FY2020-2021
Mid-term Business Plan
“Value Creation 2020 Plus”

May 29, 2020
（Security code：6165）
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Firstly“Value Creation 2020 Plus” is the plan for FY21.3 - FY22.3
45.0(Unit: Billion JPY)
40.0

Sales
34.3

35.0
30.0
25.0

20.0
15.0

0.7

36.7

1.7

1.9

7.0

40.9

36.6

35.3
2.8

29.4
1.1

41.0

1.9

2.5
0.8

1.1

1.2

1.3

Operating Profit
36.1
33.1
1.2

1.8

5.0
3.0

1.0

1.7
0.9

0.6

1.1
-1.0

Net Income

10.0

-3.0
5.0-3.40.0-5.0

FY14.3 FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 FY20.3 FY21.3 FY22.3
EstimateValue Creation 2015PlanValue Creation 2020Plus
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Table of Contents➢Summary of Value Creation 2020

P.3

➢Policies of Value Creation 2020 Plus

P.8

➢Management Goals of Value Creation 2020 Plus

P.15

➢Top Message

P.20

Note) In this document,
・ Value Creation is referred to as “VC”.
・ “Net income” refers to the "current term net income attributable tothe parent company shareholder".

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Summary of Value Creation 2020
（FY17.3 - FY21.3）

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Sales Trend(Unit: Billion JPY)
Plan

Estimate

Result

41.0
36.7

36.6
37.0

39.0

40.9 44.5
42.0
35.3

47.0

3.6 Billion JPY
Revenue Decrease(FY16.3 vs FY21.3)

33.1 ◎ Slowed down due to US-China trade friction
in FY19.3 and coronavirus in FY21.3

0.0
FY16.3 FY17.3 FY18.3 FY19.3 FY20.3 FY21.3

VC2020 Period◎Sales expansion in Southeast Asia, Europeand America, which were focused inVC2020.
●Acquiring orders in Southeast Asia
⇒Expanded special-order products inVietnam and Indonesia●Establish a subsidiary in the Americas⇒Established in 2016、but expansion
pace slowed down due to the US-China trade friction●Tighten relationship with agents
besides direct sales in Europe⇒Sales fairly grew, yet slowed down
due to economic downturn

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Operating Profit Trend(Unit: Billion JPY)

Estimate

0.8 Billion JPY
Revenue Decrease3.3PlanResult2.8
2.6 2.8(FY16.3 vs FY21.3)

2.5

2.0 2.22.0◎Progress made beyond initial plan
until FY19.3

2.01.2 ◎Plan greatly underachieved in FY20.3,0.80.0

main causes were
●Decrease in sales due to worsening
market conditions●Higher cost ratio due to lower
capacity utilization of factories●Exchange rate (JPY appreciation)

FY16.3 FY17.3 FY18.3 FY19.3 FY20.3 FY21.3

VC2020 Period
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Net Income Trend(Unit: Billion JPY)
PlanEstimate

Result
1.8
2.0

1.4

1.2
1.4

0.6 Billion JPY
Revenue Decrease

2.3

1.5

1.7

1.0
0.6

(FY16.3 vs FY21.3)

0.0◎In FY19.3, recorded impairment loss
at Vietnam factory
FY16.3 FY17.3 FY18.3 FY19.3 FY20.3 FY21.3
In FY20.3, recorded impairment loss
at domestic factories in Japan, etc.
VC2020 Period◎FY20.3 was first final deficit sincelisted in 2012

-3.4

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Evaluation of Priority Initiatives
Establishment of5-pole salessystem◎ 2016: Established a subsidiary in the Americas
Sales expanded, however then slowed down due to trade friction◎ Expanded into Europe based on the utilization of existing agents
Though cooperation with agents strengthened, sales slowed
due to economic slowdown

