Integrated Report

2023

JUKI CORPORATION
2-11-1, Tsurumaki, Tama-shi, Tokyo 206-8551
Tel : 81-42-357-2211
https://www.juki.co.jp/en/
September 2023 1st Edition

CONTENTS
Introduction

Corporate value creation

History of value creation .............................................. 8
Corporate value creation process ........................... 12
ESG management ........................................................ 14

Medium-term Management Plan

Representative Director, Chairman, CEO, and COO . 16

Overall outline of the new Medium-termManagement Plan ..................................................... 22

Business strategies

Business overview .......................................................... 28

Sewing machinery and systems

Industrial sewing machinery business ..................... 30
Household sewing machinery business .................. 32

Industrial equipment and systems

Electronics assembly & systems businesses ........... 34
Group business .............................................................. 36
IoT platform equipment & systems business ........... 38

Business foundation
Message from Shinsuke Uchinashi, President andDirector in charge of the Finance Department ... 40
DX (Digital Transformation) ......................................... 42
Enhancing human resources ..................................... 44
Technological development ...................................... 46
Production ....................................................................... 48
Procurement ................................................................... 50
Quality management .................................................. 51
Intellectual property strategy ..................................... 52
Design strategy ............................................................... 53

ESG initiatives
Environmental initiatives
Reduction of environmental load .............................. 54

JUKI began publishing this yearly Integrated Report in 2022
to present an organized overview of our management
policy, financial information, and ESG information. We
expect the report to deepen awareness about the JUKI
Group among our shareholders, investors, and otherimportant stakeholders, and are using the report as a toolfor dialog with them.
This Integrated Report 2023 presents specific measures weare taking to realize the growth strategies set forth in our

Transformation Plan 2025” slogan, a comprehensive set of

initiatives for attaining an ideal JUKI Group. The readers of
this report will also gain a deeper understanding of our own
potentials for sustainable growth.
We will continue working to solve social challenges throughour business model and strengthen communication with

JUKI ’s stakeholders by proactively disclosing information.

Reporting coverage
This report covers the activities of JUKI CORPORATION and
its 27 group companies. Some sections, however, cover JUKI
CORPORATION on a stand-alone basis.

Reporting period
The reporting period is fiscal year 2022 (January 1-December
31, 2022), but some information on fiscal year 2023 is included.

Note on forward-looking statements
This report contains forward-looking statements on theoutlooks, goals, plans, and strategies of the JUKI Group.
These statements are based on judgments
derived from information available when
this report has been published. Readers
should be aware that a variety of factors
may cause the actual results to differ
materially from those mentioned in theforward-looking statements.

Referenced guidelines/documents

Corporate governance initiatives

and Industry

Directors, audit & supervisory board members andcorporate officers ........................................................... 60
Message from outside directors ................................ 62
Corporate governance ............................................... 64
Compliance ................................................................... 69
Risk management ......................................................... 70

Data sections

Financial/Non-financial data .................................... 72
11-year key consolidated financial data ................ 74
JUKI’s global bases ....................................................... 76
Company outline and stock information ............... 78

CONTENTS

Create the Sustainable Futurewith Smart Solution

new Medium-term Management Plan under the “Growth &Social initiatives

Solving social challenges ........................................... 58

2

Editorial policies
Introduction

Content / Editorial policy, etc. .................................... 2
Corporate philosophy, etc. .......................................... 4
JUKI’s business closely tied to people’s daily lives
and industry ................................................................. 6“ Guidance on Integrated Disclosure and Dialogue for

Value Creation” issued by the Ministry of Economy, Trade

About the front and back covers
The design motif for the front and back covers is based
JUKI ’ s key visual for FY2023.

The key visual represents the Six Xs, the foundationaltransformations that underpin the transformation of JUKI
as a whole.
Six transformations: Borderless X, Business Model X, SDGs
Management X, R&D Model X, Work-style Reform X, andFinancial Structure X

Introduction: JUKI’s ambition

3

Introduction

Corporate philosophy
5S For Management

Corporate Slogan

Corporate Philosophy

Mind & Technology

Concept of Value, Importance of Existence, Purpose

Basic Management Policies

5S for Management

All Employees’ “Works of Rule”

Direction to Aim for

Employees’ Code of Conduct

Corporate Conduct Code
Basic Stance in Terms of Companies Engagement Activities

Basic Stance in Terms of Employees Engagement Activities

Five-Article Quality Declaration

Environmental vision / ECO MIND declaration
Environmental philosophy and action guidelines

Clear Code of Conduct at the Manufacturing
Sites to Pursue Quality for Brand Value▶Page 51

Declaration of Health andProductivity Management
Pursuit of Health Management and theEstablishment of the Health Management
Declaration in the JUKI Group

Sustainable Activity
by a Company and its Employees

Medium-Term Management Plan
Business Plan Which is Based on
Corporate Philosophy and Corporate Basic Principle▶Page 22Development of Business Activities Incorporating
Our Efforts to Achieve the SDGs
Realization of carbon neutrality (zero CO2 emissions)▶Page 14

Corporate Philosophy●●

The men and women of JUKI work hand in hand to spreadhappiness and enrich society.
JUKI technologies are constantly evolving and creating new value.

Basic Management Policies●●●

Quality for Brand Value
Innovative and Active
Global Management Approach

Corporate Conduct Code●●In accordance with this Code of Conduct, the men andwomen of JUKI will comply with all laws and internationalrules, respect the spirit of the laws and rules, and act withsocial common sense.
JUKI will not only pursue its corporate interests through faircompetition, but also aim to remain a company with a worthy
reason for being for its customers, shareholders, business
partners, employees, and society overall.

* The full text of the Corporate Code of Conduct is posted on our website.

Five-Article Quality Declaration
1. We comply with laws, rules, and the commitments we make to our customers when providing our products and services.
2. We give the highest priority to the customer’s safety and peace of mind in our work on the quality of our products and services.
3. We rely deeply on the customer’s voice to guide our unceasing efforts towards quality improvement.
4. We raise quality based on the five-Gen principles* to earn the customer’s trust and grow our business.
5. We contribute to the sustainable development of society by improving the quality of our products and services.
* The five-Gen principles: Genba, Genbutsu, Genjitsu, + Genri, Gensoku

SimpleSlim
Speedystraightforward

SeamlessSmartaltogether with no barriers

no wastemove ahead of schedule with agility+

intelligent and productive

JUKI Group Code of Conduct “Ten-Provisions”
1. We will comply with any and all applicable laws, regulations,rules and any kind whatsoever.
2. We will supply our customers with products and renderservices for our customers, which products and services will
satisfy our customers.
3. We will make the best decision for JUKI Group.
4. We will work for JUKI Group in fair and active ways with integrity.
5. We, as the members of JUKI Group (Globalized EnterpriseGroup) will respect the fundamental human rights conferred
upon people, and will never illegally discriminate against
people in any respect. In addition, we will respect cultures
throughout the world.
6. We will secure our safety and stay in health by ourselves, and in
addition, we will use the efforts to do the same for other people.
7. We will act and work in consideration of the global environment,
and will,also, contribute to society as members of the community.
8. We will continuously improve teamwork at the workplace, bymeans of actively assisting with the spirit of “MenDoMi.”

Declaration of Health andProductivity Management
The JUKI Group positions the “establishment of an organization with
innovative and active personnel” as one of its basic management
policies. To realize this policy, it will be important for each and every
employee to be mentally and physically healthy and infused withthe energy necessary to make the best of his / her capabilities. JUKI
believes that the health and energy of its employees will contributenot only to improved productivity and creativity, but also to better
customer service.
With these firm convictions in mind, JUKI hereby declares that it will
do all in its powers to promote management focused on the pursuitand improvement of the health and energy of its employees.
Based on this Declaration of Health and Productivity Management,
JUKI will strengthen its structure for promoting the maintenance andimprovement of the health and energy of its employees and support
employees who enhance health awareness within the group by
spontaneously and voluntarily participating in health maintenance/
improvement activities. JUKI also promotes the establishment of ahealthy and energetic organization in combination with supports forwork style reform, and comprehensively implements higher levels of
health and productivity management.

Environmental vision / ECO MIND declaration
The JUKI Group places importance on the global environment as amanufacturing (Monodzukuri) company and works aggressively on
the effective use of resources, recycling, and energy saving. The
Group also provides safe products that place less environmentalload on customers and is helping to develop industry in the region
with the aim of being widely trusted and valued by both society and
JUKI customers.

Environmental Action Policy

ECO MIND Declaration
Environmental Philosophy

3. Contribute to countries and regions by modifying
environmental conservation activities to suit local conditions
wherever JUKI does business as a global company.

The JUKI Group recognizes that activities of enterprises are closely
related to the global environment, and is making efforts to:
1. Contribute to the local community and society byenvironment-conscious activities.
2. Provide people around the world with environmentallyfriendly products.

1. Prevent global warming by promoting energy-saving inall business activities and use resource efficiently byimplementing the 3Rs (Reduce, Reuse, and Recycle).
2. Provide products with less environmental load by planning,
researching, developing, procuring, and manufacturing withenvironmental influences in mind.

4. Observe environmental laws and other agreed requirements,
and prevent environmental pollution.
5. Actively disclose environmental information.

6. Raise “awareness of ecological problems” among employees
through educational campaigns.

3. Play an active role to hand down a better global environment
to future generations through continuous activities.
4

Introduction： Corporate philosophy

Introduction： Corporate philosophy

5Introduction

System diagram of the JUKI Group corporate philosophy

9. We will study for self-development/ improvement, and will, also,
improve and train your subordinates and younger employees.
10. We will actively procure and collect various information,and prepare effective information, and will effectively use
such information, and in addition, we will strictly administersuch information.

Introduction

JUKI’s business closely tied to people’s daily lives and industry

Golf bags

Interior parts

Masks

Fabric chairs

Hats / caps
Vehicle parts

Introduction

Products made using Industrial Sewing Machines
Products made using Household Sewing Machines
Products made using Electronics Assembly & Systems
Products involved in the Group Business
Products involved in other businesses

Forged pegs

Spacesuits
Digital cameras

Tents

SwimwearEngine parts

Solar power generator
Hydraulic equipment

Undercarriage parts

CT scans
Knitwear

Artificial joints

ScrewsCurtains
Mattress cover
Mattresses

Awnings
Microwave ovens
Rice cookers
Smartphones
LED lighting

Innerwear

Smart speakers(AI speakers)

Refrigerators
Vacuum cleaners

Rug

Liquid crystal display TVs

ApronsTablecloths

Washing machines
Videogames

Telepresence robot
Children’s wear
School lunch bags

RecordersTablets

School bags
Children’s wear

Air conditioners

Cushions
Routers

Sofas

Dog wear

Audio products
Personal computers

Carrier bags

Leash

Dress shirts

Blouses

Power tool parts
Security cameras

Multifunction machines

Neckties
Shoes

Dashboard cameras

Powered exoskeleton

Dresses
Handbags

Business bags
Sterilization robot

Suits
Electron microscopes parts

Jeans

Traffic lights

Sleep buster
Car navigation systems

Seatbelts
Robot parts
Air bags

Reusable shopping bags
Baby strollers

Boards for in-car devices

Car seats

Engine parts
SkirtsSportswear

Sports shoes

6

Introduction： JUKI’s business closely tied to people’s daily lives and industry

Introduction： JUKI’s business closely tied to people’s daily lives and industry

7Corporate value creation

History of value creation
This is a history of the JUKI Group, a conglomerate of companies that have steadily grown their businesses and value by responding to
the needs of customers and society, driven by a commitment to manufacturing for “peace.”● Postwar reconstruction● End of the war

Historicalbackground● San Francisco Peace Treaty● Dissemination of the three sacredtreasures● Economy

Stages

1940s

1950s

Business start-up period

Since 1938

● The Nixon shock● Plaza Accord, Strong yen

for Economic Co-operation andDevelopment)● National Income Doubling Plan
● Tokyo Olympic Games● Osaka World Expo

(38,915 yen)
● Black Monday● Introduction of the consumption tax● Joined the OECD (Organisation

1960s
Rapid growth period

Conversion to a sewing machine business
Establishment of JUKI’s position as a comprehensive
domestic sewing machine manufacturer

Timeline ofimportant turning
developments for
JUKI● Industrial Sewing● 1946The development of household
sewing machines begins.
● 1947

JUKI’s first household sewing

machine, the HA-1, is completed.

● 1950, 1952 to 1955

Winners of Japan’s New Year
postcard lotteries receive JUKI
sewing machines as Special Prizes.

● Oil crisis● Normalization of Japan-China

diplomatic relations, Conclusionof the Japan-China Peace andFriendship Treaty

1970s

Electronics-related businessbegins. (Card punch)

The OHTAWARA PLANT isestablished.

JUKI’s first industrial sewing
machine is launched (DDW-II).

Machinery Business

The development of special
sewing machines begins.

● Electronics Assembly &Systems Businesses● 1957

JUKI industrial sewing machines
are first exported to Hong Kong.

Platform Equipment Business● Other businesses● Failures of major financial● Lehman shock

institutions● Asian currency crisis● Inauguration of the European● 1981JUKI wins the Deming Prize.

● Great Hanshin-Awaji Earthquake

1990s● 1969An automatic thread- trimming
mechanism is developed.

● 1976

TQC activities commence.
● 1977

JUKI holds its first meeting topresent TQC results.

● 1959The development andmanufacturing of computer
peripherals (input/output
devices) begins.
● 1987

Cultivated strengths
and values

Numerous
awards8● Overseas market development● Position as a TOP manufacturer of● Establishment of an after-sales service system● Customer-oriented quality

machine parts and a manufacturingsystem for finished products● Start of “JUKI ” design● Differentiation of sewing machines
through the development of newtechnologies (Japan)● Launch as a solutions provider for customers

1950, 1952 to 1955

1950

Winners of Japan’s New Year postcard
lotteries receive JUKI household
sewing machines as Special Prizes.

Corporate value creation： History of value creation● Differentiation of sewing machines through new technology development(overseas)

A JUKI sewing machine wins the“Minister of International Trade andIndustry Award” at the 3rd National
Examination Committee for Sewing
Machine Performance.

1954

The DDW-II wins “ The Governorof Tokyo Award” at the All-Japan
Invention Exhibition.

industrial sewing machines

management through company-wide
improvements based on TQC

1955

The DDW-9 wins the “Patent OfficeCommissioner Award” at the Tokyo
Invention Exhibition.

● Lowest Nikkei stock average(7,054 yen)

● Postal service privatization

2000s
Businessreconstruction

Expansion of overseas sales
and production systems

Concentration on core businesses
Withdrawal from
unprofitable businesses● 1990 to 2000

● 2000

Manufacturing plants are
established in China and Vietnam(5 plants).

JUKI Credit Co., Ltd. is sold off.
● 2001

An R&D center is established in China.
● 2004

Tokyo JUKI Industrial Co., Ltd. exits
the food business.
● 2008● 1992

An R&D base is established in Vietnam.

ZEVATEC introduces its image(laser) recognition technology.

● 2008●

Union Special Corporation is soldoff through an MBO.
● Door-to-door sales of household
sewing machines are discontinued.
● Three domestic factories andthe amusement business aretransferred to a third party
through an EBO.

JUKI begins developing and selling
PCB manufacturing equipment
for the mounting of electronic
components (chip mounters).

● 1998● Improved line productivity based on a

● Establishment of a manufacturing● Concentration of management on

1963

1989

The development and sale of automatic
bobbin thread feeders begin.

The newly inaugurated Sewing
Efficiency Research Institutebegins sewing factory diagnosis.
● In-house production of sewing

bubbleCornerstone ofglobalization● 1986● 1962● Household Sewing● Customer Support / IoT● Burst of the information technology● Collapse of the bubble economy● 1953

Machinery Business● Group Business

1980s

Building of foundations for quality management● 1971● Financial Big Bang

Union (EU)Cornerstone for manufacturing companies

Entry into theelectronics field● 1961● Highest Nikkei stock average

modular concept (combination of chipand general- purpose machines)

Corporate value creation● Society● Rapid economic growthsystem to support global sales

core businesses● Differentiation using

image-recognition technology

1957

JUKI wins the “Imperial Invention
Prize” for inventing the single-axis
rotational thread take-up lever.

Kenichi Yamaoka, the third
JUKI president, is awarded a“Blue Ribbon Medal.”

JUKI wins a “Dark Blue Ribbon Medal”
for donating household sewing
machines to schools.

Corporate value creation： History of value creation

9

Corporate value creation

History of value creation
This is a history of the JUKI Group, a conglomerate of companies that have steadily grown their businesses and value by responding to
the needs of customers and society, driven by a commitment to manufacturing for “peace.”

Historicalbackground● Economy● Recovery from the stagnation of economic activities caused by the COVID-19 pandemic● Smartphone diffusion● Practical applications of IoT, AI, and 5G in corporate and personal life

● Technological innovation through AI, IoT, and 5G (shifting from products to services)● Living with the COVID-19 pandemic, advent Postal service privatization of the new normal society● Great East Japan Earthquake

2010s

2020s

StagesTimeline ofimportant turning
developments for
JUKI● Industrial Sewing

Machinery Business● Household Sewing

Machinery Business● Electronics Assembly &Systems Businesses● Group Business● Customer Support / IoT

Platform Equipment Business● Other businesses

Cultivated strengths
and values● 2011A business alliance is formed
with SIRUBA in Taiwan to expand
sewing machines for knits.
● 2012

A Non-Apparel Company
is established in-house tostrengthen the product line-up
and sales system.
● 2015The development and sale ofsewing machines for quilts begin.
● 2016The development and sale ofprofessional-use sewing machines
are strengthened.
● 201610● 2016The smart-factory concept for
sewing factories is establishedand its promotion begins.
● 2017

Automatic bobbin thread winding
and feeding device are upgraded.
● 2018

Sales of JaNets for industrial
sewing machines begin.
● 2019

Joint development with YKK for
improved-productivity zipper
sewing commences.

Digital sewing machines arelaunched to the market.

Reinforcement of theelectronics assembly &systems lineup● 2011An MI business is launched.
● 2014

JUKI AUTOMATION SYSTEMSCORPORATION is established
to realize a full product line-up
following the integration withSony’s SMT business department.

● 2017

Sales of JaNets for electronics
assembly & systems begin.
● 2018

Building of the pillars for the
Building of the pillars for the Sewing Machinery and Systems
Group business and parts
business and Industrial Equipment and Systems businessservice business● 2015The JGQMF begins.
JUKI’s quality-oriented
management is rebuilt.

JUKI invests in XTIA Ltd. anddeploys XTIA’s technology
to expand its inspection andmeasurement business domain.

● 2015
JUKI’s Group businessbecomes independent.
A plant in Vietnam starts
operating in union with.

Smarter PCB mounting factories
are realized in collaboration with
Hitachi, Ltd.

● 2017

A joint venture company is establishedwith ESSEGI AUTOMATION S.r.l.
to strengthen thedevelopment of
the automatedwarehouse business.

● 2018JUKI’s contracted design● 2019● 2020A customer business
commercializing parts sales
and services begins.

and engineering businessis strengthened.

● 2021An Asian branch office isestablished, and JUKI enters
into a storage business.
● 2022A capital and business allianceis formed with AIMECHATEC Ltd.
to promote the expansion ofbusiness domains.

SDGs integration
into management● 2020A UI/UX design is promoted on a full scale.
The HZL-UX8 household sewing machineis launched.

● 2020● 2021A business alliance isformed with Pegasus Sewing
Machine Mfg. Co., Ltd. toexpand sewing machines for knitwear.

● 2021“Upcycling” activities aimed● 2022A new company (JUKI
TECHNOSOLUTIONSCORPORATION) is jointly
established with a subsidiary of
Mitsubishi Electric Corporation tostrengthen the development and saleof sewing machines for non-apparel.

2023● The IoT platform equipment and systems

business is launched to provide solutions
to automation issues and offer various
services through the application of systems.

● An Asian global sales headquarters

is established at JUKI VIETNAM (Ho Chi
Minh City).

●● JUKI Vietnam establishes its
fifth factory.

An SDGs Promotion Office isestablished to clarify social
challenges in the ESG domain.

at reducing clothing waste
are launched.
The activities are to be expanded tooverseas group companies in 2022.

● 2021JUKI pledges its commitment toachieving carbon neutrality.

● 2022
JUKI’s pledges its endorsement of

the TCFD.
● 2023

A refurbishment business forindustrial sewing machines andelectronics assembly & systems
is deployed on a full scale.

● Next-generation revolution in lockstitch sewing machines● 3-Dimensionalization of inspection machines and deployment of 3D to inspection and measurement machines● Strengthened lineup of surface-mounting machines (high-speed machines, inspection machines, and screen● Transformation into solution proposals based on “Monodzukuri” (manufacturing) and “Kotodzukuri” (value creation)● Shift to management tailored to heavy users in the household sewing machine business● Development of products and services using IoT, AI, and 5G

printers) to offer one-stop solutions

through the redefinition of JUKI businesses● Persistently high level of quality management for globally deployed quality assurance

1989

Numerous
awardsBusiness redefined (equipment & systems)
New business areas expanded, ESG management established

Expansion of core business areas
Reinforcement of the industrial sewing machine business forknitwear and non-apparel, as well as the household sewing
machine line-up

The HZL-8800 household sewing
machine wins the “Award of Excellence”
in the “Camera and Daily Living Goods”
category at the Nikkei Annual Awards for
Outstanding Products.

Corporate value creation： History of value creation

1997

JUKI wins the “Japan Society Prize for
the Promotion of Machine Industry ”
for developing an automatic bobbin
thread winding and feeding device forindustrial sewing machines (AW-1A).

2017
The HZL-9000CFMS (Full DigitalSpecification) industrial sewing
machine wins the “Texprocess
Innovation Award 2019.”

Corporate value creation● Society● Super-strong yen (75 yen to the dollar)

2021

The OHTAWARA PLANT wins a “GOOD FACTORY
Award” in the Monodzukuri Process Innovation
Award category (sponsored by the Japan
Management Association).

2022
The AW-3S, an automatic bobbin thread winding
and feeding device for industrial sewing machines,
wins both the “Texprocess Innovation Award 2022”
and the “ Sustainability at Texprocess Award.”

The HZL-UX8 computerized sewing machine forhome use wins the Good Design Award 2022.

Corporate value creation： History of value creation

11

Corporate value creation

Corporate value creation process
JUKI products are used by customers

Basic Management Policies

in 185 countries around the world. Our
mission as a global company is to solve
social challenges and enrich people’s lives

around the world through the creationof corporate value. The corporate value
creation process demonstrates how

Quality management

Human resources andorganizational capabilities

Corporate governance

Quality for Brand Value

Innovative and Active

Global Management Approach

ESG management

Corporate value

Thorough management focused onsustainability perspectives

Realizing asustainable societythat enriches lives
all over the world!

Realizing social valueenhancementssocial value and business value.

1. Creation of employment opportunities
2. Promotion of social participation byvarious human resources≪Growth engine≫Years in business:

JUKI technologies
are constantly
evolving and creating
new value.

84

104

Number of Group
employees:

Number of countries
where products andservices are sold:

5,230
Number of consolidated
subsidiaries:

27
Corporate Slogan

Mind & Technology

Number of countries
where distributors
are set up:

Number of licensed items:

185 or more

Industrial
Sewing
MachineryBusiness

4. Contributing to reduced clothing waste

Technical
supportElectronics
Assembly&
Systems
Businesses

Development

Sales

11

1,792
(As of December 31, 2022)

12

6. Reduction of environmental load

Production

Achieving the Medium-termManagement PlanGroup
Business(FY2025)

IoT platform
equipment &systems business

I

e
nv

s

Corporate value creation： Corporate value creation process

160,000 million yen
Ordinary profit:

10,000 million yen
50% or more in businesses
other than industrial
sewing machinesa

Stakeholders
Management priorities
Three Structural Reforms

Data-driven

12

Net sales:

Realizing a world without
climate change byachieving carbon neutrality

Gross profit:≪Growth engine≫

Customer-oriented
development andmanufacturing
capabilities

Improving industrial
infrastructure throughIoT and AI

Realizing businessvalue enhancements

Growthcycle

Number ofdevelopment sites:

Number of
manufacturing sites:

5. Support for technological innovation
through improvement to productivity inthe electronics industry

HouseholdSewing
MachineryBusinesst

145,169million yen

18

3. Ensuring occupational healthand safetyenTotal assets:thtm

18,044.71million yen

Number of sales andservice sites:w

ss

Total capital:

G

ro

i ne

The men and womenof JUKI work hand inhand to spreadhappiness andenrich society.

Typical inputs

Bus

Corporate Philosophy

Global market
development
capabilities

Achieving a rich living
environment where people
around the world can enjoy
quality clothing and fashion

6 Transformations (6Xs)

management

ROIC management
Clarifying “investment and return” foreach business to maximize earnings● Shareholders● Customers● Business partners(subcontractors anddistributors)● Employees and local
communities

Corporate value creation： Corporate value creation process

13

Corporate value creation

sustainable circulation enhances both

Corporate value creation

ESG management

To assure JUKI ’ s sustainability, we embody the ideas behind the “ Mind & Technology ” corporate slogan and aim for

manufacturing based on the “customer-first principle (customer creed).” Every JUKI employee works to improve the qualityof their work and refine their skills, keeping their sights set on the customer ’s satisfaction and passing on “JUKI’s heart-to-heart technologies ” to the future. We will incorporate solutions to various sustainability challenges into our Medium-termManagement Plan and thoroughly emphasize ESG perspectives in management, in order to realize JUKI’s long-term visionof becoming a “global, innovative mono-koto zukuri (manufacturing and value-creation) company that survives in the 21st
century.” By doing so, we will realize a sustainable society and pursue sustainable growth for JUKI.

Materiality
The JUKI Group analyzes risks and opportunities within the changing external environment and extracts priority challenges
based on the perspectives of both JUKI and its stakeholders. The JUKI Group also creates social and business value by
tackling social challenges head-on through its business activities.

Processes to identify social challenges
STEP1

We will realize a sustainable society by continuing to create and provide products and services that benefit society based onheart-to-heart technologies and the customer-first principle (customer creed)–the core elements expressed in JUKI ’ s “ Mind &Technology ” corporate slogan.

We will act in accordance with our “Corporate Philosophy,” “Basic Management Policies,” and “Corporate Code of Conduct ”

and sustainably enhance our corporate value.

Our framework to promote sustainability

STEP3

STEP2

Organizing the social challenges

Identifying the important social challenges

Incorporating the social challenges into

We will organize challenges into two broad categories
based on an analysis of risks and opportunities in thebusiness environment: those with significant impacts
on JUKI and its stakeholders, and those which, ifsolved, will open the way to significant corporate
value enhancements.

Among the social challenges categorized,

the Medium-term Management Plan

Categories

we will identify a set of “important social

We will discuss initiatives to solve important

challenges” that should be addressed basedsocial challenges at the Management Strategy

on how they relate with our in-house policies

Council and incorporate them into our Medium-and activities.

term Management Plan.

Main initiatives

Materiality

Corporate value creation

Sustainability policy

Related SDGs

JUKI established its Sustainability Promotion Committee in August of 2022. Chaired by the Representative Director,
Chairman, and CEO, the committee meets four times a year to deliberate and decide on sustainability policies, plans, andmeasures, manage progress, and report and make proposals to the Board of Directors and other relevant bodies. Risks
identified, addressed, and examined by the Sustainability Promotion Committee are reported to the Risk Management
Committee to strengthen governance.

Sustainability

Environment（E）

Creating employment
opportunities

Directors
Board of directors(Chairperson: Representative Director, Chairperson and CEO)management
framework

Reduction ofenvironmental load

Promotion of social
participation by various
human resources●

Reduction of environmental load through business●

Environmental consideration in product life cycles●

Creating new jobs in emerging countries

activities●

Increasing the working population and improving theworking conditions for workers through vocational▶ Page 54▶ Page 58

education support

Representative Director, Chairperson and COO

Ensuring occupational
health and safety

Management Strategy Council(Chairperson: Representative Director, Chairperson and COO)

Presentation

Reporting of risks andresponse policies

Risk Management Committee(Chairperson: Officer in charge of internal
control and compliance)

Presentation and report
Sustainability Promotion Committee(Chairperson: Representative Director, andChairperson and CEO)Society（S）

Contributing to reduced
clothing waste

Commitments

Supporting the building of safe and secure sewing
factories●

Support fortechnological innovation
through improvement
to productivity in theelectronics industry

Monitoring●▶ Page 59

Providing a system to achieve moderate-volume
production●

Spreading JUKI’ s “upcycling” activity using old clothes,waste materials, and by-products●

Realizing a factory that produces high-quality
products in a short time at low cost●

Making sewing and mounting factories smarter and●Improving a pre- and -pro process infrastructure at▶ Page 59

supporting technological innovation
SMT factories

1. Achieve carbon neutrality
We will further enhance our initiatives to reduce CO 2 emissions in our product development and production/ businessactivities with a view to achieving carbon neutrality by 2050.

