Long-term Vision CCC 2030

February 2021

The world is changing.
Our business landscape is changing.
Digitization is proceeding apace,transforming how people work and learn.
People’s lives are changing.
People’s values are changing.
We are not keeping up with the changes.

02

It’s time to change direction.
We will update our philosophy, reaffirm our strengths,
and embark on a new strategic direction that will leadour organization back to growth.
We will adopt a more sustainable mindset with a long-term focus,
and cultivate an entrepreneurial ecosystemthat generates one new business after the other.

03

KOKUYO Long-term Vision CCC 2030
New Philosophy
Reaffirmed Strength
Toward the Forest Model
Growth Strategy :New and better customer experiences
New approach to corporate management :Effective use of shared assets across group

By 2030: Annual net sales of 500 billion yen(compared to the present 300.6 billion yen)04

New Philosophy

05

Over the years, we have developed many kinds ofproducts that enrich lives.

06

That feeling when you open up a fresh new notebook and see the blank page…
That feeling when you put pen to paper and ideas flow out…

07

Whether it’s stationery, furniture, or spatial design,
we’ve always helped people unleash their inner creativity.

08

When people create, they express their uniqueness.
We believe that bringing out people’s individuality contributes toward a better future.

09

be Unique.

We will continue to stimulate people’s inner creativity
to bring out everyone’s uniqueness.

10Reaffirmed Strength

KOKUYO began in 1905, when our founder opened a shop selling ledger covers.
Since then, our organization has always expanded by producing innovative products
and services, and by keeping abreast of the changing times.

1905

1914

Zentaro Kuroda
opens shop
selling ledger covers

Stationery
businesslaunched

1960

1969

KOKUYO launches
Office furniturespatial design solutions
business
with Live Office—launched
the first service ofits kind in Japan

2001

2003

Mail-orderbusinesslaunched

KOKUYO
expands
to Asia12

But there is one thing that has never changed over those 100+ years.
Empathy. Our empathy with customers’ needs has always driven us
to create new products and services.
And when our customers empathize with us through our products and services,
we feel all the more inspired to take on new challenges.

13Empathy

Empathy

EmpathySpiral-bound notebooks
are cool, but the spiralbinding makes writing
uncomfortable.

The glue is so sticky—
I keep getting it on myhands.

I don’t get enough exercise
because I sit behind adesk all day.

Glue dots give you justenough glue and no mess.

360-degree swivel chairlets you exercise while youwork.

Dot Liner Adhesive Tape Runners

ingSoft plastic binding is
comfortable on the writer’s
hand.

Soft Ring Notebook14Empathy

Empathy

Empathy

I wish someone
understood my stresses
and frustrations at work.

The workplace is generic,leaving workers
unmotivated.

Products fully incorporate
user feedback.

Our office solutions inspire
creativity in the workplace.
The office becomes an
exciting place.

I want a creative activity
through which I can bondwith my children andwatch them grow.

Kaunet Premium(Kaunet’s private brand)

Spatial Design and Construction
Services

KOKUYO Ehon offers aworld of fun for children
and parents alike.

KOKUYO Ehon,a creative picture book series

15Designed with Empathy

Our empathic resonance generates new experiences.
This is where our true strength lies.

16

Toward the Forest Model17

We have acted as a generalist-eclectic
Until now, we have followed,
manufacturer, capitalizing
as it were, a “tree”
Philosophy
on our size.
business model.
Enrich the world through our products and services
Behavioral standards
The KOKUYO Creed

StationeryOffice supplies

Officefurniture

Distribution
business
Generalist-eclectic
manufacturing

B2B distribution network

18

From now on,
we will follow the Forest Model

Instead of a single tree, we will be a forest:
an ecosystem of diverse businesses,
each targeting different sets of customer needs.

● Our purpose

be Unique.

