Measures for Achieving
the Medium-Term Management Plan
(MTMP)(2020-2022)
and Key Initiatives for FY2020

2-1-1 Basic Strategies/Stances for Achieving the MTMP
To start a Phase II of the Medium-Term Management Plan centered on structural reforms,⇒ We will “respond to changes in the business environment” and “continue tackling thechallenges left unfinished in Phase I*” after clarifying our 2022 vision (3-year goal) to build
a platform for future growth.
* Phase I: Medium-Term Management Plan (2017-2019), Phase II: Medium-Term Management Plan for 2020-2022

Our vision for Phase II (2022)“To be a Monodzukuri (manufacturing)/Kotodzukuri (value-creation) company capable ofimproving the corporate value of both JUKI and its customers by supplying JUKI’s excellent
and innovative products and services,” with the subtheme, “Building a win-win partnershiptowards creating smart factories.”

What is JUKI’s concept of a Smart Factory?

Three solutions
JUKI commits

1. Automatization
2. Digitalization
3. Networking

Social Request

Economy2-1-2 Measures for Achieving the MTMP :Recognition of Business Climate
・Stagnation of world economic growth⇒We experience a downturn in general investment demand due to the prolonged U.S.-China
trade friction, Brexit, and the worsening situation in the Middle East.
⇒Customers rapidly relocate their production bases due to increasingly severe labor
shortages, rising wages and etc.
・Intensification of competition⇒Industrial sewing machines: Competition in the middle market is intensified by the rise ofChinese manufacturers.
⇒Electronic assembly systems: Competition is intensified by expanded competition withrivals and market entries from different types of business.
・Acceleration of technological innovations⇒AI/IoT/5G and other forefront technologies are rapidly being adopted in companies andpeople’s daily lives.* (* DX: Digital Transformation)
・Our efforts to achieve a sustainable society (based on SDG management)⇒Respond to global environmental problems.
⇒Work on promoting various workstyles and productivity improvements.
⇒Strengthen our compliance system and corporate governance structure.

A significant “turn of the tide” is expected to reshape our world over the coming years. JUKI will dedicate
the year 2020 to actions to respond to the many changes taking place in our new era.

2-1-3 Measures for Achieving the MTMP:
Implement Five Transformations
5X* is a new growth engine for JUKI. (* X: Transformation)
Through these transformations, we will create a “profitable businessmodel” and build our future customer base.
Five transformations:(1) “Borderless X” – Developing growing markets and customers through across-border marketing strategy(2) “Business Model X” – Expanding business domains that contribute toincreasing profitability,(3) “R&D Model X” – Expanding technological innovation domains,(4) “Workstyle X” – Establishing production systems and administration(back-office) operations centering on the 5S’s of management** 5S’s of JUKI’s management: Simple, Slim, Speedy, Seamless, and Smart(5) “Sustainable Development Goals (SDGs) Management X” – Achieving‘sustainable’ management.

2-1-4 Measures for Achieving the MTMP :Implement Structural Reforms
We prioritize our efforts in structural reform to achieve a plan focused onthe "five transformations."(1) Implement cost
structure reforms(2) Maximize added value by
expanding our businessdomain・Streamline administration and backoffice operations
・Rebuild the SCM system

・Industrial sewing machines: Strengthen
sales capabilities in highly profitablebusiness and increase the sales of new
products
・Electronics assembly systems: Increase
sales in non-mounter/non-SMT fields
・Group Business: Strengthen theengineering services business・Customer Service: Expand a servicerelated business・Implement reforms to realize smart
factories

Improvement incurrent earnings

Build a profitablerevenue base(3) Strengthen borderlesscustomer base by meansof rendering borderlesssales and marketing
・Strengthen the development of a
middle market
・Rebuild our sales network in priority
markets
・Sales operations combined withhead office and sales companies

Build a future
customer base

Build business foundations to achieve sustainable growth!