Improvement ofCustomer service◎ Reduced digital engineering business due to sluggish orders◎ Realized an optimal product supply system through global sourcing◎ In focused areas of medical and food/beverage industry,transactions expanded with core customers◎ 2016: Established a new factory in Vietnam
Promotion of highDue to the delay in the establishment of the production systemand the decline of market conditions, profits did not grow andprofitability business
impairment loss was recorded
withreinforcement of R&D ◎ Established R&D headquarters in Japan, which developed
a Japan-China 2 region structure

Reform ofworking style◎ Promoted a variety of working-style, assisting from institutional
system and operation◎ Introduced a new personnel system with transparency and fairness◎ Established a human resources development department“Punch Academy”, which introduced various training programs
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Policy of Value Creation 2020 Plus

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Plastic Molds and Press Dies Market Forecast (Monetary Amount)
US-China trade friction and new coronavirus may cause the temporarily investment curbs in 2020 .

(Unit: Trillion JPY)
1010 year trend in Plastic Molds and Press Dies
shipments in major countries

9.6

9.6

9.4

（Source）Die and mold manufacturers' associations in each country
Revised past figures based on the latest 2019 data

9.5Europe8Americas65.6
Japan

4Asia

2
China

02012

2013

2014

2015
Result

2016

2017

2018

2019

2020

2021

Company Estimate

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Priority Initiatives
Establishment of5-pole sales system

Furtherly expanding sales channels in Southeast
Asia, Europe and Americas

Enhance customerfocused marketing
capabilities

Deploying salespersons with rich processing
knowledge through transferring frommanufacturing division and human resource
development

Optimize the global
production systemand strengthen R&D

Rearrange production items among the factories,
focusing on their characteristicsCurtailment of man-hours and establishment ofnew construction method through R&D

Working-style reforms
and human resource
development

Promotion of active roles of women, work-lifebalance, and development of global humanresources

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Major Policies by Region
ChinaJapan
Establishment 5-polesales system

Southeast
Asia, IndiaEurope

AmericasStrengthen
regional strategy

Establish Sales
Structure

Expand customer
base

Expand business with multi-national companies

Strengthen
MarketingCapabilities

Optimize GlobalProduction Systemand Strengthen
R&D

Work style Reforms
HR DevelopmentProduct development
based on customer
needs
Improvement ofordering system

Partnerships withcustomers in newfields

Optimization of global production systems for standard andspecial-order products
・Promote labor-saving and automated productionin Japan and China・Strengthen transactions in medical and beverage fields
・Increase stabilization and profitability of Vietnam
factory operations
・Development of new fields and markets
・Looking into Business tie-ups and M&As
with other companies
・Improvement of processing technology
for difficult-to-process materials
・Continue development in the aerospacefield

Promotion of active roles of women and work-life balance
Development of human resources who can be active overseas

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Strengthen Marketing Capabilities

Tansfer■Acquiring orders for special-order products⇒ Transfer manufacturing department
staff who have a high understanding ofdrawing and can propose processing
methods to sales department■Promotion of personnel training⇒ Conducting molds and dies study
sessions, manufacturing training,
more for sales department staff■Improvement of ordering system for customers⇒ Convenient ordering of standard items■Promotion of satellite office⇒ Strengthen community-based sales style

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Optimization of Global Production SystemJapanChina●Rearrange production items among the factories,
focusing on their characteristics●Improvement of producing process and cost
reduction●Technical exchange with customers●Development of new business●Expanding sales of non-automotive-related products●Setting new production line for short-time delivery●Sales expansion of strategic productsTechnicalCooperation
VietnamMalaysia●Stable production of standard products●Improvement of production efficiency and cost
●Turn into profit from startup●Acquiring more orders in Southeast Asia
●Cooperation between Japan-China Research &Development Headquarters●Expanding sales of special-order products

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Reform of Working style

Promotingactive roles ofwomen

Optimal work-lifebalance

Development ofhumanresources who
can be active
overseas

PUNCH SPIRIT × Reform of Working style

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Management Goals ofValue Creation 2020 Plus

