Measures for Achieving the MediumTerm Management Plan (2021-2022)
and Key Initiatives for FY2021

012

2-1-1 Positioning of the 2021-2022 Medium-Term
Management Plan
As a result of reviewing the Medium-Term Business Plan 2020-2022, which is the Value Up 2022 Phase IIof the Medium-Term Business Plan considering the current business environment and in-house issues(the 2022 Vision remains unchanged).
Vision for 2022

(Goal)A "mono-koto" company that enables customers and JUKI to improve
corporate value through products and services~ Becoming a Win-Win Partner for Smart Factories ~Medium-Term Management Plan Value Up 2022
2017

2018

2019

2020

Phase I

2021

2022

Phase II

Medium-Term Plan (2017-2019)
Medium-Term Plan (2018-2020)
Medium-Term Plan (2019-2021)
Medium-Term Management Plan Value Up 2022
(1) Regular review and update of the three-year plan in order to meet
the FY2022 goals(2) Management that constantly monitors changes in business climate
for the following three years(3) Review of and change in (if necessary) the following year’s businessplan based on the roll-out status of each year’s business plan

Medium-Term Plan (2020-2022)
Based on Changes in Business
Environment & Reviewing Key Issuesnd rdin the 2 -3 year (2021-2022)1

2-1-2 Recognition of the business environment
It is essential to build a new business model and business foundation that can cope with
the new norms.

The Economy

With COVID-19 and After COVID-19
New business needs emerge as markets and customers change
US-China trade friction
Market impact of the new U.S. administration's China policy
Acceleration of technological innovation
Expanding the introduction of products and services by means of using technologies
related to AI, IoT, 5G, etc.
Customer change
・ Shift in demand from fabrics to knitwear(casual wear)
・ Significant growth in related industries due to increased 5G demand・ Accelerated response to supply chain disruption (decentralization of production sites)

Competitiveenvironment

Industrial sewing machines : Intensifying middle-market competition with Chinese
manufacturers
Industrial equipment : Expansion of the scope of the mounter maker and entry fromdifferent industries

Social needs

・ Measures for resource conservation and waste reduction
・ Promotion of work style reform (digitalization, remote work)• Compliance/ Strengthening of Corporate Governance22-1-3 2021-2022 Medium-Term Management Plan:
6 Transformations
6 Transformations ( 6X *)= JUKI's Growth Engine (* X=Transformation)
Accelerating the pace of structural reform by focusing on these 6 reform initiatives.

Strengthening strategies for future growth
Cultivating customers with growth potential,
such as emerging markets (middle market)
and planning to newly relocate these new
production areas

Expansion of business areas that
improve profitability, such as nonapparel, inspection machines /automated storage

R&D
Model X

Borderless
X

Business
Model XCreation of employment opportunities inemerging countries / resolution of social
issues such as reduction of clothing waste
through support for smart garment factories

Building a Business Base for New Norm

6 Transformations

SDGs
Management X(6X)

Use of advanced technologies to strengthen
networks, platforms and robotics fields/ develop products and services with highconvenience and utility

Work Style
Reform X

Financial
Position X

Smart factories, streamlined
indirect operations, introduction ofjob-based employment system toenhance responsibility andperformance / expansion of
investment in information systems

Shortening of cash conversion cycle byshortening of receivables / optimizationof inventory turnover period32-1-4 2021-2022 Medium-Term Management Plan:
Basic Concept
The impact of COVID-19 has been on a recovery trend since the second half of 2021, and in 2022 it should recover to 2019 levels.
Maintaining fixed cost base through cost structure reform and strengthen profit base through value-added structure reform.
Accelerating the transformation to a "profitable model" based on the 6 Transformations and return to a "growth track".

Overall structural reform
Medium-term plan

Return to a"growth track"
From the effects ofcorona Market recovery① Borderless X
Growth Strategy

Structural reform plan

Developing markets and customers
with growth potential② Business Model X
Expansion of business To boost profitability③ SDGs Management X
Realization of "sustainable" management④ R & D Model X
Added value

Structuralreform

Structural reform
Cost

Structural reform

Bottom line

Strengthening theearnings base
In FY2020
maintenance of
fixed cost level
Fiscal 2020 basedeteriorated by theoutbreak of COVID-19

Expansion of innovative business areas

Business Reform

Structural reform scenario

Medium-term plan

Market trends

6 Transformations (6X)

⑤ Work Style Reform X
Production system centered on 5S management
Establishment of management (indirect) operation system⑥ Financial Position X
By strengthening our financial position
strengthening equity capital and improving asset efficiency

