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* of today. We are currently working toward the centenary of Yaskawa Electric 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, and at the same time, rolling out global...

3 Consolidated Financial Highlights 20 Message from the Director in Charge of CSR 5 Interview with the President 21 Management Principles and Corporate Activity Standards 22 Corporate Governance 24 Board of Directors and Corporate Auditors 25 Relations with Customers 27 Relations with Suppliers 28 Relations with Employees 30 Relations with Shareholders and Investors 31 Relations with Local Community and Society 9 Special Feature : Evolving Robotics Business with an Eye toward the Mid - term Business Plan Realize 100 and beyond 33 Environmental Management 38 Contributing to the Environment through...

Consolidated Financial Highlights Yaskawa Electric Corporation and Consolidated Subsidiaries Years ended March 20 or as of March 20 (Millions of yen) Operating Income Ratio Ordinary Income Ordinary Income Ratio Sales and Profit by Business Segment*1 Operating Income Operating Income Ratio Net Sales Motion Control Operating Income Operating Income Ratio Net Sales System Engineering Operating Income Operating Income Ratio Operating Income Operating Income Ratio Net Sales Information Technologies Operating Income Operating Income Ratio Earning - basic Earning - diluted Shareholders' Equity Shareholders'...

Yaskawa Electric Corporation and Consolidated Subsidiaries Years ended March 20 or as of March 20 Net Sales: Breakdown by Business Segment (Millions of yen) 400,000 Motion Control Robotics System Engineering Information Technologies Other Operating Income (Loss) and Operating Income (Loss) Ratio (Millions of yen) 30,000 Operating Income (Loss) Operating Income (Loss) Ratio Overseas Sales Ratio The Americas Europe Asia Other Overseas Sales and Overseas Sales Ratio Shareholders' Equity, Interest-bearing Debt and Debt-to-equity Ratio (Millions of yen) 160,000 Shareholders Equity Interest-bearing...

Interview with the President We will further accelerate improvement in profitability for the future, focusing on strengthening development, production, and sales capabilities, toward the 100th anniversary of our foundation in 2015. Junji Tsuda Representative Director Chairman of the Board President In FY2013 falling on the first year of our mid-term business plan (mid-term plan) Realize 100, significant increases in sales and profit were realized beyond initial targets. In FY2014, we will strive to strengthen our ability to realize growth with the objective of building a high-profitability structure...

mid -term plan Realize 100. Under this policy, we will further accelerate the deployment of each measure in FY2014. First, in order to strengthen our development capability, centering around the promotion of glocal management, local development will be globally enhanced in each area. In particular, in the fastgrowing Chinese market, the system for addressing local needs will be reinforced through the establishment of the China Development Center in FY2013, etc. For more efficient development, we will proceed with upgrades of our IT infrastructure hardware and software, and also improve our analysis...

Q4 Tell us about the capital investment plan for FY2014. was established in FY2013 , there is a plan to increase local development personnel to approximately 40 by the end of FY2014 and to 100 by the end of FY2015. Due to effects from such aggressive glocal management, the overseas sales ratio increased substantially from 54% in FY2012 to 59% in FY2013. We aim at growth up to 65% in FY2015 to become the overriding global leader in each core business. Regarding the third policy creation of new businesses and transforming them into core businesses, although the photovoltaic power conditioner business,...

Q7 Tell us about shareholder returns. The advent of a society in which people and robots coexist is becoming a reality due to rapidly evolving and expanding IT and advancements in other technologies. We will strive to hone our skills as a leading company of industrial robots, and contribute to social and industrial evolution by spreading the use of robots in various fields. At the same time, we will contribute to solving global-scale social issues we confront such as environmental issues, declining birth rates and an aging population, based on our manufacturing capabilities, including motion...

Special Feature: Evolving Robotics Business with an Eye toward the Mid-term Business Plan Realize 100 and beyond Providing the market with the highest value and building a brand selected as No.1 upholding the motto High Quality & Best Service Yoshikatsu Minami Corporate Vice President General Manager, Robotics Div. General Manager, Biomedical Business Div. Entering into the second year of the mid-term business plan (mid-term plan) Realize 100 announced in FY2013, the Yaskawa Electric Group has been implementing measures in accordance with the three basic policies: establishment of a high profitability...

Issues and measures related to sales capability to are functions of before-sales services that are offered prior to the actual introduction of robots and is the function of after-sales services that are offered after the introduction. Thus, at the robotics centers, substantial before-sales services are provided to help the customer consider the introduction of robots. This is to realize our stated motto for the robotics business, Best Service. In Japan, starting with the establishment of the Kanto Robotics Center (Saitama) in 2011, the Yaskawa Robotics Center, functioning as the core of our robotics...