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Sales/Profit Trends
FY22.3 ： Sales Over 36.1 Billion JPY , Operating profit Over 1.8 Billion JPY
40.0

7.0

(Unit: Billion JPY)

38.0
Sales
36.0

35.3

34.0
32.0

0.8

36.1
Operating Profit

33.1
1.2

1.8

30.0
28.0

1.1

0.6

26.0

20.0

ROE

◎Shift from final deficit to surplus
3.0◎Recovery to the top-line growth trend
1.0◎Preparation for the next mid-termbusiness plan
-1.0

Net Income

24.0

22.0

WHAT TO DO:
5.0

-3.0

-3.4

-5.0

FY20.3

FY21.3

FY22.3ResultEstimatePlan－5%

9%Rebuilding period until themid-term business plan
starting in FY23.3

VC2020Plus
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Changes in Operating Profit
FY20.3（Result)(Unit: Million JPY)

835

[Main factors for changes in sales
from FY20.3 to FY21.3]

Decrease in sales▲584
Cost ratio improvement722

Decrease in selling, generaland administrative expenses
226

FY21.3(Estimate)

1,200
Increase in sales
845
Cost ratio improvement
171
Increase in selling, generaland administrative expenses▲416

FY22.3(Plan)

1,800■Under the assumption that theimpact of the spread of newcoronavirus infection will continue
until September 2020

[Main factors of change in cost ratio
from FY20.3 to FY21.3]■Relief in depreciation after
impairment losses made in FY20.3■Suppression of investment andrecruitment[Main factors for changes in
SG & A from FY20.3 to FY21.3 ]■Relief in depreciation after
impairment losses made in FY20.3■Decrease in packing andtransportation costs

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Sales transition by regions(Unit: Billion JPY)

2.4
1.5

16.814.6

1.8
1.3

15.7

14.3

2.0
1.6

More tight cooperation with agents inEurope,
EuropeThe US,
Further focus on medical-relatedand others
industry in the Americas

17.1

SoutheastAsia

Expansion of special-order products
to Southeast Asia
Cooperation with R&D Headquarters inJapan and China

China

Expansion of highly precised
medical-related parts
Setting new production line for shorttime delivery

15.4
Japan0FY20.3(Result)

FY21.3(Estimate)

FY22.3(Plan)

Increase of sales staff, includingtransfer from manufacturing division
Improvement of ordering system forcustomers

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Sales transition by industries(Unit: Billion JPY)

9.6
4.3

6.1

9.7

8.8
4.3

4.0
5.8

6.5

OtherFocus on medical, food and beverageindustries

Consumerelectronics/
Precisionequipment

Acquiring more orders related toprecision lenses

Electronic
Focus on the telecommunications
devices/industry where new orders are active
Semiconductors

15.4

14.5

15.6

FY20.3

FY21.3

FY22.3(Result)(Estimate)(Plan)

Automobile

Collection of information on new carprojects, including EVs
Acquiring standard parts certificationfrom automobile manufacturers

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Top Message

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To support “Manufacturing" in a wide range of industries

For Plastic molds
For Press dies
R&D

Electronic devices/
Semiconductors

Automobile

Consumer electronics/
Precision equipment

Manufacturing
EnhancingSpecial-orderproducts

Industrial
machineryFA

Sales
5-poleSales system

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Food andbeverage/
medical21

For “The World’s PUNCH” with 5-pole sales system【UK】【Germany】【Turkey】【China】 【Japan】【Korea】【Thailand】 【Taiwan】【Vietnam】【India】【Philippines】【Malaysia】【Australia】
Group companies
Sales ofﬁces【USA】【Indonesia】【Singapore】
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Summary■Strengthen Marketing Capabilities⇒Acquiring more orders for
special-order products■Optimization of Global Production System⇒Strengthen production efficiency ofdomestic and overseas plants■Promoting “manufacturing highly
value-added products”■Meeting the expectations of stakeholders

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