Brother Company Profile Corporate Information of Brother Industries, Ltd. (Group Headquarters) Corporate Name : Brother Industries, Ltd. Date of business inauguration : April, 1908 Date of Incorporation : January, 1934 Paid-in Capital : 19,209 million yen Net Sales : 516.1 billion yen (consolidated) Number of Employees : 31,694 (consolidated) Representative Director & President : Toshikazu Koike (As of March 31,2013) © 2013 Brother Industries, Ltd. All Rights Reserved. 2 Businesses and Products Business Segments & Products Printing & Solutions Personal & Home Sewing and embroidery machine Color laser All-in-One Black-white laser printer Labeling system Mobile Printer Compact Inkjet All-in-One Machinery & Solution Professional high-speed workgroup printer Industrial Sewing Machine Network & Contents Online karaoke system © 2013 Brother Industries, Ltd. All Rights Reserved. Commercial embroidery machine Machine Tool New Businesses Applications for smartphones/tablets Web conferencing solution 4 Scanner Business Segments Network & Contents Others 9.7% Machinery & Solution 11.9% 3.9% Machine tools 8.2% Printers All-in-Ones FAX machines Electronic stationeries Scanner Industrial sewing machines 3.7% Printing & Solutions 68.0% Personal & Home 6.6% (FY 03/2013) © 2013 Brother Industries, Ltd. All Rights Reserved. 5 Printing & Solutions Printers/All-in-Ones/FAX machines/Electronic stationeries/Scanner Black-and-white laser printer Color laser All-in-One Compact Inkjet All-in-One Labeling system © 2013 Brother Industries, Ltd. All Rights Reserved. Label printer Professional high-speed workgroup printer 6 Personal & Home Home sewing machines Sewing and embroidery machine Commercial embroidery machine Sewing machine © 2013 Brother Industries, Ltd. All Rights Reserved. 7 Machinery & Solution Industrial sewing machines /Machine tools Industrial sewing machine Garment printer © 2013 Brother Industries, Ltd. All Rights Reserved. Machine tool 8 Network & Contents On-line Karaoke Systems/Contents services Online karaoke system ※ Sold in Japan only. Fitness lesson system for fitness studio © 2013 Brother Industries, Ltd. All Rights Reserved. 9 Applications for smartphones/tablets Industrial parts business Reducer/Gears Reducer Gears © 2013 Brother Industries, Ltd. All Rights Reserved. 10 New Businesses Brother Online(a cloud service portal site) and Omnijoin(a web conferencing solution) Scanner A see through type head-mounted display © 2013 Brother Industries, Ltd. All Rights Reserved. 11 Net Sales Trend Consolidated Net Sales (Billion yen) Net Sales 6000 5000 \482.2 \502.8 \497.4 FY 03/2011 FY 03/2012 \516.1 \446.3 4000 3000 2000 1000 0 FY 03/2009 © 2013 Brother Industries, Ltd. All Rights Reserved. FY 03/2010 12 FY 03/2013 Trend in Operating Income, Current Income and Net Income (consolidated) (Billion yen) (Billion yen) Net Sales Profit 6000 5000 600 \502.8 \482.2 \497.4 \516.1 500 \446.3 4000 400 \29.8 3000 300 \23.1 2000 200 \17.8 1000 100 0 0 FY 03/2009 FY 03/2010 Net sales © 2013 Brother Industries, Ltd. All Rights Reserved. Net income FY 03/2011 Current income 13 FY 03/2012 Operating income FY 03/2013 Global Network Global Network The Brother group delivers products and services to customers all over the world with 17 production sites (incl. five factories of Brother Industries, Ltd.) and 52 sales sites in 44 countries and regions of the world (as of July 2012). BROTHER INDUSTRIES, LTD 44 countries and regions 17 production sites 52 sales sites ●Group Headquarters ■Manufacturing Facilities ●Sales Facilities (As of May, 2012) © 2013 Brother Industries, Ltd. All Rights Reserved. 