Carrying on as a company that supports the “sustainability of clothing and society”
For more than 85 years, the JUKI Group has been providing the world with business solutions for the stable supply of high-quality sewn garments. Clothing, one of the three basic essentials for human life (food, clothing, and shelter), has been a core industry of focus from our very first days.
Our reason for being (raison d'être), “carrying on as a company that supports the sustainability of clothing and society,” will remain unchanged from what it has always been.
Growing sustainably through the implementation of the new Medium-term Management Plan
The Medium-term Management Plan was originally set for completion in 2025. Now, however, to respond to major changes in the business environment, we have conducted a comprehensive review based on our judgment that we need to drastically change our business model in our core businesses and rebuild our management foundation with a redoubled focus on sustainability.
In the first three years of the five-year Medium-term Management Plan (2025-2029), “Building a Sustainable JUKI,” we aim to shift our business model into growth fields and boost our presence as a strategic partner by emphasizing the outstanding character of JUKI products, services, and more.
In the remaining two years we aim to become a “one and only solution partner that supports the future of ‘clothing’ and society,” further deepen the business model we have nurtured over the first three years, and grow sustainably.
We will also set feasible targets based on our business strategy and shift our emphasis from “sales” to higher profits.
In addition, we will reduce current working capital to create free cash flow and reduce our interest-bearing debt.
We will ensure improved profitability by strengthening our revenue base and reviewing fixed costs. After achieving a return to profitability in fiscal 2025, we aim to achieve net sales of 156 billion yen (114.2 billion yen in the Sewing Machinery segment and 41.6 billion yen in the Industrial Equipment segment) and ordinary profit of 14.5 billion yen (11.4 billion yen in the Sewing Machinery segment and 3.1 billion yen in the Industrial Equipment segment) in fiscal 2029 (assuming an exchange rate of 145 yen to the U.S. dollar).
By 2029, we aim to shorten the cash conversion cycle to 6.0 months of net sales (including 3.0 months of trade receivables and 5.0 months of inventory) and 4.7 months of interest-bearing debt, and achieve an equity ratio of 31% and ROE of 25%.
The JUKI Group will work as one to address the various issues it faces and strive to meet the expectations of all of its stakeholders. We look forward to your ongoing suggestions and support.