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Copyright Yokogawa Electric Corporation - 0 -
Investors' Guide
Security code:6841 Yokogawa Electric Corporation

1. Corporate profile Corporate Data, Changes of Main Products and Services of Yokogawa, Global Network, Sales/Operating income, Net income, Business Segments 2. Control business Layer, Plant Lifecycle, Trend of Global Sales in Control Segment, Recent major projects, MAC, Strengths, Shake out of IA Industries, Market Share
3. Long-term Business Framework & Transformation 2017 Mid-term Business Plan Three Transforming, Mid-term Business Plan 4. Appendix KPIs, Financial Strategy/Capital Policy, Corporate Governance Contributing to Society and Environment through Our Business
Contents

Corporate Data
At the end of March 2017
Founded:
Takashi Nishijima
Company name: Yokogawa Electric Corporation
September 1, 1915
Capital stock: 43.401 billion Yen President and Chief Exective Officer: Takashi Nishijima
Net Sales: 391.4 billion YenOverseas sales ratio:67.3%
Operating income: 31.6 billion Yen
25.8 billion Yen R&D expenses/sales ratio: 6.1% Number of employees: 18,329Outside Japan 11,518 Japan 6,811 Shareholder equity ratio: 58.3
Dividend: 25 Yen (Dividend per share)
Market cap: 515.5 billion Yen May 15,2017
Net income:
Corporate Headquarters

Changes of Main Products and Services of Yokogawa
Technical innovation in industries
1910s: electrification Analog era Digital era
1980s: microcomputers
1990s: open architecture
2000s: networking
Control systems Industrial
instruments Measuring instruments
Meters
Founding 1915
Solution services
Present
2010s: cyber- physical system
Time for transformation
-Yokogawa has a 100 year history of continually transforming itself. -Our current IA* business has been achieving growth by moving into new countries/regions. -Now, with the ICT revolution underway, is the time for transformation. *Industrial Automation

Global Network
Yokogawa's global network of 113 companies spans 60 countries.

Sales/Operating income
376.5
316.6 325.6334.7 347.9
388.5405.8 413.7 391.4
4.7 2.6
11.1
16.6 18.4
25.9 29.8
39.6 31.6
0
5
10
15
20
25
30
35
40
45
50
0
50
100
150
200
250
300
350
400
450
FY09 FY10 FY11 FY12 FY13 FY14
Sales Operating income
Sales Operating income
FY15 FY08
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
US dollarUS
(Yen) 100.66 92.61 85.13 78.82 83.33 100.67 110.58 119.99 108.95
FY16
Graph1
376.5FY08FY084.7
316.6FY09FY092.6
325.6FY10FY1011.1
334.7FY11FY1116.6
347.9FY12FY1218.4
388.5FY13FY1325.9
405.8FY14FY1429.8
413.7FY15FY1539.6
391.4FY15FY1531.6
Sheet1
FY08376.54.7
FY09316.62.6
FY10325.611.1
FY11334.716.6
FY12347.918.4
FY13388.525.9
FY14405.829.8
FY15413.739.6
FY15391.431.6
Sheet1
Sheet2
Sheet3

(Million Yen)
(%) -12
-8
-4
0
4
8
12
-50,000
-30,000
-10,000
10,000
30,000
50,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16Profit Attributable to Owners of Parent Net Income/Net Sales
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16Sales (Million Yen) 376,534 316,606 325,620 334,671 347,899 388,463 405,792 413,732 391,433Income before Tax
(Million Yen) -9,400 -10,693 -1,025 11,672 20,496 21,750 27,426 41,936 35,523
Profit Attributable to Owners of Parent
(Million Yen) -38,446 -14,799 -6,692 5,952 14,688 12,341 17,223 30,161 25,759
Profit Attributable to Owners ofParent/Sales (%)
-10.2 -4.7 -2.1 1.8 4.2 3.2 4.2 7.3 6.6
Current loss for three years(FY08-FY10)
Sheet1
FY99FY00FY01FY02FY03FY04FY08FY09FY10FY11FY12FY13FY14FY15FY16
Sales (Million Yen)259,534280,426305,231280,185313,353352,611310,828328,766371,943387,053376,534316,606325,620334,671347,899388,463405,792413,732391,433
Income before Tax (Million Yen)1,2286,0158,352-3,349-12,53237,041-20,803-19,6174,47514,416-9,400-10,693-1,02511,67220,49621,75027,42641,93635,523
Profit Attributable to Owners of Parent (Million Yen)1,8243,8537,564-4,4275,82025,415-23,112-26,23224,3009,372-38,446-14,799-6,6925,95214,68812,34117,22330,16125,759
Profit Attributable to Owners of Parent/Sales (%)0.701.42.5-1.61.97.2-7.4-8.06.52.4-10.2-4.7-2.11.84.23.24.27.36.6
Sheet1
1
#REF!
#REF!
1
1
1
1
(Billion)
()
1
1
1
1