Domestic
furniturebusiness

Newbusiness● Our strength

Designed withEmpathy

ACTUS
NewbusinessNewbusinessNewbusinessNewbusinessNewbusiness

Chinesestationery
businessNewbusiness
B2B● Growth strategy

New and better
customer experiences

Overseasfurniturebusiness

KaunetIndianstationery
business

Domestic
stationery
businessAsianstationery
business● New approach to corporate

management

Effective use of shared assets
across group

TalentCapitalSocial values,
risks

DataPlatform fors
new businesse

Entrepreneurial spirit

19Growth Strategy
New and better customer experiences

20Enhance customer interface to create experiences in work and learning.
—This will enable us to expand and grow.
Three-pronged approach

Link digital with analog / Use of customer data /Small target marketing

Growth strategy: New and better customer experiences
21

Link digital with analog

When digital and analog meet, new possibilities emerge.
We will use digital– analog synergy to create
new experiences in working and learning.
IoT-powered stationery that brings children and parents together: Shukudai Yaruki Pen
22

Customer data

We will collect and analyze customer data to obtain insights
about future trends in working and learning.
Sensing data that can transform ways of working: Piloting new workstyle23

Small target marketing

Instead of mass marketing, we will adopt a more precise,targeted approach and cultivate new markets.
Stylish stationery brand targeted at high-school girls in China: Line Field

24

New approach tocorporate management“Effective sharing of assets across group”

25

Assets will be shared across the group more effectively.
Businesses will be cultivated on a group-wide basis.

Unlocktalent

Use cap
italCustomer
data

Inte gratesustainability

Bolster platform
esses
for new busin

Effective sharing of assets across group
Stronger operating base•

•

•

•

Ascertain future scenarios and sectors thatpromise long-term growth
Refine strategy with PDCA cycle and ensure
optimal resource allocation
Integrate sustainability through ESG
management
Manage growth-related risks

Greater entrepreneurial capacity••••

Cultivate team of entrepreneurs and attract
entrepreneurs from outside
Allocate 180 billion yen for investment andimprove capital efficiency
Drive forward digital transformation
Explore opportunities for using venture capitalor corporate venture capital26

By 2030: Annual net sales of 500 billion yen(compared to the present 300.6 billion yen)27

Through our growth strategy,
we aim for annual net sales of 500 billion yen by 2030.
This requires a growth fund of 180 billion yen.
2020
Net sales:
300.6 billion yen

By 2030
Net sales:
500 billion yen
New businesses
Net sales: 50–100 billion yen

Enlarged (existing)businesses

Growth fund:180 billion yen*

New and bettercustomer experiences

120 billion yen

Digital × Analog

70 billion yen

Use customer data

20 billion yen

Small target marketing

30 billion yen

Net sales: 100 billion yen

Existing businesses

Higher-value (existing)businesses
Net sales: 300 billion yen

Higher-value(existing) businesses

60 billion yen* Around 50–100 billion of the fund will be earmarked as M&A fund / venture capital28

Each domain will expand its existing businesses.
We will also launch new businesses.

New businesses
Net sales: 50 –100 billion yen

Enlarged (existing)businesses
Net sales: 100 billion yen

Higher-value (existing)businesses
Net sales: 300 billion yen

2030 total net sales:

500 billion yen

New digitally-powered experiences in working and learning

Workstyle services guided
by sensing data

Projects to cultivate
e-commerce markets(includingnon-office markets)

Projects to cultivate small,targeted market segments
around the world

New solutions fordispersed workforces

Projects to capture morecustomers in the shift
to e-commerce

Projects to improve
profitability ofB2C businesses

Spatial ValueDomain

Business Supplies
DomainGlobal StationeryDomain

Net sales: > 200 billion yenNet sales: > 100 billion yen

Net sales: > 100 billion yen+55 billion yen from 2020+15 billion yen from 2020+30 billion yen from 202029

Toward the Forest Model● Our purpose

be Unique.

Domestic
furniturebusiness

Newbusiness

Kaunet● Our strength
ACTUS

Designed withEmpathy

Newbusiness

Overseasfurniturebusiness

New and better
customer experiences

Newbusiness

B2B● Growth strategy

NewbusinessNewbusinessNewbusiness

Chinesestationery
businessNewbusiness

Indianstationery
business

Domestic
stationery
businessAsianstationery
business● New approach to corporate

management

Effective use of shared assets
across group

TalentCapitalSocial values,
risks

Data

Platform fors
new businesse

Entrepreneurial spirit

By 2030: Annual net sales of 500 billion yen(compared to the present 300.6 billion yen)30

Long-term Vision CCC 2030