4

2-1-5 2021-2022 Medium-Term Management Plan:
VisionWhat we aim for in 2022 as Phase II (goal)

Vision for 2022

A "mono-koto" creating company that enables customers and JUKI
to improve corporate value through products and services~ Becoming a Win-Win Partner for Smart Factories ~Continuous
growthIn addition to the expansion of existing businesses, securing continuous
earnings by expanding business domains and creating new businesses

Profitability

Strengthening profitability by expanding high-value-added businessfields (Sewing machinery: non-apparel/ non-sewing, Electronic assembly
systems : non-mounter segments, Group business: engineering business,
Customer business : service business)

Productivity

Building a Smart and Slim management foundation

Stability

Building a stable financial base5

2-1-6 2021-2022 Medium-Term Management Plan:
Net Sales and Ordinary Profit
Net sales

Target for 2022 : 119 billion yen (+ 6% from 2018, + 70% from 2020)

Ordinary profit

Target for 2022 : 9.8 billion yen (up 13.8 billion yen from 2020)

Net Sales and Ordinary Profit(Unit: 100
million yen)

1,200

1,121

+6%

992

1,000

2022 Target

Earnings forecast■ Net sales (left axis) ■ Ordinary profit (right axis)

1,190
1,000

250

200

704

600

400

300

+70%

800

Profitmargin
8.2%

84

200

28

29

+138

98

0

150

100

50

0

(200)

Exchange Rate 1US$

(Unit: 100
million yen)

FY2018¥110

FY2019¥109(40)

FY2020¥107△ 50

FY2021¥102

FY2022¥102

6

2-1-7 2021-2022 Medium-Term Management Plan:
Sales Portfolio
In addition to strengthening existing businesses, expanding business domains and creating new businesses,
the share of non-industrial sewing machine sales will increase from 41% in 2018 to 50% in 2022.

2022
Total for the entire company

2018
Total for the entire company

1,190

41 % 1,121
7%

2020
Total for the entire company

11 %

704

18 %
5%

59 %

FY2018FY2019SDGs Management X

Nonindustrial
sewingmachineBusiness Model X

Borderless X(Unit: 100 million yen) ■ Customer Business■ Group business
Compo■ Industrial equipment
sition■ Home sewing machine
Ratio
(‘18)
■ Industrial sewing machines

FY2020

FY2021

Composition
ratio
(‘22)

Growthrate(comparedto ‘18)

Nonindustrial
Total
sewing growth rate
machine
+6 %

50 %

◎ ◎ ◎

9%

+30 %

◎ ◎

11 %

+22 %

◎ ◎ ◎

21 %

+31%

◎ ◎

9 % +121 %

◎ ◎ ○

50 %

(4)%

FY2022◎ : Highly significant effect of the change○ : Medium significant effect of the change

72-1-8 2021-2022 Medium-Term Management Plan :Value Added Structure Reform

Borderless XBusiness
Model X

In order to achieve our portfolio in 2022, we will promote expansion measures centered on"strengthening the customer base" and "expanding high-value-added business" in each field.

Value-added structural reform
Exchange : Planned rate basis ($ 1 = ¥ 97, 1 Euro = ¥ 110)
(Unit: 100 million yen)

1,200

Expansion of business domains / creation of new business
Strengthen existing business

1,000

Market impact
Current Earnings

800

114
81
97

600
400

Current
Earnings

Current
Earnings

Current
Earning
growththroughvalue-added
structuralreform117
54

Current
Earnings

200
0

FY2020
Division

FY2021

FY2022

Strengthening
existing business

Expansion of businessdomains / creation of
new business13.5 billion yen
compared to 2020

23.1 billion yen
compared to 2020

Comparison with 2020

Strengthening
existing businessBusiness area
expansion /creation of new
business

Industrial sewing
machine

8.2 billion yen

6.4 billion yen

Home sewing machine

0.4 billion yen

2.4 billion yen

Industrial equipment

3.2 billion yen

8.9 billion yen

Group business---billion yen

3.3 billion yen

Customer business1.7 billion yen

2.1 billion yen

Major Initiatives

Strengthening our customer baseStrengthening existing business (Sewing machinery : Increase in sales in the middle market,
Electronic assembly systems : Strengthening response to global customers)
Strengthening profitability by expanding high-value-added business fields
Expansion of business domains (Sewing machinery : non-apparel/non-sewing, Electronic assembly system: non-mounter segments (MI & robot,/creation of new businessinspection/measurement, automated storage), Group business: engineering business, Customer business: service
business)8

2-1-9-1 2021-2022 Medium-Term Management Plan :SDGs Initiatives

SDGs
Management X

We will work through our business to solve social issues that are important for
both our company and our stakeholders.