2-1-5 Measures for Achieving the MTMPNet Sales/Ordinary profit

Equity Ratio(Target: annual growth rate of 10%)

(Target: 44% or higher at a prevailing rate at the end of FY2022)

FY2020 forecast : 106 billion yen（Unit: 100 million yen）
1,400

FY2022 plan

1,000

800

1,300
3- years
growth rate:+35%

FY2019 actual

1,081
943
30%

986

(Unit: 100 million yen)
300

Left bar : Net sales
Right bar : Ordinary profit

1,200

50%
45%
40%
35%
30%
25%
20%

+10% 1,060
968

250

38%

34%

34%

36%

(Unit: 100 million yen)

Production

125
66%

66%

60

64

64%

64%

62%

400

100 30

15

14

2018

Smartization

60

2019 20202022 (FY)Net sales for Industrial Equipment & Systems
Net sales for Sewing Machinery & Systems

0

12

0

7

5
15

Development
Existing and others
Advanced

21

50

33

19

Improvement to production capacityand environment matters

15

200

2016 2017

FY
2022

Investment Plan

36%

600

0

FY
FY
FY
FY
FY
2016 2017 2018 2019 2020

200

150

70%

FY2019 actual 32.3%

30
6

12

23

7

26

8

28

25

0

Note: Values in the graph for both actual and plan are based on foreign exchange rate : 1US$=¥105.

Existing and renewal
projects
New projects

26

4
34

Information
system25

0

1.8

3.4 2.5

2.2

2

2.2

6

0.2

2-1-6 Measures for Achieving the MTMP :Initiative for Expanding Our Business Domain
We will expand our business domain and devote our management resources togrowing fields and differentiated fields in each business domain.
(Unit: 100 million yen)

1400
1200
1000
800

31%

600

Sewing
Machinery &Systems

Industrial Sewing Machines
Household Sewing Machines

Industrial
Equipment &Systems

Electronic Assembly Systems
Group Business
Customer Business

8%
9%
14%
4%

400
200

69%

8%
13%
8%
11%

18%

18%

6%

6%
57%

55%

Industrial
Equipment &Systems

39%
Sales over
3 years:+140

Sewing
Machinery&Systems

61%

65%

0
FY2016FY2017FY2018FY2019FY2020
FY2021
2016年
2017年
2018年
2019年
2020年
2021年
2022年
2022
Notes:1.Before inter-company eliminations
2.Values in the graph for both actual and plan are based on internal projected foreign exchange rate

Sales over
3 years:+184

2-1-7 Measures for Achieving the MTMP:
Implement a Cross-border Marketing Strategy
In order to respond to customers’ relocation of production facilities andbusinesses, promote “borderless sales”, making and support activities
as JUKI Group(One team)

Eastern Europe,
Central Asia

Western Europe
China Japan

North Africa
India

North America

Southeast Asia

Middle East, Africa

Relocation of Sewing Machine customers to other countries
Relocation of Electronic Assembly System customers to other countries

Latin America

192-2-1-1 Sewing Machinery & Systems Business(Industrial Sewing Machines)
VisionContribute our energy towards enabling customers to innovate themselves
and their businesses by offering JUKI Smart Solutions.

Basic
Policies

・Increase profitability by increasing sales in the non-apparel sewing machine business.
・Build a future customer base by finding, and developing new middle-market
customers and bringing them into the high-end market.

Initiatives for Expanding
Our Business Domain

Initiatives for Advancing of
Borderless Marketing
Strengthen our attack and aggressive activities
on markets which we have not satisfactorily
penetrated into

Increase sales of nonapparel/specialized/automatic
sewing machines.
Sales target(Unit: 100 million yen)

800 Notes:1.Before elimination of intra-company transactions

2.Values in the graph for both actual and plan are based oninternal projected foreign exchange.