Realizing ideal
working conditions

2. Endorse the TCFD recommendations●●

Revitalizing the organization by promoting diversity
Reforming work style, facilitating job satisfaction,▶ Page 44

and educating human resources

In July 2022, the head office of the JUKI Group endorses the TCFD
(Task Force on Climate-related Financial Disclosure) recommendations
established by the Financial Stability Board (FSB) and has announced
its participation in the TCFD Consortium organized by companies that
support the recommendations. The JUKI Group will proceed with thedisclosure of information based on the TCFD recommendations.
14

Corporate value creation： ESG management▶ See p. 56 for details.

Governance（G）

Strengthening corporate
governance●●

Enhancing JUKI’ s corporate governance system

Providing thorough compliance and strengthening▶ Page 60

risk management

Corporate value creation： ESG management

15Medium-term Management Plan

Message from Representative Director,
Chairman, CEO, and COO

We will take on the challenge of creating
value that lives up to the trust of ourcustomers, using the “ transformation ofpeople and culture” as our growth engine.
Looking back at the previous Medium-termManagement Plan (2020-2022)
Since its foundation in 1938, JUKI has been striving to

FY2022 was the final year of the previous Medium-term

create new value while creating and evolving technologies

Management Plan. JUKI has been engaging in companyto capture demand during the market recovery period andfundamental corporate reform with a view to recovering

expand business areas in growth fields.

business performance and conducting higher value-

Turning to business performance, net sales of the entire JUKI

added corporate activities focused on customers in today’sGroup rose by 16% from the previous year to 117,454 million

Looking back through the previous Medium-termsales mainly in the Asian market by serving the recovered

Management Plan (2020 -2022) over the last threedemand in the apparel market and strengthening efforts toyears, JUKI was more affected than ever by the social

develop the middle market. Worldwide, however, net sales

environment. Factors such as the spread of COVID-19, thegrew by only 26.5% from the previous year to 79,937 million

Russia-Ukraine conflict, and international tensions linked

yen, mainly due to the impact of the zero-Covid policy into strained U.S.-China relations all had dramatic influences

China and postponements in purchasing due to unfavorable

rapidly changing environment.

on the company’s performance. While many things did notyen. The Sewing Machinery and Systems Business grew its net

foreign currency exchange rates in emerging countries

go as planned in corporate management, we also gainedin Asia. Net sales in the Industrial Equipment and Systems

a renewed appreciation of the preciousness of life andBusiness decreased by 1.5% from the previous year to 37,253

the important role of social actors in working together tomillion yen. The Electronics Assembly & Systems Businesses

protect life.

within the Industrial Equipment and Systems Business saw

After a period of high uncertainty in the first half of thea decline for the year, mainly due to sluggish investment

previous Medium-term Management Plan, the second

demand caused by the zero-Covid policy in China andhalf saw a gradual easing of COVID-19 infections and thedelays in bringing new products to market. The Group

activation of new measures toward economic recovery.

Business deploying parts processing, design, engineering,

Looking at society as a whole, both companies andand other contracted services remained strong mainly inindividuals are responding to the “new normal,” while theJapan, buoyed by the rising demand for capital investment

swift rollout of revolutionary new technologies such as AI,

in Japan and Southeast Asia to cope with the supply chain

IoT, and 5G at a practical level is changing the ways we dofragmentation customers faced.
Ordinary profit, on the other hand, fell by 66.2% from thebusiness and live.

Representative
Director, Chairman,
CEO, and COO
JUKI Corporation

wide sales activities and restructuring its supply chain in orderthe core of its business. JUKI is now working toward a

Under these circumstances, sewing and SMT factories,

JUKI ’ s main customers, are scaling up their capital

previous year to 1,163 million yen, in spite of the positiveeffect of the yen depreciation on net sales. The main factors

investments in smart and automated production. We

behind the decline were the increased burden of overseas

feel that JUKI has created an environment in which itmaterial costs and expenses, the price hike delays associatedcan fully develop its businesses to support the activities

with increased cost burdens due to ongoing strategicof its customers. To seize this business opportunity moreinvestments in market development, and the incompletion

confidently, we must first re-establish firm contacts with thecustomers and distributors that were the most constrainedby the COVID-19 pandemic.

of improvements to be achieved in JUKI’s product portfolio

by expanding high-value-added business areas.

Overall, JUKI was left with many challenges in the wakeof 2022. Better results would have been achieved if we had
responded more strongly to the changes in the businessenvironment and had more capably implemented theimportant measures planned.

16

Medium-Term Management Plan: Message from Representative Director, Chairman, CEO, and COO

Medium-term Management Plan： Message from Representative Director, Chairman, CEO, and COO

17

Medium-term Management Plan

centered around “ Monodzukuri ” (manufacturing) at

Akira Kiyohara

Review of business activity andperformance for FY2022

Medium-term Management Plan

Message from Representative Director,
Chairman, CEO, and COO“ Growth & Transformation Plan 2025”– The slogan for the new Medium-termManagement Plan toward the way JUKI
should be
JUKI started its work on the new Medium-term Management

Plan in fiscal 2023 under the “Growth & Transformation Plan

2025” slogan. The new Plan sets out three structural reforms–

Value-added Structure Reform, Cost Structure Reform, andBehavioral Reform– to realize the following core ideal weenvision for JUKI in 2025: To “continue to serve customers as asolutions partner that delivers ‘good impressions’ and ‘peaceof mind,’ and as a practitioner of robust ESG management thatis trusted and needed by society.”

are rising. In FY2023 we established a Cost Structure Reform
Committee to promote the restructuring of our production/
logistics/procurement networks, the integration of functions
office departments, and more.

“ R&D Model X,” “ Work-style Reform X,” and “ Financial

at JUKI’s local offices, the streamlining of administrative back-Third, our Behavioral Reform will help us strengthen the ability

for robotic equipment, inspection and measurement, andof next-generation leaders, reskilling at every employee level,an environment in which every employee can do high-automatic warehouse management. We will meet the needs

and job-based human resources management according toquality highly productive work and to build a managementof customers who are expanding into Japan and Asia byperformance at work and job responsibilities. The Behavioral

foundation that will enable further value creation.

providing high value-added services using the automation

Reform is a challenging but integral measure for the futureof JUKI as it seeks to transform its people and culture. We willby expanding our business domain through strengthened

our vision, expand our scope of activity, and become ancollaboration with alliance partners.

organizational group with high employee engagement thatbroadly captures business opportunities.
We will move forward with these Three Structural Reforms byvigorously pushing through the Six Transformations as enginesof growth. By doing so, we will surely strengthen strategies forand labor-saving production technology capabilities

Business strategies to pursue high valueadded and high growth
To achieve the Value-added Structure Reform set forth in theMedium-term Management Plan, we need to demonstrate

our earning power to JUKI’s stakeholders as proof of the value

created by JUKI’s activities. Profits, however, are not a goal in

itself. We value the idea that JUKI is truly serving its customers
and that the profits earned are the result of JUKI services.
The Medium-term Management Plan promotes forwardlooking growth strategies in which we keep our sights firmly
fixed on the business portfolio goals we should aim for ineach of our businesses.
In the Industrial Sewing Machinery Business within the Sewing
Machinery and Systems Business, we will build a structure to

Medium-Term Management Plan under the “Growth & Transformation Plan 2025” slogan

provide high value-added products and services to customers
in non-apparel industries such as automotive-related andsports shoes, with the backing of the industrial sewing
machinery business acquired from the Mitsubishi Electric

Corporate Philosophy

Group in July 2022. In the meantime, we are also making efforts
to meet the casualization needs of apparel industry customers.

Corporate vision for 2025

As part of these efforts, we have been pursuing a broad-based

To “continue to serve customers as a solutions partner that delivers ‘good impressions’ and ‘peace ofmind,’ and as a practitioner of robust ESG management that is trusted and needed by society.”business alliance with Pegasus Co., Ltd., a leading maker of

ESG management

chainstitch sewing machines, since April 2021. We will take on

ROIC management
Clarify the investment and return for each business to maximize revenues.

and increase the added value of JUKI’s entire Industrial Sewing* Incl. investments in production facilities / development / IT / human capital,
and the staffing of employees.

advanced technological capabilities JUKI has built in the

JUKI’s commitment
Respond to carbon neutrality / TCFD

Setting KPIs to improve the productivity of every person

Management priorities -Three structural reformsValue-added structure reforms

Behavioral reforms

Cost structure reforms

Maintain/Expand customer baseTransform people / culture

Improve capital efficiency

6 transformations (6Xs)
Business
Model X

SDGs
Management X

the challenge of various initiatives to serve many customers

Building a Business Base for New Normal
R&D
Model X

Work-Style
Reform X

Data-driven management (renewed to the global ERP system)

Financial
Structure X

Machinery Business by leveraging the No. 1 global brand andapparel field. In the Household Sewing Machinery Business,

Medium-term Management Plan： Message from Representative Director, Chairman, CEO, and COO

In parallel with these business deployments, JUKI newly

established its “IoT Platform Equipment & Systems Business

Unit ” in the current fiscal year and took the first steps to
growing it to a scale comparable to that of the Industrial
Sewing Machinery Business and Electronics Assembly& Systems Businesses. First, we will shift from an indirect
marketing approach to customer business centered on theprovision of existing parts and technical services through sales
offices and distributors in various regions to a direct marketing
approach using a customer management system.
We are also working to commercialize our services by
expanding the use of JaNets (JUKI Advanced Network
System), a system that connects devices in each process
within sewing and SMT factories. We will use these JUKI IoT
platforms to remotely monitor the operational status ofproduction equipment at customer factories and deploy
services to support the transformation into smart factories.

We will build a portfolio to maximize JUKI’s consolidated

earnings from each of JUKI ’ s business pillars - Sewing

Machinery and Systems Business, Industrial Equipment
and Systems Business, and IoT Platform Machinery and
Systems Business - while keeping an eye on changes in thebusiness environment.

A solid management foundation to
support growth strategies
The production, development, and head office

JUKI will be increasing customer satisfaction among heavy

administration departments making up the infrastructure forhobbyists, a priority target group, by speeding up the

manufacturing management will aim for a smart and solid

market launch of new products equipped with UX (Userbusiness foundation.

Experience) functions not available from other companies,

The production department will move forward withincluding several winners of the 2022 Good Design Award.

the multiplexing of production and procurement sites inIn the Electronics Assembly & Systems Businesses within the

preparation for changes in the environment and the shift

Industrial Equipment and Systems Business, we will develop

to DX (Digital Transformation)/GX (Green Transformation)markets with new high-speed machines that deliver unrivalledat each factory.

performance in the industry, in addition to medium-speed

The development department will develop new

and general-purpose machines in the mounter (SMT machine)

products and services that can be differentiated using

field, where we have a strong competitive advantage. As

new technologies such as IoT, AI, 5G, energy-saving

SMT factories become smarter, we will also heighten our

technologies, VR, and robots, while continuously brushingability to propose one-stop solutions by developing andproviding automated equipment that handles pre- and18

accumulated at the production sites of the JUKI Group.

up JUKI’s existing products. Intellectual property forms thebasis of our sustainable growth. We will actively deploy

Medium-term Management Plan： Message from Representative Director, Chairman, CEO, and COO

19

Medium-term Management Planand organization to proactively apply and incorporate theused in different industries. By doing so, we intend to broaden

Borderless X

have an SMT factory. This business also provides services

diverse human resources on a global scale, the development

will also make strong efforts to build new business models

Strengthening strategies for future growth

to design and engineering to the manufactures who do not

help reduce labor shortages through automated solutions

cutting-edge technologies and differentiating technologies

Ensure management focused on sustainability perspectives.

Business provides the contracted services for parts processing

our ERP (Enterprise Resource Planning) system to create

JUKI ’s people and organization by focusing on the use ofstep with the economic recovery underway overall. We

in which most costs, from materials to fuel and freight costs,

the Industrial Equipment and Systems Business. JUKI’s Groupto improve the efficiency of manufacturing sites and tohave tended to follow, and encourage our human resources

reviews of JUKI’s cost structure within a business environment

Structure X.” We believe that the management infrastructure

also be strengthening the Group Business as another pillar ofwith the Six Transformations. Specifically, we will renewof every employee to implement measures. We will evolveand expand our customer base by contributing to thebusinesses to enable sustainable growth based on thorough“Borderless X,” “Business Model X,” “SDGS Management X,”

post-SMT process along with the SMT process itself. JUKI willof the entire JUKI Group must be changed in conjunction

break away from self-sufficient development, the policy weSecond, our Cost Structure Reform will help us restructure ourto the “new normal” in the lead-up to our next stage of growth.

JUKI will boldly transform itself through the Six Transformations:First, our Value-added Structure Reform will help us maintainrecovery of performance in our customers ’ businesses infuture growth and build a business foundation that responds

Medium-term Management Plan

Message from Representative Director,
Chairman, CEO, and COO
intellectual property protection not only for JUKI products,
but also for JUKI ’s automation and smart technologies.

governance structure with a view to quickly implementing

In conjunction with this adjustment in JUKI’s management

the end of their life cycle As part of JUKI’s social responsibility,

the company ’ s growth strategies and recovering thestructure, the company has also changed the compositionbusiness environment. The Representative Director,

outside directors from two to three. The Board of Directors

On the social (S) front, investment in human resource

level by focusing on the restructuring of the ERP system

Chairman, and CEO now also serves as COO, assuming

will more directly and promptly reflect outside opinions indevelopment is a key issue. To adapt to the era of thethat supports the foundation of these businesses. We willboth chief executive and chief operating responsibilities.

management decision-making. The diversity of the Board

be synchronizing the functions and operations of the head

The centralized supervision and execution functions underof Directors has been also enhanced by the appointment

behave robustly and flexibly in the face of the demand

office and business sites around the world by collecting

the new structure will drastically advance structural reforms,of one female Director and one female Audit & Supervisory

for unconventional ways of working As a global company,

and accumulating real-time information on the JUKI Groupthe cornerstone of the Medium-term Management Plan,

Board Member. An Outside Director has been madewe will accept internationally-minded people with diverse

and will establish a system to enhance our responses

speed up decision-making on important measures, andthe chairperson of the Nominating and Compensation

values throughout the group and create a system toto changes by making prompt and accurate businessstrengthen our ability to execute them. We will be using

Advisory Committee to further enhance its independence.

enhance the competencies of all of our employees, thejudgments and decisions. And by strengthening our design

market information obtained from the sales teams at the

I would like to request that our officers also implement thefront lines to create a robust management structure that

Behavioral Reform as a key move under the Medium-term

On the governance (G) front, we will establish a further

enables us to quickly seize business opportunities. Shinsuke

Management Plan. We will break free from conventional

enhanced corporate governance system that can be

Uchinashi, our former Representative Director, President,

wisdom and adopt a policy of concurrently performing

appropriately operated and maintained. We will work to

and COO, now serves as the Director and President in

multiple duties. We are convinced that doing so will enable

ensure compliance, strengthen risk management, andcharge of the Finance Department, where he will be

us to make more appropriate management decisions

increase management transparency through timely andaddressing urgent issues such as inventory reduction andand actions from the perspective of total optimization

accurate information disclosure.

the easing of interest-bearing debt burden, in addition totranscending the framework of business departments andlogistics reforms.

specialized areas. This policy will also strengthen our efforts

The head office administration department will aim

to realize data-driven management at the group-wide

strategy, we will formulate a roadmap to promote “design

management ” and build a friendlier brand design that

expresses JUKI ’ s unique character.

In March 2023, JUKI adopted a new managementof its Board of Directors by increasing the number of“ new normal,” we will develop human resources able tohuman capital of a company.

To continue being JUKI, a company thatlives up to the trust of its customers

To become a company trusted bysociety as a thorough practitioner of
ESG management

Looking back, JUKI has a history of tackling the challenge

JUKI will celebrate its 85th anniversary in December 2023.
of value creation. JUKI began developing household
sewing machines as a business that could contribute to

The Sustainability Promotion Committee will take the leadthe peace and economic recovery of Japan in the ruins

in vigorously implementing ESG (Environmental, Social, andafter World War II. The main target of the business was toGovernance) management under the new management

help Japan achieve self-sufficiency in clothing, one ofstructure. We will seek to balance business value and social

the core necessities of living alongside housing and food.

our SDGs initiatives with our original business activities.
On the environmental (E) front, the entire JUKI Group will

JUKI quickly captured the trend of “ industrialization ofclothing” in the postwar period and expanded its businessto the development and manufacture of industrial sewing

take responsible action to meet the two commitments JUKI

machines. As computers and other electronics fields

has already pledged: (1) to achieve carbon neutrality bybecame growth industries in the 1960s, JUKI used the2050 and (2) to support the TCFD (Task Force on Climate-technologies for its flagship sewing machinery to develop

related Financial Disclosure) recommendations. In addition

electronics assembly & systems through a long process

to addressing the issue of global warming and reducingof trial and error. Electronics assembly & systems grew to

CO2 emissions, we are working to reduce clothing waste bybecome JUKI second core business, forming the foundation

proposing optimal production systems as smart solutions based

for its current mounter operations. JUKI has grown by

on the diagnosis of customer factories. We are also helping toaddressing the social challenges and market needs ofconstruct a sustainable, environment-friendly society throughthe times head-on and creating value that delivers good

the JUKI Way, a policy to support people’s lives using industrial

and household sewing machines. We are also engaging

impressions and peace of mind to customers and society

under its “ Mind & Technology ” corporate slogan. JUKI ’ sGroup company employees, distributors, and customers ingrowth cycle (value-creation scenario) will create newa campaign to expand upcycling activities for the recycling

values to provide innovative solutions and strengthen SDGs

of waste materials, by-products, and old clothes that haveinitiatives through strategic investments in development, IT,

outlived their usefulness into new and valuable things.

human resource development, and facilities for promoting

As a new line of operation, we are preparing to launch a

automation. This new value-creation will help solve thefull-scale business focused on the selling of refurbished JUKI

business and social challenges customers face andmachines and devices that have previously been sold This

realize a growth cycle by winning customer trust, driving

articles ” in our Articles of Incorporation. We have already

corporate value. We hope that you will continue supporting

business is currently listed as the “buying and selling of used

the growth of JUKI ’ s businesses, and enhancing JUKI ’ s

conducted this business with mounters for electrics assembly

our work to achieve the JUKI challenges as we approachsystems, and by doing so have come to understand the need

our 90th anniversary in five years and our 100th anniversary

for establishing a system to follow up on the products we sell to

Medium-term Management Plan： Message from Representative Director, Chairman, CEO, and COO

surrounding our business activities.

to develop future management personnel and successors.

value by striving to operate in a way that inextricably links

20

we are committed to the 3Rs (Reuse, Reduce, and Recycle)

in ten. Don ’ t lose the opportunity for JUKI ’ s growth.

Medium-term Management Plan： Message from Representative Director, Chairman, CEO, and COO

21

Medium-term Management Plan

Solidifying the foundation for growth witha new management governance structurecompany’s business performance in the rapidly changing

Medium-term Management Plan

Factors behind the Medium-term Management Plan
Fiscal 2023 marks the launch of JUKI’s new Medium-term Management Plan under the “Growth & Transformation Plan 2025” slogan.

The new plan lays the groundwork for JUKI’s growth strategy for fiscal 2028, the 90th anniversary year since the company’s founding.

Review of the previous Medium-term Management Plan (2020-2022)

New Medium-termManagement Plan

Business environment awareness (Risks and Opportunities)
Action plans for sustainable growthLong-term vision
90th anniversary(in 2028)

Growth & Transformation Plan 2025

Becoming a
100-year company

Review of the previous Medium-term Management Plan (2020-2022)

Business environment awareness (Risks and Opportunities)

Net sales / Ordinary profit

Risks

Exchange rates Actual for 2019-2022 JPY120/USD for FY2025（100
millionyen）

200

and its supplier factories to limit the spread of COVID-19, the supply chain

1,013

992

1,175

Profit rate
6.3％ 150

fragmentation and procurement difficulties caused by the prolonged

Growth rate
+ 36％

704

800
400

29

0

100

Profit rate
1.0％

34

△40

100

50

12

0

-50
year

2019

2020

2021

2022

2025 (Plan)

conflict between Russia and Ukraine, and so on.
With the sluggish capital investment demand and postponement ofpurchase caused by the zero-Covid-19 policy in China, net sales in
FY2022 grew by only 18% from the FY 2019 level, to 117.5 billion yen.
Despite the positive effect of the yen depreciation, ordinary profit declined by●

Variations in monetary policy in major countries(Interest rate rises in Europe and the U.S.,
monetary easing in China.)● Ongoing turmoil and strife caused by Russia’s
invasion of Ukraine
External
environments ● Ongoing tensions between the U.S. and China● Gradual improvement of the supply chain
fragmentation and logistics disruptions● Ongoing rises in procurement costs driven by higher
component prices●

Covid-19 policy change in China
Recovery of the demand for capital investment inapparel, automobiles, IoT, etc.
External● Technological innovation in AI/IoT/5G, etc.
environments ● Changes in markets and customers expected in the
post-COVID-19 society● Social demand for a reduced environmental load●

59% from FY 2019 due to procurement difficulties, increased cost burdens inlogistics, delays in raising product prices to offset the increased cost burdens
associated with JUKI’s ongoing strategic investments, and the incompletion of●

Establishment of a new business model and managementfoundation adapted to the new normal society.
● Development of new markets through strengthened
solution proposals.
● Development of leading-edge products and services
using advanced technologies.
● Building of a flexible production system that responds
to changes in the environment.
● Initiatives for a sustainable society (SDGs)

improvements in the portfolio toward value-added businesses.

Major financial items( 100 million yen)

Total assets in FY2022 increased

FY2020 results

FY2021 results

FY2022 results

FY2025 planby 30.5 billion yen from FY2019 to

1,102

1,291

1,452

1,485

145.2 billion yen, mainly due to an

623

increase in accounts receivable

25.3%

40.0%

growth, while deposits were used341
(4.0 months)375(3.8 months)

400(3.0 months)

367(6.3 months)

511(6.1 months)624(6.4 months)

400(3.0 months)

100(1.2 months)

101(1.7 months)

198(2.3 months)

133(1.4 months)

250(2.0 months)

Interest-bearing debt

539

574

590

745

350

Cash and deposits

60

138

66

49

65

Net D/E Ratio

1.27

1.39

1.47

1.99

0.7

Period end rate for USD

JPY110

JPY104

JPY115

JPY133

JPY120Total assets

1,147

Net assets(Foreign
currency translation
adjustment)

（△34）

（△41）

（△15）

（10）

（30）

Equity ratio

32.3%

28.2%

27.3%

Trade receivables(Turnover period)

305(3.7 months)

233(4.0 months)

Inventories(Turnover period)

415(5.0 months)

Trade payables(Turnover period)

378

314

357

375

to repay borrowings.

● Operating CF ● Investing CF ● Financing CF

175

200

50

Interest-bearing debt increased
by 25.5 billion yen from FY2019 to

0
-50
-100
-150
year

△34

in trade receivables and inventories
in line with sales growth.

2019

△27
2020

△9 △4

△66

2021

△146

Net cash used in operating activities in FY2022 totaled 14.6 billion yen(3.1 billion was provided in the same period of FY2019). This was the result
Net cash used in investing activities totaled 4.9 billion (3.4 billion

20△8

Business growth● Increased sales/profit

74.5 billion yen due to an increase● Accumulated equity capital

1 Expand our vision andsphere of activity to takeadvantage of business
opportunities.

was used in the same period of FY2019). This was mainly the result of
△49
2022

and differentiatedtechnologies.

of an increase in trade receivables and inventories.

109

85
31

Action plans for sustainable growth△21

expenditures for the purchase of property, plant and equipment and

FY2025 (Plan)billion yen was used in the same period of FY2019). This was mainly the△76

new investment securities (shares of subsidiaries and affiliates).
Net cash provided by financing activities totaled 17.5 billion yen (0.83 Strengthen sustainableactions to realize asustainable society

Execution of strategic investments/expenses● To promote automation with plant and equipment

investment● To enter into forefront/SDGs areas with development investment● To build management infrastructure with IT investment

Corporate value enhancement● Increased share price● Gaining social credibility
4● Achieving the SDGs targets
Business growth/(e.g. employee growth)
Corporate valueenhancement

2 Proactively use advanced（100 million yen）

150

JUKI

and inventories in line with sales

Cash flows

100●

Intensifying competition to offer smarter products
to customers
environments ● Acceleration of product commoditization (lower prices)
Competitive/year FY2019 results

Medium-term Management Plan

1200

Management Plan was affected by the lockdowns of JUKI, its customer,

million
yen）

1,600

1600

Our performance in the three years of the previous Medium-term（100● Net sales (left axis) ● Ordinary profit (right axis)

Opportunities

Execution of human resource
development investments
1● To improve treatment in accordance
Execution of strategic
with added value
investments/expenditures● To provide all employees withand human resource
opportunities to relearn
development investments

Growthcycle

3Business challenges (customers)● Improved QCD
Solving businesschallenges (customers) /● Improved productivity
social challenges● Sophisticated management● Accelerated global expansion
Social challenges● Growth of the sewing/surface-mounting

manufacturing industry● Job creation in emerging countries

2
Creation of
new values

Creation of new values
Providing innovative solutions● Products, systems, and network● Contracted engineering services● Remote engineering services
Strengthening SDGs Initiatives● Initiatives to reduce CO2 emissions● Diversity initiatives● Achieve carbon neutrality

result of an increase in borrowings.
22

Medium-term Management Plan： Factors behind the Medium-term Management Plan

Medium-term Management Plan： Factors behind the Medium-term Management Plan

23

Medium-term Management Plan

Reforms and transformations in the Medium-termManagement Plan
The new Medium-term Management Plan under the “Growth & Transformation Plan 2025” slogan calls for enhancements

in our corporate value based on the three structural reforms and six transformations (6Xs). By following this plan, JUKI will

Three Structural Reforms (Management priorities)

continue pursuing its vision of continuing to serve customers as a solutions partner that delivers “good impressions” and“ peace of mind,” and as a practitioner of robust ESG management that is trusted and needed by society.

Value-added Structure Reform

Behavior Reform

Cost Structure Reform

Maintain/expand the customer baseTransform people/culture

Improve capital efficiency

Maintain and expand
the customer base bystrengthening highvalue-added areas.
● Create a new business model by

Corporate Philosophy

expanding our business domains.

● Strengthen collaboration withalliance partners.

Vision for the year 2025

* Including investment in facilities / development /IT / human resources, and the implementation of staffing

Set KPIs to improve the productivity of
every employee.

and provide opportunities forrelearning to employees at all levels.

● Implement job-based management

Behavioral Reforms

Value-added Structure Reform

Borderless X● Rebuild our distributor networkand develop emerging markets byleveraging trading companies.

● Retain and expand high-end

Business Model X● Expand our business domains toincrease profitability.

● Create new businesses notconfined to existing areas.

customers by strengthening ourability to propose solutions.

Borderless
X

Business
Model X

● Eliminate all forms of waste.

SDGs Management X● Reduce CO2 emissions by taking

environmental measures (energy
saving, etc.) at in-house factories.

● Reduce environmental● Support the development ofemerging countries throughe-learning, vocational training,
factory diagnosis, etc.

Improve capital efficiency

Work-Style
Reform X

R&D Model X● Rebuild a patent network and

Financial
Structure X

Data-driven
management(

renewed to
the global
ERP system)

With ERP restructuring
as the core, collectand accumulate
information on the
JUKI Group aroundthe world in realusing new technologies.

Building a Business Base for New Normal
R&D
Model Xand streamline the operations of
our administrative departments.

load in the supply chain inconsideration of product life
cycles (product development/
refurbishment business).

the integrated management of ourhead office and sales companies.

6 Transformations（6Xs）
SDGs
Management
X● Integrate our business functions

6 transformations (6Xs)● Develop innovative products

Strengthening strategies for future growthlogistics, and procurement
networks.

Cost Structure Reform

Transform people / culture

Maintain/expand the customer base

● Restructure our production,with opportunities for relearning.

● Retain loyal customers throughManagement priorities
Three Structural Reforms

Review our cost structure
in light of the changes
taking place in thebusiness environment.

corporate branding by effectively
using intellectual property/
design functions.

● Significantly reduce manufacturingcosts through design revolution.

● Strengthen our business planning

function by improving ourmarketing capabilities.

Work-Style Reform X● Promote automation bystrengthening production
technology.

