SATO Group Objectives and Strategies for FY2015-17

5/13/2015

Tokyo, May 13, 2015 – SATO (TSE:6287), a leading global provider of Auto-ID solutions that empower workforces and streamline operations, today unveiled its medium-term management plan for the three-year period starting with the fiscal year commencing April 1, 2015.

The SATO Group aims to become the leader in the Auto-ID solutions industry worldwide, dedicating itself to offering solutions that create value across the domains of precision, labour and resource savings, delivering peace of mind and environmental protection. At the same time, it seeks to expand the overall scale of its business. To realise this vision, SATO has adopted a long-term strategy focused on pursuing globalisation and maximisation of customer value, and formulated a new medium-term management plan encompassing concrete actionable strategies.

Strategic priorities for FY2015-17:
Establish a unique positioning within the industry

The rapid evolution of information technology has led to the realisation of the Internet of Things, but this new paradigm of connecting literally anything to the Internet can only function seamlessly if physical objects are tagged with identifiers and linked accurately to IT systems. This is a labour intensive process that must be executed on-site, and one of SATO’s strategic priorities is to position itself as the only global Auto-ID solutions provider that is capable of filling in this “last inch”, connecting the virtual and physical through its hands on approach to problem solving known as Genbaryoku. SATO will also prioritise problem-solving for customers by readily looking beyond its own resources and interests to find and secure all possible partnerships to create value for its customers.

FY2015-17 business objectives:
To establish sustainable growth and profit, SATO is targeting to achieve JPY 120 billion in sales, JPY 12 billion in operating income, and a 10% operating income ratio in FY2017. SATO also aims to raise its capital productivity to reach a return on equity (ROE) of 12%, and bring up its overseas sales ratio to 40% in FY2017, and ultimately to 70% over the long term.

Seven strategies for achieving objectives

  • Strengthen Auto-ID solutions capabilities and core business in Japan, shifting resources to growing sectors and new domains, building new growth models
  • Strengthen business outside Japan and rapidly expand in emerging markets, setting a target overseas sales ratio of 70% over the long-term
  • Pursue customer centric innovation
  • Develop new solutions business focused on software and consulting services
  • Deliver one-stop RFID solutions
  • Expand SATO’s “green business” globally, to generate 50% or more of total group sales
  • Improve group management through productivity measures and optimisation of global supply chain management to operate with greater speed and cost effectiveness.

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