YOKOGAWA ELECTRIC CORPORATION Yokogawa Electric Corporation
Financial Results for Fiscal Year 2015May 10, 2016
- 0 -
Copyright © Yokogawa Electric Corporation
ContentsFY15 Results and FY16 Forecast
Junichi Anabuki
Director, Senior Vice President Accounting & Treasury Headquarters
Transformation2017
－For future growth and improved profitability－
Takashi Nishijima
President and Chief Executive Officer
> Long-term Business Framework & Mid-term Business Plan
> Current situation
－FY15 review & changes in business environment－
> Management review and policies
－TF2017: three reforms－
> Numerical goals, Capital policy, Enhancing corporate governance
Yokogawa Electric Corporation
FY15 Results and FY16 ForecastMay 10, 2016
Junichi Anabuki
Director, Senior Vice President Accounting & Treasury Headquarters
FY14 | FY15 | Difference | Growth rate | ||
Orders | 417.1 | 421.1 | 4.0 | 1.0% | |
Sales | 405.8 | 413.7 | 7.9 | 2.0% | |
Operating income | 29.8 | 39.6 | 9.8 | 32.9% | |
ROS (%) | 7.3 | 9.6 | 2.3 pts | ー | |
Ordinary income | 33.4 | 40.7 | 7.3 | 22.0% | |
Profit attributable to owners of parent | 17.2 | 30.2 | 13.0 | 75.1% | |
EPS (¥) | 66.88 | 114.01 | 47.13 | 70.5％ | |
ROE (%) | 8.6 | 13.2 | 4.6 pts | － | |
Exchange rate | 1$= | ¥110.58 | ¥119.99 | 9.41 | － |
- FY15: Both sales and profits increased.
＊Impact of exchange rate
* Orders down ¥1.1 billion, sales down ¥1.7 billion, operating income up ¥4.4 billion
＊The operating income, ordinary income, and net income figures are all record highs.
（Billion ¥）
Summary of FY15 Results(Comparison with forecast)
Despite the sharp appreciation of the yen, profits exceeded the forecast.
FY15 forecast
（2/2）
FY15
Difference
Orders
441.0
421.1
(19.9)
Sales
427.0
413.7
(13.3)
Operating income
39.0
39.6
0.6
Ordinary income
39.0
40.7
1.7
Profit attributable to owners of parent
28.0
30.2
2.2
EPS (¥)
105.84
114.01
8.17
Exchange rate
1$＝
¥120.00
¥119.99
-0.01
（Billion ¥）
Quarterly Financial Results- Sales tend to be higher in 2Q and 4Q, and this trend is particularly strong in the Japanese control segment.
受注 売上 営業利益
■ Order ■ Sales ■ Operating income
（Billion ¥）
124.6
110.5 97.9 113.9108.6
109.5
112.4
104.0
9.1
4Q
100.4
94.8
82.8
101.6
96.8
13.3
92.7
108.1
99.1
13.9 10.0
2.6 7.7 6.2
6.6
1Q
2Q
3Q
4Q
1Q
2Q 3Q
FY15
FY14
Operating Income（FY14/FY15 Comparison）Increase in gross profit from ¥9.7 billion increase
FY14
FY15
US＄
110.58
119.99
Exchange rate
（Billion ¥）
（¥）
in sales
(excluding impact of exchange rate）
Reduction of fixed costs
¥/＄ exchange rate sensitivity: approx.
¥0.45 billion for each ¥1 c
+4.4
39.6
G&A
ion
1 billion) vestments 5 billion)
hange
＋4.0 (3.6)
Lower gross margin
＋5.5
(0.4)
Increase in S
Cost reduct
29.8
Cost reduction (+ 2.9 billion)
Strategic orders etc (- 3.9 billion)
Change in product sales composition
(- 2.5 billion)
(+ 2.
Strategic in (- 2.
