Activity of YASKAWA for Industrie 4.0 -Focus on Robotics-

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YASKAWA s Industrie 4.0 for Robotics. 4.Expectation for Industry segments.

1 Activity of YASKAWA for Industrie 4.0 -Focus on Robotics- 1.Introduction of our company and products. 2.Concept for Our Industrie YASKAWA s Industrie 4.0 for Robotics. 4.Expectation for Industry segments. April 15, 2015 Technology and Development Division Hiroshi Ogasawara 2015 YASKAWA Electric Corporation

2 1.Profile Corporate Name: YASKAWA Electric Corporation Establishment Date: July 16, 1915 YASKAWA Head Office Location: 2-1 KurosakiShiroishi, Yahatanishi-ku, Innovation Center Kitakyushu Fukuoka Japan Head Office Capital: 23,062 million yen Number of Employees: Consolidated 14,579 *including temporary employees Consolidated Net Sales: 363,570 million JPY (FY 2013*) Main Business: Motion Control (AC servomotors, controllers and AC drives) Robotics System Engineering YASKAWA ELECTRIC (opened in March 2015.) *FY 2013 means the consolidated fiscal year from March 21, 2013 to March 20, YASKAWA Electric Corporation 1

1.2 Business History Founder Keiichiro Yasukawa First President Daigoro

Junji Tsuda Establishment 1915 1950 1980 1990 2000 2015 Vision 2010

plants, water supply plants and sewage treatment plants AC Drives

product transition Application of motor and electric system technologies to

development of MOTOMAN-L10 Shifted our focus on the mechatronic field 1969

Robots FPD Robots Clean/Vacuum Robots New Generation Robots Next Generation

3 1.2 Business History Founder Keiichiro Yasukawa First President Daigoro Yasukawa Representative Director Chairman of the Board President (FY2010~) Junji Tsuda Establishment Vision 2010 Electric motors (for coal mining) Electric systems Steel, paper, film plants, water supply plants and sewage treatment plants AC Drives Environment & Energy Business Field DC Servomotors AC Servomotors Key product transition Application of motor and electric system technologies to the growing mechatronic field 1958 development of Minertia Motor development of MOTOMAN-L10 Shifted our focus on the mechatronic field applied for trademark of Mechatronics (registered in 1972) Industrial Robots FPD Robots Clean/Vacuum Robots New Generation Robots Next Generation Robots Mechatronic Solution Business Field Robotics Human Assist Business Field 2015 YASKAWA Electric Corporation 2

1.3 Business Overview Motion Control Core

robots, Painting robots, Handling robots, FPD

robots, Semiconductor wafer transfer robots,

AC servo drives General purpose AC drive

generation Motor drive system for EV High

welding Biomedical robot Delta robot System

for steel plants Electrical instrumentation

treatment facilities, Large-scale wind power

Other Core products IT-related services,

4 1.3 Business Overview Motion Control Core products AC servo motors and controllers, Linear servo motors, General purpose AC drives, Power conditioners, Motor drive systems for EV, etc. Robotics Core products Arc and spot welding robots, Painting robots, Handling robots, FPD glass sheet transfer robots, New generation robots, Semiconductor wafer transfer robots, Biomedical robots etc. AC servo drives General purpose AC drive Power conditioner for photovoltaic power generation Motor drive system for EV High path accuracy robot for laser cutting and welding Biomedical robot Delta robot System Engineering Core products Electrical systems for steel plants Electrical instrumentation systems for water supply plants and sewage treatment facilities, Large-scale wind power generator and converter etc. Other Core products IT-related services, Logistics, etc Electric instrumentation systems for water and sewerage Continuous-casting machine Large-scale wind power generator and converter Scanner head for high-power laser Wireless M2M service (Communication Adapter) 2015 YASKAWA Electric Corporation 3

6 bn. Japan 41% 34% Europe 12% The Americas 16% *Other is a business segment for activities that are not included

5 1.4 Sales Breakdown by Business Segment and Region Business Segment Region System Engineering 10% Robotics Other* 12% Net Sales bn. Motion Control 44% Overseas 59% Asia Other Excluding China 1% 11% China 19% Net Sales bn. Japan 41% 34% Europe 12% The Americas 16% *Other is a business segment for activities that are not included in the reporting segments, such as Information Technologies, logistics services YASKAWA Electric Corporation 4

network - YASKAWA Electric Corporation HQ

production bases YASKAWA ELECTRIC UK LTD.