● Review supply chains in line withmarket trends.

● Drastically overhaul ouradministrative overhead costs.

● Improve our operational efficiency

using smart tools.

Financial Structure X

time to synchronize
operations between● Reduce inventory/trade receivables

the head office● Reduce interest-bearing debt

and enhance ourby restructuring the supply chain.
(achieve a D/E ratio target).

● Shorten the cash conversion cycle.

and group sites,
responsiveness tochange throughprompt management
and accurate
decision-making.

● Strengthen our corporate

communication.

● Use diverse human resources andData-driven management

provide employees at all levels with
opportunities for relearning.

(renewed to the global ERP system)

24

Medium-term Management Plan： Reforms and transformations in the Medium-term Management Plan

Medium-term Management Plan： Reforms and transformations in the Medium-term Management Plan

25

Medium-term Management Plan

JUKI’s commitment
Respond to carbon neutrality / TCFD.

Clarify the investment and return foreach business to maximize revenue.

a global scale.

● Develop next-generation leaders● Provide officers and employees

ROIC management

Ensure management with an emphasis
on sustainability perspectives.

● Use diverse human resources on

based on job responsibilities
and performance at work.

To “continue serving customers as a solutions partner that deliversʻgood impressions’ and ʻpeace of mind,’ and as a practitioner of robust
ESG management that society trusts and needs.

ESG management

Strengthen every
employee’s ability to
implement measures.

Medium-term Management Plan

Quantitative plans and measures in the Medium-termManagement Plan
JUKI has formulated a set of quantitative targets, along with KPIs and measures to achieve them, in its new “Medium-term Management Plan” underFY2022the “Growth & Transformation
Plan 2025” slogan. We willFY2025
make strategic investments and implement solid measures.

43％

50％

Planned value

Priority policies

Measures

Net sales/Ordinary profit

Exchange rates Actual for 2022 JPY120/USD for FY2023、FY2025■ Net sales (left axis)（100 million yen）

■ Ordinary profit (right axis)

1800

300

1,600

1500
1200

（100 million yen）

250

1,270

1,175

FY2022 - FY2025
Growth rate + 36％

Profit rate
6.3％

900
600

Profit rate
2.4％

Profit rate
1.0％

300

30

12

FY2022

Strengthen efforts to surely realize carbon neutrality and
TCFD information disclosure, while making progress insolving social challenges through our core business.

DX

100

(Digital Transformation)

FY2025

Household Sewing
Machinery BusinessElectronics
Assembly &Systems
Businesses

7％

19％
Net sales for
FY202224％

Group Business

2％

117.5

billion yen

Customer Support
Business

Industrial Sewing
Machinery Business

15％

57％

Net sales for
FY2025

Group Businessbillion yen

IoT Platform
Equipment &systems businessIndustrial Sewing
Machinery Business

15％

50％

FY2022

FY202543％

Enhancing human resources
Build a highly productive organization by promoting
diversity and work-life balance.

5％

160.0

Business growth
Adopt a marketing-based market strategy and transform

Trade receivables (turnover days)( 100 million yen)

FY2025 plan

375 (3.8 months) 400 (3.0 months)

Inventories (turnover days)

624 (6.4 months) 400 (3.0 months)

Cash Conversion Cycle (CCC)

264 days

120 days

Interest-bearing debt
(Net of cash and cash equivalents)

745

350

Equity ratio (%)

25.3

40.0

1.99

0.70

Net D/E ratio (times)

ROIC management
FY2022

1.59％

-0.2％
26

Technological development
Develop differentiated products by creating customer value
and social value, and develop products and systems that
expand our business domains.

FY2022

Production

Page 44

Improve quality, reduce costs, and shorten delivery times
by deploying a production site strategy.

FY2025

18.7％

million
yen）

1800

1200
600
0

● Strengthen efforts to address the SDGs

Financial strategy

1,600

1,175

IoT Platform Equipment● Respond to the risk of supply chain fragmentation and

2

24

18

14

2022

2

1

2023

2024

2025

14

15
10
5

10

4
3

0

12

1

2022

9

9

7

4

3

2

2023

2024

2025

(Training and development, relearning, etc.)

500 million yen(Total for 3 years)

Development investment（100 million yen）

80

(SDGs
investment)

Electronics Assembly &Systems Businesses
Household Sewing
Machinery Business

FY2025

40％

61

60

50

Industrial Sewing
Machinery

FY2025

FY2022

Effect of measures to promote
automation (cumulative total)
FY2022
Cumulative total

FY2022
Cumulative total

400

4,300

million yen

million yen

Building of
new systems
Update ofexisting
systems

Investment to strengthen
human resourcesGroup Business

FY2022 - FY2025
Growth rate + 36％

Production*This figure is
extracted fromthe amounts
invested indevelopment
and production(shown at the
1 bottom of thesame page).

Information system investment（100 million yen）

40

20

（11）

（14）

21

15

35

63
（18）

26

40

37

2023

2024

64
（24）

Advanced
technology
Existing
technology /others

30

34

0
2022

the departments.

procurement networks.
● Integrate our business functions and streamline theoperations of our administrative departments.
● Strengthen the high-value-added business fields.

Exchange rates Actual for 2022 JPY120/USD for FY2025

23％● Stabilize quality and reduce F-costs (manufacturing failure costs).

promote production site strategies linked to sales
market trends.
● Strengthen measures to achieve carbon neutrality.

Net sales by business

FY2022▶ Page 46

structure reform and cost structure reform.

Medium-term Management Plan： Quantitative plans and measures in the Medium-term Management Plan

0

11

Development

25

19

16

13

10％

New product sales ratio(carbon neutrality, environmental load, etc.).
● Smartize our customers’ factories.
● Improve the efficiency of JUKI development.
● Execute and promote the intellectual property
and design strategies.

● Restructure our production, logistics, and10％

FY2025（100

collaboration from a global sales perspective.
● Strengthen our ability to propose market-oriented
products and solutions.
● Strengthen collaboration with alliance partners.
● Expand new business and business domains.

● Stabilize procurement and promote cost reduction.

FY2025

6％● Promote smart production at each site acrossStrengthen our ability to implement a value-added
FY20222023: Two major sales companies
2024: Sales companies in Asia
2025: Manufacturing companies in Japan

10

Ratio of female management positions▶ Page 48

ROE

with
100％ compliancescheduled dates● Reform supply chain management.

▶ Page 28

Major financial items
FY2022 results

Introduction of a global ERP system● Visualize management of inventory, sales, ROIC, etc.

● Strengthen our marketing capabilities andour portfolio by expanding high value-added areas.

50％

Exchange rates Actual for 2022 JPY 120/USD for FY 2025

▶ Page 54

their success.
● Overhaul employee treatment based on
performance and results.
● Enhance individual/organizational skills
through relearning.
● Create a pleasant work environment.
▶

20(Compared to the 2013 level)(Scope 1 and Scope 2）● Use diverse human resources and promote

Electronics
Assembly &Systems
Businesses

6％

- 37％

▶ Page 42

Gross profit composition (Gross profit)
Household Sewing
Machinery Business

By 2025

Restructure data-driven management with DX.

Businesses other than the mainstay industrial sewing machinery business

SDGs investment（100 million yen）

30

● Restructure our Global ERP system.

150

0

CO2 emissions reduction

emissions and promote their calculation.
● Appropriately disclose in-house information on
climate change (including TCFD).
● Strengthen initiatives on social challenges.
● Strengthen governance.

200

50

FY2023● Clarify the definition of Scope 1, 2, and 3 of CO 2

Amount invested

2025

Investment in production facilities（100 million yen）

30

21

18

10

13

（2） 15

5

6

9

2022

2023

2024

0

（ 2）

(SDGs
investment)

20

20

11

（1） 12

Capacityenhancement /Smartization

9 （1） Quality
enhancement,
3

2025

etc.

Effects of cost reductions, etc.
Compared to FY2022- 3.9 billion yen▶ Page 40

Medium-term Management Plan： Quantitative plans and measures in the Medium-term Management Plan

27

Medium-term Management Plan

0100

ESG management

KPI (Key Performance Indicator)

Business strategies

Business overview

Create a Sustainable Future with Smart Solutions.

We support the growth of customer businesses through smart solutions.

We create a sustainable future with smart solutions.

Business segment

Business

Industrial Sewing
Machinery BusinessSewing Machineryand Systems

This business supports “stitches”
of all types by supplying morethan 2,000 sewing machinemodels and systems forcustomers at every level, fromprofessionals to hobbyists.

A world-leading business driving
the sewing machinery business▶ Page 30

Business description

Our business is to assist in the creationof optimal sewing factories through line
solutions centered on the world ’ s No. 1
market share industrial sewing machines incombination with automation equipment
and IT systems.

Main products and services

A business that provides
products to stimulate thecreativity of home sewers▶ Page 32

This business supports a comfortable sewing
life with reliable product capabilities thatincorporate the performance of industrial
sewing machines. We hold various workshops
and support a wide range of hobbyists insundry fields.

（100 million yen）

For apparel (fabrics)

This business supports
customers’ production factories
by providing products, systems,
development capacity andmanufacturing capacity
while utilizing “manufacturing( Monodzukuri ) capabilities ”
developed over many years.

A business that provides totalsolutions to support circuitboards manufacturing factories▶ Page 34

A business that supports
manufacturing companies
through the collective strengthsof “ people, equipment,
methods, and materials ”▶ Page 36

IoT Platform
Equipment andSystemsIoT Platform
Equipment & System
Business
A solutions business to solve
customer challenges throughautomation and various services▶ Page 38

28

Business strategies： Business overview

In this business we contract the development,
manufacturing, processing, etc. of various
products using the know-how that JUKI
Group companies have accumulated indevelopment, design, production, andproduction management in the course of
manufacturing their main products.

1000

800

799

Automatic machine

CORPORATION● JUKI (CHINA) CO., LTD.

● JUKI (HONG KONG) LTD.

CORPORATION● JUKI SINGAPORE PTE. LTD.

● JUKI (SHANGHAI)

600

INDUSTRIAL CO.,LTD.

500● JUKI (LANGFANG)● JUKI MACHINERYBANGLADESH LTD.

INDUSTRIAL CO., LTD.

● SHANGHAI JUKI SEWING

MACHINE CO., LTD.

300

Professional-use

CORPORATION● JUKI SALES (JAPAN)● JUKI MATSUE

400

Home-use● JUKI TECHNOSOLUTIONS● OHTAWARA PLANT

835

700

● JUKI (VIETNAM) CO., LTD.

200
100
0

Quilting

Mounter for PCB
production

Automatic insertion
machine（100 million yen）

585

600

400

CORPORATION● TOKYO JUKI INTERNATIONAL● JUKI INDUSTRIAL

TRADING (SHANGHAI) CO.,LTD.

EQUIPMENT TECHNOLOGYCORPORATION

373

EQUIPMENT TECHNOLOGYCORPORATION● JUKI AIZUINDUSTRY CO., LTD.

FY2022 FY2023(Results) (Plan)（100 million yen）
150
100

Other

FY2025(Plan)

83

101

130

● JUKI METAL CORPORATION● JUKI HIROSHIMACORPORATIONCORPORATION

IoT Platform Equipment
and Systems

Repair & Maintenance● JUKI AUTOMATION● JUKI INDUSTRIAL● SUZUTAMI PRECISION

Parts supply● JUKI SMT ASIA CO., LTD.

GMBH.

100

Design/Engineering

Other

SYSTEMS INC.

Assembly0● JUKI CENTRAL EUROPE● JUKI AUTOMATION SYSTEMS

200

Material / Parts processing● JUKI AMERICA, INC.

● JUKI AUTOMATION SYSTEMS

430
Visual inspection
machineCO.,LTD.

● JUKI INDIA PVT.LTD.

● JUKI ITALIA S.P.A.

FY2025(Plan)

500

Automated warehousesystem● JUKI MACHINERY VIETNAM

SP.ZO.O.

FY2022 FY2023(Results) (Plan)

Industrial Equipment
and Systems

Development

With the IoT platform at its core, this businesssupports factory operations that are one
step ahead of the competition by providing
various solution services such as proactive
prevention services and smarter operations.

Sales

1,015

300

Group Business

Manufacturing

Business strategies

Industrial Equipment
and Systems

Electronics Assembly& Systems Businesses

For apparel (knit)

900

Small overlock

This business supports the smartening of
entire factories by providing equipment andsystems for the production of PCBs (printed
circuit boards). And based on our smart
technology, we are expanding our businessto customers other than manufacturers
operating PCB board mounting factories.

(Medium-term Management Plan)

Sewing Machineryand Systems

For non-apparelHousehold Sewing
Machinery Business

Major group companies involved

Net sales● JUKI MATSUE CORPORATION● JUKI (VIETNAM) CO., LTD.

● OHTAWARA PLANT● Group manufacturing

companies● Business partners● Group sales companies(Suppliers)

50
0SoftwareEducational support(Note) The figures in the bar chart represent sales in the customer business.
FY2022(Results)

FY2023(Plan)FY2025(Plan)

The above figures are included in the Sewing Machinery & Systems Business Unit andIndustrial Equipment & Systems Business Unit.

Business strategies： Business overview

29

Business strategies

Sewing Machinery and Systems

Industrial Sewing Machinery Business

Risks and Opportunities

Medium-term Management Plan
VisionWorking under the “JUKI Smart
Solutions” concept, JUKI helps
customers innovate by offering
inventive technologies andsystem proposals.

Risks

Solving customer challenges●

Improve productivity and quality through●comprehensive proposals / support theValue
proposition

overseas expansion of JUKI customers●

Solving social challenges

Managing Officer, andGeneral Manager of the
Sewing Machinery & System
Business Unit

● Brand power with the No.1 global market share● Unparalleled product lineups responding to every

process in the manufacture of sewn items● Simultaneous pursuit of high quality and performancebased on core technologies● JUKI ’ s DNA as a developer of global markets● Solution capabilities backed by more than 60 years ofconsulting activities

Summary of FY2022
While the supply chain development and recovered demand in
the apparel market increased net sales mainly in Asian markets,
our performance was held back by the zero-Covid-19 policy inChina and the postponement of purchases in the fourth quarterdue to the deteriorating foreign currency situation in Asia andother emerging countries. While net sales grew overall, ordinary
profit was constrained by the decline in factory operating ratioswith the lockdown of factories in China in the first half of the year
and the persistently high raw material prices and logistics costs.

The industrial sewing machinery business provides products
and services to sewing factories serving mainly the appareland automotive industries, and supports the growth ofits sewing factory customers as a provider of solutions
activities. JUKI ’s products are widely used in 185 countries
around the world. The industrial sewing machines businesssupports the production of clothing as an essential partof daily life and drives both economic development andemployment growth, especially in emerging countries.
The COVID-19 pandemic has brought about many changes
in the apparel industry.
The demand for knit-based apparel is rising due to the
expansion of e-commerce site sales and the spread of workat-home jobs, while consumers are demanding further action
to reduce clothing loss and respond to the SDGs as theirsustainability consciousness grows. Sewing factories must
respond to these challenges as they continue their businesses.
JUKI provides solutions to make sewing factories smarter
globally. We provide a high quality solution system including asewing management system (JaNets) to improve and integrates
all of the processes at work in full-fledged sewing factories,
from pre-sewing to post-sewing, in addition to products.
We also support market needs such as the JUKI customers ’expansion to overseas countries and relocation of production
sites in emerging countries in our industry-leading global system.
In the knitwear field, we will collaborate with the world ’s
top manufacturers. In the non-apparel field, we will further
grow our business by expanding our product range througha new company launched last year.

Global sales ratio (FY2022)
Japan
Americas

13%

Opportunities

72

15 %

billion yen（FY 2022）

China

15 %

Business strategies： Industrial Sewing Machinery Business

Asia

53%

●

developing new middle markets.

● Expand revenues by increasing sales

in high value-added fields.

Priority
areas andstrategies

Non-apparel: Expand market share by developing newmarkets such as automobile/shoes/furniture

Sales portfolio of the Industrial Sewing Machinery Business■ Fabric ■ Knit ■ Automatic machine（100 million yen）

■ Non-apparel ■ Non-sewing system

1000
800

0

829

3％

678
2％

572

2％
600
％
20
44％
9％
400
13％
200

29％

24％
9％
13％

13％

58％

13％

56％

52％

42％

FY2022

FY2023

FY2025The Business aims to increase the sale ratio of non-fabric sewing machinesfrom 44% to 58% and to achieve net sales of 82.9 billion yen in FY2025, up
by 45% from FY2022.
* Exchange rate: in-house planned rate

Sales in the middle-market field

FY2022Majortargetitems●●

Accelerated relocation of the production sites of global companies
Positive change in the awareness of SDGs, labor issues, etc.
Booming knitwear and bottom markets with the growth of casual wear
Automation and systemization needs generated by labor shortages
New needs driven by changes in the automotive industry such as
the shift to EVs

Automatic machines: Propose automation for
high-end customers
Knit: Expand sales in the growing casual knitwear market
through collaboration with PEGASUSNet sales

Europe●● Expand business partners by

4%* Exchange rate: Actual rate

30

Costs pushed up to soaring levels by the logistics system and supply
chain impacts stemming from factors such as geopolitical risks and theeconomic conditions in different countries.

18.3

billion yen

FY202531.5

billion yen

Sale ratio of non-fabric sewing machines

FY202244％

FY202558％

TOPICSJUKI establishes an Asia Global Sales
Headquarters in Vietnam.
In May 2023, JUKI established its Asia Global Sales
Headquarters in Vietnam as a new operational base to
speedily respond to diversifying customer needs in the
Asian market. We will support major sewing companies
that are relocating their production sites to Asia at anaccelerated pace by helping them build smart factories
through JUKI’s advanced products, systems, and smart
solution proposals.

Business strategies

Strengths

Paradigm shift in fashion with the advent of the new normal

Contribute to the reduction of clothing waste●

Minoru Nitta

Improved product development capabilities and sales expansion byautomatic machine makers in China

Asia Global Sales Headquarters

Apparel Sales Dept.

Non-Apparel Sales Dept.

JUKI releases the AW-3S, an automatic bobbin
thread winding and feeding device that can be
retrofitted to customer machines now in use.
JUKI has released atechnologically uniquedevice that can retrofit
the “automatic bobbin
thread feed” function toelectronic cycle machines(AMS-EN series) used forsewing decorative seams
for car seats, airbags,
etc. A retrofit with the
new device can improve the productivity of customer’s
sewing machines. This device significantly reduces
the downtime associated with frequent bobbin threadchanges as the thick threads are used for the sewingof car seats and other non-apparel products.

Business strategies： Industrial Sewing Machinery Business31

Business strategies

Sewing Machinery and Systems

Household Sewing Machinery BusinessMedium-term Management Plan

Risks and Opportunities

Solving customer challenges

Risks

Contributing to Kotodzukuri (value-creation)

Visionby providing products/services

Value
proposition

Creating new fun with hobbyists

Solving social challenges
Contributing to the reduction of clothing
waste through upcycling activities

●
●
●
●

End of the stay-at-home demandHigher prices of commodities, including prices for infrastructureuse, worldwide
Higher uncertainty in specific regions
Changes in the competitive environment amid industry restructuring

Opportunities●

Minoru Nitta
Managing Officer, and General Manager of the Sewing
Machinery & System Business Unit, A manager in charge ofhousehold sewing machines

Strengths● Trust in a brand based on industrial sewing machines● High performance and quality based on core technologies● Support from sewing influencers● JUKI ’ s DNA as a pursuer of user-oriented products

Summary of FY2022
Although net sales fell short of the level of the previous year,
ordinary profit was maintained at the same level, largely thanks
to the introduction of new products and high-function models
targeted for the highly sophisticated hobbyists. Sales of mainstay
professional-use sewing machines and mid- to high-end models
remained stable, while the introduction of the MO-2000/3000
series, high-performance compact overlock sewing machines,
helped us reach out in earnest to knit sewing enthusiasts. Goingforward, we will continue to promote digital marketing to the highlysophisticated hobbyists making up our largest base of target users
by providing compelling news and information through social
media and striving to add more value to the JUKI brand.

for even greater specialization. We are working to expand
the business to 10 billion yen in net sales under the new
Medium-term Management Plan by promoting marketingthat strengthens contact with distributors and street storesand increasing the number of JUKI sewing machine fans.
On the SDGs front, JUKI will also be developing upcycling
activities in the household sewing machine sales channel
based on the know-how cultivated in-house.

Global sales ratio (FY2022)
China

●

●

Europe:Raise awareness by deploying our home-use
sewing machines, professional-use sewing
machines, and overlock sewing machines.
Japan:
Capture the heavy user base by focusing on
the development of new models.

Sales portfolio of the Household Sewing Machinery Business（100 million yen）

■ Home-use sewing machines ■ Overlock sewing machines■ Professional-use sewing machines ■ Others

120

101

100
80

2％

77
3％

28％

3％

65

26％

29％

60

28％

40

26％

20

43％

39％

42％

FY2022

FY2023

FY2025032％

We aim to achieve net sales of 10.1 billion yen in FY2025, up 55% fromFY2022, by expanding sales of JUKI’s forte lineups of professional-use
sewing machines and quilting machines.
* Exchange rate: in-house planned rate

10 %Americas23%

Sales of professional-use*

Net sales

7.6

billion yen（FY 2022）

Japan

34%
EuropeFY2022Majortargetitems

1.8

billion yen●●

Expansion of our base of home sewing machine users driven by thestay-at-home demand
Expansion of information transmission through social media to influence
customers, highly sophisticated hobbyists of sewing machines.
Expansion of opportunities for from individual sales to customers,
highly sophisticated hobbyists of sewing machines to online sales

TOPICS
We strengthen an overseas marketing approachthrough integrated team management.
The Sales Department, Product Planning Department, and Marketing
Department will no longer be divided into domestic and overseas
sections. Information shared from each market will be reflected in
products and measures and in horizontally deployed sales activities tostrengthen overseas marketing and improve customer service. We will
also be operating the organization at a faster pace to rapidly reflect
information obtained through user service in product planning andservice activities, and will steadily work to expand the number of JUKI
fans and heighten their satisfaction.

JUKI releases the “MO-3000,” a compact overlock
sewing machine for home use.

JUKI’s top-of-the-line overlock sewing machinefor home use is now available. The featurepacked MO-3000 incorporates technology
from JUKI industrial sewing machines, UX/UIelements that allow users to quickly perform theoperations they want to perform, and three newfunctions: automatic thread tension, automatic
chain-off thread cutter, and float. This newmachine dramatically improves the work product quality by eliminating thedifficult operations often required with overlock sewing machines.

JUKI releases the EB-1 Buttonholer, a dedicatedbuttonholer for JUKI’s professional-use sewing machines.

4%* Exchange rate: Actual rate
Business strategies： Household Sewing Machinery BusinessPriority
areas andstrategies

The Americas:
Develop high value-added products
by cultivating new sales channels.

Asia

29 %
32

●

●

FY2025

2.7

billion yen*Including the sewing machines for quilting and related
equipment (Alliance)

This device is a dedicated buttonholer attached
to JUKI’s professional-use sewing machines foruse. The EB-1 Buttonholer is the industry’s first
product to offer the buttonholing functions long
yearned for by the users of professional-use
sewing machines in the booming handmade market. This product has beendeveloped for the creation of professional works of art. Detailed computercontrolled settings can be easily set to enable the completion of quality
buttonholes with a simple press of the start button.
Business strategies： Household Sewing Machinery Business

33

Business strategies● Pioneer in the field of semi professional sewing machines

The Household Sewing Machinery Business spreads thefun of hobbying through the sale of equipment andaccessories that enhance the creativity of home sewing.
Backed by the failsafe reliability of JUKI’s industrial sewing
machines at their core, our enhanced-quality, highperformance, high-end products continue to win the strong
support of customers who have a genuine love for sewing,from hobbyists to entrepreneurs who sell their creations.
The need for highly specialized sewing machines has been
increasing in recent years as more customers, the highlysophisticated hobbyists, sell their creations online.
To expand in this environment, we aim to enhance theadded-value of professional-use sewing machines with oneof our core strengths, by offering equipment that enables
even greater specialization, such as our computerized
buttonholer exclusively for professional-use sewing
machines and our original automatic thread tension
compact overlock sewing machine with a chain-off threadcutter function. We are promoting the value creation of
JUKI’s unique business by providing equipment that allows

Maintain and expand our customer baseby developing a product lineup tailored toeach market.

Business strategies

Industrial Equipment and Systems

Electronics Assembly & Systems Businesses

Risks and Opportunities

Medium-term Management Plan

Risks

VisionSolving customer challenges

To be a trusted business partner
for customers by strengthening themounter business and expanding
non-mounter and non-SMT areas●

Productivity improvement throughautomation/manpower-saving solutions

Value
proposition

Improvement of quality●●

Solving social challenges
Support for technological innovation by●

improving productivity in the electronic industry

Reduction in the workloads at the PCB mounting factories andwillingness to invest due to ongoing shortages of semiconductors
and electronic components
Soaring material costs and reduced cost competitiveness
Intensifying competition due to the entry of Chinese competitors
and rivals from other industries
Decline in product competitiveness as competitors expand theirbusiness areas and make technological progress

Opportunities●

Hirokazu
NagashimaStrengths● Numerous proprietary core technologies based on

optical technologies● The human resources and technological capabilities of
JUKI and SONY
(Management integration with the same businessdepartment of SONY in 2014)● Customer-oriented solution capabilities● Repair service system using remote support● JUKI ’ s DNA as a late starter that grew to become adeveloper of markets

Summary of FY2022
Net sales of the Electronics Systems & Systems Businesses
declined with sluggish capital investment demand stemmingfrom the zero-Covid-19 policy in China.
Ordinary profit also declined due to JUKI’s ongoing strategic
investments and a significant decrease in the sale of mountersand other products in the second half of the year.

“ Monodzukuri and Kotodzukuri ” (Manufacturing andvalue-creation) company that works with customers toenhance corporate value through products and services.
We continue to pursue this aim by developing problemsolving proposals that realize total solutions and further
working to enhance our business value.

Global sales ratio (FY2022)●●

Market development to increase sales inregions other than China
Commercialization of semiconductor
manufacturing, 3D mounting, etc.

Sales portfolio of the Electronics Assembly & Systems Businesses■ High-speed mounter ■ General-purpose mounter ■ Non-mounter■ Inspection and measurement machine (non-SMT)（100 million yen）

400

367

10％

350
300
250
200
150
100
50
0

225
154
1％

39％
51％
10％

FY2022

36％

2％

35％

24％

35％

30％

28％
FY2023

FY2025We are targeting net sales of 36.7 billion yen in FY2025, a 38% increaseover FY2022, by increasing the market share of high-speed mounters andsignificantly expanding the non-mounter area.
* Exchange rate: in-house planned rate

10 %

Asia

12%
Europe13%

Ratio of non-mounter and non-SMT areas

FY2022

Net sales

19.1

billion yen（FY 2022）

23%* Exchange rate: Actual rate
Business strategies： Electronics Assembly & Systems Businesses

Priority
areas andstrategies

Expansion of the businesses for inspection
and measurement equipment etc. In the
non-SMT area and high-speed mountersand pre- and post-process equipment andsystems for PCB mounting factories

Japan

Americas

34

●

China

42%

Major
targetitems

40％

FY202546％

Ratio of sale outside of China

FY202245％

FY202560％●●

Increased labor-saving and automation needs due to production
efficiency and labor shortages
Expanding demand for PCB mounting in India, countries on the
periphery of Europe, Mexico, Brazil, etc.

TOPICSJUKI establishes an MI Promotion Headquarters.

Many of our customers’ PCB manufacturing factories rely on the manual
insertion of lead components. The automation of this process is lagging
behind. JUKI has been increasing sales of automatic insertion machines(MI: Manual Insertion) for lead components in China, the largest market
in the world. We continue to accumulate successful examples andknow-how to meet customers’ automation needs. With the establishmentof the MI Promotion Headquarters, JUKI will build a system to accurately
grasp the automation needs of customers in China and around the world
and respond to them promptly.

JUKI releases the RX-8, a high-speed compact
modular mounter.
JUKI has released a two-headed mounter that places
extremely small components such as small ICs
at high speeds. The capacity to pick up a greaternumber of components at one time leads to 1.3 times
faster production versus conventional machines andenhances productivity per area. Ideal for continuous placement of thesame component, the new mounter achieves high-quality production of
PCBs for lighting and panels using LED edge lights.

