CENTUM VP R6 announced in 2014President Nishijima brieng employees on Transformation 201755Yokogawa 100th AnniversaryIn scal year 2014, the non-Japan control business accounted for 72 percent of all sales. To continue growing globally, Yokogawa will need to be able to compete with mega companies that are using their high prot, to aggressively invest in their businesses. Toward that end, Yokogawa will need to accelerate its growth strategy, strengthen cost competitiveness, and improve eciency throughout the Group. As one such measure, the company radically reviewed existing functions and operations, and took the tough decision to rationalize human resources in Japan. In scal year 2014, Yokogawa solicited applications for voluntary retirement from employees of the three companies engaged in the control business in Japan (Yokogawa Electric, Yokogawa Solution Service, and Yokogawa Manufacturing).Transformation 2017: the First Step towards the Next 100 YearsIn accordance with the Evolution 2015 mid-term business plan, Yokogawa worked hard to improve its protability and nances by promoting growth strategies mainly in the control business, and it made progress in this latter respect thanks to the weak yen. Regarding protability, in scal year 2014 Yokogawa was able to achieve the sales target for scal year 2015, one year ahead of schedule, and generated a record-high operating income. However, the increase in sales and operating income was largely due to the weaker yen, and the improvement in protability was far from satisfactory. Meanwhile, as a result of a global restructuring of industries, Yokogawa’s business environment was changing and new opportunities were emerging.Accordingly, Yokogawa had to rapidly transform its business structure, and so drew up a long-term business framework that denes what kind of company Yokogawa will need to be 10 years from now, and species strategies needed to achieve that goal. At the same time, without waiting for the completion of Evolution 2015, Yokogawa drew up a new mid-term business plan, Transformation 2017, (TF2017) that covers scal years 2015 to 2017.In this plan’s long-term business framework, Yokogawa dened its vision statement, “Through ‘Process Co-Innovation,’ Yokogawa creates new value with our clients for a brighter future.” TF2017 is a three-year plan starting in scal year 2015. Over the next three years, Yokogawa will lay the foundation for the growth required to achieve the goals of the long-term business framework. The company also decided to focus on the following three priorities: customers, creating new value, and becoming a highly ecient global company.Coincidentally, TF2017 was drawn up in 2015, which marks the 100th anniversary of Yokogawa. A century ago, Yokogawa started out with just four people. Currently, the Group operates globally, with 20,000 employees and oces around the world. The founding principles that have been passed down through the generations – quality rst, pioneering spirit, and contribution to society – helped Yokogawa develop highly reliable and quality products that are the core of its business, excellent project execution capabilities, advanced knowledge in diverse industries and engineering capabilities, and meticulous local service. Yokogawa will never forget this. As a brave pioneer, we will anticipate changes, regard changes as opportunities, and act bravely, and will continue transforming ourselves in order to keep blazing new trails for another 100 years.
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