Division India YASKAWA EUROPE TECHNOLOGY,LTD.

Division Germany YASKAWA EUROPE GmbH Robotics

YASKAWA INDIA PRIVATE LIMITED Drives Division

South Africa YASKAWA ELECTRIC (SINGAPORE) PTE.

, LTD. China SHANGHAI YASKAWA DRIVE CO., Ltd.

6 1.5 Global Network - Global business development supported by the world s strongest network - YASKAWA Electric Corporation HQ Major overseas business bases Overseas production bases YASKAWA ELECTRIC UK LTD. Scotland YASKAWA ELECTRIC (SHENYANG) CO., LTD. China YASKAWA NORDIC AB Sweden YASKAWA SHOUGANG ROBOT CO., LTD. YASKAWA RISTRO D.O.O. China Slovenia YASKAWA ELECTRIC KOREA CORPORATION Korea YASKAWA AMERICA, INC. Drives & Motion Division U.S.A. YASKAWA INDIA PRIVATE LIMITED Robotics Division India YASKAWA EUROPE TECHNOLOGY,LTD. Israel YASKAWA EUROPE GmbH Drives & Motion Division Germany YASKAWA EUROPE GmbH Robotics Division Germany YASKAWA ELECTRIC CORPORATION Japan YASKAWA Canada Inc. Canada Yaskawa (China) Robotics Co., Ltd. China YASKAWA AMERICA, INC. Motoman Robotics Division U.S.A. YASKAWA INDIA PRIVATE LIMITED Drives Division India YASKAWA SOUTHERN AFRICA (PTY) LTD. South Africa YASKAWA ELECTRIC (SINGAPORE) PTE. LTD. Singapore YASKAWA ELECTRIC (CHINA) CO., LTD. China SHANGHAI YASKAWA DRIVE CO., Ltd. China YASKAWA ELECTRIC TAIWAN CORPORATION Taiwan YASKAWA Mexico S.A. DE C.V. Mexico YASKAWA ELECTRICO DO BRASIL LTDA. MOTOMAN ROBOTICA DO BRASIL, Ltda Brazil 2015 YASKAWA Electric Corporation 5

7 1.6 Activity in Automated production We proposed the assembly of Robots by Robots in1990. At present, we achieved a 71% automation ratio in robot production. Conceptual image of assembly line automation in Actual assembly line Outline of the Robot assembly line Light duty robot :Weight capacity 20kg Main application : Arc welding, Handling Industrial capacity: 1,000 pcs / month Automation ratio : 71% Robots in operation: YASKAWA Electric Corporation 6

2. Concept of YASKAWA Version Industrie 4.

new product development 4Open-innovation

equipment Improved components Robot Motor

8 2. Concept of YASKAWA Version Industrie 4.0 1In-house Applications 2Expanding business to customer applications 1 Improve productivity of in-house production line Ex. Production line for Motors 2 3Need-based new product development 4Open-innovation BTO Understadding Needs Use of own products Need-based new product development 3 Improved Robots Industrial equipment Improved components Robot Motor Driver Expand market Motor Robot Driver 4 Open Innovation Cloud PLM SaaS Sensor 2015 YASKAWA Electric Corporation 7

2.2 Development approach of YASKAWA s Industrie 4.0 YASKAWA's Industrie 4.

cloud PLC INV Machines Design support (CAD, PDM, etc) Production management (ERP, MES, etc.