JUKI releases the LX-8, an advanced flexible mounter.
A highly versatile mounter capableof placing electronic components
of many types and sizes at double
the conventional speed is now
available. The LX-8 is almost
the same size as its compact
predecessor, but achieves 1.9
times higher productivity per area. JUKI’s unique “ Takumi Head ”
is configured with two units in pursuit of high-speed performancehighly demanded in the market and versatility.
Business strategies： Electronics Assembly & Systems Businesses

35

Business strategies

Executive Vice President,
General Manager of theIndustrial Equipment &System Business Unit andthe Electronics Assembly& Systems Companyof the company, andRepresentative Director,
President, and COO of JUKI
AUTOMATION SYSTEMSCORPORATIONThe Electronics Assembly & Systems Businesses havebeen working on the automation of parts warehouses,
manual insertion processes, and inspection processes tohelp the customers operating the PCB mounting factories
smartize not only the PCB mounting process but also theentire PCB mounting factory. We believe that we are
steadily approaching the realization of a smart factoryby systematizing the entire PCB mounting factories using
enhanced hardware and software.
The business environment has also changed significantly inresponse to geopolitical risks and the impacts of COVID-19.
The demand to shift from manual work to unmanned andlabor-saving operations at production sites continues togrow. We believe that our image recognition technology
and high-speed, high-precision control technology
are further expanding the areas where we can help
customers make this shift.
To realize our mid-term vision, we will expand our target
fields to include not only the mounting area but also
the non-SMT area. We will also be actively engaging in
the automated warehousing business and inspection
and measurement business for mechanical parts otherthan electronic components. JUKI aims to become aExpanded capital investment with the acceleration of DX, the shift
to EVs, and the growing base of electronics products

Business strategies

Group BusinessIndustrial Equipment and Systems

Risks and Opportunities

Medium-term Management Plan

Risks

Vision●Solving customer challenges

We build win-win relationships
with customers through proactive
solution proposals that leverage thestrengths of each plant.

Improved productivity/QCD (quality, cost,delivery) in customer manufacturing processes

Value
proposition

●
●

●

●

Executive Vice President, General Manager of the Industrial
Equipment & System Business Unit, A manager in charge of thegroup business

Strengths
abundant manufacturing● Precision development and manufacturing capabilities inwide-ranging fields, from mechanical to electronic products● Engineering capabilities based on production technology● Passion for success in Japanese manufacturing● Experience in developing medical devices andequipment for different industries●

Global sales ratio (FY2022)

Summary of FY2022
Sales increased as a result of steady growth in demand forcapital investment, including in response to customers’ supply
chain segmentation.
Profitability increased thanks to improved gross profit margins
resulting from higher sales and ongoing cost reductions.

● Expanded new business areas for

expand business domains byleveraging the strengths of eachmanufacturing site

Sales portfolio of the group business■ Development Assembly/Engineering（100 million yen）

■ Components/Materials ■ Storage ■ Others

185

200

150

1％
1％

115

1％

100

50

0

47％

50％

FY2022

FY202347％

We aim to achieve net sales of 18.5 billion yen in FY2025, up 61% fromFY2022, by expanding its core customers and substantially growing inthe storage business.

FY2022

Net sales

92%

Major
targetitems

9％

TOPICSJUKI establishes an “Asia Site for the Group Business
Development Department” to expand its business in the
Asian region.
We are strengthening our sales site in Vietnam to expand our business inthe booming Asian market thanks to the relocation of production sites etc.
In January 2023, JUKI switched from a “sub-office” to a “site” structure
by taking charge of cross-border R&D functions along with the smaller
projects contracted at individual sites. To capture more of the engineering
contracts highly demanded in Asia,
JUKI has reinforced its structure byestablishing a new Asia Site for its Group
Business Development Department. The
integrated management of sales anddevelopment has accelerated abilities to
respond to local sites, which in turn has
brought in more projects.

Group Business Development Dept.

FY2025

Expand sales to priority customers* Exchange rate: Actual rate
Business strategies： Group Business

41％

48％

52％

FY202524％

Expand a storage business in the manufacturing sector

FY2022

FY2025

million yen

billion yen

50

36

1％
11％

135

8%

11.8

Return of Japanese manufacturers to Japan in the face of soaring
overseas labor costs and sharply fluctuating transportation costs
caused by the weak yen● Strengthen external sales andAsiabillion yen（FY 2022）

Growing number of fabless companies (manufacturers without factories)

core customers
Priority
areas andstrategies* Exchange rate:in-house planned rate

Japan

Higher demand for automation and labor-saving solutions
generated by changing work styles with the advent of the newnormal in production factories

2

Akita
site

Matsuesite

Ohtawara
site

Tama
site

Asia
site

JUKI improves environment for the “precision instrument
assembly” at the Ohtawara Plant.
We have increased our production capacity to meet strong demand byimproving our production environment in response to the contracted
assembly of precision equipment products. Temperature and humidity
control and the prevention of electromagnetic radiation are essential in
the production environment, as static electricity and rust directly lead to
product damage and quality defects in precision instruments. We haveestablished a dedicated room that can be maintained under optimal
environmental conditions in the Ohtawara Plant to meet the quality
requirements of our customers based on our core assembly technologies.
Business strategies： Group Business

37

Business strategies● Core technologies for JUKI ’ s 80 -odd years of(JUKI) Shortages of space and human resources due toincreased orders

Opportunities

manufacturing industry

Hirokazu Nagashima

Price hikes of raw materials and materials

Solving social challenges
Improved labor productivity in the

The Group Business started as a contract business for wide-ranging
customers. The strengths of JUKI’s manufacturing and production technologies
were harnessed to develop an integrated production system spanning all stages
from raw material production to machining and assembly completion. Year by
year, this system has been cultivated through the deployment of industrial andhousehold sewing machines, electronics assembly & systems, and more. The
Group Business has now grown to account for 10% of JUKI’s net sales in total.
The new Medium-term Management Plan calls for a strengtheningof JUKI’s engineering business, not only through unique conventional
contracted manufacturing in the fields in which each manufacturing
company excels, centered on 7 domestic manufacturing sites and 1
overseas manufacturing site, but also more broadly through consistentbusiness development from development and design to production with aview to offering services to the widest possible range of customers.
We will promote automation and manpower-saving at each of ourmanufacturing sites using in-house technologies that ensure a build-toorder production system, and develop the know-how we have learned
through automation and manpower-saving to offer useful new solutions
for the customers.
JUKI has developed an integrated business encompassing the contracted
businesses from development and design to manufacturing at our domestic
manufacturing sites. JUKI also developed an overseas development site in
Vietnam last year, and will grow its business in the expanding Southeast
Asian market to offer useful products and services to worldwide customers
based on its Japanese manufacturing expertise.
The Group Business will be deploying the development, technology,
manufacturing, sales, and service capabilities of our existing businesses
to further enhance the value of our products and services for customers
around the world as the third pillar of our business.

Delays in parts procurement

Business strategies

IoT Platform Equipment & System Business
Risks and Opportunities

Medium-term Management Plan

We provide value-added services from planning anddevelopment to services based on the IoT platform

Commercialization of Koto-uri(selling systems and services)to improve production efficiency
close to the customer●● High expectations of the JUKI brand based on many yearsof business● A large number of products in operation in the market● The handling of an unparalleled number of parts and thepossession of core parts based on JUKI’s No. 1 global sharein the industrial sewing machine market● Solutions and technical support based on abundant
knowledge and experience

Business Unit in March 2023 based on its predecessor, theCustomer Support Business, with plans to expand it into core
JUKI operations. We will be integrating the parts sales, support
services, and system software sales we have cultivated in
our industrial sewing machinery business and electronics
assembly & systems businesses, and will add automation
support for sewing factories to further increase customer
value as an IoT Platform Equipment & Systems business.
We will achieve the above through two courses of action: (1)provide advanced services and supply parts and equipment ina timely manner by sharing technical information and utilizing
remote support to solve customer challenges, (2) create
educational opportunities in emerging countries throughe-learning in the Sewing Machinery Business and reduce waste
by providing high quality services in the Electronics Assembly& Systems Businesses to solve social challenges from an SDGs
perspective. As we do so, we will also be expanding activities
to reduce environmental load by promoting the collectionof used products from customers and profitably selling themas refurbished products. In addition to the ongoing sale ofproducts (Mono-uri ), an activity where JUKI holds a strong
advantage, the Medium-term Management Plan calls for a fullfledged expansion in the sales of systems and services (Koto-uri )that support the smartization of the entire customer factories.

●●

Priority
areas andstrategies●

Production
management

Repair andmaintenance
Education● Notification service from JUKI’s JaNets

Production
equipment
designproduction management system● Process automation● Production equipment design, etc.

Repair and maintenancesolution services
Education solution services

Promote parts sales using the JUKI-ShuHaRisewing machine inspection and support system anddevelop new business by adding service contents
Expand maintenance contracts, improve customer
satisfaction, and increase service sales using the
remote support system
Improve the technical capabilities of sales companies
and utilization of alliance partners by strengthening anddeploying technical information (JOL, JAS-OL, etc.)
Expand sales, repair main components, andincrease refurbishment sales by expanding therefurbishment business■ Sewing machinery parts ■Sewing machinery services■ Electronics assembly & systems parts■ Electronics assembly & systems services

150

30

Automation

22％

5％
20％
2％

5％

22％
3％

7％

72％

71％

66％

FY2022

FY2023

FY202583* Net sales and ordinary profit from the IoT Platform Equipment & Systems
Business Unit are recorded in the Sewing Machinery and Systems Business
Unit and the Industrial Equipment & Systems Business Unit respectively.
* FY2022 figures are for the customer support business.
* Exchange rate: in-house planned rate

ERP

CRM

Shu
HaRi

FY2022
Maintenance

E-commercesite

Refurbishment
business

Educatione-learning
Remote support

Major
targetitems

7.6

billion yen

Business strategies： IoT Platform Equipment & System Business

FY2025

11.4

billion yen

Number of JUKI-ShuHaRi registeredcompanies compared to FY2022

Refurbishment business

FY2025

FY2025Six-fold
expansion

38

Opportunities●●●●

Technological innovation and practical application of XR (AR/VR/MR),AI, etc.
Changes in capital investment and production systems stemmingfrom SDGs needs
Acceleration of online operations in the post-COVID-19 society
Permanent web-based seminars

TOPICSJUKI launches a refurbishment business.
JUKI has launched the JUKI Green Rewards Program, a for-profit service
that collects old JUKI industrial sewing machines, mounters, and otherelectronics assembly & systems that customers have outgrown at the time of
replacement, and refurbishes them using proprietary technologies for resale.
Products refurbished through the Green Rewards Program will be marketed
mainly to customers in emerging and developing countries as entrylevel machines that satisfy their quality and price requirements.

5％

101

120

60

Global inflation leading to higher material and freight costs, aswell as higher costs for labor and property

130

Total parts sales (Sewing machinery and electronics assembly & systems)
Parts

Solution services throughparts supply

Promote the participation of various human resourcesin society

We expand sales by 57% in FY2025 compared to FY2022 by increasing parts
sales and various service menus.

IoT Platform Equipment andSystem Business
Smart solutions for sewing factories

Create employment opportunities in emerging countries（100 million yen）

90●

Prolonged conflict in Russia and Ukraine resulting in sharp rises
in resource prices and supply chain fragmentations

Reduce waste through the refurbishment business

IoT Platform Equipment & Systems Business Portfolio

0

Recurring revenue model providing solutions

●

●

240

million yen

Reuse
ReduceJUKI builds a new platform for the JUKI-ShuHaRi system.
The ShuHaRi is a system that supports the daily inspection and maintenanceof sewing machines in sewing factories using smartphone and PC browser
applications. As we promote introduction of the ShuHaRi, we are also
expanding its functions and collecting information on improvements
needed. We are also leveraging the ShuHaRi as a direct marketing platformby promoting its use in activities to solve individual customer problems suchas breakdowns, parts repairs and replacements], and employee training.

JUKI sells a “Hanger System,” automated equipment for
sewing factories.
JUKI has built and marketed a new hanger system, an automatic solution
for the inter-process transfer of parts. The hanger system improves the
productivity of the garment sewing assembly by transferring the sequential
parts with the hanger system and eliminating the need for handling andhandover. The attachment of RFID tags to the hangers makes it possible totrace and manage the equipment operation and productivity of individual
workers. Linkage with the JaNets production management system enables
production control for the entire sewing process.
(▶See Page 47 for details.)
Business strategies： IoT Platform Equipment & System Business

39

Business strategies

Strengths

Parts sales●●

Managing Officer, andGeneral Manager of the
IoT Platform Equipment &Systems Business Unit

Support business

Solving social challenges

Value
proposition

Jirou
Ishibashi

Customer support
business

Risks

Productivity improvement

VisionBusiness foundation

Message from Shinsuke Uchinashi, President and Director
in charge of the Finance Department
Initiatives in the Medium-termManagement Plan

Supply chain reform

Medium-term Management Plan under the “Growth &Transformation Plan 2025” slogan: a value-added structure

Demandforecast
Sales planreform, a cost structure reform, and a behavioral reform(transformation of people/culture). The third, the behavioral

Purchasing

Production

Factory
inventory

Logistics

Warehouseinventory(at sales
companies)

Logistics

Customerfactories

Sales(actual orders
received)reform, supports the first two, the value-added and cost
structure reforms. The business environment has changed
dramatically in today’s New Normal conditions in the wakeof COVID-19. Competition is becoming more intense andcustomers are demanding lower-priced products. JUKI has
established a Cost Structure Reform Committee to copewith today’s stringent conditions. This committee is building

a new cost structure that can flexibly respond to the current
business environment and is deploying cost structure reforms
that extend throughout the entire JUKI Group.

Real-time integrationof horizontal(production and sales)
and vertical(production sites)
areas

Real-time visualization based on actual demand andintegration of production and sales (renewed to the global ERP system)

As a manufacturing company, the largest costs JUKI incurs
are related to manufacturing, such as parts procurement

Reductions in logistics costs, warehouse costs, and delivery times by reviewing production
sites (products, models, and quantities) in response to market fluctuations

and labor. At the same time, overhead costs such as
indirect labor costs and logistics costs are also increasing.
We have a mission to deliver products to JUKI customers
in a timely manner. To do so, we must refine our QCD.
Quality is naturally important. We are building a system that

Global review of
production andwarehousing

Review of warehouse locations andlogistics to reduce costs and delivery times

contributes to profitability and sustainable growth in themedium to long term by thoroughly reviewing costs anddelivery times in the supply chain. To this end, we establisheda new Logistics Management Department in January of thisyear to identify problems in the JUKI Group’s logistics andreview the logistics system from scratch. In the supply chain,

Shinsuke Uchinashi

procured parts and finished products are stored as inventory

President and Director in
charge of the Finance Department

in factories, warehouses, sales companies, and distributors.

[Chairman of the Cost Structure Reform Committee]

costs, inventory, and the like. We would also like to create a

Responding togeopolitical risks

Parallel global procurement and the production of key models

The important next steps will be to rectify the supply chain

more robust supply chain. With the aggressive reforms of our
supply chain logistics, we will improve our financial structure
by reducing inventory and interest-bearing debt.

Ensuring ROIC management
Workable management strategies are formulated by
anticipating the effects and results that will emerge in theBusiness foundation

flow and then minimize and optimize lead times, logistics

Drivers of ROIC improvement
ROIC tree (partial excerpts)

future and back-casting to decide what should be donein the present. The new Medium-term Management Plan

Major financial items
Exchange rates Actual in FY 2022 JPY 120/USD in FY 2025

Gross profit
ratio to sales

624 (6.4 months)

400 (3.0 months)

Interest-bearing debt, net of cash
and cash equivalent

745

350

shareholder funds to carry out corporate activities. Under

Trade receivables (turnover days)

375 (3.8 months)

400 (3.0 months)

investment and returns for each business and review ourCash Conversion Cycle (CCC)

264 days

120 days

Equity ratio (%)

25.3

40.0

strategy and earning power. We will work to achieve our

Net D/E ratio (times)

1.99

0.70

business fields and new customers and growing high-Variable cost
ratio to sales
Fixed cost ratio
to salesprofit, and equity ratio for the year 2025 and incorporates

FY2025 plan

Business foundation： Message from Shinsuke Uchinashi, President and Director in charge of the Finance Department

Operatingprofit ratio

numerical targets for JUKI’s consolidated net sales, ordinary

FY2022 results
Inventories (turnover days)

40( 100 mil. yen)under the “Growth & Transformation Plan 2025” slogan sets

specific measures and processes to achieve those targets.

Manufacturingmarginal
profit ratio

The JUKI Group has introduced ROIC management tofulfill its role as a social actor entrusted with precious
the ROIC management approach, we clearly define

Manufacturing
fixed cost ratio

Development
cost ratio

strategies and businesses in a flexible manner.
To further develop in the lead-up to our 90th and 100th
anniversaries, we need to improve our business growthsales and profit targets by increasing the number of new

Invested
capitalInterest-bearing
debt

Cash
Conversion
Cycle (CCC)

value-added businesses.
Business foundation： Message from Shinsuke Uchinashi, President and Director in charge of the Finance Department

41

Business foundation

DX (Digital Transformation)
Medium-term Management Plan

Tomohiro
TakedaFinance /Accounting
MES

CRM

JUKI
DX

Sales
management

Inventory

Corporate Officer,
CDO (Chief Digital Officer),
and General Manager of theInformation System Dept.

Sales
supportHuman resourcesmanagement
BI

VisionRestructuring of data driven
management with DX* CRM: Customer Relationship Management
MES: Manufacturing Execution System
ERP: Enterprise Resources Planning(1) Introduce the sales company model to two sales companies in China (2023).
(2) Introduce the sales company model to sales companies in Asia (2024).
(3) Introduce the sales company model to group companies in Japan (2025).

Visualization ofmanagement(1) Visualize inventory (2023).
(2) Visualize management KPIs and sales negotiation activities linked to the new ERP (2024).
(3) Visualize ROIC (2025).

Supply chain reform(1) Be motivated to carry out the reform and analyze its current state (2023).
(2) Implement the reform through model projects (2024).
(3) Deploy the reform across the whole company (2025).

We will establish a system thatseamlessly visualizes operations
and enhances governanceand business strategy for top
management using logical data
analysis. We will also create
added value and establish acompetitive advantage in themarket by analyzing the collected
and accumulated data.

as manpower shortages become increasingly serious due to declining
birthrates, the system will support flexible work styles such as telework.
Decision-making

Analysis

Data-driven
Extraction
Processing

2. Implement work-style reforms from a systems perspective
As the evolution and practical application of IT systems using newtechnologies such as AI and 5G accelerate, we will introduce RPA toautomate tasks like transcription and establish automated systems
that improve efficiency and productivity without the use of people.
These systems will allow us to make corrections in working hours. And

42

Business foundation： DX (Digital Transformation)

We will deepen cooperation
with the sales companies andproduction factories to ensure thatevery measure is implemented.

Restructuring of data-driven management through DX

The “Rebuilding of Data-Driven Management ” has been set as the foundation underpinning the three structural reforms
and six transformations to be realized under the Medium-term Management Plan.
The COVID-19 pandemic had major impacts on JUKI ’s supply chain, causing lockdowns in globally deployed production
factories and logistics disruptions in procurement. We will use this experience to move to a global ERP system that will
improve efficiency and diversify risk.
The move to the global ERP system will also help JUKI form links between its independent sales management and independent
production management functions. The head office, sales companies, and production companies are connected, enabling
real-time status checks and speedy management decisions.
On the sales front, each system dedicated to sales services manages its customer information independently. With the new
integration, we will improve services for individual customers by linking them together and converting them into big data.

Deployment of a recurring revenue model (IoT platform equipment and systems business)

Centralized customer information through system integration
CRM

Shifting fromthings toservices

ERP

Customer information

Information on
business negotiations

Information on
customer/factory visits

Maintenance service

ShuHaRi (Industrial sewing machines)

Sales

Accounts
receivable collection

List of facilities

Sewing machinecondition

Logistics

Inventory

Inspection work history

Information on
replacement parts

Product strategy

Market strategy

Sales strategy

Organization andpersonnel deployment
strategy

3. Ensure high-level information security
Collection

Visualization

100％

TOPICS

Attack

1. Establish a data-driven management(attack and defense) system.

Introduction of a
global ERP system
Schedule compliance rate

Renewal of the
ERP systemchain concept using DX.

Basic concepts behind the initiatives

Target level

Details on the initiatives

We will keep our information assets in good working order and bolster
them against the various threatsin the information environment
by securing confidentiality,
Confidentiality
integrity, and availability.
Access to information is granted
only to authorized persons, andonly when needed, to prevent
Integrity
Availability
the unauthorized alteration or
destruction of information.

Seamless and speedy management strategy

Top management
Real-time visualization of inventory, sales, and financial situations

Sales plan

Strengthening
the defense
Businessmanagement

Businessmanagement

Actual orders
received

Transparent global management control

Logistics

System linkage between MES and ERP
Production
management* RPA: Robotic Process Automation

Business foundation“The shift from selling things to selling services” is a key theme
under the new Medium-term Management Plan. JUKI will needto fundamentally rethink the supply chain, the backbone of
the manufacturing industry, to embody this theme.
First, to make corporate activities transparent (visualization),
we will promptly establish a data-driven management
environment that utilizes CRM data to manage sales activities,
MES data from the production system to show the production
status, and ERP data encompassing ordering and accounting
information. This environment will allow our head office tounderstand what happens on the other side of the world inalmost real time.
In parallel, we will carry out operational reforms such as areorganization of our business sites, sales reforms, logistics
reforms, and labor saving and productivity improvements
at the factories. With those reforms in place, we hope to reestablish a robust management structure by standardizing
and synchronizing our operations and implementing the
PDCA cycle in a visualized environment.
Rather than staying cloistered in-house, our own databases
and business processes will link with our customers to grow aneven larger supply chain. The supply chain we complete will
become a corporate activity infrastructure that lives on for 90
years, 100 years, and further into the future. This is JUKI’s supply

Priority measures

Production plan

Purchasing

Warehouse inventory(at sales companies)

Logistics

Customer factories

Horizontal visualization
Production

Factory
inventory

Parts inventory Machining Painting Assembly Inspection Packing

Shipment

Business foundation： DX (Digital Transformation)

43

Business foundation

Strengthening of human resources
JUKI’s personnel system
Personnel
planning
WelfareprogramLabor
management

Diversity andinclusion
Growth of “people”
Business growth

Recruitment

Revitalization of
the organization
Healthcare
Human
resources
management

Human
resourcesdevelopment

VisionBuilding a highly productive
organization by promoting
diversity/work-life balance

KiyoshiMatsumotoManaging Officer, in charge of the
Human Resources Dept. within the
Global Co-operate Center
JUKI has positioned “ Behavioral Reform, ‘ Transformation of People
and Culture’” at the center of the three structural reforms under its new
Medium-term Management Plan.
With the dwindling of the COVID-19 pandemic and pickup of economic activities,
we are welcoming the various differences in the values and customs of people
across the world in order to better develop human resources who are resilientand capable of responding flexibly to the challenges and needs at hand. We arealso promoting the creation of a system to further enhance the capabilities ofindividuals and strengthen human resources that contribute to business growth.
To this end, we are working on initiatives to promote the growth of individual
employees and the revitalization of the organization through a cycle of providing
opportunities for growth, embracing diverse values, and responding to expanded
job responsibility and performance at work. This cycle is activated by our
initiatives to create a comfortable and rewarding work environment. Measures
to enhance cognitive and social skills that promote and maintain health andmotivation will ultimately increase employee loyalty and engagement.
Based on these initiatives, we will continue in FY2023 to invest aggressively
in strengthened human resources for the growth of individuals, widen the
career horizons of our employees, expand our sphere of activities as anorganization, and transform ourselves into an organization that broadly
captures business opportunities.

Providing opportunities for growth
We will provide opportunities for autonomous career development tonurture the growth of individual employees, along with the educationnecessary to realize this growth. By doing so we will realize the sustainablegrowth of both the organization and individuals at JUKI. By focusing on
careers and expertise in our deployment of human resources, rotating
employees, and sending young employees for training overseas, JUKI
will be circulating human resources in Japan and overseas, improving
individual abilities, and sharing diversity and values. We are actively
grooming national staff for management positions at overseas offices.
National staff at the management level accounted for 82% (137
employees) of JUKI national staff worldwide at the end of March 2023.

Embracing diverse values
The JUKI Group engages employees with various social backgrounds
and values throughout its global organization. To secure excellent
human resources and drive innovation, we must create an attractive
environment in which every employee, regardless of gender, age, or
nationality, can play an active role by understanding and welcoming thediverse backgrounds of their co-workers throughout the group. We canmaximize our organizational performance by encouraging diversity basedon the three pillars of promoting the advancement of female employees,
44

Business foundation： Strengthening of human resources

assigning global human resources, and promoting the advancementof specialized employees.

Responding to expanded job responsibility and performanceat work
This system provides dramatically improved pay and benefits toemployees who take on challenges without succumbing to doubt and go
on to achieve results. While the salaries paid are determined according a
job-based human resources management system (specifying job duties
and job performance) in place for both managers and general employees,
bonuses are paid on a merit-based pay system linked to job performance.
For managers in particular, we will put greater emphasis on a resultsoriented approach and work to reflect performance results more deeply,
starting from July 2023. For young and mid-career employees, we will
focus on their rapid development into competitive forces and pathways toearly promotion.

Comfortable and rewarding work environments
We are actively introducing satellite offices and free-address systems inworkplaces to ensure that employees can carry out their work comfortably.
We are providing equal opportunities to all employees, regardless of age or
gender, and developing systems in line with the ways individuals prefer towork (hours, type of work, work area, etc.).

Work system
New normal initiatives

Enhanced added value

Specialized employee system(utilization of veteran employees)

Career development plan system
Career recruitment system /Group recruitment system

Further strengthened initiatives

ProvidingAcceptingopportunities
diversefor growthvaluesCycle ofstrengthening
human resources

Optional work system(shorter hours and 3-day weekends)

Responding to expanded
job responsibility andperformance at work

Telecommuting System

Staggered commuting system

Deploying an action plan for thefurther advancement of women
System for the utilization of
global human resources
Opportunities to relearn

Outside side job system

Salary system
New performance-based
bonus system

In-house side job system(in-house support)

Job-based human resourcesmanagement system

Comfortable and rewarding work environments
Health Management

Fostering a corporate culture

Medium-term Management Plan
Priority measures
Promoting the use andsuccess of diverse
human resources
Reviewing pay andbenefits in response to job
performance and results
Enhancing the level of
JUKI’s people/organization
through relearning

Creating a pleasantwork environment

Target level

Details on the initiatives（%）(1) Utilization and expansion of women’s activities(2) Allocation to strategic fields(3) Utilization and expansion of national staff

Ratio of female managers

108(1) Global deployment of a personnel compensation system(2) Review of competitive compensation levels(1) Expansion of relearning content and promotion of
all-student enrollment(2) Enhancement of human resources in priority areas(expansion of sales/development/DX/IT human resources)(1) Organizational revitalization through the promotionof diversity(2) Reform of work style, promotion of rewarding work,and training of human resources

6

10％

6.3％

4
2
0

FY2022

FY2025

Ratio of female managers to all managers* Offices covered: Head Office, Ohtawara Plant, JUKI AUTOMATIONSYSTEMS CORPORATION, and JUKI TECHNOSOLUTIONS CORPORATIONTOPICS
Declaration and deployment of “Relearning” for all employees
Since the fall of 2022 we have been encouraging employees to take theinitiative to proactively relearn by joining various webinars and e-learning
courses on DX, diversity, organizational management,
and the like. We also regularly distribute knowhowfocused materials that can be used to relearn andfoster motivation. The opportunities for continuous
relearning offered at JUKI will encourage behavioral
reforms and help every employee strive for enhanced
abilities, skills, and career pathways.

