Yaskawa Electric Corporation (Head office: Kitakyushu, Fukuoka; Representative Director and President: Hiroshi Ogasawara) extended the final year of its current mid-term business plan “Challenge 25” (FY2019-FY2021) by 1 year, and revised the plan as “Challenge 25 Plus” (FY2019-FY2022).

The market environment surrounding Yaskawa has changed significantly due to the impact of Coronavirus (COVID-19). Against this backdrop, to achieve our long-term business plan “Vision 2025, ” we extended the mid-term business plan as “Challenge 25 Plus” and will work to further improve corporate values. This plan added the following principles: transform business model through our solution concept “i³-Mechatronics*¹,” efficiency improvement and profitability expansion through realizing digital management based on YDX*², and activities based on our sustainability policy which is aimed at realizing the sustainable society.

*1 i³-Mechatronics: Yaskawa’s solution concept for realizing a new industrial automation revolution

*2 YDX: YASKAWA Digital Transformation (Promoting DX in Yaskawa Group)

(1) Financial Targets

We aim to achieve operating profit ratio of 13.0% with improving profitability as the most important goal.

[Reference]

Exchange rates for FY2020: 1USD=105.99JPY, 1EUR = 122.82JPY, 1CNY=15.55JPY, 1KRW =0.091JPY

Exchange rates for FY2022: 1USD= 110.00 JPY, 1EUR = 130.00JPY, 1CNY=16.80JPY, 1KRW=0.096JPY

(2) Promoting Sustainable Management

We established a sustainability policy based on group principle of management prior to the review of mid-term business plan “Challenge 25.” In line with this policy, we have clarified the group’s sustainability challenges and targets (materiality) and developed measures to overcome these challenges in order to contribute to the development of sustainable society.

(3) Basic Policy / Priority Measures

We will promote and strengthen businesses that contribute to the development of sustainable society and accelerate improvement of profitability by management efficiency through YDX.

Basic Policy 1. Transform Business Model through i³-Mechatronics

Contribute to solving customers’ management issues through cross-business initiatives with evolution of manufacturing, sales and technology

1. Strengthen sales capability to realize i³-Mechatronics
   Aim to expand solutions that realize i³-Mechatronics and strengthen our ability to offer solutions that increases added value of customers.
2. Develop technologies/product developments to realize i³-Mechatronics
   Accelerate global development across businesses by building an integrated development structure at “Yaskawa Technology Center” (started operation in March 2021).
3. Strengthen manufacturing functions to demonstrate i³-Mechatronics
   Expand “Yaskawa Solution Factory” concept globally to realize efficient and optimal manufacturing.
4. Strengthen service through demonstration of i³-Mechatronics
   Contribute to improving customer’s production efficiency by offering new data services based on predictive diagnostics.

Basic Policy 2. Maximize Profitability in the Growing Market through i³-Mechatronics

Business expansion by leveraging open innovation in the rapid growing robotics market*³.

1. Strengthen creating market presence in China and Asia, centered on “3C^*4” “new infrastructure^*5” market
2. Promote initiatives with car and parts manufacturers in “automotive “market
3. Strengthen initiatives in the “semiconductor” production equipment market

*3 Robotics market: Automation area including robots

*4 3C: Abbreviation for consumer and digital communications equipment (from the acronyms Computer, Communication and Consumer Electronics)

*5 New Infrastructure: Digitization of industries in China, centered on 7 fields which includes the next-generation communications standard “5G”, “new-energy vehicles”, and “AI.”

Basic Policy 3. Expand New Domains for Building a Sustainable Society

Contribute to realizing sustainable society through world-class mechatronic technologies

1. Energy Saving & Clean Power
   We will take on the challenge of technological innovation to realize carbon free society and change the future through products utilizing the industry’s top-level power conversion. Through these efforts, our goal in FY2025 is to reduce CO₂ emissions by 100 times of the amount emitted by Yaskawa (CCE100).
2. Food & Agriculture
   We will contribute to stabilization of food supply by applying industry leading  automation technologies to food production processes and agriculture.
3. Humatronics*⁶
   We will support people’s health and lifestyles by establishing a business model to   respond to demand for automation in the medical and welfare field.

*6 Humatronics: Coined term combining “human” and “mechatronics”

(4)　Enhancement of Management Foundation

Through “Challenge 25 Plus,” we will strengthen digital and quality management and continue to improve management structure that is resilient to dramatic changes in the marketplace due to COVID-19. We will also strive to create a rewarding workplace and human resource development and implement sustainable management and governance that meets the expectations of our diverse stakeholders.

1. Improve management efficiency through digital and quality management
   We will strengthen integrated group management globally and expedite management decisions by unifying management data and standardizing business processes.
2. Improve management efficiency through YDX
   We will promote “visualization of data” and “creation of rewarding workplace” to     improve our management structure that is resilient to the market changes accelerated by COVID-19.
   ・Sophisticated business management ―­ Enhancement of added value through visualization of management data
   ・Improve productivity ― ­Efficiency improvement through visualization of business data
   ・Work style reform ― Realizing flexible and diverse working styles
   ・Awareness reform ― Enhancing employee job satisfaction
3. Strengthen management foundation that contributes to sustainable society/businesses
   We will implement sustainable management that meets the expectations of our diverse stakeholders and strive to create social value and solve social issues through our business and corporate activities, communication and co-creations with them.

※For more information on “Vision 2025”, “Sustainability Policy” and “Challenge 2025 Plus”, please refer to the following URL

・Vision 2025:

https://www.yaskawa-global.com/wp-content/uploads/2019/06/Vision2025_Revision_en.pdf

・Sustainability Policy

https://www.yaskawa-global.com/newsrelease/news/38937

・Challenge 25 Plus :

https://www.yaskawa-global.com/wp-content/uploads/2021/04/Challenge25_Plus_en.pdf

For inquires, contact:

Corporate Communications Div.

YASKAWA Electric Corporation

E-mail: pr@yaskawa.co.jp