Realization of sustainable management
JUKI Corporate Philosophy System Chart
Corporate Philosophy

Concept of Value , Importance of Existence,
and Purpose

Corporate Management Policies
Direction to Aim for

Corporate Conduct Code

Basic Stance in Terms ofCompanies Engagement Activities

Corporate Slogan

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 and Productivity
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 Management Principle

Social issues to be tackled
Creation of employment opportunities
Promotion of social participation byvarious human resources
Reduction of waste of clothing

Sustainable activity by the company and its employees
Development of Business Activities Incorporating
Our Efforts to Achieve the SDGs

JUKI is supporting the sustainable development
goals (SDGs).

Efforts to solve problems

Related SDGs

Creation of new jobs and realization of growth of workers and improvement to working
conditions through support for vocational education in emerging countries
Realization of a "factory that produces high-quality products in a short time at low cost"

Support for technological innovation
through improvement to productivity Improvement to back-and-forth process infrastructure in implementation plants
in the electronics industry
Ensuring occupational health and safety

Improvement to insufficient supply of non-woven fabric masks and protective clothing in
the market

Reduction of environmental impact

Promoting and strengthening efforts to reduce environmental impact through businessactivities92-1-9-2 2021-2022 Medium-Term Management Plan :SDGs Initiatives

SDGs
Management X

Creation of employment opportunities / promotion of social participation by various human resources⚫ Supporting the creation of industries and economic development inemerging countries through the industrial sewing machine business(Case) Supported the establishment of the "Garment Training Center" andimplemented the trainings through 9 years in Cambodia. The Company
contributed towards developing the garment industry into the country’s
largest export industry.

Ensuring occupational health and safety⚫ Under circumstances where the COVID-19 infection continues to spread,
JUKI's mission is to stay close to customers who continue to challengemanufacturing.
(Case) In the industrial sewing machine business, our Company supported the sewingsite by "proposals to protect the safety and security of the workplace," "remoteonline support," and "business and production diversification proposals(creating masks and protective clothing").

Reduction of environmental impact⚫ Our Company continues to contribute towards the environment
through activities to reduce emissions of CO2, waste materials,
volatile organic compounds (VOCs), etc.
(Case) JUKI VIETNAM CO., LTD. became No. 4 plant to reduce CO2 emissions.
We promote environmentally conscious manufacturing by installing 2,200
solar panels.

102-1-10 2021-2022 Medium-Term Management Plan :

Work
Style
Reform
X

R&D
Model
X

Investment Plan

Building a new business model and management foundation for the new norms andinvesting in priority areas
Research investment(Unit: 100
million yen)

60
40
20
0

55
21

34
FY2019ActualInfrastructure investment■ Advanced■ Existing and others(Unit: 100
million yen)

45

46

48

17

20

21

28
FY2020
Actual26
FY2021
Plan

Division

Research investment

27
FY2022Plan

12■ New construction■ Existing Updates

0(Unit: 100
million yen)

10

20

4
3
1

FY2019Actual

5
2.8
2.1
0.7

FY2020
Actual

4

17

10
12

7

1
FY2021Plan■ Smartization■ Increasing of Capacity
Environmental Improvement / Other

5

3

8
4

Capital investment in production

FY2022
Plan

0

FY2019Actual

17
10

12

12

4

7

8

FY2020
ActualFY2021Plan

7
5FY2022Plan

Major Initiatives
Development investment to develop differentiated products and services
・ Expansion of business domains and enhancement of added value in new business fields
・ Initiatives for advanced technologies outside of existing businesses

Development of infrastructure to support new management systems
Infrastructure investment ・ System development to support renewal and process reform of key management systems /Operational efficiency through the use of smart tools
Capital investment inproduction

Capital investment to realize production base strategy
・ Capital investment in production to expand new businesses and domains, and investment inautomation and labor-saving to improve production processes and reduce costs

112-1-11 2021-2022 Medium-Term Management Plan :

Work
Style
ReformX

Cost Structure Reform

Cost structure reforms to maintain fixed cost levels in 2020. (On the other hand,strategic expenses for new / expanded areas for future growth are included in the plan.)

Cost structure reform
390
380
370
360
350
340
330
320
310
300
290
280
0

Control through cost structure reform(2)■ Fixed costs■ Strategic
expenses(72)

FY2018Division

FY2019FY2020

FY2021

FY2022Major Initiatives

Production cost reform・ Reaping the effects of smartification of factories
・ Optimization of factory production scale

Personnel cost reform・ Slimming down of head office management indirect functions
・ Introduction of job-based employment system based on responsibility and performance・ Thorough implementation of new employment formation

Reform of sales costs

・ Improvement to sales productivity through work reform12

2-1-12 2021-2022 Medium-Term Management Plan :Financial
Position
X

Financial Structure

We will thoroughly improve our financial position by strengthening our earnings baseand maintaining fixed costs.