600 539
400
200
0

27%

Non-apparel

698
36%

38% Specialized/Automatic sewing machines 36%
35% Lock stitch/Knitwear sewing machines

2019年
2019

2020年
2020

2021年
2021

Central Asia, North Africa, Russia,

Middle East, Africa

Vietnam, Myanmar, Cambodia

Latin
America

28%
2022年
2022

Simple series

Increase sales of products designed for developing countries

2-2-1-2 Key Initiatives for FY2020: Sewing Machinery &Systems Business (Industrial Sewing Machines)

Offer JUKI line solutions to make customers’ factories smart:(1) Automatization, (2) Digitalization, (3) Networking《(1) Automatization》
Productivity improvement /manpower- saving

Automatic machines

Sewing robotics

Automated guided
vehiclesProposals for plants》
Material
Warehouse

Acceptance offabrics and auxiliarymaterials, and fabricinspection

Sample room

Ordering of sample
materials, fabricinspection, andprocess analysis

Cutting

Pattern marking,grading, spreading,cutting, and sorting

Sewing lines

Production process analysis,
coordination, facility
arrangement,layout change

Finishingprocess

Product
warehouse

inspection/
packaging

Finishedproducts

Shipment《
Automatedguide vehicle (AGV)《(2) Digitalization》
Line solutions centering
on digital series《(3) Networking》
Site remediation using IoT

Operation rate chart by line23

2-2-2-1 Sewing Machinery Systems & Business(Household Sewing Machines)
VisionBasic
policyCreate new ways to enjoy handicraft-making, in collaboration withcustomer(home sewers) who have excellent handicraft capabilities.
Expand solid business based on strengths in high-end household sewing
machines, small overlock machines, sewing machines for professionals, andquilting machines
Initiatives for Advancing of Borderless
Initiatives for Expanding
Marketing
Our Business Domain

・Launch new products for home sewers who haveexcellent handicraft capabilities..
・Offer quilting and embroidering machines
through alliance relationships.

Sales target

100
80
60
40
20

(Unit: 100 million yen)

79

Notes:1.Before elimination of intra-company transactions
2.Values in the graph for both actual and plan are based oninternal projected foreign exchange.
Alliance products

54

27%
29%
44%

0
2019
2019年

27%

Processional sewing machines/
Quilting machines
Small overlock machines
Household sewing machines

2020
2020年

Increase sales in priority markets (Japan,
Americas, and Europe).

2021
2021年

EuropeJapan

Americas29%

New products

44%
2022
2022年

2-2-2-2 Key Initiatives for FY2020: Sewing Machinery &Systems Business (Household Sewing Machines)

Expand the product line-up to meet market characteristics.
《Japan》
High-end sewing
machines for
professional use

NEW SL-700EX

Live Events & DigitalMarketing⇩Customerdevelopment《Americas》-High-end household
sewing machines-Quilting machines-Embroidery machines《Europe》
High-end household
sewing machines

NEW《Kirei》
HZL-NX7《SAI》
NEW QVP（Manufactured by Tajima
Industries, Ltd）

《Miyabi》
J-350QVP

2-2-3-1 Industrial Equipment & Systems Business(Electronic Assembly Systems)
VisionBasic
policyBecome an essential business partner for customers through devoting resources to our areas ofstrength and by proposing and providing automation and labor-saving solutions. - In 2022, we willachieve a 23% share of general-purpose machines on a unit basis and sales of 3,900 million yen forlabor-saving equipment and robots, 2,500 million yen for inspection and measurement and 2,000
million yen for automated warehouse and peripheral devices. Expand business base by increasing solution sales in the non-mounter segment and line solution sales
in the mounter segment

Initiatives for Advancing of BorderlessMarketing

Initiatives for Expanding
Our Business Domain
Expand non-mounter/non-SMT fields[Sales goal](Unit: 100 million yen)

250 Notes:1.Before elimination of intra-company transactions

2.Values in the graph for both actual and plan are based oninternal projected foreign exchange.

200 175
150

34%

231

7%

0

Non-mounter (Inspection equipment/
printers/automated warehousing, etc.)

36%

66%
2021年
2021

Japan
Southeast
Asia

57%
2020年
2020

EuropeIndia

Mounters

2019年
2019

China, Korea

Non-SMT

100
50

Strengthen our attack on priority
markets in cooperation with sales
companies.

