IRJun 06, 2019
TOKYO — Yaskawa Electric Corporation (Head office: Kita-Kyushu; Representative Director and President: Hiroshi Ogasawara) has revised its long-term business plan “Vision 2025” (FY2016-2025), and started its new mid-term business plan “Challenge 25” (FY2019-2021), the second stage towards achieving its Vision 2025.
In consideration of the status of the achievements of the previous mid-term business plan “Dash 25” (FY2016-2018), we have revised the long-term business plan “Vision 2025” which was announced on April 20, 2015. Among the revisions, we have gone back to our management principles and reconfirmed how we aim to set the goal of business plan, and we set ‘factory automation/optimization’ based with mechatronics and ‘applicational area of mechatronics’ as the core business domains. In addition, we clarified in our business objectives that operating income is the most important business indicator to accelerating qualitative improvement.
1) Our Goal
– Respect Life
We aim to contribute to improving quality of life and building a sustainable society with technologies accumulated over the past century.
– Empower Innovation
We venture in new technologies/domains targets to bring “Waku-Waku” excitement to people.
”Waku-waku”: Onomatopoeia used in Japanese language to express someone’s feeling of enthusiasm
– Deliver Results
We promise to deliver assured results to stakeholders, while continuously enhancing business execution capabilities.
2) Financial Goals
In the revisions of “Vision 2025”, we suspended the net sales target such as ‘net sales (more than double compared with FY2015)’ and ‘net sales ratio from new businesses (more than double compared with FY2015)’ that had been set for FY2025, and instead set operating income as the most important business indicator. We will aim towards generating an unprecedented income of 100 billion JPY. Besides, we have adopted the new indicator ROIC to set a target for efficiency of investment capital including interest-bearing debt, in addition to ROE as an existing indicator for capital efficiency. As to shareholder return, a dividend payout ratio remains a main indicator as before and we work to improve returns to the shareholders.
3) Business Domains / Important Policies
The advancement of the core business will allow us to offer solutions against the business challenges of our customers, and the expansion into new fields with applied technology of mechatronics will create new added-value in society. We will particularly position ‘factory automation/optimization’ and ‘applicational area of mechatronics’ as the top-priority business domains to grow further.
(1) Factory Automation/Optimization
– Realize revolutionary industrial automation through i³-Mechatronics (*3)
Combine mechatronics and ICT technology to provide new solutions to automation.
(*3) i³-Mechatronics: Yaskawa’s solution concept for realizing the new industrial automation revolution
– Pursuit global No.1 in core business
Pursue and achieve global No.1share in robotics and motion control segments
(2) Mechatronics Applications
– Challenges for new mechatronics application
Determine business commercialization by exploring and demonstrating fields in which mechatronics technology can be applied.
We focus our efforts on the following areas in particular;
・Energy Saving: Reducing electricity consumption through energy saving equipment
・Food & Agri: Promote automation in food production and agriculture market
・Clean Power: Establish energy creation, application and storage business
・Humatronics: Promote development of medical and welfare markets
The new mid-term business plan “Challenge 25” will act as a second step towards achieving “Vision 2025” by further accelerating the policies we have advanced through the previous mid-term business plan, and we will challenge for creating new values and markets.
1) Financial Goals in “Challenge 25”
2) Basic Policy / Important Policies
(1) Transform Business Model through i3-Mechatronics
– Establish sales structure to realize i³-Mechatronics
Establish a sales scheme that enables transformation to “Component + Digital Data Solution” sales
– Develop technologies and products to realize i3-Mechatronics
Increase product development speed by centralizing R&D functions to the Yaskawa Technology Center (tentative name)
– Strengthen manufacturing function to demonstrate i3-Mechatronics
Evolve i3-Mechatronics through implementation of the concept at the next-generation factory “Yaskawa Solution Factory”
(2) Maximize Profitability in the Growing ‘Robotics‘ Field
– Create presence in Chinese and Asian markets centered on ‘3C’ (*4) market
– Promote initiatives with car manufacturers and parts manufacturers in ‘Automotive’ market
– Strengthen initiatives in ‘Semiconductor‘ production equipment market
(*4) 3C: Consumer goods such as Computer, Communication, Consumer Electronics
(3) Expand New Domains by Strengthening Resources through ‘Selection and Concentration‘
– Energy Saving: Expand scope of energy saving application through high value-added value proposals through combining of high-performance AC drives and high-efficiency motors
– Food & Agri: Strengthen solutions to automation in food production processes
– Clean Power: Strengthen profitability by focusing on competitive fields and specific regions
– Humatronics: Develop business model by expanding demonstration of Humatronics equipment
(4) Improved Management Efficiency though Digital Management
Yaskawa establishes a simple and unified management structure through digital management, and TQM (*5) realizes “operational quality improvement and on-site capabilities improvement” for achieving further efficient management.
(*5) TQM: Total Quality Management
(5) Initiatives for Sustainable Social Development and Enhancement of Corporate Value
Against various challenges in society, we further tackle solutions through our business, and try to strengthen the management base, integrating ESG initiatives to realize sustainable growth of society.
The details of the “Vision 2025” and “Challenge 25” can be viewed from the URL below.
Vision 2025:
https://www.yaskawa-global.com/wp-content/uploads/2019/06/Vision2025_Revision_en.pdf
Challenge 25:
https://www.yaskawa-global.com/wp-content/uploads/2019/06/Challenge25_en.pdf
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