.1	(0.9)
				4.8	5.4			6.6	6.4	(0.2)
				6.4	(0.1)		5.8	+0.4
															4.8	0.1	0.1	(0)
91.2	95.7					80.7	82.9		(7.9)	0.4
74.8	(20.9)	75.0
							6.7	6.8	+0.1
														5.1
								FY18 1Q	FY19 1Q	FY20 1Q	(0.7)	(0.2)	(0.4) (0.2)
	FY18 1Q	FY19 1Q	FY20 1Q		FY18 1Q	FY19 1Q	FY20 1Q
										Aug 12, 2020
									© Yokogawa Electric Corporation

7

（Billion¥）

Orders and Sales by Region in Control Segment

• Orders were down overall due to the impact of COVID-19 and the exchange rate, but were up in Central and
  South America (impact of exchange rate and transfer of subsidiary's shares: -¥16.4billion/-17.3% year on year).
• Sales were also down overall for the same reasons, but were strong in China (impact of exchange rate and

transfer of subsidiary's shares: -¥4.0billion/-4.8% year on year).

	Orders	FY19 1Q	FY20 1Q		Difference
（A）	(B)		(B-A)
Japan	27.6	21.8		(5.8)
Asia	31.5	27.0		(4.5)
	(South-	15.3	14.2		(1.1)
	eastern Asia
	and Far East)
	(China)	12.0	10.9		(1.1)
	(India)	4.2	1.9		(2.3)
Europe and CIS	13.0	8.7		(4.3)
Middle East and	14.5	10.5		(4.0)
Africa
North America	6.8	3.8		(3.0)
Central and	2.3	3.0		0.7
South America
Outside Japan	68.1	53.0		(15.1)
Consolidated	95.7	74.8		(20.9)
Exchange rate1$＝	¥109.67	¥107.52		(¥2.15)

	Sales	FY19 1Q	FY20 1Q	Difference
	（A）	(B)	(B-A)
Japan	21.9	22.0	0.1
Asia	27.1	25.5	(1.6)
	(South-	15.1	(13.3)	(1.8)
	eastern Asia
	and Far East)
	(China)	8.6	(10.2)	1.6
	(India)	3.4	(2.0)	(1.4)
Europe and CIS	12.0	10.1	(1.9)
Middle East and	12.5	8.9	(3.6)
Africa
North America	7.2	6.9	(0.3)
Central and	2.2	1.6	(0.6)
South America
Outside Japan	61.0	53.0	(8.0)
Consolidated	82.9	75.0	(7.9)
Exchange rate1$＝	¥109.67	¥107.52	(¥2.15)

Aug 12, 2020

© Yokogawa Electric Corporation

8

Orders by Industry in Control Segment

◆In energy-related industries, orders were severely impacted by the COVID-19 crisis, and large project orders were down from the previous year.

Others

Water

Power

Chemical

Down

stream

Up

stream

95.7	97.8		102.9
		89.5
			31.5
34.8	35.1	28.6		74.8
		6.8
2.3	4.1	4.6	5.1	26.7
3.2	4.7
3.9
		20.4	2.9
17.9
17.5	14.9
	4.0
				14.4
25.1	22.3	18.4	23.2
		13.0
12.4	14.0	19.1	15.9	13.8
1Q	2Q	3Q	4Q	1Q
FY19				FY20

			（Billion¥）
<>
	ratio>
		Annual results
(20.9)	100%		<>
				ratio>
		385.9	100%
(8.1)	36%
+0.6	4%	130.0		34%
+0.8	5%
				5%
		17.8
	19%	16.9
(3.5)		4%
	17%	70.7		18%
(12.1)
+1.4	19%	89.1		23%
		61.4		16%
		FY19

Aug 12, 2020

© Yokogawa Electric Corporation

9

FY20 Forecast

◆While the business environment remains uncertain and a significant recovery is not anticipated, it is believed that the company's business results bottomed out in the first quarter of this fiscal year and that a gradual recovery will take place

toward the end of the fiscal year as we strive for a balance between measures to prevent the spread of COVID-19 and efforts

to resume normal business activities. After considering the impact that the business environment could have on the

Group's business performance, we have set high and low figures for our FY20 forecast and project the final results will fall

within this range.

