Medium-term Management Plan for Fiscal 2020 through 2022
August 6, 2021
As a global manufacturer dedicated to electronic musical instrument, Roland Corporation (Headquarters: Kita-ku, Hamamatsu City, Shizuoka Prefecture; CEO: Jun-ichi Miki) aims at “bringing the WAKUWAKU thrill and excitement to all the people in the world” by spreading the experience of creativity through innovative products and services, based on the corporate slogans we have unchangingly maintained since our foundation: “1. Inspire the Enjoyment of Creativity,” “2. Be the BEST Rather Than the BIGGEST,” and “3. Cooperative Enthusiasm for All Stakeholders.”
In light of the recent changes in the business environment, including the new lifestyle that has become normal during the COVID-19 pandemic, we have revised the numerical targets for the final year of the Medium-term Management Plan for Fiscal 2020 through 2022 as follows.
1．Numerical targets of the Medium-term Management Plan
1 Net income refers to "net income attributable to owners of parent”
Exchange rates for FY12/2020 USD/JPY：106.83、EUR/JPY：121.85、EUR/USD： 1.141
Exchange rates of initial plan for FY12/2021 and for FY12/2022 USD/JPY：105.00、EUR/JPY：123.00、EUR/USD： 1.171
Exchange rates of revised plan for FY12/2021 USD/JPY：105.98、EUR/JPY：127.18、EUR/USD： 1.200
Exchange rates of revised plan for FY12/2022 USD/JPY：106.00、EUR/JPY：127.00、EUR/USD： 1.198
Roland's corporate philosophy is expressed through the three slogans below. These slogans, which remain unchanged from the time the company was founded, exemplify the reasons for the Roland Group's existence, as well as the kind of company we envision ourselves to be.
－ Inspire the Enjoyment of Creativity
－ Be the BEST rather than BIGGEST
－ Cooperative Enthusiasm for All Stakeholders
Inspire the Enjoyment of Creativity
Our aim is to create an exciting world where everyone is able to enjoy music or videos in their own way, wherever and whenever they choose. We continue to pursue the possibilities of boundless joy that come from the satisfaction of creating new music or video, playing a musical instrument, or having the opportunity to share this joy with others.
Be the BEST rather than BIGGEST
We are committed to hard work and doing our best to become a one-of-a-kind company that offers the best to each and every one of our customers. What we value most as we continue to grow is the relationship of trust we enjoy with our customers. And we are committed to grow in ways that enable us to give our customers what they want, as well as inspire them with new dreams and expectations.
Cooperative Enthusiasm for All Stakeholders
We aspire to be a company for which our customers have a special place in their hearts, and are inspired to support. In creating new value, we are committed to respecting all principles that we are expected to uphold while developing an even deeper understanding of our purpose. Though this, we seek to transform the affinity for our company, of the customer and all stakeholders, into the needed strength to move the business forward.
3．Recognition of the business environment and important issues
Our Group belongs to the world’s musical instrument market, which has been growing at a stable rate around 1% to 3%, with the overseas market as a growth driver. In recent years, due to the global COVID-19 pandemic, people’s values have changed dramatically. As the new lifestyle brought by COVID-19 has become normal, the electronic musical instruments business has continued enjoying firm demand especially from customers taking up a challenge to start playing musical instruments or those who resume musical performance, both hoping to enjoy themselves. The major attraction of electronic musical instruments is that people can enjoy playing them alone or with others whenever and wherever they want. Meanwhile, on the supply side, there is uncertainty because such aspects as material procurement, production and logistics have been affected by the measures the governments of various countries have taken to cope with the spread of the infection. In relation to the continuous growth of our Group in such an environment, we recognize that important opportunities of our continuous growth are found in: 1) “Produce” — to supply products and services with high added value developed based on deep understanding of customers, 2) “Reach” — creation of customers and finding of new markets for informing the real value of products and services, 3) “Deliver” — construction of the SCM (supply chain management) which minimizes both shortages and excess inventory, and 4) “Support” — development of human resources that bear those and strengthening of managerial fundamentals.
Development of original high value products and services
Customer creation and market development through a continuously strengthened bond between Roland and its enthusiastic fans
Effective SCM which minimizes both shortages and excess inventory
Human resources development in support of growth and good governance through visualization
- Development of original high value products and services
We will positively utilize the common platform in which we concentrate our unique technologies in order to raise the efficiency of developing products of the existing core fields, such as the keyboards, percussions and guitar-related devices, so that we will increase our earning capacity. At the same time, we will also be positive in developing the “game-changing” products having the added value unique to us, aiming at creation of new markets and finding new customers.
In addition, in anticipation of a further increase in the number of members of the Roland Cloud, the subscription service for software sound sources, we will build the system for continuously supplying contents and for developing application. At the same time, we will endeavor to further increase the added value of products, in which we have not succeeded up to now, through the seamless collaboration of hardware and software to which the common platform is applied.
- Customer creation and market development through a continuously strengthened bond between Roland and its enthusiastic fans
We will make good use of the digital marketing scheme, so that we will be able to more closely connected with the customers, to grasp the real customers’ needs and to uncover dormant customers and, at the same time, we will be reinforcing the ties with customers.
Besides, we will reinforce the marketing activities in such growing markets as those in China and emerging nations, so as to attract the burgeoning purchasing power of the new middle classes.
- Effective SCM which minimizes both shortages and excess inventory
We will proceed with promotion of arrangement, unification and visualization of the trade inventory-related data and endeavor to formulate a production plan with higher precision.
At the same time, we will endeavor to reduce the lead time and to raise efficiency by concentrating on highly profitable models so that we will be able to respond to the changing demand in a timely manner with an eye on the continuation of business.
- Human resources development in support of growth and good governance through visualization
We will engage in arranging the environment and creating the corporate culture which allows each one of the employees can work with a sense of security and expressing individuality, so that we will revitalize both the human resources and the organization and raise the labor productivity.
In addition, we will further reinforce the global Headquarters function of the administrative division of the Headquarters with firmly established governance, aiming at maintenance and further improvement of the clean balance sheet and sound cash flow situation along with expansion of the sustainable consolidated management foundation through thorough visualization of figures and the transparency to be brought by the easy-to-understand communication.