Message from President
New Medium- to Long-Term Growth Strategy Mimaki V10
Under our M1000 medium-to long-term vision formulated in fiscal 2016, we aim to achieve net sales of 100 billion yen in the next four to eight years. To achieve sustainable growth in the high-growth-potential industrial printing market, we have been working to strengthen our technological, sales, and manufacturing strategies and management foundations.
However, in light of the impact of the global economic downturn associated with the spread of the COVID-19 that emerged in the fourth quarter of fiscal 2019 and the accompanying changes in market needs and customer orientation, we have decided to draft and implement a new medium-to long-term growth strategy, Mimaki V10, with fiscal 2025 as the goal, based on our judgment that we need to fundamentally review our existing initiatives in anticipation of the era of with Corona and after Corona.
The new medium- to long-term growth strategy Mimaki V10 will leads the way in digital on-demand industrial printing by providing solutions with integrated systems and products for front-end, print / cutting / coating and post-processing unique to Mimaki. As a result, we will work to realize it with the following management policy.
Mimaki V10 Management Policy Instead of only pursuing growth in net sales, we intend to continually generate high levels of profit, strengthen our financial base, build a robust corporate foundation in preparation for sustainable growth, and achieve operating profit margins of 10% by fiscal 2025.
- Through emphasizing profitability, by fiscal 2025 we aim to achieve operating profit margins of 10% and ordinary profit margins of 8%
- We will target a compound annual growth rate (CAGR) of 10% in net sales between fiscal 2020 and fiscal 2025
- We will strengthen our financial base by improving the cash conversion cycle to ensure our resilience to changes in the operating environment
- We will generate innovations through product development and continue to provide solutions that customers value
- In preparation for achieving Mimaki V10 goals, we will build an organizational culture so that the Mimaki Group works as one toward these goals
As a priority measure for achieving Mimaki V10, we will first work to provide digital on-demand printing solutions. Specifically, we will take full advantage of the advantages we possess in the FA business in-house, and in order to realize automation of the printing process in each market for SG (Sign Graphics), IP (Industrial Products), and TA (Textile&Apparel), we will play a role as a solution provider that supports everything from introduction to quality of deliverables by providing total solutions that include technologies, products, and know-how to realize integrated systems from preprocessing/processing to printing/cutting/coating processes, and then post-processing/post-processing. In order to provide optimal products for each market, we will promote the IOT of digital prints, capturing the Chinese market, improve profitability through new business models, and make Innovation in development. We will also work to review development plans and development cycles in order to cultivate new markets and applications. In this way, we will develop our business in anticipation of rapid changes in market conditions and customer needs.
In addition, we will work to improve ink quality, promote CX(Corporate Transformation), reform of production systems, and sales system transformation. We will work to building the foundations for improved profitability that we aim for in Mimaki V10.
The industrial printing market was significantly affected by the spread of the COVID-19. We are committed to meeting our stakeholders' expectations by making concerted efforts to achieve our Mimaki V10, achieving a V-shaped recovery in business results, and building a foundation for sustainable growth.
We will appreciate your continuous support and encouragement.
December 14, 2020
Kazuaki Ikeda
President
MIMAKI ENGINEERING CO., LTD.