2022年
2022

Americas2-2-3-2 Key Initiatives for FY2020 : Industrial Products &Systems Business(Electronic Assembly Systems)

Expand our businessareas further bydeepening alliances.
Automated inspection/measurement

Automated warehouse control

SMT integration system software

Production support

Remote support

Cooperation
between devices

Predictive and preventive
maintenance using AI

Core system cooperation

Cooperation withother companies

他社提携

Storagesystemsolutions

Materials and pats control
field

Expandingbusiness areas

High-speed mountersystem solutions

SMT field

Measurement systemsolutions

Manualinsertion field

Existing business areas

Measurement
field

Robotic insertion
system solutions

Assembly
field

Packagingfield

Expanding business areas

2-2-4-1 Industrial Equipment & Systems Business(Group Business)
VisionGrow into JUKI’s third pillar business by leveraging JUKI Group’s
management resources (including manufacturing technologies).

Basic
policies

・Expand our business domains by strengthening planning/development,
design, contracted assembly, and engineering services.
・Find new customers by unified sales organization.

Initiatives for Expanding
Our Business Domain

Initiatives for Advancing of BorderlessMarketingExpand growing fields (planning/development,
design, contracted assembly, and engineering
services⇒ Our development department was establishedon January 1, 2020.

・Strengthen sales not through cooperation

200

Sales target(Unit: 100 million yen)

Notes:1.Before elimination of intra-company transactions
2.Values in the graph for both actual and plan are based oninternal projected foreign exchange.
150

163
11%

107

Engineering service business

100

6%
33%

Contracted assembly

50

26%

Parts manufacturing

21%

35%

Materials manufacturing

33%

2020年
2020

2022年
2022

between sales companies, but through theunified action of sales companies as a team.
⇒ Our head office sales department was
reorganized on January 1, 2020.
・Strengthen cooperation with the head officeby establishing a branch office in Asia.
⇒ Develop and expand businesses in Asia.

35%

0
2019年
2019

2021年
2021

Inspection equipment exhibition (in Thailand)2-2-4-2 Key Initiatives for FY2020:Industrial Products &Systems Business (Group Business)

JUKI
Contract
Business
Model・Expand our business domain by strengthening planning/development, design,
contracted assembly, and engineering services.
・Find new customers by strengthening our sales structure.
JTEC

JUKI

JUKI

OHTA-

AIZU

WARA

Combined

JUKI
HIRO-

JUKI
VIET-

operations

SHIMA

NAM

SUZU-

JUKI

TAMI

METAL

JUKI

Establishing abranch office in Asia

MATSUE

Planning/
development

DesignMaterials

Processing

Assembly

Sales

Development-driven marketing: Contracted that includes the finished productand unit design/manufacturing (Engineering business)
Contract that includes the finished products and unit
manufacturing

Customers

Parts manufacturing contract
Materials supply

Customers

Customers

Customers

2-2-5-1 Industrial Equipment & Systems Business(Customer Business)
VisionJUKI’s parts can be received the day after they’re ordered

Basic
policyMake the change from the selling of "things" to the selling of "services" across theboundaries of sewing machinery and electronic assembly systems. - Speed up the
implementation of a customer lock-in strategy by enhancing added value -Initiatives for Advancing of
Borderless Marketing

Initiatives for Expanding
Our Business Domain
Expand our service-based businesses (especially,
our sewing-machinery-related services).
Sewing machinery-related services

Electronic assembly systems-related-services

Sales target(Unit: 100 million yen)

120 Notes:1.Before elimination of intra-company transactions
100
80
60
40
20
0

2.Values in the graph for both actual and plan are based oninternal projected foreign exchange.

82

Services

7%

73%
20%

2019
2019年

・Strengthen direct marketing.
⇒ Implement a customer lock-in strategy
using a website service.