FY14
FY15
Non-operating /Extraordinary Income and Expenses（Billion ¥）
FY14 FY15
Operating income 29.8 39.6
Non-operating income 6.5 3.8
Non-operating expenses 3.0 2.7
Extraordinary income
10.6
1.6
Extraordinary expenses
16.5
0.4
Income before tax
27.4
41.9
Ordinary income 33.4 40.7
FY14 forex gains: ¥2.1 billion FY15 forex losses: ¥0.3 billion
FY14 sale of leasehold rights and buildings: ¥9.4 billion
Tax, etc. 10.2 11.7
Profit attributable to
owners of parent 17.2 30.2
FY14 business structure improvement expense:
¥15.9 billion
(Effective tax rate) 30.8％ 25.0％
FY14/FY15 Comparison for Orders, Sales, and Operating Income by Segment
Control: Thanks to the replacement of plant equipment and procurement of operation/ maintenance services, orders and sales were at a record high for the third straight year.
Measurement: Operating income increased mainly due to the impact of the exchange rate.
■ Control ■ Measurement ■ Aviation and other
（Billion¥）
Orders
Sales
Operating income
417.1421.1
(+4.0)
405.8413.7
23.6
(+7.9)
(-0.4)
26.9
22.9
(-4
(+1
(+6
25.1
23.2
367.0
373.1
.0)
.9)
.1)
24.0
23.823.4
358.0366.7
(-0.4)
(+8.7)
29.8
1.1
1.6
27.1
39.6
0.5
2.4
36.7
(+9.8)
(-0.6)
(+0.8)
(+9.6)
FY14 FY15
FY14 FY15
FY14 FY15
Trend of Global Sales- Sales outside Japan have risen for the sixth straight year and have been at a record high level each of the past three years.
The percentage of sales generated outside Japan is unchanged from FY14.
Total
（億円）
（Billion¥）
By segment
Control Measurement Aviation and other
■ Japan ■ Outside Japan
■ Japan ■ Outside Japan
（億円）
（Billion¥）
59.4%61.5%
334.7347.9
66.8%
388.5
69.3% 69.3%
405.8 413.7
72.6% 72.2%
358.0366.7
198.9213.9
259.4 281.1286.6
259.9
264.9
63.6% 65.4%
25.2%
27.3%
135.8 134.0 129.1 124.7 127.1
98.1
101.8
23.823.4 24.0 23.6
15.1 15.3 6.16.4
8.7 8.1 17.9 17.2
FY11 FY12 FY13 FY14 FY15
FY14 FY15 FY14 FY15 FY14 FY15
Trend of Cash FlowDespite 15.9 billion yen in payments for a voluntary retirement program, operating CF was 31.9 billion yen, mainly due to the increase in net income.
Investment CF was a net outflow of 10.9 billion yen due to the acquisition of property, plant and equipment and intangible assets.
■ Operating CF ■ Investment CF ■ FCF
（Billion¥）
30.1
38.2
36.4
31.9
12.9
5.1
17.4
9.9
16.2
21.0
(7.8) (7.5)
(13.9)
(1.8)
(10.9)
Trend of Balance SheetTotal liabilities decreased due mainly to a reduction in long-term loans payable stemming from a repayment of ¥25 billion in subordinated loans and a ¥15.9 billion decrease in accounts payable-other associated with the solicitation of candidates for early retirement.
Net assets increased due mainly to a ¥25.3 billion increase in retained earnings, the disposal of ¥9.3 billion in treasury shares, and a ¥4.1 billion increase in the capital surplus.
