In March 2015, KOKUYO rejuvenated its management system and in October, KOKUYO Co. Ltd merged with two key operating companies to go beyond the framework of our existing business and to strive to create value that our clients truly desire.
To take our achievements to another level, our mission statement for the future is as follows: "KOKUYO aims to be a Life & Work Style Company that enriches society by providing value through our products and services to enhance customers' creativity and to deliver improvements to their Quality of Life so that they work, learn and live better."
To this end, we have adopted a new 3-year basic management policy that is "Self-reform focusing on value creation - Value Transformation 2018". There will be an "operating model reform" that realizes customer-oriented value creation and the "development of sustainable profitability" to enable medium to long term sustainable growth. The goals of the current medium term management plan are: (1) "The acquisition of funds for growth": to achieve an operating profit from domestic businesses of at least ¥15 billion, (2)"The implementation of high efficiency management": to achieve an operating margin of at least 5%, (3) "Self-sustainability overseas": to achieve profit stability in our overseas businesses. In fiscal year 2018, we aim to achieve at least ¥310 billion sales, gross margin of at least 35%, operating margin of at least 5% and an operating margin of at least ¥15.5 billion.
In working toward becoming "the corporation we want to be in the future," we would like to proactively press forward with operations with corporate social responsibility, satisfying the expectations of various stakeholders - the customers, the shareholders, the clients, the community, the employees, and the ecological environment.
In doing so, we believe that the elements transparency, fairness, and independence are integral to the form and operation of management. We will work to keep these thriving by fortifying our corporate governance system. We will also continue our initiatives toward solving issues faced by society, such as protection of the ecological environment and respect for human rights.
KOKUYO has built its history of a hundred-and-some years by earnestly facing issues of customers as they changed with the times and finding the solution for each one. This attitude remains the same today, though it is said to be uncertain times as societal and commercial issues are entangled with increased complexity.
Under a new management system, we will do our utmost to provide value which contributes to the realization of a sustainable society by placing importance on facing issues of both the customer and society while being flexible in the forms solutions may take.