DX training workshop (on supply chain reform) for officers
and executives
DX training was conducted at all of the group companies for the factory managers,
presidents, and other executives. Organizations grouped by functions
such as production and sales joined teams in the DX training to share theirfindings on the supply chain using written cards,
tree diagrams, and the like. Though conductedoffline by analog methods, the workshop serves
as a good opportunity to organize JUKI’s ideals
and problems. Four sessions have been held so
far since the workshop launch in 2022.
Business foundation： Strengthening of human resources

45

Business foundation

Basic concepts underpinning the strengthening of human resources

Education and utilizationof human resources

Business foundation

Technology development
Hiroshi Anzai
Innovation
Productivity,
Quality

Automation
De-skilling
Space saving

Systemization
Labor saving,production control

Customer
Digitization

Sustainability

Operability
Maintainability

Clean, energy effcient, safe

VisionWorking as a group to create
solutions for the problems customers
face in “Monodzukuri ” one by one
Strengths● Simultaneous pursuit of high quality and performance

The Medium-term Management Plan under the “Growth& Transformation Plan 2025” slogan outlines steps to make
JUKI a solutions partner that delivers “good impressions” and“peace of mind” to its customers. To achieve this plan, JUKI
identifies current (manifest) and future (potential) challenges
from the customer ’ s perspective and works to develop
and provide products and services as a solutions provider
responsive to social challenges and technological evolution.
Under these overarching initiatives, each development
department in JUKI has formulated its own technology
roadmap suited to its business and field. We are strengthening
the processes used identify the challenging technologies
we will need to deploy in our future products and areworking to establish those technologies before moving on to
product design. The roadmap also prioritizes smart-factory
technologies that advance automation, de-skilling, and IoT,
as well as SDGs-centered technologies responsive to CO2emission reduction, low vibration, and low noise.
JUKI TECHNOSOLUTIONS CORPORATION was launched as a
joint venture with Mitsubishi Electric Corporation in July 2022 tostrengthen JUKI’s capabilities in the automotive field and othernon-apparel fields requiring extremely high levels of quality. In
addition to expanding our products and sales, we will continue
to strengthen our products and technologies by further
evolving the advanced control technology cultivated by the
Mitsubishi Electric Group and expanding it into overarchingbusiness fields such as industrial sewing machines.

Major Initiatives for FY2022

46

Modular design for speedy development andquality improvement

The first unit jointly developed in a new company
for non-apparelWe are working on a design that incorporates methods formodularizing seven types of industrial sewing machines. Prototypes
will be created and evaluated for 44 modules, including the main
shafts and presser foot lifters for the machines, with the aim ofincorporating the designs into new products. Modular design is abottom-up design approach that combines pre-prepared units andassemblies. The commonly adopted design specifications in modular
design reduce man-hours and parts counts, stabilize quality, andsignificantly reduce development lead-times. We will establish a
modular design methodology
SpindleSpindleand a development system
drive
A
B
A
that responds quickly toCBmarket requirements.
presser foot lifter A
presser foot lifter B

JUKI TECHNOSOLUTIONS CORPORATION was established in July 2022 throughthe merger of JUKI’s non-apparel-related departments and Meiryo Technica
Corporation, a wholly owned subsidiary of Mitsubishi Electric Corporation.
Meiryo Technica is renowned in the industry for its strong expertise in sewing
equipment for non-apparel applications. We have developed a specificationthat allows the retrofitting of JUKI’s technologically unique automatic bobbin
thread winding and feeding device to the electronic pattern sewing machine
formerly produced by Mitsubishi Electric (PLK-J series). Four sewing machinemodels with full-rotary, double-capacity hook specifications will be released.
We will be integrating the technologies
of both companies to develop productsthat realize smarter production forcustomers in automotive production
and other industries.

Business foundation： Technology development

Risks
●
●
●
●

Opportunities

Ongoing rises in procurement costs due to higher component prices
Accelerated price competition and lower barriers to entry due to
product commoditization
Stricter targets and regulations for SDGs in different countries
Intensifying competition for technical personnel in Japan

●
●
●
●

Expanding DX-oriented needs for networking and automation
Technological innovation and practical use of AI, IoT, 5G, etc.
Response to the SDGs and the social demand for reduced
environmental load
Growing demand for automated equipment due to workforce
declines in developed countries

Medium-term Management Plan
Priority measures

Target level

Details on the initiatives（%）(1) Strengthen carbon-neutral initiatives by building

40

technology to reduce power consumption by 30%.

Strengthen the
SDGs initiatives(2) Work on an oil-free structure and approach the introduction

30

of SDGs materials.
(3) Accumulate conceptual CAE data for sound and vibration
and apply it to products.

Make our customers’
factories smarter

20(1) Promote automation using advanced technologies and robots.
(2) Expand the scope of use of JaNets.

(3) Respond to changes in our customers’ production devices(forms).

(1) Improve development efficiency through commonization,

Streamline
development at JUKI

modularization, and the use of fewer parts.
(2) Reduce product costs by strengthening our cost
realization capabilities.

Implement and promote
IP and design strategies.

Intellectual property strategy ▶ See p.52

Design strategy ▶ See p.53

23％

Ratio of new product sales
33％

40％

10
0

FY2022

FY2023

FY2025The target level represents the percentage of total sales of new
products (products that have been on the market for less than
three years).
We will focus on customer-oriented innovation by improving andupgrading existing products and creating new technologies, bothindividually and through alliances, with the aim of increasing theratio of new product sales.

TOPICS
Building a flexible production system by linking JaNets to hanger systems

JUKI’s “Hanger System,” a production control facility that works with digital sewing machines and JaNets, has now been brought to market to help customers
evolve their production facilities into smart, highly productive, human- and eco-friendly factories. In addition to improving productivity and quality, we canbuild a production line that flexibly adapts to the way people work and to variable-mix, variable-volume production.

JUKI’s hanger system

This is an automated inter-process transfer system for sewing factories.
This system suspends sequential assembly and sewing processes on
multiple hangers, connects them with lanes, and automatically transfersthem. The system eliminates the need for reaching and retrieving by
delivering every piece of fabric composing a garment directly into theoperator ’s hands. RFID tags attached to the hangers make it possible
to trace and manage individual operator productivity and equipment
operation. Defective products found at the QC station can be returned
directly to the operator in charge of hanger system operation.
Production line for parts
Production line
for women’s

Front body

Back body

CollarSleeve/Cuffs

Linkage among digital sewing machines, JaNets, andhanger systems
The system can visualize challenges in the progress of production andproduction operation management in all sewing processes, including thesewing of parts in the previous process. Better still, the use of digital sewing
machines enables communication between the system and equipment,
and labor-intensive changes in production items can be easily performed bylinking digital sewing machines, JaNets, and hanger systems.
* JaNets: Juki Advanced Network system, JUKI ’ s sewing management
system software

Assembly line (hanger system + JaNets)

QC station

blouses

Loading station

Business foundation： Technology development

47

Business foundation

based on core technologies● Capacity to create technologies based on thoroughresearch using the “Sangen Principles”: going to the sites,
directly observing, and determining the facts● Integration with forefront technologies such as IoT and AI● Diverse human resources engaged in mechanical,
electrical, and software engineering● JUKI’s DNA as a developer of world-first technologies

Managing Officer in charge of
JUKI’s main Development Centerand the Development Centerof JUKI AUTOMATION SYSTEMSCORPORATION, andGeneral Manager of theDevelopment Center of JUKITECHNOSOLUTIONS CORPORATION

Risks and Opportunities

Business foundation

Production

Risks and Opportunities
Risks
Casting

Keiichi
Hashimoto

Verticallyintegrated
Shift to
Shift toproduction
GX
DX
Assembly system Machining

Global production strategy tailored to markets

VisionAvoiding the risk of supply chain
fragmentation to ensure a stablesupply of products to customers
Strengths● Integrated production system for casting, machining,

and assembly within the JUKI Group● Technological wherewithal to create unique

JUKI is committed to the evolution of “Monodzukuri ” witha vertically integrated production system that covers
casting, machining, and assembly as core competencies.
We are restructuring our global production strategy andstrengthening the shift to DX *1 and GX *2 in our factories.
In order to restructure our global production strategy, we
will minimize the risk of supply chain fragmentation due
to growing geopolitical risks, calibrate our supply systemfor customers with] geographical changes in customer
markets, and further promote local production for local
consumption by expanding the local procurement of parts.
To shift to DX, we will further expand the Automation
Promotion Center, actively use advanced technologies tostrengthen our production technology capabilities, andhorizontally deploy the DX conversion to Group factories.
The shift to GX is one of the key elements supporting
the SDGs management strategies promoted by the JUKI
Group. On the environmental front, we will promote theintroduction of renewable energy, switch to high-efficiency
equipment, and horizontally deploy energy-saving
activities in our carbon neutrality initiatives. To reinforce
these activities, we will expand the functions of the Energy
Savings Promotion Team by bringing in experts fromoverseas factories to join the Japan-based experts alreadyworking on the team. All of JUKI’s plants around the world●

Aging of employees at domestic business sites and difficulty inhiring new employees (in JUKI)●

Production methods required to curb CO2 emissions
Rising procurement costs due to shortages of key components(semiconductors, etc.)●

New production site strategies responsive to supply chain
fragmentation and logistics disruption
Technological innovations such as IoT, AI, and 5G and theirpractical use in production factories
Production innovations needed to reduce CO 2 emissions

Medium-term Management Plan
Details on the initiatives

Target level(1) Promote smarter production through collaboration（100 million yen）

Priority measures
Promote smarter operations
at each business site
across the departments

on production technology with the group company’sbusiness sites(2) Accumulate and horizontally deploy know-how by
actively using advanced technologies

Stabilize quality and reduce
F-costs (manufacturing
failure costs)▶ See p.51

Stabilize procurement andpromote cost reduction▶ See p.50

Respond to SCM
fragmentation risk andpromote production site
strategies linked to sales
market trends

Effect of automation promotion(cumulative)

50

43

40
30
20
10
0

(1) Establish a parallel production system (expansionof JUKI ’s Vietnam factories)(2) Shorten delivery lead times to customers by

10
4
FY2022

FY2023

FY2025

We will promote smartization solutions such as factory
automation strategies to save labor, improve space efficiency,
and eliminate waste and loss. The target figures are the costs
needed to attain effects such as added value expansion.

reviewing the global production system(1) Promote the introduction of renewable energy(2) Switch to high-efficiency equipment in line withReinforce measures toachieve carbon neutrality

capital investment plans(3) Horizontally deploy energy-saving initiatives(4) Improve the skills of members and develop humanresources capable of horizontal deployment*1 DigitalﾠTransformation *2 Green Transformation

TOPICS

Construct a new factory (No. 5 factory) at JUKI VIETNAM

Implement energy-saving activities

The recently constructed No. 5 factory is the fifth building at JUKI VIETNAM.
We have expanded the sewing machinery production models in Vietnam
and reorganized our global product supply system. We have establisheda parallel production system in response to geopolitical risks, therisk of supply chain fragmentation, and geographical changes incustomer markets.

We are promoting CO2 emission reductions by introducing renewableenergy, upgrading to high-efficiency equipment and facilities, andscaling up the activities of the Energy Savings Promotion Team (formedin November 2021).

Business foundation： Production●●

will take part in JUKI ’ s DX and GX activities.

Major Initiatives for FY2022

48●

Production in China amid the U.S.-China trade frictions, etc.

Business foundation

production methods such as digital production● DNA of “Kaizen ” awareness based on long-standing
QC circle activities● Cooperation among production sites in Japanand overseas

Managing Officer in charge of
the Production Center●

Opportunities

Achieve a 96% reduction of CO2 emissions compared to the FY2022 plan.
(1) Introduce solar power generation(2) Hold a meeting to discuss the
CO 2 reduction activity report(3) Renew high-efficiency
equipment and facilities(4) Conduct energy-saving
diagnoses by using an
external agency(5) Save energy by utilizing
exhaust heat

Manufacture of industrial sewing machines developed by
the Mitsubishi Electric Group at JUKI

Promotion of automation at JUKI INDUSTRIAL EQUIPMENTTECHNOLOGY CORPORATION

In July 2022, JUKI and Nagoya Technica (a wholly owned subsidiary of
Mitsubishi Electric Corporation) jointly established JUKI TECHNOSOLUTIONSCORPORATION by integrating their development and sales operations in thefield of industrial non-apparel sewing machines. JUKI MATSUE CORPORATION,
a company that excels in the production of non-apparel sewing machines, will
begin production of the PLK-J series (a line of machines developed by Mitsubishi
Electric and now marketed as JUKI
brand products) in October 2023.
JUKI MATSUE CORPORATION
will take advantage of its own
machining center and automatedequipment design capabilities to
produce the PLK-J series with highspeed and flexibility.

JUKI INDUSTRIAL EQUIPMENT TECHNOLOGY CORPORATION, a core producer ofelectronics assembly & systems, is promoting initiatives for factory automationand the shift to DX as an important member of the Group Business. JUKI
INDUSTRIAL EQUIPMENT TECHNOLOGY CORPORATION uses an articulated
robot to internally manufacture equipment that automates the deburring andfinishing work in the manufacture of SMT mounter parts. Reduced manpower,stabilized quality, and improved
productivity have all been achieved.
JUKI INDUSTRIAL EQUIPMENTTECHNOLOGY CORPORATION also
introduced a system to synchronize
production plans across the threefactories it operates, leading
to shorter lead times and fewer
man-hours spent on planning.
Business foundation： Production

49

Business foundation

Business foundation

Procurement

Quality management

Basic policies for JUKI’s procurement activities

Enhancing the quality of delivered parts

on “Compliance with laws and regulations,” “Coexistence

JUKI rechecks manufacturing quality continuously and

JUKI Quality was based on QC activities introduced in the

redundantly. As part of this quality effort, we conduct

1970s. In 1981, JUKI was awarded the Deming Application

The procurement policies of the JUKI Group place high priority

and co-prosperity,” and “ Fair and equitable evaluation“audits ” on technical and management functions in

Basic stance on quality control

Prize for Divisions in the business section of the industrial

and selection” with suppliers. The Group’ s procurement

cooperation with major suppliers in Japan and overseas. If

sewing machine category. After subsequent developments,

activities adhere to these priorities in every global region.

improvements are observed, we activate the PDCA cycle

JUKI instituted a core basic management policy called

Compliance with laws and regulations

to increase the inspection-free rate. Activities like these

We conduct our global procurement activities in compliancewith the regulatory requirements and standards governing
safety and health, global environmental protection, legal

help us deepen communications with our suppliers inpursuit of higher-quality delivered parts and the building of
long-term relationships of trust.

compliance, fair trade, corporate ethics, etc.

“ Promote Total Quality Management,” in 1988. JUKI has

managed business with an emphasis on quality ever since.

Five-Article Quality Declaration

the quality that JUKI provides.

2. We give the highest priority to the customer’s safety and peace ofmind in our work on the quality of our products and services.

Manufacturing

Products conforming to Green Procurement

Coexistence and co-prosperity

Medium-term Management Plan
Details on the initiatives

We will work to “stabilize procurement and promote

3. We rely deeply on the customer’s voice to guide our unceasing
efforts towards quality improvement.
4. We raise quality based on the five-Gen principles* to earn thecustomer ’ s trust and grow our business.
5. We contribute to the sustainable development of society by
improving the quality of our products and services.

cost reductions.”

We actively communicate withparts procurement, and expand local procurement.

of trust with them and conduct◀ Japanese, English, Chinese,(2) Promote cost reduction activities with an emphasis on major sales models.

manufacturing activities thatand Vietnamese versions are
distributed to all speakers of thoselanguages in the JUKI workforce.

(3) Forecast the demand-and-supply balance in major parts industries andmanage it ahead of time to ensure stable procurement.

▲ A monument presented

to JUKI in 1992 incommemoration of the40th anniversary of JUKI’s
Suppliers Association (JUKI
Cooperative Association)

existing and developing together sustainably into the future.

Fair and equitable evaluation and selection
JUKI selects suppliers based on a comprehensive evaluation of(1) the quality, price, delivery time, etc. of procured products, (2)TOPICSWorkshop
The JUKI Quality Month workshop held in the midst of the COVID-19
pandemic in November 2022 took place virtually (using web conferencing
tools) to avoid the three C’s (closed spaces, crowded places, and closecontact settings).
JUKI presenters at the workshop reported on the smartization of JUKI’s
production factories and the company’s initiatives for the re-inspectionof manufacturing quality.

meetings for the development, manufacturing, and sales

established a Group-wide system to act quickly and quickly
to solve the defects.

Representative Director and COO
Officer in charge of group quality assurance

Business Quality Meeting

Suppliers

Quality Problems
Countermeasure Meeting

Suppliers who make notable contributions to QCD

quality assessment standards are issued a Certificate of
Guaranteed Delivery.

50

Business foundation： Procurement

Development department▲ Sharing of knowledge on the three business environments in which
JUKI’s management operates (zero-COVID-19 policy in China, material

shortages and rising costs, and fragmentation of the global logistics
network and supply chain), etc.

Never produce defective products.
Ensure that defective products are never overlooked.

Medium-term Management Plan
Details on the initiatives

We will work to stabilize quality and reduce F-costs(production failure costs).
We conduct quality re-inspection activities themed on “We don’ t accept,”(2) Implement process re-inspection activities from an objective viewpoint(cross auditing among business sites)

The JUKI Group

Manufacturing sites

TOPICS
Initiatives for “Quality Month” in November

The JUKI Group Quality System Chart

Group quality assurance meetingare commended at JUKI ’ s regularly held workshop for

1 Conduct the process audit from a third-party perspective●(external perspective).
2 Identify and improve the weaknesses at each factory and●horizontally deploy each factory’s advantages and strengths.

the unlikely event of a quality problem, the JUKI Group has

equitable opportunities to new entrants, regardless of theircooperative companies, and all suppliers who meet JUKI’s

Incorporating the revisions into standards
Management of changes in drawings● Confirmation of clear agreements●

departments of each business, including its suppliers. In

Business-by-Business Quality Manager

scale or where they are based (domestic or international).

●(1) Improve the quality of delivered parts by evaluating suppliers.

JUKI maintains and improves quality by holding regular

technical capabilities, and (3) reliability as a company.
We will always respond sincerely and provide fair and

1 Product specification sheet●
2 QC process chart●
3 Work standard / Assembly instructions●
4 Actual work●

“ From Reactive to Proactive ” slogan.

Quality control systemco-prosperity, we regularly hold afrom each other as good partners andFour-process
consistency“ We don ’ t produce,” and “ We don’ t overlook ” in accordance with ouractive supporter of co-existence andcooperating companies by learning

repeated inspections.

Business foundationencourage our mutual growth. As an

coexistence and co-prosperity withand heighten the accuracy of this 4-process consistency* The five-Gen principles:
Genba, Genbutsu, Genjitsu,+ Genri, Gensoku(1) Build a local production system for local consumption, including

suppliers to deepen our relationships

direction, and goals. We aim forperspective was introduced in FY2022 to further improve

Management

1. We comply with laws, rules, and the commitments we make toour customers when providing our products and services.

Components, packing materials,
and auxiliary materials for products

to share JUKI ’ s initiatives, sense ofsince 2019. A process audit conducted from a third-party

Five-Article Quality Declaration for Safety and Peace of Mind

Improvement

workshop for cooperating companies

consistency activity to thoroughly match the four basic steps

Five Articles and cultivate a quality mindset to guarantee

Verification

Green
Procurement
Data Base

Design anddevelopment

complaints to zero. JUKI has been promoting a 4-processof action standards for quality to be observed within all
ensures that all employees are thoroughly familiar with the

Conforming
articlesOur manufacturing factories are working to become “100%Good Product Shipment Plants ” and reduce customer

activity and widen the scope from a single inspection to

JUKI has established the Five Articles of Quality, a set
departments of the JUKI Group. With the articles, JUKI

Check

Reinforce the production of good products

Sales offices

Customer information DBs

Quality Month in 2022 was centered on the following theme: “Enhancecustomer value creation in the new society – To realize business andsocial value through the 6Xs (Six Transformations).” A message fromthe president and the director in charge of quality was distributed
in advance of Quality Month to raise awareness. In November we held
the JGQMF (JUKI GLOBAL QUALITYMANAGEMENT FORUM), a series ofcase presentations shared online
to showcase the improvements
achieved by group companies
and horizontally deploy goodpractices. All of JUKI ’s group▲ JGQMF for the year 2022
companies participated.
Business foundation： Quality management51

Business foundation

Business foundation

Intellectual property strategy
The concept behind JUKI’s intellectual
property strategy

Yasuyuki Ueda
General Manager,
Intellectual Property Strategy Dept.

Intellectual property is an important asset for securing
competitive advantage and ongoing business growth. We are
creating and operating an intellectual property strategy foraccumulating and using intellectual property (attack) while
respecting the rights of third parties (defense).
Accumulation and use of intellectual property (attack)We are also working to build a strong patent network that will be reinforcedby technologies that are expected to be developed in the near future, inorder to appropriately protect the fruits of our research and development
efforts and to ensure competitive advantage and freedom of development
centered around the key development themes of our business in the years
ahead. Our business policy overseas is to file global patent applications,especially in China, in light of the competition.
We strive to maintain and enhance our brand image by appropriately
eliminating counterfeit products through legal action and the issuance of
warnings. The registered “JUKI” trademark acquired legally protected status asa famous trademark in China in 2018, thanks to our anti-counterfeit efforts.

Respect for the third-party rights (defense)
We strive to reduce the risk of infringement of third-party rights by
establishing and operating a system to investigate and review third-party
rights at all stages of the development cycle: before development begins,during development, and after development is complete.
The “accumulation” and “utilization” of intellectual property are closely
related activities. Our goals are to use acquired intellectual property
to contribute to corporate growth by generating profits and expanding
business, and to bring superior products to the market.

Medium-term Management Plan
Details on the initiatives

Accumulation of rights● In line with our management and business strategies, we will strengthen

Seiji Sakurai

such as system-related technologies and automation technologies, byGeneral Manager, Design Strategy Dept.

setting them as priority themes.

● JUKI ’s patent activities linked to the priority themes will be far more

extensive than one-off applications. We will be setting targets for thenumbers of patents to be filed and will work to protect our technologies
by building a comprehensive patent network.

● With regard to the total portfolio of rights we hold, we will work to increase

the value of the holdings by actively disposing of obsolete rights andstrengthening investment in new inventions.

2 Utilize ownership rights○● By identifying the links between the differentiating technologies of our

products and the rights we hold, we will be scaling up the use of thosetechnologies as a means of promoting the superiority of JUKI’s products.

● We will strengthen applications for design rights as an effectivemeans of eliminating counterfeit products and safeguarding

important intellectual properties that enhance JUKI’s brand image.

TOPICS
Multifaceted product protection through patent, design
and trademark rights
The HZL-UX8 computerized sewing machine for home use, a winnerof the Good Design Award 2022, realizes UI/UX by combining
smartphone-like and dial operations to heighten the fun and comfort
of sewing for users. We have adopted a mixed intellectual property
strategy that deploys patent rights, design rights, and trademark rights
to ensure the competitive advantage of the HZL-UX8.
“UI/UX” combines smartphone-like

In October 2022, JUKI established a new design department
to further enhance its brand value, accelerate the innovationof products and services, strengthen brand appeal to
stakeholders, and move forward with its initiatives toward thelong-term vision of becoming a Monodzukuri (manufacturing)and Kotodzukuri (value creation) company. We believethat design can improve our corporate competitivenessthrough both “branding” and “innovation.” JUKI has been
incorporating design thinking and user experience design
into the technology and management fields in recent years.
The design strategy we are promoting is based on expanding
contact with customers and society and strategies tovisualize problems and new findings.
Course of action

1 Connect customers and society with technology and take a lead role○in the “Kotodzukuri,” experience-based value creation.
2 Understand the site where the product is used, share the problems○
there, and take the lead in improving them.
3 Provide stakeholders with customer experiences in using non-products.
○
4 Create future customers and a future society, and explore and○propose new value.

1 Product design○

We are redefining the essential character of JUKI by striving for products andservices with more visual appeal and superior usability based on the conceptsof collaboration with people and people-friendly design. JUKI is committed
to creating innovations that start with the people who use our products andsystems, and the sites and environments in which they are used.

Business foundation： Intellectual property strategy

Improve attentive
ease of use

We will use AR, VR, and other XR technologies from the product development

to marketing stages and work on transformation (DX) in the value chain.
Development of
virtual prototypes

3 Brand design○

Improved customer
experience throughuse in sales

We will showcase the brand assets to users in easy-to-understand ways at

JUKI’s 85th anniversary in order to generate empathy with the value of JUKI’s
existence and enhance the brand value toward the next generation.
Brand image
enhancement

52

Build a UX
development process

2 Develop XR technology○

Multiple uses of
3D CAD data

New investments
Return of profit

and（ product
service ）Business

3

Customers
and society(UX: User experience)

2

4

TOPICSAn AR360°Viewer facilitates the viewing of moreproduct images.
In addition to the AR (Augmented Reality) product displays using 2D codesin the product catalog on JUKI’s industrial sewing machine website, JUKI
products are now displayed in 3D on internet browsers. 3D displays makeit possible to view products fromall angles and to virtually position
products in production spaces
for the easy checking of productsizes and installation positions.

Virtual showrooms stir user anticipation for new products.

Details on the initiatives

Promote a productdesign strategy

Patent rights: Superior operability

1Innovation

Medium-term Management Plan

Design rights: Attractive design

Trademark rights: Naming thatconveys quality

Business Expansion

Brand

our patent applications in categories where future growth is expected,

Elimination ofcounterfeit productsTechnical Appeal

Differentiated technology
Strong patent network

Technology
development

1 Reinforce the accumulation of rights○

and dial operations
that fit everyone’s needs.

Utilization of Rights

JUKI’s design strategy concept

Release of a brand story

Visualization of JUKI’svision and management
strategy

In the leadup to the mounter LX-8 release, JUKI invited special customers
to experience the product in a virtual showroom at JISSO PROTEC, acomprehensive exhibition of electronic component mounting technologies.
VR goggle displays conveyed thevirtual experience of using the LX-8
and witnessing its features andperformance at the actual scale.
The lifelike VR experience promotes
the appeal of the product and raises
customer expectations.

Map out the activities of professional-use sewing machines
to create an improved journey for the customer.
We are mapping out sewing activities to create an improved journey(customer experience) for the customers who use JUKI’s professionaluse sewing machines, a mainstay line of products for many companies.
The creation of innovation starts with customers. With this in mind, we
are working to solve problems
and realize ideas that lead to
Kotodzukuri by chronologicallyvisualizing the sewing work at thesites where JUKI customers actually
use their sewing machines.
Business foundation： Design strategy

53

Business foundation

Cycle of Growth

Design strategy

ESG initiatives

Environmental initiatives

Relation to the SDGs

Reduction of environmental load
Calculation of CO2 emissions for all supply chains in total (Scope 3)

We are working to reduce our environmental load through businessactivities focused on reducing greenhouse gas emissions, complying withenvironmental regulations, and developing safe and eco-friendly products.

Takashi Yamada
General Manager of the General
Affairs Dept. and the SDGs
Promotion Office

Achieve carbon neutrality
The JUKI Group has made a commitment to achieving carbon
neutrality by 2050 using CO 2 emissions as an indicator to address
climate change and other global environmental issues. To achieve

In 2022, the JUKI Group began calculating Scope 3 emissions (non-Scope 1 and non-Scope 2 emissions related to JUKI ’s

business activities in the value chain, including raw material procurement, logistics, and sales. Because of the way JUKI’s

businesses are structured, most of Scope 3 emissions occur in Category 1 (purchased products and services), Category
4 (transportation and delivery (upstream)), Category 9 (transportation and delivery (downstream)), and Category 11 (useof products sold). As Category 11 emissions account for the largest among these four categories, priority was given to
surveying the four categories mentioned above. As a result, we found that Scope 3 emissions account for more than 90% of

CO2 emission reduction target (Scope1.2)(t-CO2)

Scope1.2 CO2 emissions

this goal, we have set mid-term targets of reducing CO 2 emissions in2013

Scope 1 (in-house direct emissions) and in Scope 2 (indirect emissions

43,977from energy used in-house) by 37% in FY2025 and 50% in FY2030,

2021

2025

2030

34,585

2050

Achievecarbonneutrality

compared to the FY2013 level. In addition to promoting energy-saving
activities throughout our operations and decarbonizing our production
facilities, we will introduce renewable energy generation facilities,

the total CO2 emissions of the JUKI Group (total of Scope 1, 2, and 3 emissions). We will strive to reduce Scope 3 emissions by
developing and supplying products with enhanced environmental performance.

CO2 emissions by Scope
Scope1

Scope2

1,772t-CO2
(1％)

(4％)

Procurement /Logistics

Development

●
●

●

●
●
●

CO2 emission reduction target (Scope3)

Using eco-friendly materials
Downsizing product weights and sizes

(1%)

t-CO2
(FY2021)262,586t-CO2(95％)

Further promoting the planning and development of energy-saving products●

Building
environment /work styles

Scope3742,367t-CO2

Improving the use of recycled materials●●

Production

Strengthening green procurement

7,191t-CO2

742,367

Category 1
Purchased
products andservices(FY2021)

Improving logistics methods for procurement

●

(2%)

t-CO2

●

●

12,957t-CO2

776,952

Scope 1 and Scope 2
Carbon-neutral initiatives in product supply chains and lifecycles

Category 9
Transportationand delivery(downstream)

Category 4
Transportationand delivery(upstream)

32,813t-CO2

Absorption and removal

storage batteries, carbon-free electricity, etc. to achieve our targets.