Assets Liabilities and equity
379.9398.9
59.157.3
120.7135.0
440.0 412.8
76.1
65.3
143.1 136.9
Cash & time deposits
Notes/accounts receivable
379.9398.9
81.4
98.6
125.4
108.9
440.0 412.8
65.3 30.5
152.7135.4
43.4
Interest-bearing debt
Other liabilities Paid in capital
34.8
34.4 33.3 33.7
Inventories
43.4
12.1 13.2 18.0 17.1
106.9 108.9 110.4109.0
Other current assets
43.4 43.4
50.3 50.3
54.5
50.3
Capital surplus
46.3 50.1
59.1
50.8
Fixed assets
Investments
74.7 93.5 121.9142.6
4.0 4.9 6.4 6.4
Retained earnings
Minority interests
FY12 FY13 FY14 FY15 FY12 FY13 FY14FY15
FY12 | FY13 | FY14 | FY15 | |
総資本利益率（ROA） | 4.0% | 3.1% | 4.1% | 7.1% |
自己資本利益率（ROE） | 9.4% | 6.9% | 8.6% | 13.2% |
総資産回転率 | 0.94 | 1.00 | 0.97 | 0.96 |
FY12 | FY13 | FY14 | FY15 | |
D/E Ratio | 58.6% | 43.5% | 30.3% | 12.7% |
Shareholders' equity ratio | 44.3% | 46.9% | 49.0% | 58.3% |
BPS/ | 654 | 727 | 837 | 901 |
FY16 projected sales and profits
Excluding impact of exchange rate, sales and profits will increase.
Impact of exchange rate: Orders -25.1 billion, sales -25.1 billion,
（億円）
operating income -6.0 billion （Billion¥）
FY14 (A) | FY15 (B) | FY16 forecast(C) | Difference (C-B) | Growth rate (C÷B-1) | ||
Orders | 417.1 | 421.1 | 408.0 | (13.1) | -3.1％ | |
Sales | 405.8 | 413.7 | 407.0 | (6.7) | -1.6％ | |
Operating income | 29.8 | 39.6 | 36.0 | (3.6) | -9.2％ | |
ROS (%) | 7.3 | 9.6 | 8.8 | (0.8 pts) | ー | |
Ordinary income | 33.4 | 40.7 | 35.0 | (5.7) | -14.0％ | |
Profit attributable to owners of parent | 17.2 | 30.2 | 23.0 | (7.2) | -23.7% | |
EPS (¥) | 66.88 | 114.01 | 86.16 | (27.85) | ー | |
Exchange rate | 1$＝ | ¥110.58 | ¥119.99 | ¥110.00 | (¥9.99) | ー |
（¥）
Increase in gross profit from higher sales (excluding impact of exchange rate）
Gross profit improvement
・Cost reduction (+ 2 billion)
FY15 (result) | FY16 (forecast) | |
US$ | 119.99 | 110.00 |
¥/＄ exchange rate sensitivity: approx.
¥0.6 billion for each ¥1 change
+3.1
+2.0
(0.2)
FY16 projected the appreciation of the yen
against all currencies
(6.0)
Effect of KBC acquisition
Increase in SG&A
・Cost reduction (+ 1.8 billion)
・Strategic investments (- 2 billion)
39.6
36.0
(2.5)
FY15 FY16 forecast
（Billion¥）
FY16 Forecast for Orders, Sales, and Operating Income by SegmentControl: Excluding the impact of the exchange rate*, sales and operating income are projected to increase.
*Orders -23.4 billion, sales -23.6 billion , operating income -5.3 billion
Measurement / Aviation and Other: No significant change from FY15
（
億円）
■ Control ■ Measurement ■ Aviation and Other （Billion¥）
Orders
Sales
Operating income
421.1 408.0
22.9 | ( ( ( |
25.1 | |
23.0 | |
373.1 | 366.0 |
19.0
(-13.1)
-3.9)
-2.1)
413.7 407.0
(-6.7)
23.6 | 23.0 | ( ( (- |
23.4 | 24.0 | |
366.7 | 360.0 |
-0.6)
+0.6)
-7.1)
6.7)
39.6 36.0
0.5 1.0
2.4 2.0
36.7
(-3.6)
(+0.5)
(-0.4)
33.0(-3.7)
FY15
results
FY16
forecast
FY15
results
FY16
forecast
FY15
results
FY16
forecast
Order Backlog Trend by Segment- Control (outside Japan): Exchange rate had a negative impact of ¥11.4 billion in FY15.
