Global Brother Corporate Information Message From The Management

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Message From The Management

Passing on our DNA and Transforming for a Long Successful Future

Brother Industries, Ltd. Representative Director & President Toshikazu Koike

Transforming into a business structure capable of continuously thriving

Under Brother's mid-term business strategy, CS B2018  (FY2016 to FY2018) with the theme of "Transform for the Future," we are striving to become 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, through three transformations: Business Transformation, Operational Transformation and Talent Transformation.
In FY2016, the first year of CS B2018, our sales revenue decreased compared to the previous year due to the negative impact of the yen's appreciation and other factors, despite the steady global performance of communications and printing equipment (the Printing & Solutions Business). On the other hand, by advancing the efforts to improve profitability mainly in the Printing & Solutions Business, we reached our largest operating profit in our corporate history despite the change of our accounting standards in FY2016, and achieved our profit target of CS B2018 two years ahead of schedule. The Brother Group will continue working unitedly to achieve the "Transformations" set forth in CS B2018 in the remaining two years.

Activities for transformation in FY2016

For "Business Transformation," we are proceeding as planned with resource shift and prior investments to growth businesses. The Domino Business is preforming well, and we will transform it into the Group's core business by demonstrating the synergy with Brother.
To achieve "Operational Transformation," we will strive further to establish a system maximizing the efficiency in the entire manufacturing process including development, production, quality control, and procurement, with a focus on streamlining development process by introducing a new design support system.
To advance "Talent Transformation," we launched the Human Resources Innovation Committee in January 2016 and formulated a personnel-system reform plan. We will create systems and environments where more diverse talents can exercise their abilities and develop succession plans and youth advancement programs. We will also put more effort into nurturing the next generation of managerial talents and global human resources as well as generational change.

Remaining a company trusted by stakeholders

In order to remain a company trusted by all stakeholders, Brother also attaches a great deal of importance to the environment, society and governance.
In accordance with our mid-term environmental action plan 2018 , we have been conducting ongoing activities, such as creation of eco-friendly products, CO2 emission reduction and biodiversity conservation based on the "Aichi Targets" adopted at COP10. Accurately grasping demands and expectations from local communities through communication, we carry out social contribution activities participated in by many employees with a shared awareness within the entire group. We also established the Brother Group Health and Productivity Management Philosophy to aim for a healthy company.
As for corporate governance, we place importance on enhancing corporate value in the long term by optimizing managerial resources and creating customer value, as well as establishing a long-term trusted relationship with shareholders by improving our corporate transparency.
Transforming for the future is essential for the Brother Group to remain a company that customers can trust, employees can be proud to be part of and one that leads to a long successful future. To become a strong group which can survive through any challenging environment, we are determined to transform into a business structure taking on a challenge more than ever. We will appreciate your continuous understanding and expectations for all of the activities of the Brother Group.

Brother Industries, Ltd.
Representative Director & President

Toshikazu Koike

June, 2017