Message from top management
I would like to express my sincere gratitude for your continued patronage and support of the Company.
We are pleased to present the business results for the 105th business year of the Company (January 1, 2019 to December 31, 2019).
Let’s start with business environment for the year overall. The global economy grew less stable with the economic slowdown in China, the prolonged U.S.-China trade friction, the Brexit turmoil, and other factors. Customers, meanwhile, need more than ever to make strategic investments in smart companies of factories as industries worldwide adopt digital and systematized technologies and innovate new technologies powered by the likes of AI, IoT, and 5G.
Within this environment, we have provided products and services to respond to the customer demand for labor-saving and manpower-saving solutions, and promoted solution business operations to propose smart factories that raise the production efficiency as a whole. We have also worked to build a robust and far-reaching customer base by developing a middle market, mainly in Asia, and created far-seeing business categories like our Group Business. In spite of these efforts, net sales were 99,169 million yen (down by 11.5 % year-on-year). The decline arose chiefly from a remarkable drop in sales in China and Europe stemming from lower customer business demand amidst the China-U.S. trade friction, especially in the second half of the year.
Operating profit was 3,838 million yen (down by 58.0 % year-on-year), ordinary profit was 2,941 million yen (down by 64.9 % year-on-year), and profit attributable to owners of parent was 1,763 million yen (down by 73.4 % year-on-year). Sales and the factory operating ratio both declined, and solution business operation expenses rose in spite of an improvement in the gross margin rate through cost reductions.
Our basic policy is to constantly strive to return the company’s profits to shareholders by paying a stable dividend commensurate with our internal reserves and business performance in the current term from a comprehensive viewpoint, while building robust and far-reaching business foundations and investing aggressively in development and plants and equipment. Based on this policy, JUKI shareholders will receive 25 yen per share as JUKI’s 105th term-end dividend.
This fiscal year marked the start of our three-year Medium-Term Management Plan (Phase II, 2020-2022) centered on structural reforms.
The following five transformations have been incorporated in the new Medium-Term Management Plan: (1) Developing growing markets and customers through a cross-border marketing strategy (Borderless X), (2) Expanding business domains that contribute to increasing earning capacity (Business Model X), (3) Expanding technological innovation domains (R&D Model X), (4) Establishing production systems and administration (back-office) operations centered on the 5S’s of management* (Workstyle X), and (5) Achieving ‘sustainable’ management (SDGs Management X). By positioning these transformations as new growth engines for the JUKI Group, we will be promoting cross-border solution business operations, expanding our business domain further, and creating business opportunities through the achievement of SDGs management. Consequently, we will aim to steadily achieve our vision: To be a Monodzukuri (manufacturing)/Kotodzukuri (value-creation) company capable of improving the corporate value of both JUKI and its customers by supplying JUKI’s excellent and innovative products and services.”
For these endeavors, I would like to sincerely request your continued goodwill and support.
Note: 5S’s of management* (5S’s of JUKI’s management: Simple, Slim, Speedy, Seamless, and Smart)