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1 INSERT COMPANY LOGO HERE North Global American Wireless SSL Solutions Certificate Enabling Product Technology Leadership Leadership Award Award

2 Enabling Technology Leadership Award Wireless Solutions Global, 2014 Frost & Sullivan s Global Research Platform Frost & Sullivan is in its 50th year in business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company s research philosophy originates with the CEO s 360-Degree Perspective, which serves as the foundation of its TEAM Research methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2014 Global Enabling Technology Leadership Award in Wireless Solutions to Yokogawa Electric Corporation (Yokogawa). Significance of the Enabling Technology Leadership Award Key Industry Challenges Addressed by the Superior Technology Solutions The concept of a connected industry is increasingly becoming a reality, as industries such as oil and gas, mining, food and beverage move towards a digital operating environment. Customers report to Frost & Sullivan that they are increasingly requiring both process control and remote monitoring of field wide assets in order to improve operational performance and efficiency. Integrating wired instrumentation systems and wireless networks with IT infrastructure often pose implications for solution providers in terms of security, limited interoperability capabilities, installation, and maintenance issues, as well as limited scalability and functions. Frost & Sullivan feels that the connected, wireless industry clearly requires a balanced approach to solution development and deployment to ensure competitiveness and increased productivity. Key Benchmarking Criteria for Enabling Technology Leadership Award For the Enabling Technology Leadership Award, the following criteria were used to benchmark Yokogawa s performance against key competitors: Enables Creation of New Products Enhances Current Products Enables New Applications Potential for Market Acceptance Breadth of Access to Technology 2014 Frost & Sullivan 1 We Accelerate Growth

3 Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 1. Chart 1: Performance-Based Ratings for Decision Support Matrix This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Chart 2: Frost & Sullivan s 10-Step Process for Identifying Award Recipients 2014 Frost & Sullivan 2 We Accelerate Growth

4 Enables Creation of New Products Enhances Current Products Enables New Applications Potential for Market Acceptance Breadth of Access to Technology Weighted Rating BEST PRACTICES RESEARCH Best Practice Award Analysis for Yokogawa Electric Corporation The Decision Support Matrix, shown in Chart 3, illustrates the relative importance of each criterion for the Enabling Technology Leadership Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2. Chart 3: Decision Support Matrix for Enabling Technology Leadership Award Measurement of 1 10 (1 = lowest; 10 = highest) Award Criteria Relative Weight (%) 20% 20% 20% 20% 20% 100% Yokogawa Electric Corporation Competitor Competitor Criterion 1: Enables Creation of New Products Process industries, including the oil and gas, mining and chemical industries are becoming increasingly dependent on the crucial benefits of wireless implementations, such as increased connectivity, better productivity, and the reduction of costs due to fewer wired instruments. The sweeping trend of digitization across these industries is mandating newage connectivity that is both simple and easy to install. The increasing number of field devices and installations requires uninterrupted communication systems and reliability. Customers require more robust systems and products that can effectively facilitate the growth and implementation of the wireless networks. Frost & Sullivan appreciates that these are some of the key business drivers that have driven Yokogawa to promote the concept of Wireless Anywhere. Reliability is a key component of the wireless network, and in order to facilitate successful wireless implementations, Yokogawa has developed three new key solutions to support large and reliable plant wireless networks. The field wireless management station enables effective and secure connectivity between production control systems and field wireless devices, while the field wireless access point is a new router device for connecting field wireless devices and gateways. The wireless media converter is a new device that converts 2014 Frost & Sullivan 3 We Accelerate Growth

5 data from 100BASE-TX to 100BASE-FX and extends connectivity distance and security. The new wireless devices are comprised of backup devices to ensure uninterrupted communication between the systems. For example, the new field wireless management station can support, and effectively manage, up to ten times the number of wireless devices, when compared with existing systems. Furthermore, these systems provide the required flexibilities between various operations and increase the scale of systems used, ensuring that the network expansions are effectively supported. Yokogawa also utilizes a modularization concept to speed up the product developments and expand their product portfolio. Yokogawa s Best Practice Example: Using the modular concept, Yokogawa is expected to design various field wireless products using a built-in antenna that will effectively enable sensor manufacturers to reduce the time taken to develop products. Frost & Sullivan notes that this will also foster strong development of industry specific applications in a more costeffective manner. Criterion 2: Enhances Current Products The growing wireless applications across various industries require an expansion of product capabilities and systems. However, solution providers face implications in developing and incorporating flexible, intelligent field devices that enable real-time responses. Yokogawa s new wireless systems have enabled the enhancement of both host systems and field devices, such as the wireless pressure and temperature transmitters. Ten years of research and development have enabled Yokogawa to strengthen existing solutions with extended battery life, as well as low power consumption. Utilizing their in-depth market experience and data obtained from understanding the voice of the customer has not only strengthened Yokogawa's capabilities to improve existing solutions, but has also enabled them to expand product capabilities and solutions. Yokogawa s Best Practice Example: The pressure transmitters EJX has a low current consumption design and provide wireless operation with a battery life of 10 years at a 30- second update time. Criterion 3: Enables New Applications Most of the field wireless systems are currently installed in relatively small areas with limited applications; however the growing demands for monitoring and process control require components of speed and scalability, along with reliability. Customers require additional value from high-performance wireless networks in order to cater to the growing number of devices and locations. Yokogawa s customer centric approach has enabled them to implement a plant-wide field wireless system that provides effective coverage for both small areas with complex installations, as well as the entire plant. Yokogawa s wireless anywhere architecture incorporates reliability through the Duocast technology, high-speed capabilities across long distances creating an intricate wireless infrastructure that supports the inclusion of third Frost & Sullivan 4 We Accelerate Growth