(Unit: 100
million yen)

50%

40%
30%

40.3%

600
500

31.1%
30.7% 32.3%
28.2%

1.5
451

479

436

429

1.4

1.3

1.0

300

0.6

231

200

10%

1.3

1.2

400

20%

0%

Debt / equity ratio (interest-bearing debt –cash and deposits) / net assets)

Interest-bearing debt (excluding cash
and deposits)

Equity ratio

0.5

100
End of

End of

End of

End of

End of

2018

2019

2020

2021

2022

Division0

End of

End of

End of

End of

End of

2018

2019

2020

2021

2022

0.0

End of

End of

End of

End of

End of

2018

2019

2020

2021

2022

Major Initiatives

Accumulation of equity
capital・ Improved profitability through value-added and cost structure reforms

Reduction of interestbearing debt

・ Shortening of cash conversion cycle (CCC) by shortening receivables and optimizing
inventory turnover period132-2-1-1 Sewing Machinery & Systems Business(Industrial Sewing Machines)
VisionContributing toward our customers’ innovation by offering innovativetechnology and system proposals from JUKI Smart Solutions.

Basic
policy・ Maintaining No. 1 market share in apparel and non-apparel・ Strengthening measures in the knitting field

2022 Target

Priority Initiatives
Strengthening Efforts in Untapped
Markets in Emerging Countries

Exchange : Planned rate basis ($ 1 = ¥ 97, 1 Euro = ¥ 110)
Unit : 100
million yen

700
600

622 in2018* Blue indicates the percentage of net sales■Apparel ■ Knit ■ Non-Apparel

Extension
rate (4)%

24%

31%

500
400

599 in2022

11%

330 in
2020

12%

Central Asia, North Africa andRussia300
200 66%56%

Middle East andAfricaVietnam, Myanmar andCambodia

Latin
America

100
0

2018

2019

2020

2021

2022

14

2-2-1-2 Key Initiatives for FY2021 Sewing Machinery &Systems Business (Industrial Sewing Machines)
Providing optimal products and systems to help customers build smart factories

Juki's 3 commitments
2. Digitization

1. Automation

3. Networking[Line solution proposed by JUKI]

Service(parts search online)

Product

Equipment

Printing(operation management system)

Cutting

Digitalsewing(drip injection support app.)

Automatic
machinese-Learning

BondingFinishing
touch

15

2-2-2-1 Sewing Machinery Systems & Business(Household Sewing Machines)
VisionCreate new ways to enjoy handicraft-making, in collaboration with customer(home sewers) who have excellent handicraft capabilities.

Basic
policyExpand solid business based on strengths in high-end household sewing
machines, small overlock machines, sewing machines for professionals, andquilting machines.

2022 Target

Priority Initiatives

Exchange : Planned rate basis ($ 1 = ¥ 97, 1 Euro = ¥ 110)
* Blue indicates the percentage of sales
Unit : 100
million yen

120■For home ■ Lock ■ For work

Total for
2022

104

100

21%

82 in
2020

80

23%

47 in 2018
60
40
20

Expanding sales with HZL-UX8
through UI/UX design

25%
56%

29%

Home sewing machine
HZL-UX8

45%
0

2018

2019

2020

2021

2022

16

2-2-2-2 Key Initiatives for FY2021: Sewing Machinery &Systems Business (Household Sewing Machines)
Development of JUKI sewing machines and services to create new value for customers

Rich lineup

User-oriented functions
and usability

Handmade support
content (video,
seminars)

Helping Customers Build Their “kotodzukuri”(value-creation), Whether Real or Digital17

2-2-3-1 Industrial Equipment & Systems Business(Electronic Assembly Systems)
VisionBecome an essential business partner for customers through expanding the businessbase in existing fields and by proposing and providing automation and labor-saving
solutions. Expand sales in the high-speed equipment market (China), automation andlabor-saving (JM + robots, inspection and measurement, and strengthening ISM)

Basic
policyExpand business base by increasing solution sales and cultivating customers in the nonmounter segment and expanding line solution sales by strengthening high-speed
equipment in the mounter segment.

