New Medium- to Long-Term Growth Strategy
Mimaki shall achieve an operating margin of 10% until FY2025 by strengthening our financial base and building a strong orporate foundation for sustainable growth.
Mimaki V10 Mission Statement
By providing solutions unique to Mimaki through the use of combined systems that integrate pre-processing, printing, and post-processing, we will drive the shift to digital on-demand printing for industry.
Mimaki V10 Management Policy
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
What to aim for with Mimaki V10
Structural reform measures
- In preparation for optimal inventory levels, we will adjust production through planned suspensions, implement ways to reduce stock (disposal, valuation reductions, reduced selling prices) and consolidate inventories.
- We will record impairment losses, etc. for goodwill, etc. to reduce assets.
- The 1.5 billion yen in costs required for the two programs above will be recorded in fiscal 2020.
Thoughts behind the Mimaki V10 logo
The Mimaki V10 logo represents a change of mind with a strong will to strengthen our financial base in order to achieve a V-shaped recovery from the Corona disaster.
Mimaki V10 Performance Goals
Mimaki V10 Focused Efforts - Index
1Mimaki V10 Product Deployment Strategy
1-1Provision of on-demand print service, printing system solutions
Maximize the advantages of corporate ownership of FA business by providing digital on-demand print solutions to automate the printing processes in SG, IP and TA markets
1-2Market and Business Strategies
- SG markets
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- Seize the ongoing opportunity to accelerate the shift from organic solvents to environmentally friendly UV curable inks actively under development, marketing products and solutions using UV curable inks in which Mimaki has secured a competitive advantage.
Well-balanced entry-level models with excellent operational performance, image quality, speed and cost
Print & Cut Compatible LED-UV Cured IJP
- SG markets
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- Expanding market share in entry-level printer domain, also securing profit in the middle (and high-end) product domain
- Enhancing competitive advantage by leveraging UV printer patenting technology
Expanding market share in entry-level printer domain, also securing profit in the middle (and high-end) product domain
Strategic reinforcement of competitive advantages based on the strongest UV printer patenting technology within the industry
- IP markets
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- Seizing the growing trend of smart factories, Mimaki shall provide products and solutions to realize labor-saving and unmanned printing/cutting/coating through automated processes.
- Introduction of digitized inkjet processing to pad printing, a popular processing method within the goods and novelty print market, will be explored as a new growth market.
- Enhancing competitive advantage by leveraging UV printer patenting technology
Small Flatbed UV IJP
High Performance Flatbed UV IJP incorporating Circulation Heads
Large flatbed UV IJP
- TA markets
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- Providing solutions to improve on the opportunity of the overall transition of the market from point-of-sale to e-commerce under the influence of the corona epidemic, and comply with the shift of producer demand from high-speed to high-value-added machines.
- Lineup of mid- and low-speed models to be strengthened to meet increased popularity of digital on-demand systems, while maintaining corporate presence within the high-speed product range with Tiger-1800B MkII
Textile inkjet printer with belt conveying system
Sublimation transfer inkjet printer
- 3D
Printing Business -
- Starting with the 10 million color full-color 3DUJ-553 released in 2017, product lineup has steadily expanded to include the thermal fusion lamination printers and 1.8m large modeling printers, and from January 2021, the 10 million color full-color entry model will be introduced to expand the demand
- Providing solutions to facilitate 3D modeling
Large-scale modeling unit using UV-curing resin lamination method with output height of 1.8 m
10 million color full colored UV curable inkjet printer
Laminated solution printing
2Business development in anticipation of rapid changes in market conditions and customer needs
2-1Global x Digital
Promotion of Digital On-Demand Production -IOT of Digital Printing-
- Our wide range of products includes digital printing pre-processing equipment, printers, inks, cutting plotters, post-processing equipment and workflow software.
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Expertise in print deliverable production processes, line building
- Based on these measures, the printing process is automated to achieve labor-saving and unmanned operation
- Enabling automatic output of the final product simply by loading the media
Capturing the Chinese Market: After the Corona epidemic, Chinese Market Takes Center Stage
- Targeted product offerings for the quickly recovering Chinese market
- Expanding and enhancing sales and service networks
- Realizing cost power to beat Chinese products by reforming the production system
2-2E-Commerce x Subscriptions
Increase profitability with new business models
Selling in E-Commerce networks
- Establishing e-commerce mechanisms for business-to-business and providing products, inks, and media that accurately meet customer needs on quick turnaround
- Approach end customers directly with what we want to sell, connecting the customers to appropriate distributors
2-3Initiate Innovations, exploring new markets and new applications
Complete revision of current development plans and prioritization of new markets
- At least 25% of the products sold should be developed within the past 3 years
- Efficient product development and model deployment to concurrently enable increased sales and SKU reduction = inventory reduction
- Establish a regular product launch cycle for successors (minor changes) to improve efficiency and prioritize resource allocation to new markets
Review development cycle (to shorten the development time frame)
- Lateral deployment of underlying product platforms, establishing development processes to introduce new products quickly and efficiently
3Building the foundations for Improved Profitability
3-1Ink quality improvement
By improving the quality of ink, we will eliminate downtime of printers in operation, contribute to the improvement of customer productivity, and reduce product repair costs caused by ink quality.
Specific initiatives include improving the acceptance defect rate, reducing in-process defects, and promoting early countermeasures against market problems.
3-2CX (Corporate Transformation)
Aim to achieve 10% operating profit margin by FY 2025
- Fixed costs to be reduced through restructuring and muscularization of business structure for FY2020
- The implemented measures were conceived to yield sufficient business profit for FY2021 with just 80% of the sales for FY2019
- While maintaining this level of basic fixed cost structure, attempts shall be made to achieve 10% average growth rate (CAGR) in sales toward FY2025, with an operating margin of 10%.
Advancing BS-oriented management
- Improve capital efficiency and strengthen the financial position through CCC reduction
- Practice cash flow management and maximize free cash flow
- Improving profitability and asset efficiency while achieving a proper financial balance not overly reliant on borrowing, resulting in an ROE level of around 10%
Work on digitization and manpower saving
- Maintain the basic fixed cost structure of FY2020 by implementing RPA and taking stock of the activities required therefor
3-3Reform of production systems
Production system responsive to fluctuating demand
- Shorter lead time for both printer units and ink
Achieve cost power capable of competing with made-in-China
- Realizing product cost reduction
- Promoting cost reduction on UV inks
- Improving plant productivity -> Increasing competitiveness of manufacturing facilities (hourly rate, productivity)
Enhancing Inventory Management
- Optimizing inventory turnover
3-4Sales system transformation
Conduct sales analysis by SFA/CRM for mini exhibition strategies
- Record and manage sales activities for existing and prospective customers to expand customer contacts and promote sales activities to close the deal by guiding them to mini-exhibitions
Devise virtual mini-exhibition strategy to reach customers in all regions
- In cases where it is difficult to host actual mini-exhibitions (e.g., corona countermeasures, location, etc.), sales and distributors can attract customers: virtual mini-exhibitions, leading to customer development.