110

5%
7%

Sewing machinery parts

67%

Electronic assembly systems parts

産装パーツ

21%

2020
2020年

2022
2022年

2021
2021年

・Build a parts supply system unifying
functions of the head office and sales
companies.
⇒ Build the management system toachieve stock optimization.

2-2-5-2 Key Initiatives for FY2020 : Industrial Equipment& Systems Business (Customer Business)
EXPAND PARTS/SERVICE
BUSINESSEXPAND AFTER SALESSERVICE IN INTRODUCING
SMART LINESManagementof preventive
maintenancefor equipment

・Sewing machinery: Conduct machinery

diagnoses based on maintenance records.
・Electronic assembly systems: Rebuild
the pre-owned products business.

Managementof preventive
maintenancefor equipment

Technical
supportRemote MaintenanceSupport for Smart Solution

CONNECTED
Stock
optimization
management
system・Parts website
・JOL

Provide logisticalsupport for activities
Parts supply system
Parts center/sales company
warehouse

Network system to shareand send information

Open innovation with subcontractors

2-3-1 Corporate Initiatives for Responding to
the Sustainable Development Goals (SDGs)
JUKI has been working on various businesses to realize a sustainable society.
Targeting at the achievement of the SDGs in 2030, we will focus on businesscreation, and work to solve social issues.

Schematic of JUKI’s corporate philosophyCorporate Slogan

Corporate Philosophy

Concept of Value , Importance ofExistence, Purpose

Basic Management Policies
Direction to Aim for

Corporate Conduct Code

Basic Stance in Terms ofCompanies Engagement Activities

5S for Management

All Employees’ “Works of Rules”
Employees’ Code of Conduct“Ten-Provisions”
Basic Stance in Terms of
Employees Engagement Activities

Five-Article Quality
Declaration

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

Declaration of Health andProductivity Management
Pursuit of Health Management andthe Establishment of the HealthManagement Declarationin the JUKI Group

Medium-Term Management Plan
Business plan which is Based on Corporate
Philosophy and Corporate Principle

Sustainable activity by a company
and its employees
Development of business activities
incorporating our efforts to achieve the
SDGs

JUKI is supporting the sustainable development
goals (SDGs).

2-3-2 Corporate Initiatives for Improving the Sustainable
Development Goals (SDGs)

Extremely important●Conservation of a clean
atmosphere●Conservation of water
resources●Appropriate control ofchemical substance andpollution prevention●Engagement with local
communities●Contribution to theeconomic development ofdeveloping countries●Response to climate change●Efficient use of resourcesand energies●Further improvement of
product quality●Supply chain management●Development of thetechnological innovations
seen in AI/IoT●Improvement of educationby providing job training●Conservation of biodiversity●Securement of occupationalsafety and health●Promotion of workstylereforms●Diversity and inclusion●Education and Developmentof human resources●Respect for human rights●Compliance with theprinciples of fair transactions●Compliance●Risk management●Strengthening ofgovernanceMore importantMore important

Important

Stakeholders weightings

Important

Extremely important

We will find and select important matters which JUKI should handle and respond to,from the point of view of importance for both JUKI and its stakeholders,
and will prepare our business plan Incorporating responses thereto, and develop
specific activities (sustainable activities by companies and their employees).

JUKI’s weightings

Environment

Society

Governance・Initiatives for reducing emission of
CO2 and waste
・Development of energy-saving
products
・Implementation of green
procurements
・Support for sewing factories indeveloping countries
・Implementation of a modal shift inlogistics
・Design of a system for realizing various
workstyles
・Positive us of female workers, foreign
workers, and re-hired employees
・Implementation of parent andinteraction events

・Maintenance and operation of agovernance system
・Establishment and operation of a task
force to take measures to manage risk
・Compliance with the corporate rules andthe employees’ Code of ConductThis material contains forward-looking statements concerning future plans,
strategies and assumptions in light of the economic, financial and other data
currently available. Furthermore, they are subject to a number of risks anduncertainties. JUKI therefore wishes to caution readers that actual results may
differ materially from those projected in such forward-looking statements.

JUKI CORPORATION
32