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Corporate Information

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".

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 transformations 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

Financial Targets*1

  Results of FY 2017*2 Targets of FY 2018*3
Sales revenue 713.0 billion yen 690 billion yen
Operating profit 68.7 billion yen 70 billion yen
Operating profit ratio 9.6% 10.1%
  1. Based on IFRS
  2. Exchange rate : 1USD=110.81Yen, 1EUR=129.45Yen
  3. Exchange rate : 1USD=109.16Yen, 1EUR=129.33Yen

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 transformations to support our corporate policy

1. Business Transformation

Transition from a printing-focused business to a portfolio-based multi-business enterprise

  • Enhance profitability and ability to generate cash in existing businesses/products in mature markets (including printing)
  • Invest mainly in growth businesses that lead to industrial printing, factory automation, and solution fields in order to strengthen industrial areas
  • Evaluate new business growth options and focus on building new businesses in a limited number of priority areas

2. Operational Transformation

Reinforce customer value creation capability for the future by optimizing use of limited resources and focusing on efficiency

  • Thoroughly review different operations across the entire group and shift as many resources to customer value creation as possible
  • Optimize operating processes and build a flexible and strong value chain which enables full utilization of limited resources
  • Establish a functional center of excellence to work across business divisions to sharpen manufacturing know how (including future technology) and customer value creation insights

3. Talent Transformation

Cultivate the next generation of leadership talent in the context of Brother’s unique DNA and optimize talent deployment across the group

  • Foster next generation talent who will build new businesses and lead the group to growth in the context of portfolio realignment
  • Cultivate a global talent pool to carry on the key elements of Brother’s unique DNA: ‘differentiated manufacturing,’ ‘Brother pride,’ and ‘the "At your side." spirit’
  • Maximize the capabilities and contribution of Brother’s diverse talent pool by optimizing HC allocation, career development and evaluation across the group

Strategy for Each Business Segment

Printing & Solutions business
  • Communications & Printing equipment
    Reposition from overall company growth driver to profit generator supporting portfolio enhancement
  • E-stationery
    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
Personal & Home business 

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"

Machinery business 
  • 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
Network & Contents business 

Drive structural reforms to reposition as a cash

Domino business 

Maximize synergy as the Brother's next pillar of growth

Financial Policy

Basic policy

Promote financial measures to strengthen our business portfolio for driving transformations 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 under CS B2018

Investment policy

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 transformations and thoroughly implement efficiency improvement
  • Improve asset efficiency by thorough reductions in inventory

Shareholder return

In principle, maintain steady dividend payments in the conventional manner, aiming for a consolidated dividend payout ratio of 30%

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