■ Control (Japan) ■ Control (outside Japan) ■ Measurement ■ Aviation and Other
（Billion¥）
166.1
17.1
4.1
187.3
17.0
4.2
215.1
15.1
3.3
145.7
236.2 230.5
18.2 17.9
2.5 4.2
156.2 143.3
(-5.7)
(-0.3)
(+1.7)
(-12.9)
97.1121.9
47.7 44.1 51.0 59.365.1
(+5.8)
Exchange rate
FY11 FY12 FY13 FY14
FY15
at end of fiscal year
82.19 94.05 102.92 120.17 112.68
＊Control: The Japan and outside Japan segments are based on sales office location.
Trend of R&D Expenses, Depreciation, and CAPEX- CAPEX includes strategic investment.
研究開発費 減価償却費 設備投資
■ R&D ■ Depreciation ■ CAPEX
（Billion¥）
500
50.0
400
40.0
300
30.0
200
20.0
100
10.0
0
0
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
forecast
FY07 | FY08 | FY09 | FY10 | FY11 | FY12 | FY13 | FY14 | FY15 | FY16 forecast | |
R&D expenses (% of sales) | 40.9 | 37.2 | 28.8 | 29.2 | 27.5 | 25.5 | 25.8 | 25.8 | 25.3 | 27.0 |
9.3% | 9.9% | 9.1% | 9.0% | 8.2% | 7.3% | 6.6% | 6.4% | 6.1% | 6.6% | |
Depreciation (% of sales) | 23.1 | 21.6 | 16.0 | 13.8 | 12.8 | 13.5 | 13.6 | 14.5 | 15.1 | 16.0 |
5.3% | 5.7% | 5.1% | 4.2% | 3.8% | 3.9% | 3.5% | 3.6% | 3.6% | 3.9% | |
CAPEX (% of sales) | 38.0 | 26.8 | 11.1 | 11.3 | 11.1 | 13.5 | 14.0 | 14.1 | 15.4 | 18.0 |
8.7% | 7.1% | 3.5% | 3.5% | 3.3% | 3.9% | 3.6% | 3.5% | 3.7% | 4.4% |
FY15: ¥20 regular dividend + ¥５commemorative dividend
FY16: Continued ¥25 dividend（payout ratio 29％） FY17: 30% payout ratio target
（¥）
2525
15 15 1616
5 7.5 88
12.5 12.5
12
12
10
期末
中間
Year-end dividend Interim dividend
10 2
7.5 88
6 6
5 5 12.5 12.5
0 5 6 6
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20152016
(予想)
(予想)
forecast
forecast
Yokogawa Electric Corporation
Transformation 2017
－For future growth and improved profitability－
May 10,2016
Takashi Nishijima
President and Chief Executive Officer
Long-term Business Framework &Transformation 2017 Mid-term Business Plan (TF2017)
The global No.1 company in industrial automation
Focus Point of TF2017End of March 2008
Control
Information business
Medical information
Japan System Techniques Co., Ltd
Measurement
Semiconductor testers Advanced stage Photonics
Life science Measuring instruments
Focus on control business
Spin-off Transfer
Transfer/Withdrawal Transfer/Withdrawal Withdrawal
Transfer MEG* business to Ricoh Company, Ltd.
*MEG= Magnetoencephalograph
Now
Control
Solution services (SS)
IA Platforms (PF)
Yokogawa Digital Computer
Corporation
Other Businesses
Spin-off
Transfer
Measurement
Kokusai Chart Corporation Transfer
Aviation and
O es
ther Business
IA Businesses Targeted under TF2017Target industries
Current Situation－FY15 review &
changes in business environment－
●Solid performance in comparison with
competitors (profits at record high)
Business: Expansion of solution svc. business
Industries: Strong in downstream segment
Geographic location: Not dependent on any
one market (Strong in Middle East and Japan)
Currency: Weak yen for much of the year
* Sharp appreciation since beginning of the year
Recent major projects (already disclosed)Yamal LNG PJT Yamgaz, a consortium of Technip and JGC
NAM-GLT renovation,
Taneco Phase I
oil and petrochemical PJT, Tatarstan
Dushanzi oil refining
Sakhalin 2 crude oil and natural gas development
Shell Nanhai petrochemical complex PJT Shell＆CNOOC
GLT-PLUS innovation &
upgrade PJT, Holland
and ethylene project
CNPC
No. 4 thermal power plant renovation PJT, Ulaanbaatar, Mongolia
PJT
USGC petrochemicals PJT
Chevron Phillips Chemical Company
Sabine Pass LNG PJT
Cheniere Energy Partners
Turceni thermal power plant pollution abatement PJT, Romania
Thermal power and desalination PJT, NEW Qatar
Map Ta Phut Olefins Co., Ltd. petrochemical plant complex construction PJT
Ethylene PJT NEW Shintech, US
Shell Norco chemical reinstrumentation program
Angola FPSO
BP
RAPID PJT(FEED*)
PETRONAS
Ichthys LNG PJT / Ichthys JV
Added: LNG carrier control system
Mong Duong 2 coal-fired power plant, Vietnam
PETRO Rabigh 1,2 PJT
LNG Carrier PJT
Daewoo Shipbuilding & Marine Truck terminal automation PJT
Saudi Aramco and Sumitomo Chemical Co.
