Mid-term Management Plan / Yamazen Corporation Web Site

Mid-term Management Plan

“VIATA-3S”, Yamazen's ongoing three-year business plan for FY2010 through to FY2012.

(1) Main points of "VISTA 3S"

By leveraging three key strategies, our aim is to spark innovation and to evolve into a company that combines value, impressions, specialization, technology and adaptability

(2) Focused themes of "VISTA 3S"

1S : Global Competitiveness/ Global Network

Focus on quality

Offer borderless, one-stop solutions to customers throughout the world

Enhance engineering functions and sales network to establish high quality services

Leverage company strengths

Leverage strengths as fabless trading company to tap into new foreign markets, develop new products

2S : Specialization/ Market Share/ Internet/ Eco-friendly Business

Distribution initiatives	Aim to secure leading share of domestic/foreign machine tool orders
	Aim to secure leading share of peripheral equipment transactions in the domestic market
	Aim to become the category leader for private brand products in the consumer market. Target of 3% in-store share at major customers
Online business expansion	Double B-to-B and B-to-C online transactions
Green action	Increase eco-friendly product sales share to 25%. Aim to become the domestic market leader in energy-saving products, solar power and Eco Cute sectors

3S : Break into new markets

Break into new markets	Develop highly-skilled, knowledgeable human resources at home and abroad and the IT infrastructure needed to support this process
Break into new markets	Restructure company businesses in line with markets and needs

(3)Quantitative Targets of "VISTA 3S" 　(May 9, 2012)

Profit Targets

(¥ millions)	Fiscal 2010 (Term 65/Actual)	Fiscal 2011 (Term 66/Actual)	Fiscal 2012 (Term 67)
Sales	323,703 （Initial target 270,000）	372,830 （Initial target 300,000）	350,000
Operating income	7,415 （Initial target 3,000）	10,528 （Initial target 5,500）	8,500
Ordinary income	7,623 （Initial target 3,000）	11,155 （Initial target 5,500）	8,500
Net profit	4,363 （Initial target 1,650）	4,933 （Initial target 3,000）	4,800

Key Financial Targets

(%)

Fiscal 2010

(Term 65/Actual)

Fiscal 2011
(Term 66/Actual)

Fiscal 2012
(Term 67)

Gross margin

2.3
（Initial target 1.1）

2.8
（Initial target 1.8）

2.5

Return on total assets

5.6
（Initial target 2.3）

6.9
（Initial target 3.9）

5.5

Cash flow margin

2.6
（Initial target 1.0）

1.3
（Initial target 1.7）

2.5

Departmental Sales Targets

(¥ millions; %)	Fiscal 2010 (Term 65/Actual)	Fiscal 2011 (Term 66/Actual)	Fiscal 2012 (Term 67)
Machine Tools	39,583 （Initial target 28,000）	51,495 （Initial target 40,000）	58,000
Industrial Systems	47,644 （Initial target 46,000）	53,676 （Initial target 51,000）	58,000
Industrial Tools	48,172 （Initial target 45,000）	53,835 （Initial target 48,000）	52,500
(Total domestic producer goods)	135,400 （Initial target 119,000）	159,006 （Initial target 139,000）	168,500
Housing Equipment, Materials	50,645 （Initial target 49,000）	50,519 （Initial target 51,000）	57,000
Home Products	60,455 （Initial target 57,000）	77,104 （Initial target 60,000）	66,000
(Total consumer goods)	111,101 （Initial target 106,000）	127,623 （Initial target 111,000）	123,000
International Operations	73,697 （Initial target 41,500）	79,950 （Initial target 46,400）	54,700
(Total overseas producer goods)	73,697 （Initial target 41,500）	79,950 （Initial target 46,400）	54,700
Other departments	3,504 （Initial target 3,500）	6,249 （Initial target 3,600）	3,800
Total	323,703 （Initial target 270,000）	372,830 （Initial target 300,000）	350,000

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