2022 Target

Priority Initiatives

Exchange : Planned rate basis ($ 1 = ¥ 97, 1 Euro = ¥ 110)
(Unit: 100 million yen)

Strengthening Marketing Alliances in
Key Markets* Blue indicates the percentage of sales■General-purpose machine ■ High-speed machine ■ Non-mounter ■ Non-SMT

300

253 in2022
4%

250 194 in
2018
200
150

29%

0%

139 in
2020

27%

8%

Europe

33%

100
50

65%

Japan

India

U.S.A.

Southeast
Asia

33%

0

2018

China andSouth Korea

2019

2020

2021

2022

18

2-2-3-2 Key Initiatives for FY2021 : Industrial Products &Systems Business (Electronic Assembly Systems)

JUKI Smart Solutions

Expand our business areas further by deepening alliances and automation.

Automated warehousing
control

Automated postprocess/assemblyCore system cooperation
Remote support
Production/equipment
visualization

Automatedinspection/measurement

External standard
cooperation
Predictive and preventive
maintenance using AI
Cooperation between
devices

Cooperation with other companies
Storage control system

Mounters/inspection equipment/
post-process mounters

Parts supply
management field
Expanding Business Areas

SMT field
Existing Business Areas

Robot system

Manualinsertion field

Assembly field

Inspection/measurement system

Inspection/measurement
field

Expanding Business Areas19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 technology).

Basic
policyExpanding sales to become a third pillar by cultivating new customers andexpanding the frontage of important customers

2022 Target

Priority Initiatives

Exchange : Planned rate basis ($ 1 = ¥ 97, 1 Euro= ¥ 110)

Enhancing the Uptake of Production Area Relocation
Projects in Asia and Japan(Unit: 100 million yen)

160
140
120

* Blue indicates the percentage of sales■Development/Engineering■ Materials/Parts■New Business

110 in
2018

4%

0%

90 in
2020

100

80

134 in
2022

China

57%

69%

JUKI
VIETNAM

40
20

Hiros
hima

JUKI
MatsueJUKI

Otawara
Plant

JUKI
Metals

38%

31%

0

2018

Japan
Juki

SuzminSeimitsu

Asia

60

JUKI
Industrial
Technology

2019

2020

2021

2022

20

2-2-4-2 Key Initiatives for FY2021:Industrial Products &Systems Business (Group Business)
Expanding Juki's Contract Development and Contract Manufacturing by Leveraging 3 Strengths[Production Capacity] ~ Integrated Production System ~One stop engineering business from planning and development to assembly

Planning anddevelopment

DesignMaterials

Processing

Assembly[Proposal ability] - Automation / visualizationof facilities[Technical Skills] - Demonstration of Know-how
Cultivated in Sewing Machine / Mounter -Robotization of heavy work and simple repetitive
work, improvement to highly productive lines, andvisualization of production

High-Quality Manufacturing with People and Materials and Equipment

Industrial sewing machine[Person]Development
supportTechnician

Home sewing machine

Chip mounter

Development andmanufacturing
Know-how[Materials andequipment]
Material procurement
Development andmanufacturing
facilities

Entrusted
Development
production

Integrated
production

Unit production

Parts production21

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“(mono) to the selling of "services“(koto)across the boundaries of sewing machinery and electronic assembly systems. - Speedup the implementation of a customer lock-in strategy by enhancing added value -2022 Target
targetPriority Initiatives

Exchange : Planned rate basis ($ 1 = ¥ 97, 1 Euro = ¥ 110)

* Blue indicates the percentage of sales■Sewing parts ■ Industrial parts■ Sewing service■ Industrial service(Unit: 100 million yen)120

106 in2022

100
82 in 201880

Expanding the Sewing Service
Business through Inspection Support
Applications

7%
6%

6%
0%
22%

63 in
2020

60

22%

40
65%

72%

20
0

2018

2019

2020

2021

2022

22

2-2-5-2 Key Initiatives for FY2021:Industrial Products &Systems Business (Customer Business)
EXPAND PARTS/SERVICE
BUSINESS• Sewing machinery:
Expand sales parts by inspection
support application.
• Electronic assembly systems:
Rebuild the trade-in business.

Stock
optimization
management
systemCustomer support
with/after COVID-19

EXPAND AFTER SALESSERVICE IN INTRODUCING
SMART LINES

・ e-Learning
Support for Smart Solution

・ Remote support
Parts supply system
Parts center/sales company
warehouse

Management ofpreventive
maintenance for
equipment

Management ofpreventive
maintenancefor equipment

Provide Logistical
Support for Activities

・ Parts Web site
・ JOL
Network system to shareand send information

Open Innovation with Subcontractors
23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 and uncertainties. JUKI therefore
wishes to caution readers that actual results may differ materially from those projectedin such forward-looking statements.

JUKI CORPORATION