Medium-term Management Plan

The new medium-term management plan (FY 2018-2020)

Under a new management team, SATO Group has updated its objectives and strategies in the form of a new medium-term management plan (“new medium-term plan” hereinafter), that will be dedicated to concentrating more resources than ever into the Auto-ID solutions business and further establishing sustainable growth and stable profits.

What the new medium-term plan aims for

While technology continues to advance in areas such as IoT, Big Data, AI and automation, the front lines of business operation face numerous challenges that include labor shortage in Japan and food/medical safety around the world. SATO believes that Auto-ID solutions are what it takes to solve these issues and help businesses advance their operations by incorporating global technological innovation trends. In other words, the Auto-ID solutions business has not matured out; it’s still a growing business, even in Japan, as long as our solutions bridge the reality gap that our customer’s management faces.
The new medium-term plan maintains the key objective defined in the previous plan — to improve profitability of our core Auto-ID solutions business and create new business models — while making three major changes (below) to expand and strengthen our core business that promises growth potential.
It also associates investment plans with strategies to indicate how we allocate management resources, while defining our intent to strengthen collaborations among our group companies in and outside Japan and optimize operations from diverse angles that include organization, people and systems.

(1) Focus on our overseas businesses
Our Auto-ID solutions business now sets the Overseas segment at its top-most strategy, as we are confident it will be our growth driver in the medium- to long-term run.
As we believe that ambiguous measures and lack of execution had led to its slow growth, we will emphasize more on developing an organization capable of creating specific solutions that answer to managerial and on-site pain points per country, market and customer.

(2) Commercialize new technologies and solutions
Strategy 3 (Game changer) will seek to create new markets and customers by developing new solutions and business models centered on new technology, pursuing commercialization more than we ever had.

(3) Make IDP our focus in Materials business
Despite the high demand we expect in Inline Digital Printing (IDP), its core technologies are still in their development phase. The medium-term plan thus renamed the business (and corresponding operating segment for financial reporting) that was called Materials to IDP, from our intent to concentrate on developing and commercializing the unique technology.