*FY20 crude oil price is expected to remain around $30-$40/barrel

（Billion¥）

FY19

FY20 Forecast (B)

Difference (B-A)

Growth rate

(A)

(B÷A-1)

Orders

418.7

350.0

～

380.0

(68.7)

～ (38.7)

(16.4%) ～ (9.2%)

Sales

404.4

360.0

～

390.0

(44.4)

～ (14.4)

(11.0%) ～ (3.6.％)

Operating income

35.6

23.0

～

30.0

(12.6)

～

(5.6)

(35.4%)

～ (15.7％)

ROS (%)

8.8

6.4

～

7.7

(2.4pts)

～ (1.1pts)

－

－

Ordinary income

36.3

23.0

～

30.0

(13.3)

～ (6.3)

(36.6％)

～ (17.4％)

Profit before

25.8

22.0

～

29.0

(3.8)

～ +3.2

(14.7％) ～ +12.4%

income taxes

Tax, etc.

11.1

8.0

～

10.0

(3.1)

～ (1.1)

(27.9％) ～ (9.9％)

Profit attributable to

14.7

14.0 ～ 19.0

(0.7)

～

+4.3

(4.7％)

～ +29.4%

owners of parent

EPS (¥)

55.02

52.45

～

71.18

(2.57)

～ +16.16

(4.7％)

～ +29.3％

Exchange

1$＝

¥108.96

¥105.00

(¥3.96)

－

rate

Aug 12, 2020

© Yokogawa Electric Corporation

10

FY20 forecast：By segment

			FY20	Forecast
			Forecast
			（Billion¥）
				With regard to system projects, delays in investment decisions by customers and intensifying
				price competition have become apparent due to a decrease in energy demand, resulting in a
				large decrease from the previous year, mainly in the overseas project business. In Japan, the
				bottom of the 1Q will head for recovery as economic activity resumes.
		Orders	321.0～348.0	In the product business, although some inquiries are shown in the MRO business, etc., the
		impact of Covid-19 has become apparent in some overseas markets (North America, India, etc.).
				The consulting business was severely affected by movement restrictions and continued to face
				difficult conditions centered on KBC, but gradually improved.
	Control			By region, except for China, Japan, and Latin America, COVID-19 will have a large impact
			overall.
		Sales	330.0～357.0	Although the order backlog is abundant at the beginning of the term, in addition to the impact of a
		decrease in orders, there are risks such as delays in the progress of contracts that have already
				been ordered due to various factors such as customers and the Company.
		Operating		There is a risk of worsening gross profit due to soaring logistics costs due to a significant
		24.0～30.0	decrease in flights and intensifying price competition. Implement thorough cost reduction
		income	measures for the entire group (fixed costs such as engineering and production are reduced in
			response to the decrease in sales. Strategic costs for remote correspondence and after-corona,
				IT investment, etc. will continue.)
		Orders	24.0～26.0	In the measuring instruments business, although strong inquiries are received in China, the
		business environment is deteriorating in other regions including Japan, and orders and sales are
	Measurement	Sales	24.0～26.0	expected to decline.
	Life science business (CSU: confocal scanner, etc.) is expected to remain firm.
		Operating	0.0～0.5	－
		income
		Orders	5.0～6.0	Due to the impact of COVID-19, the performance of the airline companies, which is the final
	Aviation and		6.0～7.0	customer, has deteriorated significantly, and the aircraft business is expected to decline
	Sales	significantly.
	Other
	Operating	(1.0)～(0.5)	－
		income
				August 12, 2020
				© Yokogawa Electric Corporation

11

Appendix：FY20 Forecast for Orders, Sales, and Operating Income by Segment

■ Control ■ Measurement ■ Aviation and Other

（Billion¥）

		Orders						Sales						Operating income
418.6					(38.7)	404.4		390.0	(14.4)
7.0		380.0
	9.1
25.7	350.0(68.7)	6.0	(1.0)	360.0(44.4)	7.0	(2.1)
24.8
		5.0	(2.0)	26.0	+0.3	6.0	(3.1)	26.0	+1.2
			24.0	(0.8)		35.6
		24.0	(1.7)
														1.6				30.0	(5.6)
			～							～							23.0 (12.6)	0.5	(1.1)
385.9								370.5
321.0	(64.9)348.0	(37.9)	330.0(40.5) 357.0	(13.5)			0.0	(1.6)
							34.2
														～
															30.0	(4.2)
																			24.0	(10.2)
														(0.2)	(1.0)	(0.8)	(0.5)	(0.3)
	FY19		FY20							FY20
						FY19							FY19		FY20
		forecast					forecast						forecast

Aug 12, 2020

© Yokogawa Electric Corporation

12

Dividend

• As per our dividend policy and financial situation, our FY20 dividend forecast is unchanged from the previous year.