Percentage of emission results in Scope 3(35%)

Category 11
Use ofproducts sold

459,633t-CO2(62%)

Scope 3 category(t-CO2)

Scope3 CO 2 emissions■ Category that accounts for the majority of JUKI’s CO2 emissions.

Purchased products and services

2

Capital goods

3

Fuel and energy-related activities notincluded in Scope 1 and 2

4

Transportation and delivery (upstream)

5

Waste from business activities

Promoting the introduction of solar panels

6

Business travel

Improving efficiency by reforming work styles and operations (promoting RPA, etc.)

7

Employer commuting

8

Leased assets (upstream)

9

Transportation and delivery (downstream)

10

Processing of products sold11

Use of products sold

12

Disposal of products sold13

Leased assets (downstream)

14

Franchises

15

Investment

Switching to lower-carbon fuels, hydrogen,biomass, and synthetic fuels, etc.
Switching used fuels to non-petrochemical fuels

2025 ← 5 years → 2030

← 20 years →2050

742,367

Establishing smarter and more efficient production methods

Achievecarbonneutrality

Replacing equipment used in buildings with energy-saving products

JUKI’s solutions help customers
reduce CO 2 emissions.

Absorption
and removal

Developing eco-friendly products
ECO PRODUCTS certified in FY2022
The product meets the JUKI Group Green Procurement Guidelines, a set of standards even stricter than the RoHS Directive* Achieve carbon neutrality by 2050 through absorption and removal
measures as well as the CO2 emission reductions contributed by customers
using JUKI solutions.

and other regulations governing the handling and use of hazardous chemical substances.

Industrial sewing machines

Household sewing machines

Electronics assembly & systems

ESG initiatives

1

2021

Waste reduction through the refurbishment business

Automatic bobbin thread winding and feeding
device (a retrofit kit for the AMS-EN Series
Shuttle Hook Machine)
AW-3S
54

2-Needle, 2/3/4-Thread Differential Feed,
Overlock with an Automatic Thread Supply
and Easy Threader
MO-3000

ESG initiatives： Reduction of environmental load

Multi task platform
JM-50

The JUKI Group is working to reduce waste and realize a circular economy by developing a
refurbishing business called the JUKI Green Rewards Program.* We collect used products from
customers and recycle them using proprietary JUKI technologies. We are working to build a
recycling-oriented business model by providing customers with “refurbished” machines that wehave reconditioned after that.
* JUKI Green Rewards Program“Under the Green Rewards Program, JUKI collects and recycles products that customers originally intended to discard.”
ESG initiatives： Reduction of environmental load

55

ESG initiatives

Environmental initiatives

Relation to the SDGs

Reduction of environmental load
Disclosure of information based on the TCFD recommendations
The JUKI Group has made a commitment to achievingcarbon neutrality by 2050 by increasing its efforts

Climate-related risks and opportunities
Scenarios

Risks / Opportunities

Time frame

Policies/
Regulations

MediumtermtoLong-term

to reduce CO 2 emissions in product development,
production, and business activities to the greatest
possible extent. In July 2022, the Group endorsed the
TCFD (Task Force on Climate-related Financial Disclosures) recommendations established by the Financial Stability Board (FSB)

Impact on businessResponse measures● Increased business costs incurred through the introduction● Promotion of decarbonized production facilities (conversion

and strengthening of climate change policies andregulations such as carbon pricing (introduction of acarbon tax, capital investment for decarbonization, rawmaterial price hikes, higher transportation costs, etc.)

of electricity to lower-carbon fuels, hydrogen, biomass,
synthetic fuels, etc., and non-petroleum fuels)● Rebuilding of the production, logistics, andAs a TCFD member committed to carbon neutrality, the JUKI Group has analyzed the risks and opportunities that climate● Lower demand when the rising demand for products andTransition
risks

information disclosure, and strengthen our efforts to achieve carbon neutrality.

Technology
marketMediumtermtoLong-term

services that lead to decarbonization drives up the cost of
R&D to improve the environmental performance of products
and cannot be offset by lower price competitiveness.

● Price hikes and procurement difficulties due to changes

in the supply-demand balance of raw materials,
semiconductors, etc. accompanying the decarbonizationof society

GovernanceIn August 2022 the JUKI Group established a Sustainability Promotion Committee chaired by the Chairman and CEO toenrich its business activities by incorporating a sustainability concept that aims to ensure the stability and sustainability of the

1.5°C
Reputation“environment,” “society,” and “economy” into the future without losses of corporate value, while solving social challenges andShort-termtoLong-term● The emergence of adverse effects on financial

arrangements, business relationships, etc. if climatechange measures are delayed

Mediumprocurement networks in cooperation with suppliers

and announced its participation in the TCFD Consortium, a group of companies that support the TCFD recommendations.
change poses to its business. We will reflect this analysis in our management and business strategies, practice thoroughFinancial
impact● Further promotion of the planning and developmentof products with high environmental performance(especially energy saving)● Promotion of the use of eco-friendly materials(strengthen green procurement, increase the use ofrecycled materials, etc.)

Medium

● Improved efficiency of raw material use throughreductions in product weights, sizes, etc.

● Systematic and steady promotion of initiatives toachieve carbon neutrality

Smallachieving sustainable growth for the entire Group. The Sustainability Promotion Committee, the Management Strategy Council,● Growing demand for products and services that help

and the Risk Management Meeting work together to formulate long-term corporate strategies to promote management from asustainability perspective.

customers improve productivity and save energy, as well
as for products and services that contribute to the circular
economy and reduce CO2 emissions over their lifecycles

MediumtermtoLong-term
Opportunities

Strategies (scenario analysis)● Provision of products and services to increase productivity

and energy-saving performance, including support andconsulting services to make customer factories smarterand more energy-efficient● Deepening of the used equipment business and theestablishment of a recycling system for the products
and parts after being sold.

MarketJUKI has identified climate change-related risks and opportunities that may affect the Group’s businesses now and in the

future under two scenarios, a 1.5° C scenario (Note 1) and 4 ° C scenario (Note 2) assumed as a climate-related scenario,

Short-termtoLong-termalong with the risks (Note 3) and opportunities (Note 4) for the Group businesses under each scenario.

Large tomedium● Increased demand for our products thanks to rapid growthin demand for circuit boards (PCB) as a result of digitizationin all sectors as a contribution to decarbonization● Continuation of planned production by maintaining

production facilities capable of responding toincreased demand

MediumThe following risks and opportunities related to climate change in the JUKI Group have been identified based on the resultsof our scenario analysis, along with their impacts and the countermeasures against them.

Scenarios Risks / Opportunities

Time
frame

Impact on business●(Note 1)

Rapid social changes toward carbon neutrality in 2050 will limit the global average temperature increase to 1.5° C at theAcuteLong-term

Chronic

Long-term

Opportunities Resilience

Long-termend of the 21st century.

Physicalrisks<Scenarios referenced>● Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report SSP1-1.9 (Common Social Pathways

SSP1 / Representative Concentration Pathways RCP1.9)● RCP2.6 (While the RCP2.6 scenarios are similar to the scenarios of less than 2 ° C, some supplemental data is

4°C

●
●

More frequent occurrence of natural disasters such as floods,
severe typhoons, torrential rains, and storm surges, causing
damage to JUKI’s production facilities, etc. and supply chains,
as well as losses due to operational shutdowns, etc.
Worsened employee working environments and a higher
risk of heat stroke
Higher costs for air-conditioning and temperature control

Response measures●●●

Financial
impactStrengthened business continuity plan (BCP) in all
operational areas, including JUKI’s supply chains

Introduction of equipment, etc. that will improve
working environments
Promotion of automation and labor-saving solutions
in factories

Mediumto smallMediumdrawn from other references.)● International Energy Agency (IEANetZero by 2050)●(Note 2)increase of more than 4 ° C at the end of the 21st century.
<Scenarios referenced>● Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report SSP5-8.5 (Shared Social Pathways

SSP5 / Representative Concentration Pathways RCP8.5)(Note 3)

Identified in line with the Group’s business in terms of transition risk (policy, regulation, technology, market, reputation) andphysical risk (acute, chronic)(Note 4)

Based on transition and physical risks identified in line with the Group’s business in terms of resource efficiency, energy

sources, products/services, markets, and resilience.

56

ESG initiatives： Reduction of environmental load●

Strengthened business continuity plan (BCP) in all
operational areas, including JUKI’s supply chains

Medium(Time frame)Short-term: 5 years, Medium-term: 10 years, Long-term: more than 10 years.

Risk management
JUKI has established and operates a risk management system to appropriately address all Group risks. The system is centeredon the Management Strategy Council, which handles strategic risks, the Crisis Measures Headquarters, which is responsible forbusiness continuity, and the Risk Management Meeting, which consists of corporate officers and the heads of business units
and group companies. We respond to the ever-changing risk environment by conducting annual policy reviews and quarterly
risk assessment and monitoring audits and by reporting to the Board of Directors on the details of our risk response and theoccurrence of major risks, with a view to making continuous improvements.

Indexes and Targets▶ P.54 and P.55 “ Reduction of Environmental Load ”
ESG initiatives： Reduction of environmental load

57

ESG initiatives

Social activities to reduce greenhouse gas emissions will not progress, resulting in a global average temperature

Better maintenance of customer production systems
through the provision of a stable supply of products inthe event of a disasterESG initiatives

Social initiatives

Solving social challenges

Relation to
the SDGs

Creating employment opportunities

JUKI’s industrial sewing machines business support the growth of the labor-intensive sewing industry in developing countries.
JUKI’s equipment and systems change simple labor-intensive workplaces into peoplefriendly working environments by making
factories smarter.
Creating employment opportunities in developing countries
Since its founding in 1959, JUKI’s Sewing Efficiency Research Institute has provided support activities focused on performance

optimization by using production management and IE technologies to maximize the power of “ materials, equipment,

and people.”

The institute’s activities have been applied in ODA (Official Development Assistance)

Relation to
the SDGs

Contributing to reduced clothing waste

Mass production and large inventories have resulted in clothing waste. From the standpoint of supporting the production of sewn
products, we will work to solve this challenge by optimizing low-volume production, improving the efficiency of mass production,and expanding JUKI’s business domains.
Achieving the production in just the right amountthrough automation, digitalization, networking,and consulting

Spreading JUKI’s “upcycling” activity using old
clothes, waste materials, and by-products

JUKI has been focusing on “ upcycling ” activities for the

To achieve production in just the right amount, JUKI is building

recycling of old clothes and waste materials that have outlived

a highly productive and compact line that optimizes thetheir usefulness into new and valuable things, and has been

projects to foster export industries in developing countries towards the creation ofamount of inventory in short-cycle production by making full

holding the Upcycle Award as an in-house event since 2021. In

national wealth and employment. JUKI has worked with government agencies in

use of automation, digitalization, and networking technologies.

2022, we expanded the scope of the activities to include themany countries, including Cambodia, Myanmar, Ghana, and Madagascar, to provide

The seam values registered in a digital machine can be

Group companies involved in the manufacture and sale ofequipment and educational training to local apparel training centers.

adjusted with just a few touches,household sewing machines.

making it easy to accommodate

About 60 people (9 teams)changes in sewn items. Automationfrom the United States, Europe,saves labor, and the network-based

Vietnam, China, and Japan

JaNets system enables production

presented their activities for

The goal is to create a cycle of employment in developing countries by cultivating thetraining participants as future managers and key personnel.

Promotion of social participation byvarious human resources

Relation to
the SDGs

The world is still full of illiterate people, especially in developing countries. JUKI organizes vocational education programs andworks in other ways to increase the employment of workers with poor literacy skills and improve their treatment in the workplace.
Developing e-learning menus and providingthem to worker trainees
We continue to offer seminars and group training to improveIndustrial sewing machines are provided with voice
guidance functions and explanatory illustrations and symbols.
A system that supports daily sewing machine inspections

We launched these activities to provide “e-learning” training

in sewing factories with both a smartphone application

services in 2020. We will further expand our training service

and PC browser application is available free of charge. The

menu and promote highly specialized e-learning education

system guides users through sewing machine inspections

to nurture advanced operators and maintenance personnel.

of 10 to 20 items with easy-to-understand pictures and

The images illustrate inspections anddaily maintenance.

Sewing factory network system diagram
Sewing factories

ApparelCAD

Equipment
management

Productmanagement

Shared infrastructure network system
GerberformatSharedformatAlready implemented
Objectives of this project
Implementation for“Isekomi Nui”
(shirring stich)

JUKI develops products that realize clean and less fatiguing working environments

1

2

3

4

Cutting

SewingFinishingprocess

Inspection

Shipping

Consumers* Information on each process is used in a coordinated manner through a network.

production of customized garments in the future.
* A Japanese industry association of manufacturers of sewing machinery, parts, andaccessories. The association promotes the planning, standardization, and hostingof international exhibitions (JIAM) for the industry.

* A general incorporated foundation in Japan.
This incorporated foundation conducts projects related to the research, development,
and dissemination of mechanical systems that adapt to societal needs.
2

Support for technological innovation throughimprovement to productivity in the electronics industry

Relation to
the SDGs

As a comprehensive manufacturer of board mounting equipment, we support the evolution of circuit boards for electronic andelectrical appliances by responding to increasingly miniaturized chip components and complicated, irregularly shaped components.
We support the industries that design the future with DX through technological innovation.
Improvement to back-and-forth process infrastructure in PCB mounting factories
We are working to realize smart factories that incorporate the latest technologies and reduce manpower to the greatest
possible extent. We seek to reduce labor in the processes

Reference: (General Incorporated Foundation) The Mechanical Social
Systems Foundation* 2

ESG initiatives： Solving social challenges

Toward safe and clean sewing factories

ESG initiatives

Production
managementthat can be executed without relying on the skills of experienced

58

Safer and more secure work conditions protect JUKI employees from workplace accidents and create working environments that allow
each individual to reach their full potential. JUKI is committed to creating good working environments with its products and support.

workloads through automation.

developing countries.

Show-and-tell session.
Yumi Suzuki (on the left), a designer
working on a one-of-a-kind remake
brand with vintage clothing, took
part as a judge and advisor.

Relation to
the SDGs

Ensuring occupational health and safety

working environments through initiatives to deskill the workplace and reduce heavy

directly imported into a digital sewing machine to realize sewing

1

lead to its reduction.

JUKI aims to use this system

CAD-created data serving as the blueprint of a garment isto enable the automation of the sewing process and the mass

expand the activities that will

operability, safety, and dust collection efficiency. JUKI will also realize people-friendly

importing CAD data into sewing machines.

that links all apparel CAD systems and digital sewing machines

clothing waste loss and tomachines in the process.

commissioned by the Mechanical Social Systems Foundation

workers. We begin this process by creating a “shared format”

efforts to raise awareness ofimportant parts of sewing(Chairman: JUKI President Shinsuke Uchinashi) has beenskilled processes such as “Isekomi Nui ” (shirring stitches) by directly

JaNets and Hanger System
exhibition at JIAM (Japan
International Apparel
Machinery & Textile
Industry Trade Show)by integrating functions to suppress operating noise and vibration while improving

The JAPAN SEWING MACHINERY MANUFACTURERS ASSOCIATION*1

this year to develop an innovative strategy to simplify difficult,production system that eliminates

We will promote further

teaches them about theto promote employment in

Simplifying difficult processes by linking sewing machines

of consulting experience to build acustomer ’ s individual needs.

productivity and sewing quality in sewing factories and to

Sewing Operator Training Course

is also leveraging its 60-plus years

clothing waste according to every

Providing an inspection support system that
leads to employee development

disseminate maintenance techniques to customers.

“ upcycling ” the old clothes.

progress and volume control. JUKI

before and after the manpower-intensive PCB mounting
line by developing an automated warehouse to store
and manage electronic components, an automatic

Mission-critical systems

ISM3600+ Storage Capacity Expansion Module ISM3900

Big Data
ERP/MES
Database

Linkage to the existing
cabinet for parts

insertion machine that automates manual work in the
post-mounting process, and a system that can be linked
to mission-critical systems. We will realize convenient andcomfortable lifestyles by making factories smarter throughlabor saving strategies and distributing inexpensive, highquality products throughout the world.

Parts management system

Production management system

ESG initiatives： Solving social challenges

59

ESG initiatives

Corporate governance initiatives

Directors, audit & supervisory board members andcorporate officers (As of July 1, 2023)
Directors

Outside Directors
May 2009 Joined the Company, Advisor
June 2009 Senior Managing Director, CAO,
and CCOJuly 2009 Senior Managing Director, CFO,
CAO, and CCO
June 2010 Representative Director and President
August 2013 Representative Director and President,
and President of JUKI AUTOMATIONSYSTEMS CORPORATION
January 2021 Representative Director, Chairman
and CEO
March 2021 Representative Director, Chairman
and CEO, and Representative
Director,Chairman and CEO of JUKI
AUTOMATION SYSTEMS CORPORATION(Present)
July 2022 Representative Director, Chairman, andCEO of the Company, Representative
Director, Chairman, and CEO of JUKI
AUTOMATION SYSTEMS CORPORATION,
and Representative Director, Chairman,
and CEO of JUKI TECHNO SOLUTIONSCORPORATIONMarch 2023 Representative Director, Chairman,
CEO, and COO of the Company,
Representative Director, Chairman,
and CEO of JUKI AUTOMATIONSYSTEMS CORPORATION, andRepresentative Director, Chairman,
and CEO (present post)

Akira Kiyohara
Chairman, CEO and COO
Chairman of the Board of Directors
Member of the Nominating andCompensation Advisory Committee
Chairman of the Sustainability
Promotion Committee

May 2011 Joined the Company, Senior Executive
Operating Officer
March 2013 Managing Officer
March 2017 Director and Managing Officer
March 2018 Director and Senior Managing Officer
March 2020 Representative Director and Senior
Managing Officer
January 2021 Representative Director, President
and COO (Present)
March 2023 Director and President of the Company
in charge of the finance department(present post)

April 1976 Joined Bridgestone Tire Co., Ltd.
(currently Bridgestone Corporation)
November 1998 General Manager of Production System
Development Dept., ditto
March 2003 Plant Manager of Kumamoto Plant, ditto
January 2005 Plant Manager of Yokohama Plant, ditto
July 2005 Manager of Chemical and Industrial
Products Production Div., ditto
July 2008 President of Bridgestone EMK Co., Ltd.
February 2014 Senior Advisor, ditto
March 2014 Director of the Company (Present)

Masahiko Suzuki

Outside Director(Independent Directors)

Audit & Supervisory Board Member(Full-time)

Yutaka Hori
Outside Director(Independent Directors)
Chairman of the Nominating andCompensation Advisory Committee

Junko Watanabe
Member of the Nominating andCompensation Advisory Committee

April 1979 Registered as an attorney(Dai-ichi Tokyo Bar Association)
December 1989 Representative attorney of Hori &Associates Law Office(currently Hori & Partners) (Present)
June 1999 Lecturer of Graduate School ofInternational
Corporate Strategy, Hitotsubashi
University
April 2004 Executive and Vice President,
National University
Corporation Chiba University (Present)
April 2010 Commissioner of Public Interest
Corporation Commission (PICC) of
the Cabinet Office
March 2016 Director of the Company (Present)
June 2016 Outside Director of FIDEA Holdings
Co. Ltd.(Present)
August 2017 Outside Director of Pasona Group Inc.

April 1980 Joined Fuji Bank Limited(currently Mizuho Bank, Ltd.)
June 2003 General Manager of Hiyoshi Branch,
Mizuho Bank, Ltd.
February 2006 General Manager of Oji Branch, ditto
April 2008 General Manager of Diversity
Promotion Office, Human Resources
Dept., ditto
September 2010 Executive Officer of Mizuho ResearchInstitute Ltd.
May 2011 Senior Executive Officer, ditto
April 2014 Joined Joban Kosan Co., Ltd.,
Executive Officer
March 2020 Audit & Supervisory Board Member of
the Company
June 2020 Managing Director of Joban Kosan Co., Ltd.,
June 2022 Outside Audit & Supervisory Board
Member of KYB Corporation (Present)
March 2023 Director of the Company (Present)

Corporate
management

Finance /Accounting

Legal /
Compliance

GlobalSales /
Marketing

Akira Kiyohara

○

○

○

○

○

Shinsuke Uchinashi

○

○

○

○

Kazumi Nagasaki○○

Yutaka Hori○○

Junko Watanabe

○

○

60

○

○

○

ESG initiatives： Directors, audit & supervisory board members and corporate officers○

Manufacturing/
Quality control/ Research anddevelopment

Hiroko Nihei
Audit & Supervisory Board Member(Outside)(Independent Directors)

Knowledge, experience, and abilities possessed by Directors
Independent
OutsideDirector

Audit & Supervisory Board Member(Outside)(Independent Directors)

Environment /Society

Human resources
and labor
relations /Human resource
development

○

○

○

○

○

○

○

○

○

○

○

Corporate Officers

Hirokazu Nagashima

Tsuyoshi Inoue

Executive Vice President and Corporate Officer,
General Manager of the Industrial Equipment& Systems Business Unit, General Manager ofthe Electronics Assembly & Systems Companyof the Company, Representative Director,
President, and COO of JUKI AUTOMATIONSYSTEMS CORPORATION and General
Manager of the Inspection and Measurement
Business Dept. and a person in charge of
quality assurance, Chairman of TOKYO JUKI
INTERNATIONAL TRADING (SHANGHAI) CO., LTD.,
and Chairman of JUKI SMT ASIA CO., LTD.

General Manager of the Innovation andTechnology Development Dept., and a person
in charge of the Technical Planning and
Administration Dept.

April 1983 Appointed as judge
April 2006 Retired as judge, Registered as an attorney(Dai-ichi Tokyo Bar Association)
April 2006 Partner attorney of Nagashima
Ohno & Tsunematsu
March 2008 Appeal Examination Counselor of theJapan Patent Office (Present)
October 2008 Ad Hoc Member, the Industrial
Structure Council (Present)
October 2010 Auditor of the National Center for
Industrial Property Information andTraining (INPIT)
June 2011 Audit & Supervisory Board Memberof the Company (Present)
April 2016 Professor of Law, Waseda Law School(with Fixed-term of office)January 2022 Attorney at Law Managing Partner ofInuimon Law Offices (Present)
February 2022 Temporary member of Industrial
Structure Council

April 1999 Joined Fuji Bank, Ltd.
March 2008 Retired from Mizuho Bank, Ltd.
September 2009 Completed legal apprenticeship,
Registered as a lawyer (Daiichi Tokyo
Bar Association)
October 2009 Joined O’Melveny & Myers gaikokuho
kyodojigyo horitsujimusho, Associate
Attorney at Law
September 2014 Received a master of laws degree fromthe University of Oxford
January 2016 Counsel Attorney at Law at the samelaw firm (present post)
March 2019 Received a master of laws degree fromWaseda University, Graduate School of
Law (major in advanced legal studies,Intellectual Property Law )June 2019 Outside Audit & Supervisory Board
Member of Seed Corporation(to present)
January 2020 Supervisory Director of Invesco
Office J-REIT, Inc.
June 2022 Outside Director of Hokuetsu
Corporation (present post)
March 2023 Audit & Supervisory Board Member of
the Company (present post)

Senior Managing Officer,
Deputy in charge of the Business Operation
Center (the Sewing Machinery & System
Business Unit) in control of the sales
territory such as Southwest Asia, Middle
East, Central & South Africa, Southeast Asia,and Oceania [a representative in India] andGeneral Manager of the Asia Global Sales
Headquarters within the Sewing Machinery& System Business Unit of the Company,
Chairman of JUKI INDIA PVT. LTD., andChairman of JUKI SINGAPORE PTE. LTD.

Minoru Nitta
Managing Corporate Officer
General Manager of the Sewing Machinery& System Business Unit, General Managerof the Non-apparel Company, and a person
in charge of the Business Operation Center(the Sewing Machinery & System BusinessUnit) of the Company in control of thesales territory such as Americas, Europe,
CIS and Northern Africa, Representative
Director, President, and COO of JUKITECHNOSOLUTIONS CORPORATION,
Chairman of JUKI CENTRAL EUROPE SP.
ZO.O., and Chairman of JUKI ITALIA S.P.A.

Yutaka Abe
Managing Corporate Officer“In charge of Business Operation Center(deputy) (Sewing Machinery and Systems
Business Unit), (Responsible for China) ” andPresident (Sales) of JUKI (CHINA) CO., LTD.
and Chairman of JUKI (HONG KONG) LTD.

Jirou Ishibashi
Managing Corporate Officer
General Manager of the IoT Platform
Equipment & System Business Unit anddeputy in charge of the Business Operation
Center (the Sewing Machinery & System
Business Unit) responsible for the Business
Planning Dept., the Smart Solution Company,
and Alliances)

Kiyoshi Matsumoto
Managing Corporate Officer
In charge of the Global Co-Operate Center(the Corporate Planning Dept., the General
Affairs Dept., the Human Resources Dept.,
the Information System Dept., the Corporate
Communications Dept.) and the Production
Center (production site strategy project)

Hiroshi Anzai
Managing Corporate Officer
In charge of the Development Center and
the Global Co-operate Center (the Corporate
Planning Dept. [Alliance] and the Design
Strategy Dept.) of the Company, Managing
Officer of JUKI AUTOMATION SYSTEMSCORPORATION in charge of the Development
Center, and Managing Officer and General
Manager of the Development Center of JUKITECHNOSOLUTIONS CORPORATION

Keiichi Hashimoto
Managing Officer
In charge of the Production Center and General
Manager of the Production Planning Dept.

Tomohiro Takeda
CDO and General Manager of the Information
System Dept.
* CDO: Chief Digital Officer

Kunio Nukui(In charge of group companies)
General manager of JUKI (CHINA) CO., LTD.

Kenji Nakao
Deputy in charge of the Production Center,
General Manager of the Automation Promotion
Center, and General Manager of the Production
Engineering Dept.

Keiichi Uekusa
Deputy General Manager of the IoT Platform
Equipment & System Business Unit, General
Manager of the Customer Business Company,
and General Manager of the Business
Planning Dept.

Akira Tsukano
General Manager of Human Resources Dept.

Masanori Suzuki(In charge of group companies)
Representative Director and President of JUKIAIZU CORPORATION, General Manager of the
Aizu sub-office of the Sales Dept. of the Group
Business Company, and Chairman (in chargeof sales)of SUZUTAMI PRECISION INDUSTRY
CO., LTD.

Yasuyuki Suzuki
General Manager of Sewing Machinery
Development Dept. and in charge ofsewing allianceToshiyuki Yamanaka(In charge of group companies)
General Manager of the Apparel Sales Dept.
of the Asia Global Sales Headquarters within
the Sewing Machinery & System Business
Unit and General Manager in charge of
the Business Planning Dept. within the IoT
Platform Equipment & System Business Unitof the Company, President and Directorof JUKI SINGAPORE PTE.LTD. (in control ofsales territory such as Vietnam, Indonesia,
and Thailand), and President and Director of
JUKI (THAILAND) CO., LTD.

Daizo Minami
General Manager of Finance & Accounting Dept.

Hideya Sudo
(In charge of group companies)
President and CEO of JUKI INDUSTRIAL
EQUIPMENT TECHNOLOGY CORPORATION

Masanori Awasaki(In charge of group companies)
President and Director of JUKI AMERICA
INC. and a representative of JUKITECHNOSOLUTIONS CORPORATION in
the Americas

Michinari Sougawa
General Manager of the Corporate
Communications Dept. and theSecretarial Office

ESG initiatives： Directors, audit & supervisory board members and corporate officers

61

ESG initiatives

Structure of the Board of Directors Skill matrix of the Company’s Directors

Masatoshi Tanaka

Officers

Katsumi Nihei

Member of the Nominating andCompensation Advisory Committee

Outside Director(Independent Directors)

NameApril 1980 Joined the Company
June 2011 General Manager of Finance &Accounting Dept.
April 2016 Corporate Officer and General
Manager of Finance & Accounting Dept.
March 2019 Full-time Audit & Supervisory
Board Member

Kazumi Nagasaki

Shinsuke Uchinashi
President and Director in charge ofthe finance department (chairman of
the Cost Structure Reform Committee)
and in charge of internal control andcompliance (chairman of the Risk
Management Committee)

Audit & Supervisory Board Members

ESG initiatives

Corporate governance initiatives

Message from outside directors

Corporate governance and the roles our stakeholders expect us to play

Yutaka Hori
Outside Director
Chairman of the Nominating
and Compensation Advisory
Committee

In my capacity as a representative of shareholders, etc. as an outside director, I am always conscious of
the need to express my opinions about management frankly—even harshly if need —while at the same timeremaining non-judgmental. This is a policy I have consistently followed since assuming my position as an
outside director. In March of this year I was appointed as the chairman of the Nominating and Compensation
Advisory Committee. As chairman I report to management on my viewpoints and ideas as a representative of ourshareholders and other stakeholders. While the current board of directors is well organized from a managerial
standpoint and in its approach to handling management issues, the rapid changes in the business environment
in the wake of COVID-19, etc. require timely and astute responses. We find it increasingly necessary to further
invigorate our responses as a board and to respond flexibly to changes by discussing the issues at handactively and frankly, even when controversies and disagreements emerge. We can innovate new solutions andstrategies by discussing the issues without shying away from differences of opinion. I believe that JUKI will realize
sustainable growth and enhanced corporate value when all of its officers and employees, including the outside
directors, address the true causes of the company ’s problems and issues with a sense of ownership.