Transfer MEG* business to Ricoh Company, Ltd.
FY08
Measuring instruments
Life science
Photonics Advanced stage
Semiconductor testers
Japan System Techniques Co., Ltd
Medical information
Control
Measurement
Other Businesses
FY16
Transfer/Withdrawal
Withdrawal Transfer/Withdrawal
Spin-off
Kokusai Chart Corporation Transfer
Yokogawa Digital Computer Corporation
Transfer
*MEG= Magnetoencephalograph
Solution services (SS)
Spin-off
Transfer
Aviation and Other Businesses
Measurement
Platforms (PF)
Control
YDC Corporation Stock transfer 79.8% (Jan. 2017)
Operating income 4.7
29.0
25.0
0.7
Operating income 31.6
30.6
0.9
0.1
Withdrawal from the panel meter Business (Mar. 2017)
(Billion )
Reform of Business Structure

Measurement
22.2 billion yen 5.7%
5.4% Aviation and
Other Businesses
21.1 billion yen
348.1 billion yen 88.9 %
Control
Business Segments
DL850
WT3000
Flat panel displays
CSU-X1
80% @2008
70% @2006
59% @2002
60% @2004
Gyrocompasses Field instruments
DCS
391.4 Total
Billion yen
FY16 Sales Breakdown

Meaning of Control
Control To get the temperature and flow rate of each step through sensors, and to control equipment to achieve the targeting rate
ISA100 wireless sensors
Transmitter
Gas Analyzer Transmitter
distributed control system
CENTUM

Layer of Control Business
Field equipment
Control systems/Engineering Control software/System integration
Production management
Management strategy Business optimization
Simulation ERP Business
management
Factory management
Production process/control
Plant site
Business strategy /plan
Design Engineering Commissioning Operations f
Lifecycle services
http://www.kbcat.com/index.php

Greenfield
Delivery and start-up of complete system
Business Development for Plant Lifecycle Services
Optimize existing operations by providing mainly instrumentation solutions and services
Conventional services
Brownfield Business planning
Design/ construction
Operat ion Replace or scrap
FEED
Combined test
Basic design
Detailed design
Engineering
Delivery, start-up
Annual maintenance contract
Hardware repair and
replacement
System replacement
System upgrade/ modification to
expand functions
Solutions service business
Our main solutions and services
O p e r at i o n

132.4 126.8 125.6 118.8 100.6 99.4 103.5 100.5 97.9 98.1 101.8 105.6
120.5 182.4 196.6 182.4
156.2 161.2 173.7 195.2
238.4 259.9 264.9 242.5
252.9
309.2 322.2 301.2
256.8 260.6 277.2
295.7 336.3
358.0 366.7 348.1
Japan Outside Japan
FY05 FY14 FY11 FY10 FY13 FY12 FY09 FY08 FY07 FY06 Exchange rate
(Billion)
FY16 FY15
Trend of Global Sales in Control Segment
Operating income to sales ratio
9.9%
11.6% 12.1%
9.6%
7.7% 6.3%
7.2% 6.1%
7.2% 7.6%
10.0% 8.8%
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 US 113.09 117.00 113.80 100.66 92.61 85.13 78.82 83.33 100.67 110.58 119.99 108.95
Doubling of sales outside Japan in 10 years

Recent major projects (already disclosed)
Mong Duong 2 coal-fired power plant, Vietnam
Jaypee Nigrie supercritical coal-fired power plant, India
Taneco Phase I oil and petrochemical PJT, Tatarstan
Angola FPSO BP
Turceni thermal power pla

investors' guide - yokogawa · pdf fileengineering, brunei . shell nanhai ... u.s. company,...

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