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 reset the targets for its ACTION-21 strategy to realize the VISION-21 long-term corporate vision, which remains unchanged. The six years from FY2000 to FY2005 were a structural reform phase in which Yokogawa aimed to establish a profitable structure. The five fiscal years from FY2006 are projected to be a growth phase during which Yokogawa aims to maximize its profits on the basis of that structure.

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

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, solve problems from the customer's point of view (Customer Centric Solutions) using optimum technical expertise (Leading Edge Technology), and thereby achieve the Second Milestone targets.

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

The path to the Second Milestone is a growth phase intended to raise management efficiency and generate large profits using the platform established in the preceding First Milestone phase. Yokogawa will expand established businesses and foster new businesses in which it has invested.

Groupwide Targets

On May 13, 2008, Yokogawa decided to review the FY2010 targets of 610 billion yen in orders, 600 billion yen in sales, and 75 billion yen in operating income that were announced in May 2006.