Yokogawa Draws Up Transformation 2017, a New Mid-term Business Plan

Yokogawa Electric Corporation announces that it has drawn up Transformation 2017 (“TF2017”), a new mid-term business plan for growth, and will begin its implementation in fiscal year 2015.

In fiscal year 2011, Yokogawa drew up the Evolution 2015 mid-term business plan with the goal of becoming the global No.1 company in the industrial automation and control business, and based on this plan has striven to improve its profitability and financial strength by implementing growth strategies centering on the industrial automation and control business. As a result of the measures that have been undertaken to date, we generated record high operating income in fiscal year 2014 and have already achieved the sales target for fiscal year 2015, and are in a stronger financial position. However, the current level of profitability is not yet satisfactory and needs to be raised. In addition, as industries change and restructure worldwide in response to the IT revolution, we are seeing changes in our business environment and emerging new opportunities.

Under these circumstances, Yokogawa’s management has chosen to draw up the TF2017 mid-term business plan and will immediately begin its implementation. Based on this plan we will make investments to prepare for anticipated changes and set the stage for growth, and will improve profitability by restructuring our business to focus on customers, create new value, and maximize efficiency. TF2017 supersedes the Evolution 2015 plan.

The TF2017 plan is for a three-year period that will conclude with the end of fiscal year 2017, and is part of a long-term business framework that states Yokogawa’s goals for the next 10 years. Our efforts during the three-year period addressed by TF2017 will lay the foundation for future growth.

To ensure future growth, Yokogawa is committed to becoming more profitable. The specific targets for fiscal year 2017, the final year of the TF2017 plan, are to have a return on equity (ROE) of 11% or more and earnings per share (EPS) of 100 yen or more.

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