Mid-Term Business Strategy "CS B2018"
The Brother Group has formulated new Mid-Term Business Strategy "CS B2018" for the period from FY2016 to FY2018 as road maps to achieve the mid- to long-term vision "Global Vision 21" (GV21).
We will take on the challenge of implementing structural reform under a new theme of CS B2018---"Transform for the Future." In particular, we will commit to three reforms in "Business", "Operations", and "Talent" and aim to become a multi-business enterprise by changing the printing-centric structure and focusing on areas with growth potential, such as industrial areas* and new businesses.
- *: Machinery business (Industrial sewing machines, Machine tools, and Industrial parts) and Domino business
Mid-Term Business Strategy "CS B2018" detailed information
Exchange rate : 1USD=109.64Yen, 1EUR=119.54Yen
|Targets of FY 2018||Forecasts of FY2016|
|Sales revenue||750 billion yen||640.0 billion yen|
|Operating profit||60 billion yen||57.0 billion yen|
|Operating profit ratio||8.0%||8.9%|
- *: Based on IFRS
Our aspiration for Brother
"A multi-business enterprise with resilient DNA and a track record of success that continually evolves to deliver profitable growth by meeting the challenges of changing times and environments"
Three reforms to support our corporate policy
Strategy for each business segment
- Communications & Printing equipment
Reposition from overall company growth driver to profit generator supporting portfolio enhancement
Firmly maintain global No.1 in Home/Office business with a steady profitability and make a full-scale entry into solution business for further growth
Maintain dominant global No. 1 position for the full range of high-end to low-end machines while stepping up to a new level of "joys of creation"
- Industrial sewing machine
Transition from industrial sewing machines to industrial sewing solution
- Machine tools
Take share in the market for No.40 taper spindle machines and provide solution by strengthening fundamentals of business in Automobile-related market
- Industrial parts
Recover profitability through structural reform and contribute to strengthening of B2B business
Drive structural reforms to reposition as a cash
Maximize synergy as the Brother's next pillar of growth
Promote financial measures to strengthen our business portfolio for driving reforms according to the management strategy
- Aim for a capital adequacy ratio of 50% to maintain a healthy financial condition
- Put a priority on maintaining dividend payments for shareholders even in a severe business environment
- Mainly focus on strengthening our business portfolio during three years
R&D investment/Capital investment
- Minimize investments in the businesses for profitability enhancement with an aim to improve efficiency for structural reform
- Carry out selective core investments in growth areas and new businesses
- Focus on flexible, small-scale M&A in order to strengthen growth businesses and new businesses
- Respond flexibly when given opportunities to enhance our business portfolio
Aim to achieve ROE exceeding 9% in the end of CS B2018
- Promote reform and thoroughly implement efficiency improvement
- Improve asset efficiency by thorough reductions in inventory
In principle, maintain steady dividend payments in the conventional manner, aiming for a consolidated dividend payout ratio of 30%
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