Challenges and future initiatives in the New Medium-term Management Plan

The new Medium-term Management Plan under the “Growth & Transformation Plan 2025” slogan, aplan we have been discussing and formulating since last year, must be executed solidly if the goals for2025 are to be achieved. The JUKI Group must work together to implement the three structural reforms(value-added structure reform, cost structure reform, and behavioral reform) and produce results asquickly as possible. While the business environment is certainly difficult, I am confident that JUKI isfully capable of achieving the goals of this Medium-term Management Plan. I would like to ask you towork firmly toward achieving these goals with a strong sense of ownership.

ESG management initiatives
The practice of ESG management is becoming an ever more important challenge. We cannot delay
in our work to soften JUKI’s environmental load by reducing CO2 emissions and going carbon-neutral,
to reshape our business structure to contribute socially and adapt to the new normal society, and tostrengthen corporate governance and risk management to realize these goals. As an outside director, I
would like to be actively involved in the promotion of ESG management from these perspectives.

Role as an Outside Director to strengthen corporate governanceI recognize that our role is to contribute to JUKI’s medium- to long-term growth by leveraging experience andexpertise as production and manufacturing experts. This is what our stakeholders expect from us. JUKI is making
efforts to strengthen its corporate governance. The ratio of outside directors on the Board of Directors has
increased to 60% this year. The higher ratio further reinforces our system for incorporating outside opinions.
I commend JUKI’s efforts to incorporate more diverse opinions and to strengthen corporate governance.

Appointed as an Outside Director
My first impression of JUKI is that it is a wonderful company that combines history, tradition, and hightechnology. Because of this, on the other hand, I also have the impression that many people at JUKI
share the same way of thinking. A highly homogeneous company is strong in times of stability. In timesof rapid change such as the present, however, a diverse mix of different elements in a management
team with experience and ideas from different industries will lead to the creation of new values. We
must strive for this diversity on the management team at JUKI.

New Medium-term Management Plan under the “Growth & Transformation Plan 2025” slogan

Outside Director
Member of the Nominating
and Compensation Advisory
Committee

Strengths of the JUKI Group

JUKI’s businesses are founded on 85 years of history and tradition. Our strengths lie in our ability to firmly
manage JUKI’s business under the strong leadership of top management. JUKI’s products, services, technologicalcapabilities, and manufacturing strengths differentiate the company from its competitors. These are our corestrengths. JUKI is still the world’s No. 1 manufacturer of industrial sewing machines, but the business environment
is changing drastically and the competition is becoming fierce. To stay at the top in this environment, we will haveto work tirelessly and innovate continuously. I am convinced that the only way for JUKI to hold its No. 1 position is
to continue providing customers with the products and services expected from JUKI .

Commitment to sustainability
I recognize that reducing CO2 emissions to soften our environmental load and achieving carbon neutrality by
2050 are lofty goals. We cannot achieve these goals without formulating a solid reduction plan and executing
it throughout the JUKI Group as soon as possible. It is extremely important that we achieve the reductions astargeted in our plans.
The “Sustainability Promotion Committee” firmly incorporated in our new Medium-term Management Plan wasestablished last year. I am hopeful that this organization will play a central role in driving our sustainability efforts.
62

ESG initiatives： Message from outside directors

Aspirations as an Outside Director to strengthen corporate governance

Junko
WatanabeOutside Director
Member of the Nominating
and Compensation Advisory
Committee

As an outside director, I would like to support the creation of new value at JUKI by honestly asking
questions of top management and expressing my frank opinions. I feel that JUKI is an open company
with an established corporate governance system in which the organization is willing to incorporate
the opinions of laymen as well as those of customers.

New Medium-term Management Plan under the “Growth & Transformation Plan 2025” slogan
In my opinion, the Medium-term Management Plan requires “70% certainty” and “30% challenge.” JUKI’s
new Medium-term Management Plan (2023-2025) is quite challenging. We must steadily implement the
PDCA cycle in order to achieve it. And in an era of great change like today, I also think we need the flexibility
to replot our plan courageously whenever needed, even in mid-course, along the way.

Strengths of the JUKI Group and Expectations for the JUKI Group in the Future
JUKI is proud of not only its technological capabilities, but also its constant efforts to integrate customer
needs with its own technological capabilities. JUKI’s strength lies in the consistent and thoroughimplementation of its customer-first philosophy from top management to front-line personnel. I also believethat JUKI has a strong ability to communicate its products and services, as well as its corporate culture.
I expect JUKI, as a global company, to continue taking on challenges flexibly and speedily far into the
future. I would like to see JUKI pioneer the creation of world-first products and services that meet the diverse
needs of a wide variety of customers around the world.
ESG initiatives： Message from outside directors

63

ESG initiatives

Kazumi
NagasakiThis new Medium-term Management Plan (2023-2025) sets out ambitious goals. I hope that all of JUKI’s
employees will work together to achieve these goals and quickly get the company back on a growth trajectory.
We must carefully check the progress of the Medium-term Management Plan and quickly correct our trajectory
whenever our performance deviates from the targets. The earlier we take action, the more certain we are toachieve the Medium-term Management Plan.

ESG initiatives

Corporate governance initiatives

Corporate governance

JUKI aims to achieve highly transparent management by communicating with our business partners,
investors, and shareholders, improving our corporate governance system, ensuring compliance, andstrengthening risk management.

Basic concepts
JUKI has positioned the appropriate maintenance and operation of its corporate governancesystem as one of its most important issues and has been working to improve and enhance the system
to ensure the soundness and efficiency of management and respond to the trust of its stakeholders.
JUKI also enhances the transparency of its management by making timely and accurate
information disclosures.

Audit & Supervisory Board
The Audit & Supervisory Board, a body consisting of threeaudit & supervisory board members–Masahiko Suzuki (aThe Company has introduced an Executive Officer systemchairman, a full-time Audit & Supervisory Board Member),and a Corporate Officer system (for officers equivalent to

Masatoshi Tanaka (Outside), and Hiroko Nihei (Outside)–has

Corporate Officers except Corporate Officers with special titles)

established an Audit & Supervisory Board Member Section toto try to facilitate business executions and clarify responsibility.

assist the audit & supervisory board members. Each member

All Directors, excluding Directors Kazumi Nagasaki and Yutaka

conducts audits in accordance with the audit policy andHori, concurrently serve as Executive Officers. The number ofdivision of duties established by the Audit & Supervisory

Executive Officers is eight (8), and the number of Corporate

Board, and audits the execution of duties by directors.

Officers is thirteen (13). The Company has positioned andnurtured Corporate Officers (officers equivalent to Corporate

Internal audit

Corporate governance system

Officers except Corporate Officers with special titles) as

The Company has established the Group Internal Auditing

Board of Directors

Training for Directors and Audit & Supervisory Board Members

An Executive Officer System and a Corporate
Officer System

Department, which consists of seven (7) members. As part ofsuccessors to Executive Officers with special titles, and has
promoted young employees to invigorate them.

its business activities, the Company conducts business audits

The Company has established a Management Strategy

of each division of the Company and group companies.

Council under the Board of Directors. With regard to the

The Board of Directors, a body consisting of five directors–

The Company has appointed persons who can fully fulfill

Akira Kiyohara (a chairman, and Representative Director,

the roles and responsibilities expected of Directors and Audit

Chairman, and CEO), Shinsuke Uchinashi, Kazumi Nagasaki& Supervisory Board Members, including Outside Officers.

Nomination and Remuneration Advisory Committee(Outside), Hiroshi Hori (Outside), and Junko Watanabe

In light of this, the Company promotes the understanding ofOfficers with titles in charge, the Corporate Officers in(Outside)–makes decisions on matters required by law

the roles and responsibilities expected of Directors, including

In addition, the Company has established the Designation

charge and the heads of departments in charge attend

and important management matters, and supervises thelegal knowledge, of newly appointed officers, who have been

and Reward Advisory Committee as a voluntary advisory

the council. The council deliberates from various angles

execution of operations on a continuous basis.

promoted internally, by utilizing external training sessions andbody under the Board of Directors for the purposeof strengthening the independence, objectivity andon basic policies and strategies for management, thereby

accountability of the functions of the Board of Directors

enabling more appropriate decision-making and businessregarding the nomination and remuneration of the senior

execution. The Board of Directors makes decisions on

management and Directors and Audit & Supervisory

particularly important matters among those submitted to

Board Members. The said committee is composed of four

the Management Strategy Council.

such. As for Outside Directors and Outside Audit & Supervisory
Board Members, the Company conducts activities tounderstand the business and functions of the Company atthe time of their appointment and periodically thereafter.

members: Hiroshi Hori (Chairman: Outside Director), Kazumi
Nagasaki (Outside Director), Junko Watanabe (Outside

Corporate governance system(as of March 28, 2023)

Director), and Akira Kiyohara (Chairman and CEO).

General meeting of shareholders
Election and dismissal

Designation
and reward
Advisory
Committee

Consultation
ReportElection and dismissal

Directors Board of directors(Chair: Representative Director
Chairman and CEO)Appointment, removal, and supervision

Representative Director
President and COO

Group Internal
Auditing Department

Internal
audit

Department incharge of legal work
Spread andmanagement ofcomplianceeducation

Sustainability
Promotion
Committee

Presentation
and report ofimportantagendaESG initiatives： Corporate governance

2015

Auditors’ office

A “JUKI Group Employees’ Code of Conduct”
is established.

A “JUKI Group Corporate Philosophy System Chart”

2018

Accounting

audit report
Audit &
Supervisory Board
Audit Members Audit & Mutual coordination
Supervisory Board

Accounting auditors

Organizational Structure
Organizational Structure

Decision on resolutions ofelection, dismissal, and so on

A company with an Audit andSupervisory Board

is established.

A Nomination and Remuneration Advisory
Committee is established.
A system for Corporate Officers equivalent function of

2020

Executive Officers is introduced, excluding Corporate
Officers with special titles.
The positions of Representative Director, Chairman

Total number of directors

5 (In-house: 2; Outside: 3)2021

and CEO (Chief Executive Officer) and Representative
Director, President and COO (Chief Operating Officer)
are established.

Report on risks
response
policies
Monitoring

Monitoring,
improvement,
instruction

Ratio of outside(independent) directors

Presentation

Risk Management
Conference
Instructions andsupervision

A restricted stock-based remuneration system

60%

for directors (excluding outside directors), etc.

2022
Presentation
and report

Crisis-managementtask force

Director’s term of office
CrisisCountermeasures
Headquarters(When aInstructions
serious crisisandhas occurred) supervision

All departments of JUKI Corporation, and its group companies

64

Initiatives Taken to Enhance Corporate GovernanceElection and dismissal
Accounting audit reportManagement Strategy
CouncilPresentation
and reportcompanies, the Board of Directors, as well as the Executive

ESG initiatives

Director in charge ofinternal control and compliancecorporate group consisting of the Company and the groupis introduced.
A Sustainability Promotion Committee has

1 yearbeen established.
The Representative Director, Chairman, and CEO

Executive officer
system introduced(Chief Executive Officer) also serves as COO (Chief

Yes

Operating Officer).

2023

ReportOrganization to assist
the president inmaking decision

Nomination and Remuneration
Advisory Committee

The Board of Directors is composed of two internal
and three outside members.
An outside director was appointed as chairman of theNominating and Compensation Committee.

ESG initiatives： Corporate governance

65

ESG initiatives

Corporate governance initiatives

Corporate governanceEvaluation of the Effectiveness of theBoard of Directors

The operating status of the Company’s Board of Directors
is as follows.
(1) In accordance with the Board of Directors Regulations,
the Board of Directors selects all important matters as
proposals and meets monthly in principle to discussthem in a timely and appropriate manner.
(2) Prior to deliberation by the Board of Directors, problems,issues, risks and their countermeasures are clarified atmeetings such as the Corporate Strategy Committee,
and the effectiveness of discussions is enhanced.
(3) In order for the Board of Directors to conduct smooth andactive discussions and conduct sufficient deliberations,materials for the Board of Directors are distributed inadvance, and in particular, the content is explained to
Outside Directors and Outside Audit & Supervisory Board
Members in advance.
The Company conducts self-evaluation throughquestionnaires once a year for Directors and Audit &Supervisory Board Members, and after totaling the selfevaluation, the Board of Directors conducts“Analysis and
Evaluation of the Effectiveness of the Board of Directors.”
In the evaluation for fiscal 2022, we confirmed that theeffectiveness of the Board of Directors as a whole is ensured
for the following reasons.
(1) The composition of the Board of Directors is appropriate inlight of the content and scale of the Company’s business.
(2) The management of the Board of Directors isappropriately conducted from the viewpoints of thefrequency of meetings and the content of materials.
(3) The deliberations of the Board of Directors areappropriate from the perspective of the content of thedeliberations, such as the selection of agenda items, thedeliberation time, and the statements of the attendees.
(4) The system to support Directors is appropriate from theperspective of opportunities to exchange information
with top management or to deepen understanding of
the contents of proposals and business other than the
Board of Directors.

Our initiatives to strengthen Corporate
Governance to date66

ESG initiatives： Corporate governanceInternal control system

Matters related to the policy for determining the details of
individual remuneration for Directors

The Board of Directors has adopted the “Basic Policy for the Establishmentof an Internal Control System.” The contents of the policy are as follows.

Basic policy
The remuneration, etc., for Directors of the Company, is provided under aremuneration system whereby incentives function to enhance the company’ssustainable growth and corporate value.
The total amount of remuneration for directors is determined at the Ordinary
General Meeting of Shareholders. The amount consists of a “Monthly
Remuneration (fixed remuneration),” a “Performance-based Remuneration(bonus)” that varies according to the achievement of the consolidated
performance targets, and a “Restricted Stock-based Remuneration.”
Directors’ monthly remuneration is determined based on the evaluation of the
Director’s responsibilities every fiscal year. Performance-linked remuneration(bonus) is determined based on the evaluation of individual performance andachievement and paid at a determined point in time every fiscal year by taking
into account comprehensive factors, including the status of achieving company
business performance and dividends and calculating the total payment amountusing consolidated ordinary profit as a key indicator, which reflects the level of
earning power of the Company Group. To promote further value-sharing withshareholders, we will also determine the Restricted Stock-based Compensationby allocating shares in a quantity commensurate with job responsibilities,
based on an evaluation of job responsibilities performed in each fiscal year.
Consolidated ordinary profit for the said fiscal year was 1,163 million yen.
Remuneration, etc., for Outside Directors consists of only monthly
remuneration from the viewpoint of their role of overseeing and supervising
management and their independence.
The overview of restricted stock-based remuneration is as follows:- Maximum amount of restricted stock-based remuneration:
50 million yen in total (per year)- Maximum number of restricted stocks granted: 100,000 (per year)- Transfer restriction period: Until the day of resignation

Determination process

As for the process of determining Directors ’ remuneration, etc., toreinforce the independence and objectivity of the function related to thedetermination of remuneration for Directors, the Designation and reward
Advisory Committee, which is comprised of four Directors, including three
Independent Outside Directors, deliberates a remuneration plan proposedby the Representative Director, Chairman and CEO, and reports to theBoard of Directors. The Board of Directors deliberates the appropriatenessof the details of the report submitted by the committee.
With respect to the individual remuneration of directors for the fiscal year,
the Board of Directors shall review the report from the said committee andconfirm that the method of determining the details of the remuneration andthe details of the determined remuneration are consistent and in line withthe decision policy approved by the Board of Directors.

Matters related to the resolution of the Board of Directors
concerning remuneration, etc.
The 92nd Ordinary General Meeting of Shareholders held on June 28, 2007,
resolved that the maximum amount of the remuneration, etc. for the Directors(excluding employee salary for employees concurrently assuming a position
as a Director) and Audit & Supervisory Board Members of the Company would
be 480 million yen and 80 million yen per year, respectively. The number of
directors at the conclusion of the said Ordinary General Meeting was nine.
In addition, pursuant to a resolution adopted at the 107th Ordinary General
Meeting of Shareholders held on March 28, 2022, the annual amount of
the Restricted Stock-based Compensation within the Scope of the above
compensation, etc. for Directors other than Outside Directors shall not exceed
50 million yen, and the maximum number of shares shall not exceed 100,000.
The number of directors other than outside directors at the conclusion of thesaid Ordinary General Meeting of Shareholders was three.

System to ensure that Directors execute their duties incompliance with relevant laws and regulations and the
Articles of Incorporation of the Company(1) The Company shall establish the “JUKI Code of Conduct,” which shallprovide the principles of the JUKI corporate philosophy as a legal entity,
in order to make clear its positive attitude towards legal compliance.
(2) The Company shall establish the “JUKI Group Employees ’ Code of
Conduct,” a set of specific guidelines for the execution of duties, inorder to make officers and employees proactively acknowledge theimportance of compliance with laws and regulations.
(3) The system for compliance and compliance management of the wholebusiness group consisting of the Company and its subsidiaries (hereinafter“group companies ” ) shall be provided in the “ Compliance Rules.”(4) The Company shall take a resolute attitude toward any antisocial
individuals and organizations that adversely influence social order andsound corporate activities.

System to store and control information related to Directors’
execution of duties(1) The Company shall establish the “ Rules for Retaining Important
Documents” and shall retain and control information related to the
execution of duties by Directors in accordance with the said Rules.

Rules and other systems for managing risk of loss of theCompany and group companies(1) The Company shall establish the “Risk Management Rules” to manage
risks of the Company and all group companies.
(2) The Company shall establish the “Risk Management Committee” toexamine significant risks the Company faces and prepare preventive
measures against such risks, and shall manage each division’s andeach department ’s preventive measures activities against risks.
(3) The “Crisis Control Headquarters” or the “Crisis-Management Task
Force ” shall take prompt actions against any materialized risks
depending on the scale of the risks.

System to ensure that Directors, etc. of the Company andgroup companies execute their duties efficiently(1) The Company is striving to facilitate the prompt execution of duties byDirectors by adopting a Managing Officer and Corporate Officer system(Corporate officers are Managing Officers who are not Directors) underwhich the Managing Officers and Corporate Officers may be given
some of the authority required for executing Directors ’ duties.
(2) Employees may be given some of the authority required for executing
Directors’ duties in accordance with the “Board of Directors Rules” and“Authorization Rules,” for the purpose of efficient decision making.
(3) Important decision-making matters shall be deliberated at the“Management Strategy Council” and decisions shall be made by the
Representative Director, Chairman and COO.
(4) The “ Sustainability Promotion Committee ” shall deliberate anddecide the formulation of the company policies and goals relating tosustainability, and shall build and establish the system to implement its
policies and goals and monitor various measures.
(5) Rules for executing Directors ’ duties shall be provided in
the “ Organization Rules,” and Directors shall make efforts toefficiently execute their duties in accordance with the said Rules.

System to ensure that the execution of the duties of ouremployees and the execution of the duties of the directors
and employees of our group companies comply with theregulations and the articles of incorporation(1) We shall establish a “JUKI Corporate Code of Conduct” prescribing thebasic ways we are to act as a company and clarifying the concepts oflegal compliance.
(2) We shall establish a “JUKI Employee’s Code of Conduct” as a detailed
standard of behavior for employees in the execution of their duties andshall strive to carry out thorough legal compliance.
(3) In order to carry out thorough legal compliance, our department incharge of legal affairs shall conduct and disseminate education oncompliance and managerial activities.
(4) We shall appoint an officer in charge of internal control and complianceand endeavor to control the related organizations and activities.
(5) Our “Regulations on Compliance” shall establish a system and proceduresfor the compliance of our company and the group companies.
(6) We shall provide a “consultation service for employees ” to directly
respond to employees ’ questions on compliance.

System for reporting to our company on matters regarding
the execution of the duties of the directors of our groupcompany, etc.
(1) A group company shall report management policies and management
plans to our company in “the Group Management Meeting” to enable
our company to check and adjust the same.
(2) A group company shall report to our company in accordance withthe “Regulation on the Management of Group Companies,” regularly
according to need.
(3) The directors of a group company, etc. shall report promptly to our
executive officer in charge of internal control and compliance in theevent that there are facts indicating remarkable damage incurred by acompany, fraudulence in a director ’s execution of duties, or violations
in regulations or the articles of incorporation.

Other systems to ensure adequate business in the businessgroup consisting of our company and the group companies.
(1) We shall establish a management control system according to our functionalorganization in our “Regulations on Organization” and “the Regulations
on the Management of Our Group Companies.”(2) We shall establish a rule on decision-making on the distribution ofmanagement resources in our group companies in the “Regulationsof Authority.”(3) Our Group Internal Auditing Department shall conduct internal audits ofour group companies when needed.

Matters regarding an employee appointed by the Audit &Supervisory Board Members to assist them in the executionof their duties(1) We shall establish “Auditor’s office” that reports to the Audit & Supervisory
Board Members as an organization to assist them.

Matters regarding the independence of the employee
stipulated in the preceding clause from the directors andmeasures taken to secure the effectiveness of instructions
from the directors to the said employee(1) An Audit & Supervisory Board Member may remark on a personnel transfer
and personnel evaluation of an employee who belongs to the Auditor’s office.

ESG initiatives： Corporate governance67

ESG initiatives

The Board of Director ’ s meetings are mainly held in theconference room, a venue conducive to the close exchangeof opinions among the directors. Because of the constraintsof the COVID-19 pandemic, however, the meetings are also
sometimes held over the Internet when conditions call for it.
Based on the Analysis and Evaluation of the Effectiveness of
the Board of Directors, we will use more focused handouts
for the Board of Directors to improve the time requiredfor deliberation. At the same time, we will make efforts toincrease the exchange of opinions at the Board of Directors
to ensure the effectiveness of the Board of Directors, establish
a more well-developed corporate governance system, andfurther enhance our corporate value.

Remuneration system for Officers

ESG initiatives

Corporate governance initiatives

Corporate governance(2) An employee who belongs to the Auditor ’s office collects informationnecessary for the Audit & Supervisory Board Member ’s audit promptly
in accordance with their instructions.

System for enabling our directors, directors of our groupcompanies and employees to report to the Audit & Supervisory
Board Member(1) A full-time Audit & Supervisory Board Member shall attend meetings ofimportant bodies such as the Board of Directors Meeting, Management
Strategy Council, Group Management Meeting, Risk Management
Conference, etc. to collect necessary information in person.
(2) Our directors, directors of our group companies, and employees shall reportto an Audit & Supervisory Board Member promptly upon becoming awareof any facts suggestive of the risk that the company will incur significant
damage, that a director has committed fraud in the execution of duties, orthat the regulations or articles of incorporation of the company are violated.
(3) An Audit & Supervisory Board Member shall receive information directly froma department in charge, directors of our group companies, and employees incase that he or she judges to be necessary.

System to ensure that a person who has made a report
stipulated in the preceding clause is not unfavorably treatedon the grounds of making the said report.

(1) The “compliance regulations” clearly state that a person who reports toan Audit & Supervisory Board Member are not to be unfavorably treated for
doing so, and our directors, directors of our group company, and employees
shall be kept informed about this regulation.

Policies regarding procedures for advance payment ofexpenses or reimbursement of expenses that accrue during
the execution of an Audit & Supervisory Board Member’s workor regarding the processing of expenses or debts that accrue
during the execution of other work.
(1) We shall pay expenses that accrue during the execution of an Audit &Supervisory Board Member’s work and appropriate the budget he or sheplans every year.
(2) When an Audit & Supervisory Board Member judges that the occurrenceof expenses is necessary to ensure the effectiveness of an audit, we shallhandle the expenses appropriately even if they are outside the budget
stipulated in the preceding item.

Other systems to ensure that an Audit & Supervisory Board
Member ’s audit is conducted effectively

System to ensure the reliability of financial reporting(1) We shall prepare and operate a system that enables the effective functioningof the internal control of reliable financial reporting.

68

ESG initiatives： Corporate governance

Overview of operation status

Basic concepts

Whistle-blower system

The following is an overview of the operation of the system to ensure theappropriateness of business operations in fiscal 2022.

To fulfill our accountability as a company, secure the trustof our stakeholders, and maintain and further enhance ourcorporate value, we strive to efficiently ensure thoroughcompliance, including ethics and soft law, as well as legal
compliance in the JUKI Group as a matter of course.
We have established the “JUKI Corporate Code of Conduct”
and the “JUKI Group Employee’ Code of Conduct,” as well asother compliance-related rules and regulations that serve as
norms for the JUKI Group and its officers and employees, inorder to choose appropriate actions, maintain a compliancesystem based on these rules and regulations, and educate
JUKI Group officers and employees.
Within our internal control system, compliance ispositioned and managed as one of the most importantmanagement issues to be promoted and addressed by the
JUKI Group as a whole.

In addition to absorbing and preventing risks related tocompliance violations, the JUKI Group has establishedemployee consultation offices or compliance consultation
offices at all of its group companies in order to quickly
identify and respond to any violations that may haveoccurred. The JUKI Group allows employees to report on
and notify the company of problems that may interfere, or
actually have interfered, with compliance, management,
and business execution in the JUKI Group. In addition,
employees of group companies may consult not onlywith the employee consultation offices of their respective
companies, but also with the department in chargeof compliance (our Legal Department). “ Suggestion
boxes ” have also been set up at our manufacturinggroup companies, and the documents placed inside theboxes are sent directly to the department in charge ofcompliance for action.
We have also confirmed that no employee shall betreated unfavorably as a consequence of having reported
a compliance violation through this whistle-blower system.

Risk management system

・In accordance with the “Risk Management Rules,” the Company held the Risk

Management Committee meetings once every quarter in principle to identify,
evaluate and take measures to risks including those at group companies.
・The Company improved the system by establishing the “Crisis Control
Headquarters” and the “ Crisis-Management Task Force” to addressrisks depending on the regions, scale, and content of the emergedrisks, and carry out deliberation and reports to the Board of Directors.

System for Directors to execute their duties

・Under the “ Board of Directors Rules,” “ Director and Managing
Officer Rules,” “ Corporate Officer Rules,” “Authorization Rules,” and“ Organization Rules,” the Company strives to ensure that duties are

executed promptly and efficiently by Directors.

・The Management Strategy Committee is held twice a month in principle,

and decisions on important matters are made promptly.

System for management of group companies

・The Company has determined the reporting system, and the management
control system by functional organization in its “ Organization Rules”
and “Group Companies Management Rules.” The Group Management

Conference was held once every half year to report on management
policies and management plans of group companies, and to checkand adjust their implementation.

Internal audits

・Internal audits of the Company and its group companies were conductedin accordance with an internal audit plan.

・Self-assessments centered on key matters and individual topics werecarried out, targeting group companies and sites, and guidance for
improvement was given based on the outcomes of these self-assessments.

System relating to activities of the Audit & Supervisory
Board Members

・The “Audit & Supervisory Board Members Section” has been established

as an organization to assist the Audit & Supervisory Board Members, andhas been collecting necessary information.
・The Audit & Supervisory Board Members have been exchanging opinionswith Representative Director once every three months.
・The Audit & Supervisory Board Members have been regularly exchanging
information with certified public accountants regarding accounting audits,
to ensure the effectiveness of the audits.

Framework for promoting compliance
We make decisions on the maintenance and improvementof the compliance system and important compliance-related
matters in the Board of Directors. Under this framework, thePresident and Director, as the chief officer in charge of “Internal
Control and Compliance,” oversees the Group Audit Dept.
and the Legal Department. The Risk Management Meeting,which is operated by the Legal Department as the secretariat,
appropriately maintains the compliance system established by
the JUKI Group, provides overall management and guidanceon new compliance risks due to changes in the environment,
and strengthens the management of the entire JUKI Group.
In accordance with the Compliance Regulations, we also
ensure thorough compliance by establishing, maintaining,and operating a compliance system that is applied to all
Group companies. We have also established the “JUKI Group
Employee’ Code of Conduct” to keep our group officers andemployees informed about compliance, and we present a“Declaration on Antisocial Forces ” to our stakeholders andsupply chain to maintain good relationships with them.

Compliance promotion structure chart
Officer in charge ofinternal control and complianceGroup Audit Dept.

