Yaskawa Electric : Management Policy

02 Management Policy

Top Message

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Work together as one globally centering on Yaskawa principles and practice

"i3-Mechatronics," a solution concept to become the company that supports a wider range of industries and society than ever before

I'm Masahiro Ogawa. I became the Representative Director, President in March 2023. Since joining Yaskawa Electric in 1987, I had consistently gained experience in the Robotics division. In 2010, I moved to the U.S. and oversaw all our business segments, while gaining experience of global business management. After coming back to Japan in 2016, I worked hard to realize the "i3-Mechatronics" advocated by Mr. Ogasawara, Chairman of the Board. From now on, as the President, I will lead the Yaskawa Group to let us work together as one to make further progress.

Since its foundation, Yaskawa Electric has consistently focused on "electric motors and their applications." With motor technology as its core, Yaskawa has developed its technology from motors in coal mining facilities to steel and material production facilities, factory automation, and i3-Mechatronics, while sincerely meeting the needs of the market and customers in each era. It is Yaskawa Group's ability to contribute to society through industry to present a path toward the realization of the ideal production site that customers want by using "motors and their applications" technology. I believe that this continuation is our existential significance and mission.

Our customers' business environment is evolving every day. Accordingly, their expectations and requests for the Yaskawa Group will increase in the future. In this environ- ment, I would like to work with our employees to realize the unique social contribution that the Yaskawa Group can make. It is a great challenge, but I will take the lead in our efforts to further develop the Yaskawa Group.

Masahiro Ogawa

Representative Director, President

01 Drivers of Value Creation

02 Management Policy03 Creating Social Value and Solving 04 Foundation of Value Creation Social Issues through Business

05 Corporate Governance

06 Corporate Data

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02 Management Policy

Top Message

What I want to accomplish as the President

The review of previous mid-term business plan "Challenge 25 Plus"

One day in November 2022, when I visited the presi- dent's office for a business meeting, Mr. Ogasawara, the Chairman of the Board, (the former President) asked me to become the next President. The timing was unex- pected, but in one minute, I was determined to become the President and replied with my acceptance. I had overseen the Robotics business for 7 years until FY2022, and during that time, I always tried to operate the business with total optimization, so I was not reluctant to take responsibility for the entire company and make decisions as the President. I determined my mind when I was actually asked.

What I think I should accomplish as the President is to think about and implement "How we should respond to current events and expectations from markets and customers in our current position" to make Yaskawa a company that will continue to develop for the future. My role is not to drastically change what we have done in the past, but to add something extra to the present and connect it to the future while being conscious of the sustainability of growth.

In addition, in these days when supply chains are expanding globally, it is necessary to take an event that occurs anywhere in the world as our own. In order to be a robust company that can respond flexibly to global events, it is necessary to instill Yaskawa principle and i3-Mechatronics as guidelines for the conduct of all employees and to build a corporate culture. When it becomes a culture, the conduct of employees is aligned, and it is more likely to be inherited. I will be a leader in fostering a corporate culture and create the foundation for the Yaskawa Group's continued growth in the future.

The previous mid-term business plan "Challenge 25 Plus" ended in FY2022, but the actual situation was very different from that assumed in FY2019. The U.S.-China trade conflict started, and economic activity and human movement were restricted by the COVID-19 pandemic. After the resumption of economic activity, there was a shortage of electronic components, mainly semicon- ductors, due to a rapid recovery in demand, and we also faced rapid fluctuations in foreign exchange rates and inflation. All of these changes in the environment were unexpected, but it is very valuable that we could achieve the revenue and operating profit targets set out in "Challenge 25 Plus" in this situation. However,

I recognize that how to handle the shortage of parts remains as a challenge, so we will take measures to fulfill responsibilities to supply in a stable manner under the new mid-term business plan, "Realize 25."

Another major achievement of "Challenge 25 Plus" is that we were able to confirm that the measures the Yaskawa Group has taken so far was correct. The Yaskawa Group's global management, which is characterized by autonomy for each region and local produc- tion, worked effectively against fluctuations in foreign exchange rates. Although we cannot control fluctuations in foreign exchange rates, we were able to build a resilient system. This is also an effective response to geopolitical risk and decoupling. I believe that it is worthwhile to further strengthen this resilient global system, and this realization is reflected in "Realize 25."

Also in the period of "Realize 25," unexpected environmental changes are inevitable. In my personal experience, it has definitely helped me to become aware of my shortcomings and continue to learn to compensate for them as I proceed to my goals. I believe that the Yaskawa Group can become a stronger company by gaining awareness by tough changes and challenges and gaining experience to overcome them.

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Strategy of the new mid-term business plan "Realize 25"

The goals of "Realize 25" are also the goals of our long- term business plan, "Vision 2025" (FY2016 - FY2025). Of course, as the President, I am also looking at the sustainable growth of the Yaskawa Group beyond FY2025, but first I will have all of our employees focus on achieving "Vision 2025."

The strategy of "Realize 25" to realize "Vision 2025" is to strengthen our execution capabilities. By launching new products early in the mid-term business plan period and revitalizing our existing business foundation for development, production, sales, and services, we will grow in both volume and quality. At the same time, we will work to re-strengthen our global supply chain to prepare for the next further growth.

In the PDCA cycle, "Realize 25" is a period of "Do." Awareness in this period leads to challenges for the next mid-term business plan. I don't want to see similar challenges on the agenda of the discussion after three years without tacking them now. We have decided what we are going to do and how to do it, so what we should do now is to just do it with determination. The management, including general managers and division managers, recognize their roles and act in response to the direction of the entire company, and take proper responsibility for the results. As the head of the company, I will take responsibility for the direction that we have decided as a company.

Since we launched the concept of i3-Mechatronics in 2017, we have been pushing hard to transform our business model. Now is the right time for us to align the direction of everyone from the management to employees to get our new business model off the ground and get the results. We aim to achieve the goals of "Realize 25" by ensuring that we execute what we have decided through actively communicating with employees using the discus- sion* opportunities, as well as through applying detailed PDCA cycle through discussion with the management.

• About 10 meetings for direct discussion between the management and employees are held in a year.

01 Drivers of Value Creation

02 Management Policy03 Creating Social Value and Solving 04 Foundation of Value Creation Social Issues through Business

05 Corporate Governance

06 Corporate Data

YASKAWA Report 2023 16

02 Management Policy

Top Message

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