Constraints Hardware "Integrated" Software (Traditional) "Procedural" Paradigm Shift Distributed "Object Object-oriented"

0 Product (Build-to-Order) Production Application Tools Software Hardware Sensors Customers' applications CRM CAD PDM MES ERP

9 2.2 Development approach of YASKAWA s Industrie 4.0 YASKAWA's Industrie 4.0 (system model) Big data analysis EWS PLC Wireless pendant Machine vendors Sales management AGV PC Handling Robots External cloud PLC INV Machines Design support (CAD, PDM, etc) Production management (ERP, MES, etc.) HM I Internal cloud 1) Distributed Control with IoT / M2M 2) Cloud Environment for Development Free-from Physical Constraints Hardware "Integrated" Software (Traditional) "Procedural" Paradigm Shift Distributed "Object Object-oriented" Open Innovation towards Industrie 4.0 Product (Build-to-Order) Production Application Tools Software Hardware Sensors Customers' applications CRM CAD PDM MES ERP Customer Management Easy to Use Object Oriented Developing Environment PLM Supply-chain Mechanisms Open innovation at every stage boosting both product development and BTO production ASIC Vision, Force,... Low-end Gears Consistent Management for the Development BTO: Build-to-Order 2015 YASKAWA Electric Corporation 8

3. Future Production - Coexistence with Robot - In future production lines, Robots will learn skills corresponding to a specific task from cloud based applications, and will work hand in hand with

10 3. Future Production - Coexistence with Robot - In future production lines, Robots will learn skills corresponding to a specific task from cloud based applications, and will work hand in hand with human. Future image of coexistence of cell with robots Practical Image JOB motion change Work Cloud M2M communication with parts Work Skill Cloud Parts1:ID1 Skill Parts2:ID2 Parts3:ID3 Inquire unexperienced task In case of handling task other than the usual one, there is a need to change operation =>Inquire to Cloud, and perform task by acquiring motion applications YASKAWA Electric Corporation 9

11 3.2 Example of cloud Robotics Cloud Robotics Applications Cloud Failure prognosis and Remote maintenance YE SIer Remote teaching ; Path planning Server in factory Shared open application software (SaaS) in multitenancy environment R/C Wireless pendant R/C Sensors R/C Smart devices ; Information Visualization R/C Parameter tuning ; Autonomous learning 2015 YASKAWA Electric Corporation 10

3.3 Demonstration: Robotics for BTO manufacturing Word

manufacturing, and Remote Monitoring of the production line.

Robotics Automatic Block Rearrangement Robot Cooperation BTO

:"YASKAWA" HUMAN MOTOMAN Order Customer BTO Customer ICT

12 3.3 Demonstration: Robotics for BTO manufacturing Word Construction System Robotics realizing Build-to-Order (BTO) manufacturing, and Remote Monitoring of the production line. Blocks are rearranged as per specific order Order form Robotics Automatic Block Rearrangement Robot Cooperation BTO M2M YASKAWA MOTOR Status: Back Order : 5 Current Order :"YASKAWA" HUMAN MOTOMAN Order Customer BTO Customer ICT Information monitoring Remote Monitoring of the operation Cloud 2015 YASKAWA Electric Corporation 11

13 4. Expectation for Industry Segments Non-overconcentration Healthy competitive environment Growth of industry as a whole System integrator Software vendor Components Parts 2015 YASKAWA Electric Corporation 12

14 Thank you for your attention 2015 YASKAWA Electric Corporation 13

FY2016 2nd Half and Full-year Forecasts (Ending March 20, 2017)

FY2016 1st Half Financial Results (Ended September 20, 2016) FY2016 2nd Half and Full-year Forecasts (Ending March 20, 2017) (TSE6506) 2016 YASKAWA Electric Corporation Contents 1. FY2016 1H Financial