YASKAWA Report YASKAWA ELECTRIC CORPORATION

Introduction Since its founding in 1915 , and based on its management principle of contributing to the evolution of society and the welfare of humankind through the performance of its business, Yaskawa Electric has provided continuing support for the key industries of the times from motors and factory automation to the mechatronics*1 of today. At present we are working toward the first centenary of Yaskawa Electric's founding in 2015 by taking on the challenges of high-efficiency utilization of natural energy and the realization of a society in which people and robots coexist. Our mechatronic...

1. Figures under one million yen presented in this Yaskawa Report are rounded down unless otherwise stated. 2. Ftprward-looking statements are based on information available to management at the time this Yaskawa Report was prepared as well as assumptions that management believes are reasonable. Actual results may differ significantly fjom these statements for a number of reasons. 3. The organizations covered by this report are the 63 consolidated subsidiaries of Yaskawa Electric and the 13 affiliated companies to which the equity method 4. Fiscal year 2011 means the consolidated fiscal year...

as a mechatronics and a robotics company" With Kitakyushu as our axis, we have achieved growth by supporting the leading-edge industries of the times. Kitakyushu, the site of Yaskawa Electric's head office, is one of the few coal-producing regions in Japan. The governmentoperated Yawata Steel Works (now the Yawata Works of the Nippon Steel Corporation) began operation there in 1901 and that opened the way for various industries to take hold. Kitakyushu has achieved growth as "a city of manufacturing" that supports Japan. The establishment of Yaskawa America in 1967 marked the start of our full-scale...

In 2015, we will celebrate one hundred years of business since Yaskawa Electric was established. Our vision for this special year calls for us to engage in problem solving using our core technologies to address the issues we find emerging on a global scale. These include declining birthrates in aging societies in developed countries and issues of environment and energy. Meanwhile, the city of Kitakyushu is one of nine locations in Japan that have been recognized as environmental model cities. Kitakyushu is the only city in Asia to be named a model city of green growth. It also received other...

Consolidated Financial Highlights Yaskawa Electric Corporation and Consolidated Subsidiaries Years ended March 20 or as of March 20 (Millions of yen) Operating Income Operating Income Ratio Ordinary Income Ordinary Income Ratio Sales and Profit by Business Segment Operating Income Operating Income Ratio Net Sales Motion Control Operating Income Operating Income Ratio Operating Income Operating Income Ratio Operating Income Operating Income Ratio Net Sales System Engineering Net Sales Information Technologies Overseas Sales Shareholders' Equity Shareholders' Equity Ratio Interest-bearing Debt...

Yaskawa Electric Corporation and Consolidated Subsidiaries Years ended March 20 or as of March 20 Net Sales: Breakdown by Business Segment Motion Control Robotics System Engineering Information Technologies Other Operating Income (Loss) and Operating Income (Loss) Ratio (Millions of yen) 40,000 Operating Income (Loss) Operating Income (Loss) Ratio Overseas Sales and Overseas Sales Ratio Overseas Sales Ratio The Americas Europe Asia Other Shareholders' Equity, Interest-bearing Debt and Debt-to-equity Ratio Shareholders Equity Interest-bearing Debt Debt-to-equity Ratio Total Assets and Shareholders'...

Message from the President FY2012 is the final fiscal year of our mid-term business plan "Challenge 100" and the year in which we will prepare for a new mid-term business plan. We will take steps to realize a high profitability structure as a global corporation by carrying out "selection and concentration" as well as by reviewing our expense structure. Junji Tsuda Representative Director President I would like to take this opportunity first to express our warmest thanks to our customers, our suppliers, our shareholders and investors, and the members of the local communities for the continued...

business with electric drive systems for vehicles, photovoltaic generation systems, and large - scale wind - power generation systems. In the service robot field, we will reinforce our efforts to explore the formation of new businesses. What we mean by evolving our development, production, and sales capabilities is building the arrangements by which we will be able to do business more efficiently tomorrow and even more efficiently next month and next year. We are aiming for product development capabilities that can rapidly respond to market demands, production capability that can continuously...

Special Feature: Robotics Business Growth Strategies Contributing to industry and society as the No. 1 global corporation in industrial robotics and achieving sustainable growth No.1* Global Share: Pride of Yaskawa's Robotics Business * Estimates from various research agencies and the Company's own research Yaskawa Electric has developed various products that lead the technological evolution and automation of industries since its founding in 1915. In recent years, we have been providing total solutions that are optimal for each customer and that keep pace with changes in society and industry....

China and Other Asian Regions with a Fast-Growing, Widespread Use of Robots Expansion of Robot Applications in Japan, U.S. and Europe The robotics business has been accelerating reinforcement of its industrial robot sales and services framework in the Asia region with the focus mainly on China, which is enjoying significant growth. In July 2011 , we established a new plant to manufacture robotic systems that combine robots with peripheral devices in order to double this supply capacity in China. In November 2011, a joint venture company engaged in the robotics business in Beijing was transformed...