In January 2000, Yokogawa announced the VISION-21 & ACTION-21 corporate strategy and the targets for fiscal year (FY) 2005, the First Milestone. Yokogawa subsequently undertook reforms in its business structure and Group management leading up to this First Milestone. As a result, Yokogawa achieved both consolidated sales and operating income increases for three consecutive years.

In May 2006, Yokogawa designated FY2010 as the Second Milestone and reset the targets for its ACTION-21 strategy to realize the VISION-21 long-term corporate vision, which remains unchanged.

VISION-21 overview

1. The Yokogawa Group will work together with its customers to create value in the fields of industrial and social systems. Thus, the Group aims to contribute toward not only preserving the global environment in the 21st century and realizing resource recycling in society, but also realizing a thriving global society.

To achieve these objectives, the Group will:
・ become a service company that helps customers improve their managerial efficiency, in accordance with the Enterprise Technology Solutions (ETS) concept, and
・ improve its quality of management so the Group can gain their trust.

2. The Yokogawa Group will perform sound and profitable management to increase shareholder value.

3. All members of the Yokogawa Group will share the same corporate vision and each individual will act autonomously and increase his or her individual worth in order to realize a value-creating company.

4. The Company and its employees will work together to create affluence.

The results of the First Milestone

Yokogawa promoted reforms in its business structure and Group management toward the First Milestone. To reform the business, measures were implemented to expand orders in the worldwide industrial automation and control markets, where expectations for growth were strong, and efforts were made to boost profitability through the improvement of management efficiency in this business. The Company succeeded in drastically changing its business structure by concentrating resources in markets that were expected to prosper and in businesses that were expected to grow, including semiconductors, optical communications, and life sciences. To revitalize the Group's management, the Company worked to maximize consolidated income by improving the infrastructure for its management base, including the reorganization and integration of subsidiaries.

As a result, Yokogawa steadily built up its business structure for growth and recovered from the collapse of the IT bubble and the silicon cycle market downturn.


The strategy and targets of the Second Milestone

During the path to the Second Milestone, Yokogawa aims to dramatically improve its managerial efficiency in order to increase the corporate value of the Yokogawa Group. The initiative for this effort is "One Global YOKOGAWA." Yokogawa Group companies around the world will operate in a truly consolidated manner to dramatically improve managerial efficiency, and help customers solve problems from their point of view (Customer Centric Solutions), using optimum technical expertise (Leading Edge Technology).


The three priority measures Yokogawa will implement are:

1. Operating in a truly consolidated manner to dramatically improve managerial efficiency

2. Boosting sales and profits not only in Japan, but on a global scale by increasing shares in the world markets

3. Continuing to be committed to proactive technology development to create new demand and start up new businesses

FY2009 and FY2010 Action Plan

In response to a radically changing management environment, on February 10, 2009, Yokogawa announced an action plan that positions FY2009 and FY2010 as a period for structural reform, with an eye on our next growth phase. In line with this action plan, we will focus on achieving the FY2009 and FY2010 targets.

Consequently, we have decided to discontinue the pursuit of the Second Milestone targets of 610 billion yen in orders, 600 billion yen in sales, and 75 billion yen in operating income.