FY19: ¥34（payout ratio 61.8％)

FY20: ¥34（payout ratio 48.4～65.5％)

												32	34	34			（¥）
											30
									25	25			17	17
												17
											15					Year-end
16	16							12.5	12.5							dividend
												Interim
							12	12									dividend
						10
8	8
					5	5	6	6			15	15	17	17
							12.5	12.5
			2
8	8	0		5	6	6
2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
														(Plan)

Aug 12, 2020

© Yokogawa Electric Corporation

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Appendix:

• Quarterly Financial Results
• Non-operating /Extraordinary Income and Expenses
• Order Backlog Trend by Segment
• Trend of R&D Expenses, Depreciation, and CAPEX
• Trend of Balance Sheet
• Trend of Stock Price

Aug 12, 2020

© Yokogawa Electric Corporation

14

Appendix: Quarterly Financial Results

• Sales and operating income tend to be higher in 2Q and 4Q, and this trend is particularly strong in the Japanese control segment.

Impact of transfer of subsidiary's shares
FY19 1Q Orders：-¥1.1 billion	sales：-¥0.8 billion	operating income：+¥0 billion
FY19	Orders：-¥2.8 billion	sales：-¥2.0 billion	operating income：-¥0.2 billion

■ Orders ■ Sales ■ Operating income

	111.7		123.1
	104.9	108.4
102.0		104.2	105.6	105.9

		101.5	95.2		90.3		98.6	110.3
	88.9		101.1	107.1
	4.8	10.0	10.3	9.5	6.6	10.3	11.2	7.5
Exchange	109.53	110.72	111.34	111.07	109.67	108.67	108.90	108.96
rate
($/¥)	1Q	2Q	3Q	4Q		2Q	3Q
	1Q	4Q
		FY18			FY19

（Billion ¥）

83.1

82.0

6.4

107.52

1Q

FY20

Aug 12, 2020

© Yokogawa Electric Corporation

15

Appendix: Non-operating /Extraordinary

Income and Expenses

					（Billion ¥）
			FY19		FY20
			1Q		1Q
	Operating income		6.6		6.4
	Non-operating income		1.2		1.3
	Non-operating		1.0		0.6
	expenses
	Ordinary income		6.8		7.2
	Extraordinary income		0.9		0.0
	Extraordinary expenses		3.2		0.9
	Income before tax		4.5		6.3
	Tax, etc.		2.4		3.3
	Profit attributable to		2.1		3.0
	owners of parent
	(Effective tax rate)		45.3％	45.6％
		Aug 12, 2020
	© Yokogawa Electric Corporation

16

Appendix: Order Backlog Trend by Segment

							（Billion¥）
Control (Japan)		Control (Outside of Japan)	Measurement	Aviation and Other
	254.1	262.6	256.1	259.2	+3.1
	+0.9
233.6	6.8	7.0	5.1	6.0
15.3	4.3	3.9	3.5	4.0	+0.5
4.1
	178.3	180.5	180.8	183.2	+2.4
151.3

					62.9	64.7	71.2			66.7	66.0	(0.7)
					FY17			FY18			FY19 1Q	FY19			FY20 1Q
	Exchange rate		106.24	110.99	107.79			108.83				107.74
	at end of
	each period
											*Refined segment classification and revised FY19 numbers
											Aug 12, 2020
									© Yokogawa Electric Corporation

17

Order Backlog Trend by Segment

(Using FY20 1Q exchange rate)

(Using FY17 exchange rate)

							（Billion¥）
Control (Japan)		Control (Outside of Japan)	Measurement	Aviation and Other	+2.4
			255.3	256.8	259.2
	241.7	+0.8
	7.0	5.2	6.0
223.1	+0.5
6.7	3.8	3.5	4.0
15.3
3.7
3.3
	166.6	173.3	181.4	183.2	+1.8
141.8

			62.7	64.7	71.2	66.7	66.0	(0.7)
FY20 1Q	FY17			FY18			FY19 1Q		FY19			FY20 1Q
exchange rate	107.74	107.74	107.74	107.74	107.74
$/¥
									*Refined segment classification and revised FY19 numbers
									Aug 12, 2020
							© Yokogawa Electric Corporation

