Star Micronics ANNUAL REPORT 2021
Corporate Philosophy, Purpose,
Management Policy, Action Guidelines
To Our Shareholders
Grand Design for a New Age
Despite the ongoing impact of COVID-19, results in both the Machine Tools and Special Products segments were robust in 2021.
Coinciding with the Company’s shift to the Prime Market of the Tokyo Stock Exchange, Star Micronics has put in place a new medium-term management plan in 2022. Guided by this plan, the Star Micronics Group aims to help bring about a sustainable society and enhance corporate value by putting into practice the core concept of the Company and employees growing together and contributing to society.
President and CEO
Working toward its next leap forward, the Company is leveraging its core technologies to promote a wide range of measures aimed at both creating new businesses and expanding existing businesses. Star Micronics is committed to contributing to the sustainable development of society as a leading small and medium-sized enterprise that seeks to excel on the world stage.
Medium-Term Management Plan
The Group formulated the Medium-Term Management Plan as part of a review of our Corporate Philosophy, Purpose, Management Policy, and Action Guidelines to empower employees to make decisions and act autonomously as we seek to become a Company that grows sustainably together with society. At the same time, we formulated a Vision for 2030. With the Medium-Term Management Plan and Vision, the Company has created a roadmap for the next nine years, divided into three-year periods. As the first phase, we formulated the first Medium-Term Management Plan covering the three years from 2022 to 2024.
NET SALES(Millions of yen)
OPERATING INCOME(Millions of yen)
NET INCOME ATTRIBUTABLE
TO OWNERS OF THE PARENT(Millions of yen)
CASH DIVIDENDS APPLICABLE TO THE YEAR(Yen)
Review of Operations
Despite the impact of a shortage in the supply of components and parts as well as delays in distribution, sales of POS printers increased substantially in the U.S. market in 2021. This was largely due to robust sales trends in the mPOS and food delivery sectors as a result of the recovery in market conditions. In the European market, sales were strong owing mainly to large orders. On the domestic front, sales increased significantly on the back of robust trends in demand for mPOS applications in Japan.
While mPOS-related and food delivery sector demand is projected to continue at a high level in each region owing to the spread of mobile devices and growth as a result COVID-19 pandemic, respectively, sales in the Special Products Segment are forecast to decline in 2022 due to the significant impact of shortages in the supply of such components and parts as semiconductors.
Sales of CNC automatic lathes in the U.S. market increased substantially in 2021. Despite the impact of delays in distribution, this increase was mainly due to robust trends across a wide range of industries on the back of a recovery in the overall economy. In the European market, sales also increased significantly owing largely to the positive automotive-related turnaround. In addition to the ongoing robust telecommunications-related trend, automotive-, medical-, and other-related sales in China recovered. As a result, sales grew substantially in the Asian market. In Japan, sales enjoyed a major upswing, largely reflecting strong sales of mainstay automotive-related products.
Sales in the mainstay Machine Tools Segment are forecast to increase in 2022. This is mainly due to ongoing robust capital investment demand both in Japan and overseas.
Equipped with a full range of functions, Star Micronics has established the Solution Center in Kikugawa City, Shizuoka Prefecture, for the purpose of providing before and after-sales services to users, collecting technical information, and strengthening marketing in the Machine Tool Segment.
In order to expand its solution capabilities globally, Star Micronics will open solution centers equipped with similar features at Star Micronics AG in Zurich, Switzerland and Shanghai Xingang Machinery Co., Ltd. in Shanghai, China to service the European and Asian markets, respectively. Plans are in place to employ each center as a core base for sales activities in each market.
At Star Micronics, our basic approach to corporate governance is based on fulfilling our social responsibilities as a company. To this end, we strive to achieve appropriate and efficient management with a view to the sustained enhancement of corporate value and the realization of a sustained society, and to distribute the results of these efforts appropriately to shareholders and other stakeholders.
Star Micronics has adopted the structure of a company with an audit and supervisory committee in order to strengthen the supervisory function of its Board of Directors and to enhance its corporate governance capabilities.
Furthermore, an executive officer system was introduced to Star Micronics to speed up and raise the efficiency of business execution even further, and ensure that management as an organization is flexible and capable of prompt, rational decisions for executing business. The Board of Directors is comprised of four Directors (one of whom is an independent Outside Director, excluding Directors who serve as Audit and Supervisory Committee Members) and three Directors who serve as Audit and Supervisory Committee Members (all of whom are independent Outside Directors), and is responsible for appropriate and efficient management decisions while supervising the execution of Directors' duties from an independent standpoint.
Annual Report 2021
- Statements in this annual report with respect to Star Micronics’ plans, strategies and beliefs as well as all other statements that are not historical facts are forward-looking statements involving risks and uncertainties. These forward-looking statements rely on a number of assumptions concerning future events. The important factors that could cause actual results to differ materially from such statements include, but are not limited to, general worldwide economic conditions, competitive pressure on sales and pricing, and movements of currency exchange rates.