Engineering, Brunei
Jaypee Nigrie supercritical coal-fired power plant, India
NEW Bharat Petroleum
Corporation (India)
*FEED = Front End Engineering Design
Current Situation: Market Environment
Market status
Industries
Changes have exceeded the assumptions that the mid-term
business plan is based on.
(prolonged weak crude oil prices, widely fluctuating exchange rates)
Industries in the upstream sector are either stagnant or in decline, while the downstream sector remains strong.
Geographic locations
The economies of China and certain resource-
rich countries have slowed down. Growth is anticipated in India and Indochina, and the Middle East remains robust.
Middle East
Strong
Addressing Changes in the Market Environment －
Three Basic Policiesー
●No changes in our basic strategies; instead, we will
implement the following three basic reform policies:
＜Three basic reform policies＞
Concentrate resources in geographic locations where
1 we are strong and in downstream industries where
companies continue to invest.
Continue investing in the upstream sector in
2 anticipation of recovery and resumed growth.
3 Focus on improving profits by increasing efficiency.
TF2017 Review / Ongoing Efforts - Three reforms－While focusing on the control business,
transform from being product-centered
1 to being focused on the customer
2 transform to create new value by taking advantage of ICT
3 transform by becoming more efficient than ever
(ROE 11％, with top priority on ROIC of control business)
-
Transforming to Focus on Customers
Expand our business
by using our customer base and concentrating resources on focus industries
●Through a process of selection and concentration, make strategic investments in areas such as services and the downstream sector.
Key measures
Expand lifecycle service business
Progress achieved
・Strengthened international services (infrastructure, headcount, DCS lifecycle support)
Expected benefits in FY17
By adding over 340 people to the workforce, increase sales by over 40%.
Expand advanced solution business
Strengthen product functionality for focus industries
Targeting a wide range of industries, expand our solution business in Japan
By adding just over 40 people to the workforce, achieve 30% growth in annual income.
・Increase sales of strategic products by 20％.
・Create a new market worth over 5 billion yen.
・Increase sales by over 20%.
・Released enhanced versions of CENTUM(DCS), ProSafe(SIS), STARDOM (RTU/SCADA)
・Achieved over 15% growth in orders for information-related businesses (FY15)
Reinforced capabilities of business development managers
Strengthened software (e.g. MES)
Acquired U.K. company, KBC
-
Transforming to Create New Value
【Advantages】 Production process and site knowledge and experience + strength in information and communications technology (ICT)
Through collaboration with partner companies and other means, help companies in a wide range of industries and business areas improve efficiency and optimize operations
Key events
Description
With focus on control systems, reinforce the security business
Acquired U.S. company, Industrial
Evolution Inc.