Internal
audit

Legal Department

Main Initiatives
To ensure thorough compliance, our Legal Department,group companies, and overseas controlling companies havetheir own roles to play in addressing compliance. Our Legal
Department is responsible for compliance activities as the JUKI
Group’s cross-functional compliance control department.
Group-wide compliance risks that could have a significant
impact on management and business through the Group’s
supply chains are managed by the members of the Risk
Management Meeting. Specifically, we convene a Risk
Management Meeting to discuss and evaluate the compliancerisk trends, the implementation and monitoring of remedial
measures, the determination of additional countermeasures,and the appropriateness of those countermeasures.
The department in charge of compliance also provides
training on the following topics to officers and employees
who are seconded to the group companies as presidents
or directors: the “JUKI Group Employees’ Code of Conduct,”compliance risks that may be faced in corporate
management, risk management, and compliance withthe regulations and laws in different countries.
We also work with the group companies to gather informationon the enactment and amendment of domestic and foreignlaws and regulations that may relate to business activities, andtake necessary measures by examining how such enactments
and amendments affect our business activities.

Complianceeducation,
popularization,and management
activities

All departments of JUKI Corporation,and its group companies

ESG initiatives： Compliance69

ESG initiatives(1) In addition to attending the board of directors’ meetings to express hisor her opinions, he or she may exchange views with a representative
director at any time to raise the effectiveness of the Audit & Supervisory
Board Member ’s audit.
(2) An Audit & Supervisory Board Member shall cooperate with the GroupInternal Auditing Department and conduct audits as the need arises.
(3) An Audit & Supervisory Board Member shall cooperate with a corporate
lawyer and an accounting auditor, and conduct audits as the need arises.

ComplianceESG initiatives

Corporate governance initiatives

Risk management

JUKI assumes risks that could have a significant impact on its financial position, operating results, and cash flow position in the
future, and JUKI manages these risks to minimize damage if they occur.

Item

Risks

An approach useful for responding● Identify and address the security-related regulations in

Risk management initiatives
JUKI has established and operates a risk management system to appropriately address all Group risks. The risk management functions under the system are

Security-related
management

Tightening the regulations according tochanging international conditions

Securement of
human resources

Low birthrate and longevity in Japan
Rapid changes in labor markets overseas

Various hazards

Natural disasters such as earthquakes andfloods, and global infectious disease pandemics
Material and human damage caused by war
and terrorism

largely controlled by the Management Strategy Council, a body that handles strategic risks, the Crisis Response Headquarters, a body responsible for business

different countries at the Risk Management Meeting held
four times a year.
● Establish an internal system to promptly respond to thoseregulations as appropriate.

continuity, and the Risk Management Committee, a body made up of executive officers and the heads of departments and Group companies.
JUKI also conducts annual policy reviews and quarterly risk assessments and monitoring surveys to respond to changes in the risk environment, including changes
in political and economic conditions, quality assurance, environmental regulations, information security, security trade, compliance, and occupational healthand safety. If a major risk emerges, the details of the risk response are reported and discussed at the Board of Directors to ensure continuous improvement.

Significant risks and ways to respond to them
Item

Political andeconomic situation

Risks
Adverse effects due to unpredictable demand
fluctuations caused by political systems,
economic conditions, conflicts, and economic
fluctuations in countries and regions where we
do business around the world

An approach useful for responding● Gather reports and information from each group company

at the Group Management Meeting held twice a year, andtake appropriate action.

Important lawsuits, etc.

Lawsuits on consumer protection, theprotection of private information, and various
other legal regulations● Analyze and reflect on appropriate measures at the Risk

Business activities

Fluctuations and trends in production andsales activities, the competitive environment,
customer needs, laws and regulations, andoperational bases such as logistics

Financial market

Conversion and transaction risks caused byfluctuations in exchange and interest rates
Impact on the prices of products sold or
materials procured in foreign currencies

Management Meeting held four times a year.

● Establish an internal system to promptly respond to thoseregulations as appropriate.
● Strengthen supply chains by establishing a flexible
and streamlined logistics system linked to sales andproduction strategies.

● Identify and gather information on the occurrence of foreignexchange risks at the monthly foreign exchange meetings.
● Take countermeasures by appropriating foreign currency
revenues from exports to settle imports, using forward
exchange contracts, raising funds based on interest ratelevels, and reducing interest-bearing debt.
● Find new market needs by building close relationships with

Research & Development
activities

Intellectual property
protection

Dealing with specific areas where protectionof that property is difficult Unintentionallyinfringing the intellectual property rights ofother companies

Product liability risks not covered by insurance

customers, and leverage cases of products being used in the
new markets.
● Reinforce the function of the R&D centers close to markets.
● Utilize open innovation for R&D resilient to changes in themarket environment.

Credibility of thepurchasers

Obstacles to debt collection due tounforeseen circumstances or business
partner bankruptcies.

Impairment accounting

Application of fixed asset impairment
accounting due to a significant decline in themarket value of fixed assets and a significant
deterioration in the profitability of the business

Hostile buyout

Damage to our corporate value due to a tender
offer (TOB) for shares or the purchase of a large
number of shares in a market transaction

70

Even tighter legal regulations on diverse
environmental issues in different countries

ESG initiatives： Risk management● Build a security system by developing a business continuity

plan (BCP), etc.

● Establishing internal response systems and promptly

responding to situations involving risk, as appropriate● Get the latest information to keep abreast of legal andregulatory trends in different countries.

● Promptly responding to situations involving litigation risks,

together with the legal departments● Maintain the confidentiality of information, establish

a management system to protect information fromunauthorized access, and take appropriate security
measures against the falsification, destruction, leakage,and loss of information.

● Confirming the creditworthiness of business partners byreviewing financial information● Monitoring the performance of each subsidiary andidentifying and responding to any signs of insolvency● Improve our profitability and financial structure in order toreduce the risk of hostile acquisitions.

● Enhancing corporate value● Disseminating and disclosing information to gain the trustof shareholders, as appropriate● Use an appropriate management system established by the

Spreading false rumors

Spreading of bad publicity, malicious rumors, orslanderous or libelous attacks over the Internet, etc.
Damage to the credit and corporate image ofthe company

Labor risks

Occurrence of work-related accidents due to
deficient labor management, and declines in thehealth of employees caused by working long hours
Loss of the company ’s social credibility

Compliance

Exposure to criminal, civil, or administrative
liability and losses of social credibility due toviolations of laws and regulations, etc.

Intellectual Property Dept.

● Strengthen quality measures at the group quality assurance

meetings held six times a year and deploy daily quality
improvement activities.

● Identify and address the environmental regulations inEnvironment

at more than 30 subsidiaries and affiliates in Japan andoverseas.

different countries at the Risk Management Meeting held
four times a year.
● Formulate green procurement guidelines that go beyond
compliance with laws and regulations, and engage inactivities to reduce environmental load based on different
policies decided by the company.

● Implement proper business operations on a daily basis.
● Resolve unfavorable situations appropriately throughESG initiatives

Product Liability (PL)

Fluctuations in market needs due to changes
in the social environment

Risk of information leaks

Accidents related to leaks of customer
information, confidential business and technicalinformation, and the like

● Secure and develop human resources on a global scale

fact-finding and legal proceedings.

● Implement labor management of employee safety andhealth in compliance with laws and regulations.

● Take countermeasures based on the monitoring of labor

management status and countermeasures at the Risk
Management Meeting held four times a year.

● Establish and run a compliance system in accordancewith the Compliance Regulations.

● Ensure that every employee is familiar with the Codeof Conduct.

ESG initiatives： Risk management

71Data sections

Financial/Non-financial data
Financial highlights

Non-financial highlights

Net sales

Ordinary profit / Ordinary profit ratio(million yen)(million yen)(%)

10,00012.5

120,000

117,454

112,064
101,292

99,169100,000

8,000

8,385

70,401

4,000

7.5

8.5

3,439

2,941

2,000

60,0003.0

040,000-3,957

5.0

1,163

3.4

-4,000

2,219

2,178

2,000

2018

2019

2020

2021

(year)

2022

2018

2019

2021

2022

Ordinary profit for FY2022 decreased by 66.2% from the previous year to
1,163 million yen due to JUKI’s delays in raising product prices to meetthe higher cost burdens overall and the incompletion of improvements in
JUKI’s product portfolio toward value-added businesses.

Net income attributable to owners of the parent / Net income ratio

Return on equity (ROE)(million yen)

(%)

(%)

8,000

10.0

20

6,000

7.5

15

4,000

5.0

10

6,640

5.9
2,000

1,763
-4,688

1.8

0

2,154

2,069

1,792

1,845

2.1

-78
-0.1

-2,000-4,000-6,000-6.7-,8000

2018

2019

2020

2021

2.5

5

0.0

0

-2.5

-5

-5.0

-10

-7.5

-15

-10.0

-20

2022

Net income for FY2022 fell by 2,232 million yen to minus 78 million yen.

(year)

20

6.50

(%)

2021

2022

73.55

60.20

50

8.28

2.91

-2.66

-2.5

-200

2021

Net income per share for FY2022 was minus 2.66 yen.

Data sections： Financial/Non-financial data

2022

(year)(year)

0.0

2018

2019

2018

2019

The ROIC for FY2022 was 1.59%.

2020

2021

2022

(Note) Including investments in facilities/development/IT/human capital,and staffing

2020

2021

2022

(t)

50,000

6,000

5,000

36,66334,58730,794

Amount recycled (t)Amount of waste, etc. discharged (t)

5,244

4,000

28,047

3,257
3,000

20,000

2,584

3,075

2,883
2,277

2,086

2,356

2,146
1,329

1,000

0

2018

2019

2020

2021

2022

(year)

2018

2019

2020

2021

2022

We are promoting the replacement of our existing energy sources withrenewable energies by switching to equipment with less environmental load,
adopting smarter production methods, installing solar panels, etc.
(Note) Offices covered: the head office in Tama City, the OHTAWARA PLANTof JUKI CORPORATION, and 10 manufacturing companies of the JUKI Group.

Due to the recovery of business activities in FY2022 following the peak
constraints from the COVID-19 pandemic, the amount of waste and otheremissions for the year totaled 3,075 tons, of which 2,356 tons were recycled.
This marked a decrease in the amount of waste from the FY2021 level(Note) Offices covered: the head office in Tama City, the OHTAWARA PLANT of
JUKI CORPORATION, and 10 manufacturing companies of the JUKI Group.

Number of employees (Japanese / Foreign nationals)

Ratio of female management positions

Japanese
5,891

5,762

Foreign nationals (national staff)

(%)
10.0

5,287

5,255

5,230

9.0
8.0

3,417

3,300

7.0

2,903

2,955

2,951

6.0

5.7

6.3

6.5

6.5

6.3

2020

2021

2022

5.0
4.0

2,000

(year)

-10.0

2020

2022

3.0

2,474

2,462

2,384

2,300

2,279

2021

2022

2.0
1.0
0.0

0

-5.20

0.2

0.280

2018

2019

2020

As the human resources secured in FY2022 were mainly from overseas sites,
the ratio of national staff accounted for 56% of the total staff for the year.
We are proactively recruiting foreign nationals in Japan and are promoting
national staff to management positions overseas.

(year)

2018

2019

The ratio of female management positions in FY2022 decreased due to anincrease in male management positions associated with the addition of JUKITECHNOSOLUTIONS CORPORATION to the offices covered.
(Note) Offices covered: the head office in Tama City, the OHTAWARA PLANTof JUKI CORPORATION, and JUKI AUTOMATION SYSTEMS CORPORATION, JUKITECHNOSOLUTIONS CORPORATION.

Data sections： Financial/Non-financial data

73

Data sections

-150

0.4

(t-CO2)

1,000

-7.5

2019

2021

3,000

1.59

-5.0

-100

2018

2020

0.0

-50

0.6

Amount of waste, etc. discharged / Amount recycled

4,000

2.87

15

CO2 emissions (Scope1.2)

6,000

2.5

-160.04

0

2019

5,000

5.0

14

(Note) Starting from this fiscal year, the number of work-related accidents
occurring at the Tama head office, Ohtawara Plant, and 10 domestic andoverseas manufacturing sites are included in the number of work-related
accidents overall (including accidents not resulting in lost worktime).

(Employees)

7.5

100

2018

0

2020

0.8

The total number of industrial property rights (domestic and foreign patentand design rights) obtained as a result of R&D activities was 1,792.

(year)-13.77
2019

0.719

0

0

(year)

10,000

2018

0.721

0.557

2,000

(yen)

150

15

13

5

30,000-0.2

Return on Invested Capital (ROIC)

200

0.707

15

42,382The ROE for FY2022 was minus 0.2%.

10.0

1.0

1,000

40,000Net income per share
226.68

1.2

25

1,500

19.18

4.79

(%)

27

10

-7.5

2020

Frequency rate

Number of work-related accidents-2.5

Net sales for FY2022 grew by only 16.0% from the previous year to 117,454
million yen. The two main factors curbing sales were sluggish capital
investment demand caused by the zero-Covid-19 policy in China and the
postponement of purchases in the fourth quarter caused by deteriorating
foreign currency conditions in emerging countries in Asia, etc.

72

30

-5.0

-5.6

-6,0000(year)(year)

2,500

500

20,000250(Numberof cases)

2.5
0.0

1.0

-2,000(year)

Changes in the number of work-related accidents(Numberof cases)

10.0

6,000
80,000Total number of industrial property rights (domestic andforeign patent and design rights) obtainedData sections

11-year key consolidated financial data (As of December 31, 2022)(Unit: million yen)
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Operating results
Sales revenue (Net sales)

75,831

94,385

107,581

112,865

97,724

103,659

112,064

99,16970,401

101,292

117,454

Cost of sales

56,86868,09474,07878,293

68,13471,74877,92170,30055,09073,281

85,182Gross profit

18,963

26,29133,50334,571

29,59031,91134,143

28,86915,31028,011

32,271

Selling, general and administrative expenses

20,414

21,13925,28527,461

24,93823,75524,99525,03019,78024,14329,413

5,151

8,217

7,110

4,651

8,156

9,148

3,838

3,868

2,858

△2,996

5.5%

7.6%

6.3%

4.8%

7.9%

8.2%

3.9%

2.4%

3,878

7,710

5,728

3,022

7,839

8,385

2,941

3,439

1,163

△8,333

2,434

7,587

5,642

3,090

7,727

8,353

2,930

△3,957

3.8%

1,049

3,026

5,958

3,653

1,637

5,696

6,779

1,788

△4,779

3,345
2,246

Operating profit
Operating income ratio (%)
Ordinary profit
Income before income taxes
Net income△1,451-△2,611△8,342

3,006

6,058

3,853

1,883

5,642

6,640

1,763

3,124

2,940

3,115

2,990

2,583

2,343

2,525

3,063

Capital/IT investment

1,149

1,062

1,964

1,252

1,642

2,312

2,721

R&D Expenses

5,346

3,859

4,826

4,871

4,408

4,781

Net D/E ratio (times)

14.60

5.87

2.61

2.09

1.89

Total assets

110,341

113,189

130,751

119,281

Net assets

4,934

11,80625,010Equity attributable to owners of the parent (net assets)

4,641

11,432Equity attributable to owners of the parent (equity ratio) (%)

4.21%

Interest-bearing debt

80,171

Net income attributable to owners of the parent△4,469-△4,466△4,688

2,154

16

△78

3,162

2,945

3,252

2,907

2,176

1,286

3,232

5,675

5,398

4,608

4,571

4,844

1.32

1.21

1.27

1.39

1.47

1.99

111,365

110,554

119,121114,715

110,230

129,114145,169

28,477

27,582

33,34337,24137,752

31,36835,67237,482

23,99527,67827,00632,72636,52937,03731,03235,24536,73910.10%

18.35%

23.20%

24.25%

29.60%

30.67%

32.29%

28.15%

27.30%

25.3%

75,50774,747

67,37760,15850,55352,37853,87857,44358,97879,402△1,841

6,405

3,459

8,924

9,819

10,489

2,682

3,054

8,509

△6,589△14,641

Cash flows from financing activities

3,233

2,034

7,960

△370

17,485

Cash and cash equivalents at end of year

△9,446

Depreciation and amortization

Financial position

Cash flows
Cash flows from operating activities
Cash flows from investing activities

283

293

6,240

△1,868△1,219△1,047

9,286

7,672

7,893

837

△9,044△1,757△2,390△3,430△2,698

5,977

13,821△8,100△10,373

6,336

7,302

968

△811

△857

△4,930

6,566

4,910

1,203.14

1,250.84

Per share information
442.40804.10927.63921.78

1,117.07

1,246.93

1,264.28

116.35219.17129.14

63.94

192.61226.68

60.20

-

9.84

9.88

8.42

16.53

9.67

4.91

14.65

Dividend per share (yen)

0

0

20

35

20

35

30

Consolidated dividend payout ratio (%)

-

-

9.1%

27.1%

31.3%

18.2%

△99.7%

37.4%

34.2%

14.9%

6.9%

2.7%

4.6%

3.2%

6,498

5,872

6,153

6,245

Net income (loss) per share (yen)Price earnings ratio (times)

Profitability
ROE (%)ROA (%)

179.55△7.6%

1,059.32△160.04

73.55

△2.66

-

-

11.53

25

20

25

20

13.2%

41.5%

-

34.0%

-

18.9%

19.2%

4.8%

6.5%

1.7%

5.1%

5.6%

1.5%

△13.8%

△0.2%

6,021

5,899

5,891

5,762

△4.3%

1.7%

5,287

5,255

△0.1%

Data sections△322.81

Net assets per share (yen)Key non-financial indicators
Number of consolidated employees (persons)
74

Data sections： 11-year key consolidated financial data

5,230

Data sections： 11-year key consolidated financial data

75

Data sections

JUKI’s global bases (As of January 1, 2023)

13

9
17
14

16

12

9

11 18
8 10 7

1

10 15

5

2
2

2

6

9
11

4

5

3

8 12

4

3

2

3

11 8 10
7

7

6
6

5
1

GLOBAL

4

1

1

2

JAPAN

1 4 1 2 3 1 2

4 3

1 2

7 5

8 7

9

10

11 8

4 5

7

9 13

10 15

16

JUKI CORPORATIONJUKI AUTOMATION SYSTEMSCORPORATIONJUKI TECHNOSOLUTIONS CORPORATIONJUKI SALES (JAPAN) CORPORATIONJUKI PROSERVE CORPORATIONJUKI Household Product Customer
Center Corporation

JUKI CORPORATION OHTAWARA PLANT

JUKI INDUSTRIAL EQUIPMENTTECHNOLOGY CORPORATIONJUKI MATSUE CORPORATIONJUKI (SHANGHAI) INDUSTRIAL CO.,LTD.

JUKI (LANGFANG) INDUSTRIAL
CO., LTD..

SHANGHAI JUKI SEWING
MACHINE CO., LTD.

JUKI (VIETNAM) CO., LTD.

JUKI (CHINA) CO., LTD.
TOKYO JUKI INTERNATIONAL
TRADING (SHANGHAI) CO., LTD.

JUKI SINGAPORE PTE. LTD.

JUKI CENTRAL EUROPE SP.ZO.O.

JUKI AMERICA, INC.

JUKI AUTOMATION SYSTEMS INC.

JUKI INDUSTRIAL EQUIPMENTTECHNOLOGY CORPORATION

2 JUKI AIZU CORPORATION
34

SUZUTAMI PRECISION INDUSTRY
CO., LTD.

Yokote-shi, Akita
Kitakata-shi,
Fukushima

Manufacturing of parts with lost-wax and MIM process
Manufacturing of parts related to the group businessNagaoka-shi, Niigata

Manufacturing of parts for industrial sewing
machines, etc.
Manufacturing of parts related to the group business

JUKI CORPORATION OHTAWARA
Ohtawara-shi,Tochigi
PLANT

5 JUKI METAL CORPORATION

Manufacturing of chip mounter etc.
Manufacturing of units and parts related to thegroup businessOdaicho, Mie

Manufacturing of industrial sewing machines
Manufacturing of parts related to the group business
Manufacturing of pig-iron mold casting etc.
Manufacturing of parts related to the group business

6 JUKI HIROSHIMA CORPORATION Miyoshi-shi,Hiroshima

Manufacturing of die, press processing parts, etc.
Manufacturing of parts related to the group business

7 JUKI MATSUE CORPORATION

Manufacturing of industrial sewing machines etc.
Manufacturing of products and parts related to thegroup business

Matsue-shi, Shimane

Global8

Shanghai, China

JUKI (LANGFANG) INDUSTRIAL
CO., LTD.

Hebei, China

Manufacturing of industrial sewing machines etc.
Manufacturing of feeders for chip mounters
Manufacturing of industrial sewing machines etc.

SHANGHAI JUKI SEWING10MACHINE CO., LTD.

Shanghai, China

Manufacturing of household sewing machines etc.

11 JUKI (VIETNAM) CO., LTD.

Ho Chi Minh, Vietnam

Manufacturing of industrial sewing machines etc.
Manufacturing of parts with lost-wax production
Manufacturing of parts related to the group business

12 ESSEGI AUTOMATION S.r.l.

Vicenza, Italy

Manufacture of automated warehouses

76

JUKI INDUSTRIAL
2 EQUIPMENT TECHNOLOGY
Yokote-shi, Akita
CORPORATIONJUKI CORPORATION OHTAWARA
3
Ohtawara-shi, Tochigi
PLANT

Data sections： JUKI’s global bases

Development of Chip mounters, Electronicequipment, etc., and development of products
related to the Group Business.

Tama-shi, Tokyo

JUKI TECHNOSOLUTIONS2CORPORATION

Tama-shi, Tokyo/
Owariasahi-shi, Aichi

Sales of industrial sewing machines

JUKI SALES (JAPAN)
3
CORPORATION

Tama-shi, Tokyo

Sales of industrial sewing machines, household
sewing machines, etc.

JBranch Sales Offices, Service Centers, and others

GlobalJUKI AUTOMATION SYSTEMSCORPORATION

Tama-shi, Tokyo

Development of Chip mounters, etc.

5

JUKI TECHNOSOLUTIONSCORPORATION

Owariasahi-shi, Aichi

Development of industrial sewing machines.

6 JUKI MATSUE CORPORATION

Matsue-shi, Shimane

Development of industrial sewing machines.

GlobalJUKI (SHANGHAI) INDUSTRIAL
CO.,LTD.

JUKI AUTOMATION SYSTEMS1CORPORATION

Development of industrial sewing machines.

4

7

JUKI (SHANGHAI) INDUSTRIAL
CO.,LTD.

Tama-shi, Tokyo

4 JUKI (CHINA) CO., LTD.
5

TOKYO JUKI INTERNATIONAL
TRADING (SHANGHAI) CO., LTD.

6 JUKI (HONG KONG) LTD.

Warsaw, Poland

Sales of industrial sewing machines, household
sewing machines, etc.

14 JUKI ITALIA S.P.A.

Milan, Italy

Sales of industrial sewing machines, household
sewing machines, etc.

Sales of Chip mounters, etc.

15 JUKI AMERICA, INC.

FL, U.S.A.

Sales of industrial sewing machines, household
sewing machines, etc.

(Other bases: Mexico, Peru and Colombia)

16 JUKI AUTOMATION SYSTEMS INC. NC, U.S.A.

17 JUKI AUTOMATION SYSTEMS GmbH. Nuremberg, Germany Sales of chip mounters, etc.
18 ESSEGI AUTOMATION S.r.l.

Shanghai, China

Sales of industrial sewing machines, household
sewing machines, etc.
Holding company, Comprehensive administrationof holding company and Chinese bases.

Shanghai, China

Sales of chip mounters, etc.

Hong Kong, China

Sales of industrial sewing machines, etc.

Macpherson,
Sales of industrial sewing machines, household
Singaporesewing machines, etc.
(Main bases: 7 countries: Indonesia, Cambodia, Myanmar, United Arab Emirates, Pakistan, Ethiopia, Jordan)

OTHER BASESJapan
1JUKI PROSERVECORPORATION

2JUKI Household ProductTama-shi, Tokyo
Customer Center Corporation

8 JUKI (VIETNAM) CO., LTD.

Ho Chi Minh, Vietnam

Development of industrial sewing machines.

9 JUKI CENTRAL EUROPE SP.ZO.O.

Warsaw, Poland

Development of industrial sewing machines.

9

JUKI MACHINERYBANGLADESH LTD.

Dhaka, Bangladesh Sales of industrial sewing machines, etc.

10 JUKI AMERICA, INC.

FL, U.S.A.

Development of industrial sewing machines.

10

JUKI MACHINERY VIETNAM
CO., LTD.

Ho Chi Minh,
VietnamSales of industrial sewing machines, household
sewing machines, etc.

● PRODUCTION

11 ESSEGI AUTOMATION S.r.l.

Vicenza, Italy

Development of automated warehouses

11 JUKI INDIA PVT.LTD.

Bangalore, India

Sales of industrial sewing machines,chip
mounters, etc.

● SALES12 JUKI SMT ASIA CO., LTD.

Chan Buri, Thailand Sales of chip mounters, etc.

THAI, Bangkok

Sales of industrial sewing machines, etc.

Sale of automated warehouses

Major distributors

Development of industrial sewing machines.

8 JUKI (THAILAND)CO.,LTD.

Vicenza, Italy

JUKI�s own Branch Offices, Sales Offices, Service Centers, and others

Shanghai, China

7 JUKI SINGAPORE PTE. LTD.

Sales of chip mounters, etc.

Tama-shi, Tokyo

Service of facility management and documentbusiness, etc.
Maintenance services for Household

Data sections

9

1 JUKI CORPORATION

Product development and systemdevelopment of industrial sewing
machines,household sewing machines, chip
mounters, etc.

13 JUKI CENTRAL EUROPE SP.ZO.O.

(Other bases: Turkey, Russia, and Belarus)

Japan

Japan

Japan
1

MAIN SALES BASESDEVELOPMENT BASESPRODUCTION BASES

Number of Major bases● DEVELOPMENT● OTHERJapan

Global

Total

7
6
3
2

5
5
15
0

12
11
18
2

Data sections： JUKI’s global bases

77Data sections

Company outline and stock information (As of December 31, 2022)
CORPORATE SUMMARY
December 15, 1938

Ordinary general
meeting of shareholders

March

Director Chairman CEO & COO

Number of employees

5,230 (on a consolidated basis),

Trade name

JUKI CORPORATION

Established
Representative

Akira Kiyohara

834 (on a non-consolidated basis)

Paid-in capital¥18,044 million

Fiscal year ending

December 31

Number ofaffiliated companies

Major business office

Head office :OHTAWARA PLANT :2-11-1 Tsurumaki, Tama-shi,

1863 Kitakanemaru, Ohtawara-shi,

Tokyo 206-8551 Japan

Tochigi 324-0011 Japan

Tel : 81-42-357-2211

Tel: 81-287-23-5111

27

STOCK INFORMATION
Total number of authorized shares

80,000,000 shares

Total number of issued shares

29,874,179 shares

Total number of shareholders

16,717

Listed on

Prime Market of the Tokyo Stock

Securities code

6440

Exchange (From April 4, 2022)
Shareholder registry

Mizuho Trust & Banking Co., Ltd.

administrator

STOCK DISTRIBUTION STATUS BY OWNER TYPE

Major shareholders (Top 10)

Other domestic legal entities

2.33%
697,000 shares
Securities companies

Treasury shares

4.09%
1,221,000 shares

1.68%
503,000 shares

Foreign legal entities

7.83%
2,339,000 shares
Financial institutions

Individuals, others

32.84%
9,810,000 shares

51.23%
15,304,000 shares

Name of shareholders

Number ofshares held
(unit: 1,000
shares)Shareholding
ratio (%)

The Master Trust Bank of Japan, Ltd. (Trust account)

3,786

12.89

Custody Bank of Japan, Ltd. (Trust account)

968

3.30

Mizuho Bank, Ltd.

938

3.19

Nippon Life Insurance Company

732

2.49

Asahi Mutual Life Insurance Company

569

1.94

The Dai-ichi Life Insurance Company, Limited

511

1.74

DFA INTL SMALL CAP VALUE PORTFOLIO

491

1.67

Morgan Stanley MUFG Securities Co., Ltd.

472

1.61

Meiji Yasuda Life Insurance Company

460

1.57

Mizuho Trust & Banking Co., Ltd.

401

1.37

(Note) A shareholding ratio is calculated excluding treasury stock (503,016 shares).

Trends in share prices and trading volume(yen)

Share prices (Left)(shares)

Trading volume (Right)

10,000,000

2,000

8,000,000

1,500

6,000,000

1,000

4,000,000

500

2,000,000

002018/1/4

78

2019/1/4

2020/1/6

Data sections： Company outline and stock information

2021/1/4

2022/1/4

2022/12/4

Data sections

2,500