15 Global Network (Manufacturing Facilities) The Brother Group has 17 production facilities, mainly in Asia, and produces high quality products under a reliable quality control system. BROTHER MACHINERY XIAN CO., LTD. TAIWAN BROTHER INDUSTRIES, LTD BROTHER INDUSTRIES, LTD BROTHER INDUSTRIES (PHILIPPINES) LTD. BROTHER INDUSTRIES (VIETNAM) LTD. BROTHER INDUSTRIES (SHENZHEN) LTD. ZHUHAI BROTHER INDUSTRIES, CO., LTD. BROTHER TECHNOLOGY (SHENZHEN) LTD. (As of May, 2013) © 2013 Brother Industries, Ltd. All Rights Reserved. 16 Global Network (Sales Facilities) There are 44 Brother sales offices in the world, and we deliver products to customers all over the world. BROTHER INTERNATIONAL CORPORATION (U.S.A.) BROTHER INTERNATIONAL EUROPE LTD. BROTHER MACHINERY XIAN CO., LTD. BROTHER INDUSTRIES (SHENZHEN) LTD. BROTHER INDUSTRIES, LTD BROTHER INDUSTRIES (PHILIPPINES) LTD. BROTHER INDUSTRIES (VIETNAM) LTD. TAIWAN BROTHER INDUSTRIES, LTD ZHUHAI BROTHER INDUSTRIES, CO., LTD. BROTHER TECHNOLOGY (SHENZHEN) LTD. BROTHER INTERNATIONAL SINGAPORE PTE. LTD. BROTHER (CHINA) LTD. (As of May, 2013) © 2013 Brother Industries, Ltd. All Rights Reserved. 17 Number of Employees by Region (consolidated) The Americas 3.9% Europe 5.4% Japan 29.8% Asia & Others 60.9% 31,694 (As of March 31, 2013) © 2013 Brother Industries, Ltd. All Rights Reserved. 18 Sales Breakdown by Market (consolidated) Japan The Americas 23.0% 31.2% Asia & Others 19.9% Europe 25.8% (As of March 31, 2013) © 2013 Brother Industries, Ltd. All Rights Reserved. 19 Corporate Vision and Strategy “Global Vision 21”-Mid-and-Long Term Corporate Vision To become a leading global company with high profitability To become a world-class manufacturer by developing outstanding proprietary technologies To embody Brother’s motto,“At your side,” Throughout our corporate culture © 2013 Brother Industries, Ltd. All Rights Reserved. 21 “Global Vision 21”-Mid-and-Long Term Corporate Vision To become a leading global company with high profitability To become a world-class manufacturer by developing outstanding proprietary technologies To embody Brother’s motto,“At your side,” Throughout our corporate culture © 2013 Brother Industries, Ltd. All Rights Reserved. 22 “Global Vision 21”-Mid-and-Long Term Corporate Vision To become a leading global company with high profitability To become a world-class manufacturer by developing outstanding proprietary technologies To embody Brother’s motto,“At your side,” Throughout our corporate culture © 2013 Brother Industries, Ltd. All Rights Reserved. 23 “Global Vision 21”-Mid-and-Long Term Corporate Vision To become a leading global company with high profitability To become a world-class manufacturer by developing outstanding proprietary technologies To embody Brother’s motto,“At your side,” Throughout our corporate culture © 2013 Brother Industries, Ltd. All Rights Reserved. 24 Management Policies and Codes of Practice - Brother Group Global Charter Basic Policies 1. Group Management 2. Group Growth 3. Stakeholders Customers Our Associates Business Partners Shareholders Local Community The Environment Codes of Practice 1. Trust and Respect 2. Ethics and Morality 3. Challenging Spirit and Speed © 2013 Brother Industries, Ltd. All Rights Reserved. 25 Brother Group’s CSR Management After Global Vision 21 Customers Business Partners Shareholders Global Vision 21 The Environment Local Community Trust from Stakeholders Our Associates Employee Pride © 2013 Brother Industries, Ltd. All Rights Reserved. 26 Mid-Term Business Strategy "CS B2015" Net sales Target of FY 2015 Operating income 750 billion yen 58 billion yen CS B2015 Back to Growth 10,000 7,500 5,028 2010 4,974 5,161 2011 © 2013 Brother Industries, Ltd. All Rights Reserved. 