18

Appendix: Trend of R&D Expenses, Depreciation, and CAPEX

■ R&D ■ Depreciation ■ CAPEX

（Billion¥）

40.0

30.0

20.0

10.0

0.0	FY13						FY19 1Q
FY12	FY14	FY15	FY16	FY17	FY18	FY19	FY20 1Q

	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19 1Q	FY19	FY20 1Q
R&D expenses	25.5	25.8	25.8	25.3	27.1	26.6	26.2	6.2	27.6	6.3
(% of sales)	7.3%	6.6%	6.4%	6.1%	6.9%	6.5%	6.5%	6.9%	6.8%	7.6%
Depreciation	13.5	13.6	14.5	15.1	18.0	18.3	17.7	4.6	18.8	4.3
(% of sales)	3.9%	3.5%	3.6%	3.6%	4.6%	4.5%	4.4%	5.1%	4.6%	5.3%
CAPEX	13.5	14.0	14.1	15.4	14.2	13.2	15.0	* 2.4	19.6	3.3
(% of sales)	3.9%	3.6%	3.5%	3.7%	3.6%	3.2%	3.7%	2.6%	4.9%	4.0%

*The Group's consolidated subsidiaries outside Japan have adopted IFRS 16 (Leases) from FY19.

Aug 12, 2020

© Yokogawa Electric Corporation

19

Appendix: Trend of Balance Sheet

									（Billion¥）
		Assets				Liabilities and equity
470.1	465.7	489.7	477.1		470.1	465.7	489.7	477.1
		101.5		Cash & time	32.5	32.3	50.5	40.0	Interest-bearing
86.5	83.2	92.8		debt
	deposits
					141.5	144.1	147.7	145.3	Other liabilities
171.1	162.7	175.7	167.9	Notes/accounts
receivable	43.4		43.4	43.4	Paid in capital
				43.4
36.8	39.9	37.3	40.4	Inventories	54.6	54.6	54.4	54.4	Capital surplus
12.1	11.2	14.4	13.2	Other current
109.2	113.4	105.8	106.3	assets	191.8				Retained
	184.9	188.1	188.1
				Fixed assets		earnings
54.4	55.3	55.0	56.5	Investments	6.3	6.4	5.6	5.9	Non-controlling
FY18	FY19 1Q	FY19	FY20 1Q		FY18	FY19 1Q	FY19	FY20 1Q	interests

Aug 12, 2020

© Yokogawa Electric Corporation

20

Appendix: Trend of Stock Price

YOKOGAWA TOPIX

2800

2100

1400

	700
	13/3		14/3	15/3	16/3		17/3		18/3		19/3		20/3
																														（￥）
					13/3	14/3	15/3		16/3	17/3		18/3	19/3			19/6	19/9	19/12	20/3	20/6	20/8/5
		Yokogawa	946	1,667	1,295		1,163	1,752		2,198	2,291	2,112	1,977	1,929	1,303	1,680	1,730
		TOPIX	1,035	1,203	1,543		1,347	1,512		1,716	1,592	1,551	1,588	1,721	1,403	1,559	1,555

August 12, 2020

© Yokogawa Electric Corporation

21

Yokogawa Electric Corporation

Financial Results for Fiscal Year 2020 1Q (April 1 - June 30, 2020)

~ Transform and achieve further growth ~

Hitoshi Nara

President and Chief Executive Officer

Aug 12, 2020

August 12, 2020

© Yokogawa Electric Corporation

22

FY2020 basic policy

• We will focus on accelerating the implementation of the TF2020 strategies (completion of measures and reaping of benefits). As such, we will undertake the following:

• Set and review priority of TF2020 measures

• Achievement of further cost reductions through Group-wide optimization
• Prohibition of nonurgent expenses
• Improvement of efficiency through means such as changing how work is performed, including the use of telework

• Remaining fiscally strong

• Positioning our business for the post-COVID-19 world
• Responding to changes in social needs

Expanding demand by society and industries for solutions that enhance safety, security, productivity, efficiency, remotization, and autonomy (IA2IA)

August 12, 2020

© Yokogawa Electric Corporation

23

Impact of COVID-19: Rapid remotization (expansion in demand for remote solutions)

◆Background:

Review of plant operations as part of infection control measures

• Remote support of plant operations and equipment maintenance Expansion in demand for remote services

◆Our company initiatives Digital

Transformation

Response Center

Remote service utilizing AR (augmented reality) ExRobotics' ExR -1 inspection robot

• Increased opportunities for webinars, virtual exhibitions, etc. ➡ About twice the number of inquiries for remote maintenance services (year-on-year basis)

• Enhancement of remote solutions
  ➡ Cloud engineering, remote FAT *, remote services (security risk

assessment consulting, etc.)

