- Medium-Term Business Strategy
- Cost of Capital-Conscious Management
- Previous Medium-Term Business Strategy
The Brother Group has formulated the medium-term business strategy "CS B2024" for the period from FY2022 to FY2024 as a road map to achieve the Brother Group Vision "At your side 2030."
Medium-Term Business Strategy "CS B2024" detailed information
Based on "Take off towards our new future" in CS B2024, the Brother Group will undertake business portfolio transformation—including expansions in the industrial area and transformation in the printing area—as well as management foundation transformation for a sustainable future.
Four priority themes
Towards expansion in the Industrial area
Achieve significant growth in Industrial Equipment business
We will achieve significant growth in the Industrial Equipment business by contributing to enhancing customers' competitiveness of manufacturing and reducing CO2 emissions, through improving productivity and environmental performance.
Accelerate growth in Domino business
We will accelerate growth by enhancing product strength in the digital printing area and strengthening relationships with customers in the coding and marking area, and at the same time, enhance industrial inkjet technology foundation to secure long-term competitiveness.
- Achieve significant growth in Industrial Equipment business
Towards transformation in the Printing area
Accelerate P&S business model transformation
We will strive to further strengthen the profitability of existing business even amid the harsh market environment, and at the same time, promote transformation for the future, including accelerating the shift to a business model that connects with customers, such as a contract-based business model, and expanding commercial & industrial labeling business.
- Accelerate P&S business model transformation
Towards the business portfolio of the future
Create new businesses that help to address materialities
We will search widely for business opportunities that enable working people's productivity and creativity and help protect the earth by further evolving Brother's strengths.
Evolving printing technology with inkjet at its core and expanding its range of applications
We will advance the evolution of printing technology with inkjet at its core and expand its range of applications in both the industrial and consumer areas.
- Create new businesses that help to address materialities
Management foundation transformation for a sustainable future
Undertake environmental efforts towards carbon neutrality
We will promote efforts towards achieving targets in reduction of CO2 emissions, resource circulation, and biodiversity conservation stated in the Brother Group Environmental Vision 2050. In particular, we will undertake reduction of CO2 emissions through various activities to achieve carbon neutrality in the Brother Group's business activities by 2050.
Enhance and expand connections with customers
We will connect with even more customers and continuously provide more value than ever before in each of our businesses. Furthermore, we will use data obtained through connections with customers to create even more customer value and seek business model transformation. In addition, we will achieve stable product supply by building resilient supply chains.
Foundation for all transformations - Evolve Brother's unique management system "Brother Value Chain Management" (BVCM)*, encourage employees to take on challenges, and improve employee engagement
As a cornerstone of transformation, we will continuously evolve BVCM, encourage employees to take on challenges, and improve employee engagement to continue to improve the productivity and creativity of the Brother Group.
- Undertake environmental efforts towards carbon neutrality
Brother Value Chain Management (BVCM)
Brother's unique customer-oriented management system defining the flow of value provision to customers
Materiality and Sustainability Targets
The Brother Group has identified five materialities (priority social issues) in order to "contribute to society and help protect the earth" as we set as "Our Purpose" in the Brother Group Vision "At your side 2030." We have set sustainability targets to address these materialities and will promote company-wide efforts to address them as a management issue.
|Targets for FY2024
|Contribute to society
|Supporting people's value creation
|Realizing a diverse and active society
|Pursuing a responsible value chain
|Protect the earth
|Reducing CO2 emissions
Lifetime Value (LTV)
Customer lifetime value, which is the value to customers and profits generated for companies over the entire usage period of products and services
- Implemented at Brother Industries, Ltd.
Responsible Business Alliance (RBA)
International organization to promote CSR, which establishes standards to ensure that working conditions are safe, that workers are treated with respect and dignity, and that business operations are conducted environmentally responsibly and ethically in the supply chains of the manufacturing industry
Scope 1, 2, 3
Categories of greenhouse gas emission sources; Scope 1 refers to direct greenhouse gas emissions by business operators, Scope 2 refers to indirect greenhouse gas emissions resulting from use of electricity, heat, and steam supplied by other entities, and Scope 3 refers to indirect greenhouse gas emissions other than Scope 1 and 2 (emissions by other entities related to the activities of business operators)
The Brother Group will continuously improve shareholder value by achieving both business growth and sustainability goals. While strengthening shareholder returns based on a stable and continuous dividend policy, we will aggressively invest for the future, utilizing operating cash flow generated from our business as well as interest-bearing debt.
Prior investments for the future
|Business portfolio transformation
|50 billion yen
|30 billion yen
|Management foundation transformation for a sustainable future
|70 billion yen
|150 billion yen
Stable and continuous shareholder returns
Based on our policy of stable and continuous shareholder returns, we will pay out a minimum annual dividend of 68 yen per share during the period of CS B2024 (with a consolidated payout ratio set at 35% based on the earnings forecast for FY2022), and also consider additional shareholder returns, including an increase in the dividend level, depending on factors such as business performance. We will also flexibly carry out repurchase of our own shares.
|Targets for FY2024*1
|800 billion yen
Operating profit ratio
(Profit for the period attributable to owners of the parent company ratio)
10% at least
(7% at least)
10% at least
(above capital cost)
- Exchange rate:1USD=108.00JPY,1EUR=125.00JPY
- Reference values for comparison with FY2024 targets and exchange rate assumptions
CS B2024 Update
Updates on the Medium-Term Business Strategy "CS B2024"
(excerpts from the financial results presentation for FY22 posted on May 8, 2023)