6 party field wireless devices, and varied protocols and hosts to provide best in class solutions for their customers. These capabilities enable customers to set up wireless devices across the plant - regardless of their locations - while managing data to enable improved production efficiency. Yokogawa, with this technology, has clearly pioneered the wireless space by level-playing the field and being neutral in integration with non-native devices. The aspect of driving peer-to-peer integration with non-native devices clearly supports the industry trend as device heterogeneity spikes in industry implementations. Utilizing the ISA100 Wireless technology based on ISA100.11a standard enables Yokogawa to realize the application potential of the wireless solution that ranges from monitoring to control. The ISA100 Wireless ensures neutrality with various standards, such as FOUNDATION fieldbus, HART and PROFIBUS. In traditional wireless infrastructure settings, latency time due to network availability severely constraints the ability to make real-time decision making. As mentioned earlier, mobility is a key trend in process industries. As such, customers look to integrate real-time intelligence from field to the office there is a need for powerful back-end data collection and forwarding solutions that are fast, simple and highly reliable. Frost & Sullivan firmly believes that this is where Yokogawa s Wireless Anywhere solution has surpassed traditional barriers, by allowing customers to move beyond just monitoring to remote control in a reliable manner. Yokogawa s Best Practice Example: While existing wireless solutions cover a limited update speed with limited real-time monitoring, 53.0% of Yokogawa s customers experience high-speed monitoring capabilities that range from 1 to 10 second update periods and enable substantial value - such as plant safety. Yokogawa has also gone further in proving its technology leadership by demonstrating the wireless control capability. The organization created a prototype which included ISA100 Wireless devices (like PID controllers, valve positioners, wireless transmitters). It was able to leverage the single wireless platform and demonstrate seamless monitoring and control applications. This clearly shows the pioneering ability of Yokogawa in an evolving space of industrial wireless solutions. Criterion 4: Potential for Market Acceptance As industries move toward digital and connected operations, there is an increasing requirement to provide secure, reliable, and compatible solutions to increase productivity and asset optimization, while still reducing costs and downtime. Although the industry has several wireless standards, customers require seamless connectivity with other existing products and support of continuous processes. Yokogawa s wireless solutions support high-reliability and compatibility, application flexibility, and network expandability through the ISA100 Wireless technology. The technology effectively supports Yokogawa s Grow concept that resonates from small wireless adoptions to plant-wide adoptions. While traditional communication protocols have 2014 Frost & Sullivan 5 We Accelerate Growth

7 limited capabilities, the ISA100 Wireless utilizes a robust encryption system and supports the implementation of multiple applications on a single wireless network. Furthermore, the standard promotes a solution with a minimal investment requirement, as it can be integrated with existing wired systems, providing a holistic solution offering for its customers. The organization is also working with other key members of the ISA100 Wireless Compliance Institute (ISA100WCI) to further promote acceptance of this product across diverse industry verticals. Supporting the earlier digital trends in process industries, Yokogawa has released key components which are able to cover a distance of 10 square kms, which is at least times the range of traditional existing systems. Yokogawa s Best Practice Example: The robustness of the solution is evident from its implementation in large-scale, multinational companies, including Petrobras. Yokogawa s subsidiary, Yokogawa America do Sul Ltda., has formulated a partnership with Petrobras to utilize its wireless technology based on the ISA100 Wireless. Criterion 5: Delivery of Technology to Market A majority of the industries require solutions that are easy to use and flexible in terms of implementation. Industries - such as oil and gas - have been fairly conservative in terms of newer technology adoption, making it crucial for solution providers to design and develop industry solutions that are safe, flexible and utilize data to initiate informed decisions. The increasing adoption of mobile devices that provide information anywhere, and at any time, requires solution providers to evolve their solutions to integrate the concept of mobility into their offerings. This concept is integral to Yokogawa s solution development as the company implements the vision of the VigilantPlant. The utilization of core technologies and concepts enables easy deployment and added value for customers implementing Yokogawa s solutions. The continuous improvement of the industry and the constant push of the boundaries of wireless solutions; from monitoring to controlling applications; foster creation of innovative industry-specific applications. The organization s strength in measurement solutions market has allowed it to create a superior network of technology solutions. This enables customers to buy solutions from a one-stop shop. The digital wireless communication technology developed by Yokogawa ensures high-speed data transmission, while effectively solving traditional wireless solution disadvantages, such as dropped connections, lost data, etc. The company s intrinsic capability in developing cuttingedge technology is in line with its culture of solving customer s challenge effectively. Yokogawa s Best Practice Example: Yokogawa s utilization of the ISA100 Wireless has enabled widespread deployment of their solutions. Case-in-point: the New Cosmos Electric company is planning to develop a wireless gas detector by utilizing Yokogawa s wireless solution. Conclusion Yokogawa is focused on fusing openness, interoperability, and reliability into a total wireless solution. Through the adoption of the ISA100 Wireless, the company has truly enabled a 2014 Frost & Sullivan 6 We Accelerate Growth

8 compatibility link between wireless and wired solutions, opening the path to the vision of the Field Digital evolution in the concept of an ideal plant. Based on Frost & Sullivan independent analysis of the wireless solution market, Yokogawa is recognized with the 2014 Enabling Technology Leadership Award. Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart 4: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 7 We Accelerate Growth

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