Strengthening the provision of software and
consulting to oil & gas industry executives
Develop wireless technology-based solution business
Expanded collaboration with Cisco Systems
Concluded a field wireless system development agreement with Statoil
Entered a cloud-based DaaS* business
* Data as a Service: a cloud -based service for the provision of
data that facilitates its use as a management asset
Acquired U.K. company, KBC
KBC OverviewManagement consulting improve asset efficiency focusing on refining and petrochemicals
Management strategy Business optimization
Simulation ERP Production management
Control systems/Engineering Control software/System integration
Field equipment
Business strategy /plan
Business management
Factory management
Production process/control
Plant site
Design Engineering Commissioning Operations
f
Lifecycle services
Copyright © Yokogawa Electric Corporation
- 29- Intentions behind Acquisition of KBC and IE1 Providing a one-stop solution to target industries
KBC: Improve asset efficiency of oil and petrochemical plants
Consulting services
Technical solution services (chemical process design / operation)
Yokogawa: Optimize plant operations
Advanced automation solutions
+ • Production process platforms +
Solution services
IE: Improve efficiency through use of data
Advanced cloud solutions
2 Expanding business ➔ Creating new value
3 Goal: Through the creation of value, exceed the amortization of goodwill on a single-year basis by FY2017.
* Begin operating at a profit by FY2018.
Transforming into a More Efficient Global Company
Implement measures to improve efficiency that will reduce costs by 20 billion yen within three years (Target amount for FY16: approx. 10 billion yen)
Key measures Examples
Improve COGS ratio
Reduce costs for specific models
Optimize global logistics
Improve solution services gross margin
Global procurement
Reduce SG&A
Improve rate of management of sales and each location
Improve corporate efficiency
Focus on reducing costs that are independent of production volume
Reduce costs by changing packaging
Utilize central engineering centers in India and other locations
Globally introduce infrastructure that will improve visibility
Streamline functions of overseas offices
Improve efficiency by cutting fixed costs
Implement shared services for HR, accounting, general affairs, and trading business
Reduce labor, paper, transport, and storage costs (e- DocPJT)
Transformation Targets
FY16 Management Policy (Wrap up)FY14
results
FY15
results
FY16
target
FY17
target
Cost reduction
（In relation to FY14)
ー
¥5.7
billion
Approx.
¥10 billion
Approx.
¥20 billion
COGS ratio
58.3%
57.3％
Improvement by cost reduction
57% or lower
SG&A ratio
34.4％
33.1％
Despite increased
strategic investment, will seek to reduce this mainly outside Japan
30% or lower
（excluding strategic investment）
Operating income- to-sales ratio
7.3%
9.6%
8.8%
10.2%
Focus on strengths such as downstream
Fund strategic investment through cost
reduction
Establish foundation for making a
BIG LEAP next year or soon thereafter
TF2017 Numerical Goals, Capital Policy, Enhancement of Corporate Governance Mid term Business Plan → No changeBusiness plan
FY14
FY15
FY16
FY17
R O E
( ％
) 8.6
13.2
9.3
11 or more
R O A
( ％
) 4.1
7.1
5.4
6 or more
Sales
405.8
413.7
407.0
440.0
29.8
39.6
36.0
45.0
7.3
9.6
8.8
10.2
(billion yen)
Operating income
(billion yen)
R O S ( % )
E P S ( y e n )
66.9
114.0
86.2
100 or more
Business Plan by Segment → No change(Billion ￥)
Sales
FY14
FY15
FY16
FY17
Difference
FY14～17
Control
358.0
366.7
360.0
390.0
＋32.0
Measurement
23.8
23.4
24.0
26.0
+2.2
Aviation & Other
24.0
23.6
23.0
24.0
±0.0
Total
405.8
413.7
407.0
440.0
＋34.2
Operating income
FY14
FY15
FY16
FY17
Difference
FY14～17
Control
27.1
36.7
33.0
42.0
＋14.9
Measurement
1.6
2.4
2.0
2.0
＋0.4
Aviation & Other
1.1
0.5
1.0
1.0
(0.1)
Total
29.8
39.6
36.0
45.0
＋15.2
Exchange rate
(US＄/￥)
110.58
119.99 110.00
110.00 ー
R&D, Investment for Growth, HR(updated summary)
Investment in R&D
Add more value and create new businesses.
Maintain R&D investment at current level and achieve an R&D-to-sales ratio of 6%.
Investment for growth
■
To expand in target industries, make 50 billion yen
in strategic investments including M&A by the end of FY2017.
