Batch Worldwide Outlook Analysis 2004 2005/02/07 Rev.1 Chiaki Shimada IA Marketing Dave Emerson U.S. Development Center

Contents Key words Market Shares Market Analysis & Forecast This document shows the Batch Control Systems (BCS) worldwide outlook comparing 2001 and 2004 data, based on ARC report. The BCS includes Hardware, Software, Integration services, Maintenance Services, and Third Party Services. Contents Key words Market Shares Market Analysis & Forecast Confidential

Strategies for Success on BCS by ARC Get Ready for FDA’s PAT (Process Analytical Technology) initiative Effects on drug manufacturing and validation process Many phrama and biotech companies are studying the immediate and longer-term implications of PAT Offer Model Predictive Control for Batch Application Suppliers need to offer MPC (Model Predictive Control) packages for batch control application Reduced batch cycle time is MPC’s biggest value proposition Offer Facilities for Dynamic Recipe Updates To measure the actual processing condition and adjust the recipe formulation Penetrate the Growing Asian Market People of Asia are creating a massive demand for life science products 2004 ARC Advisory Group Confidential

Market Shares of the Leading BCS Suppliers 2000 Revenues $2414.5 Million 2003 Revenues $2834.2 Million Market shares show DCS based and PLC based control system Yokogawa increased the position from 7th to 5th. Rockwell, Emerson, Yokogawa have increased their market share. 2001, 2004 ARC Advisory Group Confidential

Market Shares of the Leading DCS-based BCS 2000 Revenues $1298.0 Million 2003 Revenues $1631.6 Million In case of DCS-based, Yokogawa is 3rd position in FY2003. Emerson, Yokogawa have increased business ABB, Invensys have decreased their market share. Yamatake has disappeared. 2001, 2004 ARC Advisory Group Confidential

Leading Suppliers of BCS in North America 2000 Revenues $895.9 Million 2003 Revenues $837.7 Million The Revenue in U.S. market from 2000 to 2003 is down due to the economy recession. Rockwell, Emerson are winner. ABB has been decreased their market share. 2001, 2004 ARC Advisory Group Confidential

Leading Suppliers of BCS in Europe, Middle East, & Africa 2000 Revenues $913.3 Million 2003 Revenues $1145.7 Million The vender map has not changed. However, Yokogawa and Schneider appeared in Europe market. 2001, 2004 ARC Advisory Group Confidential

Leading Suppliers of BCS in Asia 2000 Revenues $473.3 Million 2003 Revenues $724.5 Million Very improved Asian market Yokogawa has been improved. Yamatake has gone. 2001, 2004 ARC Advisory Group Confidential

Leading Suppliers of BCS in Latin America 2000 Revenues $131.9 Million 2003 Revenues $126.9 Million Nothing changed the order. Third Party Services has been increased. 2001, 2004 ARC Advisory Group Confidential

Total BCS Shipments Forecast Including Hardware, Software, & Services CAGR 5.9% CAGR 5.9% The forecast of CAGR of total BCS is 5.9% in future 5 years. 2001, 2004 ARC Advisory Group Confidential

Total BCS Shipments Forecast Including Hardware, Software, & Services DCS-based CAGR 6.2% PLC-based CAGR 5.6% The DCS based CAGR will be much higher than PLC based. 2001, 2004 ARC Advisory Group Confidential

DCS-based BCS Shipments Forecast by Industry CAGR 5.5 % CAGR 6.7 % CAGR 8.7 % Food and Beverage will be the highest grow industry. Chemical and Pharma are forecasted still high CAGR. 2001, 2004 ARC Advisory Group Confidential

BCS Shipments Forecast by Hardware, Software, and Service 2004 Revenues $2,834.2 Million Decrease hardware portion, Increased integration part. 2009 Revenues $3,776.1 Million 2001, 2004 ARC Advisory Group Confidential

BCS Shipments Forecast by Region 2004 Revenues $2,834.2 Million Almost all same market forecast by region. 2009 Revenues $3,776.1 Million 2001, 2004 ARC Advisory Group Confidential

Market Analysis and Forecast by ARC Shipment of BCS by Controller Type DCS-based batch control systems will show a higher growth rate than PLC based systems. The market size of PC-based batch control systems remains small. BCS Shipments by Region The Europe, Middle East, and Africa region continues to be the largest market The Asian market includes China, Japan and India, had the highest level of growth. The N.A. market was flat. BCS Shipments by Industry The food and beverage industry will show the largest growth. Pharma including biotech will experience the second largest growth. Asian chemical manufacturing excluding Japan is dominated by bulk chemicals. 2004 ARC Advisory Group Confidential

Market Analysis and Forecast by ARC Shipments of BCSs by Distribution Channel The sales through reps and distribution channel is increased. Sale of DCS-based system through OEM and system integrators are expected to increase in the next five years. 2004 ARC Advisory Group Confidential

Other Analysis In 2001 data, there were 3 type of categories, but PC-based has been eliminated due to the small number. DCS-based PLC-based PC-based In 2001 data, Japan was separated against Asia market, but it has been merged in Asia on 2004. It means Asia outside of Japan is not disregard. In case of DCS-based, Yokogawa is 3rd position. The Yokogawa data of 2001 has not included non-recipe management type Batch process. This year includes the simple batch process without recipe management as the batch installation record. By Shimada Confidential