2012 CS B2015 Target 27 GV21 Target Brother Value Chain Management BVCM (Brother Value Chain Management) Customer Delivering Value Choosing Value manufacturing, distribution, sales, services product planning, R&D(research & development) Supply Chain Creating Value BVCM Concurrent Chain development, design, production engineering © 2013 Brother Industries, Ltd. All Rights Reserved. 29 Demand Chain Environmental Activities Brother Earth (Environmental Activities) Brother Earth describes our positive attitude and commitment to our communities and our planet - our goal is to play our part to help build a society where sustainable development can be achieved. At Brother we will always take responsibility, act respectfully and try to make a positive difference. Our goals in 2015 - Brother is recognized as an "environmentally-conscious company" by customers. - Brother is recognized as an "environmentally-conscious company" by local communities. - Employees of the Brother Group are all environmentallyconscious and have achieved the Brother Mid-term Environmental Action Plan. www.brotherearth.com © 2013 Brother Industries, Ltd. All Rights Reserved. 31 Environmental Activities Creating Eco-conscious Products Focus on CO2 Reduction The Brother Group is committed to enhancing efforts to reduce environmental impacts at all stages of the life cycles of its products. Brother seeks to minimize environmental impacts from its business operations, addressing CO2 emissions. 6 回収 1 設計 5 2 使用 調達 4 3 物流 生産 Setting ever higher targets for rapidly reducing environmental impact at respective stages Photovoltaic power generation system set up next to a parking space (BIC (USA)) Complying with Laws, Regulations and Social Trends Communicating Environmental Commitment As a global company with operations in many countries and regions, the Brother Group ensures compliance with increasing environmental laws and regulations in full collaboration with the supply chain. Each and every one of us aims to achieve a sustainable society with high levels of environmental awareness. Restoring the woods in Calimaya in the State of Mexico Explaining laws and regulations for suppliers at the seminar © 2013 Brother Industries, Ltd. All Rights Reserved. 32 Social Contribution Activities Brother’s Social Contribution Activities Implementing a Forest Conservation Program in the Brother Forests in Gujo BROTHER INDUSTRIES,LTD(Japan) Protecting tropical rainforests in Peru Brother International Europe (BIE) Conducting various environmental activities in line with Earth Day BROTHER INTERNATIONAL CORPORATION (U.S.A.) Preventing desertification in Inner Mongolia BROTHER(China)(BCN) © 2013 Brother Industries, Ltd. All Rights Reserved. 34 History 1908 Established Yasui Sewing Machine Co. for sewing machine repair service. 1928 Developed chain-stitch sewing machine for production of straw hats. 1932 Succeeded in mass-production of home sewing machines. 1934 Established Nippon Sewing Machine Manufacturing Co. (now Brother Industries, Ltd.) 1947 Started exporting of home sewing machines. 1954 Established a regional sales company in the Americas. Moved in the fields of knitting machines and home electric appliances. 1958 Established a regional sales company in Europe. 1961 Moved in the fields of business machines and machine tools. 1971 Launched high-speed dot-matrix printer. 1984 Provided typewriters at the Los Angels Olympics Games as an official supplier. 1987 Moved in the field of telecommunication equipment. 1988 Moved in the field of electronic stationery. 1992 Established Xing Inc. , and stated the on-line karaoke system business. 1995 Launched multi-function printer. 1999 Brother Industries, Ltd. affiliated Brother Sales Ltd. as a subsidiary. 2002 Established the Global Vision 21. 2008 Marked the Brother Group’s first 100 years of business. © 2013 Brother Industries, Ltd. All Rights Reserved. 37