Regular capital investment will be kept at an amount that is sufficient to cover capital depreciation.
HR
Keep size of global workforce at around 20,000 and increase proportion of employees who are based outside Japan.
Percentage of female managers: 5％ or more (ＦY2017 Target)
＊(ＦY2014: 2.4％ for Yokogawa Electric)
Financial Strategy, Capital Policy → No changeCash generation/ business expansion cycle
Operational cash flow
90 billion yen
(FY15-FY17)
Total: 100 billion yen
FY15: 31.9billion yen
＋ Cash
Priority
(including strategic investment)
1 Investment
・Strategic investment
(50 billion yen from FY15 to FY17)
・Regular capital investment
(to cover capital depreciation)
3 Return to shareholders
・Stable and sustainable dividend payment
・While allocating funds for investment and maintaining a sound financial footing, will aim for a 30% dividend ratio
2 Finances
・Ensure the sound finances needed to undertake business expansion (enhance ability to raise funds and manage risk)
*FY15 : Capital investment : ¥15.4 billion
(Includes strategic investment)
※Acquisition cost of KBC : ¥27.9billion
will be executed in FY16
Optimum capital structure
Maintain ability to generate the funds needed to invest for growth
Keep single A credit rating with Japanese rating agencies
Overall DirectionYear
Action
Directors
Auditors
Officers
in
outside
Outside
%
in
outside
(doubling as board member)
2003
Introduced outside directors
7
1
13%
2
2
24
6
2004
Abolished retirement bonuses for directors
7
1
13%
2
3
24
6
2005
7
1
13%
2
3
26
6
2006
Introduced one year tenure system for directors and revised articles of incorporation to reduce number of directors (25⇒15)
9
1
10%
2
3
27
7
2007
Increased number of outside directors Introduced takeover defense measures
8
2
20%
2
3
29
5
2008
7
2
22%
2
3
28
5
2009
Increased number of outside directors Renewed takeover defense measures
7
3
30%
2
3
15
5
2010
5
3
38%
2
3
14
3
2011
Renewed takeover defense measures Sold shares of a listed affiliate
4
3
43%
2
3
15
2
2012
4
3
43%
2
3
14
3
2013
4
3
43%
2
3
12
1
2014
Established Nomination and Compensation Committee (voluntary advisory body)
Discontinuation (non-renewal) of takeover defense measures Introduced standards to ensure independence of outside directors
6
3
33%
2
3
12
3
2015
Established Nomination Advisory Committee and Compensation Advisory Committee (voluntary advisory bodies)
Conducted outside evaluation of Board of Directors Established Yokogawa Corporate Governance Guidelines
6
3
33%
2
3
11
3
2016
Increase number of outside directors (plan)
6
4
40%
2
2
12
3
Capitalizing on our large installed base (over 38,000 control systems installed), continue to increase our corporate value.
IA
outside Japan
IA in Japan
A i m fo r l o n g - t e r m g r o w t hImprove profitability
Corporate Brand SloganExpect great things from
Appendix：Trend of global sales in Control segment, Sales by region, Topics , Personnel by segment, Trend of stock price
Appendix: KPIsExchange rate fluctuations remain, but progress is being made.
20％以上
Expansion of business and improvement of efficiency
Expansion of scale
11％ or more
（control） FY14: ¥405.8 billion
FY15: ¥413.7 billion FY16: ¥407.0 billion FY17: ¥440.0 billion
Business
6％ or more
ROE ROA
FY14: 4.1%
ROIC
ROS
FY14: 7.3%
FY15: 9.6%
FY16: 8.8%
KPIs
FY14: 8.6％ FY15: 13.2%
FY16: 9.3%
FY17: 11% or more
FY15: 7.1%
FY16: 5.4%
FY17: ６% or more
Re-examination of non-business assets
FY17: 10.2%
Revenue/ invested capital
ex. Reviewing Security holdings
Financial strategy・ capital policy
Financial leverage Optimum capital structure
＊There is no plan to issue new stock following the acquisition of KBC.