*Factory Acceptance Test

・With our strengths in the provision of solutions for use in difficult to

access locations(remote facilities, etc.), we are able to help our customers improve productivity (= resolution of social issues).

・We are a trusted and global leading provider of remotization and autonomy (IA2IA) solutions.

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Our direction

• We are a resilient company with the power to withstand COVID-19.
• Our business is centered on areas that will grow in the post-COVID-19 world.
• We are set on building

a sustainable society and

creating new opportunities for growth.

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Appendix: Control segment order trend, by project size

Large projects (300 million yen* or larger) account for only

* Approx. US$3 million

10-15% of control segment revenues.

Including downstream

（oku-yen）

Less then 300M yen (small PJTs）

More than 300M yen (large PJTs)

PJTs (Middle East) and

LNG PJTs (North

Mainly OPEX business such as MRO and

Mainly CAPEX business such as FEED and

America)

engineering

system upgrades

1,200

1,155

Including Yamal LNG

987

986

984 958

994

1,018

957 978

1,029

1,000

953 912

926

863

894 895 853 870

872

851

895

834

839

800

766

748

600

400

200

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

FY14

FY15

FY16

FY17

FY18

FY19

FY20

			FY14			FY15			FY16			FY17			FY18			FY19		FY20
		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
	USD	101.71	103.53	107.7	110.58	121.78	121.75	121.63	119.99	108.53	102.91	107.64	108.95	111.42	111.29	111.77	110.7	109.53	110.72	111.34	111.07	109.67	108.67	108.9	108.96	107.52

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Appendix: News（from May 13 to August 12)

May	Developed and released CIMVisionPharms R10.00, manufacturing management package
for pharmaceutical factories (Japan only)

Yokogawa signs investment and partnership agreement with JEPLAN, developer of an innovative chemical recycling technology

- Collaboration for a circular economy -

CSU-W1 confocal scanner unit arrives at International Space Station for experiments in the Jun. field of life sciences in outer space

Yokogawa to supply monitoring systems for major water transmission pipeline project in Saudi Arabia

Selected for the Japanese Ministry of Economy, Trade and Industry's list of "Top 100 Global Niche Companies in 2020."

Yokogawa to accelerate business expansion in India through open innovation with startups Jul. - Investment in Japan-India fund of funds -

Yokogawa establishes Yokogawa Innovation Switzerland as center for bio business - Accelerating R&D and market development activities for the bioeconomy

Note: The month for each news item indicates when it was published.

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Appendix: Yokogawa's Main ESG Indexes etc.

As of July 2020

DJSI-Asia Pacific

FTSE4Good Index Series

FTSE Blossom Japan Index

MSCI ESG Ratings AA

MSCI ESG Leaders Indexes

MSCI Japan ESG Select Leaders Index

MSCI Japan Empowering Women Index

CDP Water Security A List

CDP Supplier Engagement Leader Board

SNAM Sustainability Index

S&P/JPX Carbon Efficient Index

THE INCLUSION OF YOKOGAWA ELECTRIC CORPORATION IN ANY MSCI INDEX, AND THE USE OF MSCI

LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A

SPONSORSHIP, ENDORSEMENT OR PROMOTION OF YOKOGAWA ELECTRIC CORPORATION BY MSCI OR

ANY OF ITS AFFILIATES.

THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND

LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

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Disclaimer

The information pertaining to our business plans and forecasts that has been provided in this presentation and at analyst meetings contains forward-looking statements that are based on our

management's current knowledge and require the making of assumptions about future events.

As such, it cannot be guaranteed that these statements will not differ materially from actual results.

Yokogawa undertakes no obligation to publicly update or revise any forward-looking statements after the issue of this document except as provided for in laws and ordinances.

The copyright to all materials in this document is held by Yokogawa.

No part of this document may be reproduced or distributed without the prior permission of the copyright holder.

The information has not been restated to reflect the revision of the initially allocated acquired costs that was decided upon finalization of the tentative accounting treatment and application of the "Partial Amendments to Accounting Standard for Tax Effect Accounting."

IR Sec., Treasury & IR Department

Yokogawa Electric Corporation

Email: [e-mail]

Phone: [phone]

URL: https://www.yokogawa.com/about/ir/

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