Appendix: Trend of Global Sales in Control Segment7.2%
9.9%
11.6%12.1%
9.6%
7.7%
6.3%
7.2%
6.1%
7.2%7.6%
(Billion ¥)
10.0%
Operating income to sales ratio
252.9
309.2 322.2 301.2
196.6
256.8260.6
277.2
295.7
336.3
358.0366.7
259.9 264.9
2,311
107.3
120.5
182.4
182.4
156.2 161.2 173.7
195.2
238.4
123.8 132.4 126.8 125.6 118.8 100.6 99.4 103.5 100.597.9 98.1 101.8
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
US dollar (Yen)
USドル
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
Exchange rate (US＄)
107.46
113.09
117.00
113.80
100.66
92.61
85.13
78.82
83.33
100.67
110.58
119.99
＜Exchange rate＞
Appendix: Sales by Region■ Japan ■ Asia ■ Europe ■ North America ■ Middle East ■ Other(Russia, Brazil, Australia, etc.)
59.4%61.5%
334.7347.9
66.8% 69.3% 69.3%
405.8413.7
388.5
64.964.1
59.9
36.1
44.7
27.8
32.1
21.3
21.5
26.4
27.5
37.3 41.146.8
25.9 34.6 40.4
37.7 36.734.8
（Billion ¥）
Sales outside Japan: 286.6
87.3 88.0 98.6 103.8 100.5
135.8 134.0 129.1 124.7127.1
Sales in Japan: 127.1
FY11 FY12 FY13FY14
FY15
＊Segment by country and region based on location of customers
Appendix: Personnel by Segment
Appendix: Topics （Feb. 3-May 10)FY11
FY12
FY13
FY14
FY15
FY14-15
difference
Control
16,672
17,188
17,669
17,593
16,724
-869
Measurement
1,968
1,667
1,328
1,171
1,122
-49
Aviation & Other
797
830
840
837
800
-37
Total
19,437
19,685
19,837
19,601
18,646
-955
Offer to acquire KBC Advanced Technologies
Feb.
Mar. Apr.
Launch of Industrial Knowledge business unit to enhance cloud-based advanced solution business
Supply of turbine control systems for Mongolia's largest thermal power plant Conclusion of agreement with Statoil to jointly develop a field wireless system
Commencement of production of differential pressure/pressure transmitters in India Completion of acquisition on April 8（Acquired 100% ownership of KBC）
Note: The events are listed based on the month when the announcement was made.
Appendix : Trend of Stock Price (to be revised)10/12
11/3
11/6
11/9
11/12
12/3
12/6
12/9
12/12
13/3
13/6
13/9
13/12
14/3
14/6
14/9
14/12
15/3
15/6
15/9
15/12
16/3
16/5/6
Yokogawa
646
634
683
740
695
837
818
902
941
946
1,187
1,398
1,615
1,667
1,281
1,442
1,333
1,295
1,574
1,247
1,465
1,163
1,147
TOPIX
899
869
849
761
729
854
770
737
860
1,035
1,134
1,194
1,302
1,203
1,263
1,326
1,407
1,543
1,630
1,411
1,547
1,347
1,298
10/12
11/3
11/6
11/9
11/12
12/3
12/6
12/9
12/12
13/3
13/6
13/9
13/12
14/3
14/6
14/9
14/12
15/3
15/6
15/9
15/12
15/3
16/5/6
Yokogawa
50
49
53
57
54
65
63
70
73
73
92
108
125
129
99
111
103
100
122
96
113
90
89
TOPIX
69
67
66
59
56
66
59
57
66
80
88
92
101
93
98
102
109
100
106
91
100
87
84
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.
IR Group, Corporate Communications Department
Yokogawa Electric Corporation
Email: Yokogawa_Electric_IR6841@cs.jp.yokogawa.com Phone: +81-422-52-5530
URL: http://www.yokogawa.com/pr/ir/index.htm
Yokogawa Electric Corporation published this content on 10 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 May 2016 06:46:07 UTC.
Original documenthttp://www.yokogawa.com/pr/ir/pdf/2016/201603presentation-en.pdf
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