Star Micronics ANNUAL REPORT 2020
To Our Shareholders
Beyond 70 Years
Star Micronics celebrated its 70th anniversary in July 2020. I would like to take this opportunity to humbly express my sincere gratitude to all of our stakeholders for their support. Amid a global economy that is being hit hard by the novel coronavirus (COVID-19) pandemic, our current business performance is encountering difficult conditions. Looking ahead to the post-COVID era, however, we will continue to confront challenges toward sustainable growth. Among a host of endeavors, we will create new businesses, foster a new corporate culture, and develop global human resources.
President and CEO
A History That Spans 70 Years
Star Micronics celebrated its 70th anniversary in July 2020. Working toward its next leap forward, the Company is leveraging its core technologies to promote a wide range of measures aimed at both creating new businesses and expanding existing businesses while proactively taking on new challenges.
Review of the Medium-Term Management Plan (2018-2020)
As a global niche company, our goal is to enhance the prosperity and well-being of all stakeholders by distributing the added-value created through efforts aimed at combining the strengths of advanced software and precision processing technologies that help maximize customer satisfaction.
- 1Reform Existing
- 2Create and Nurture
- 3Evolve into a Genuine
NET SALES(Millions of yen)
OPERATING INCOME(Millions of yen)
NET INCOME ATTRIBUTABLE
TO OWNERS OF THE PARENT(Millions of yen)
CASH DIVIDENDS APPLICABLE TO THE YEAR(Yen)
Review of Operations
While POS printer trends were relatively firm in the U.S. market due to favorable food delivery-related sales, results in other markets declined substantially amid the impact of the COVID-19 pandemic in 2020. In 2021, sales are projected to come in at around the same level as the year under review. In addition to capturing ongoing food delivery-related demand centered largely in the U.S. market, this outlook also reflects expectations toward expansion in other regions.
While sales in the Asia market were in line with the previous year, owing to the quick recovery in demand in China, results in other markets experienced a significant decline amid the spread of COVID-19 in 2020. Looking ahead, trends in capital expenditure demand are projected to be robust, beginning with the China market. Buoyed also by expectations surrounding automobile- and communications-related capital expenditure demand in Japan and Europe, sales are forecast to increase in 2021.
In 2020, sales of wristwatch components declined significantly due to the sluggish sales at wristwatch makers suffering from the effects of the COVID-19 pandemic. Moreover, the Company fundamentally withdrew from non-wristwatch component operations as of the end of March 2020. Meanwhile, results will be reported as a part of the Machine Tools Segment effective from 2021.
At Star Micronics, our basic approach to corporate governance is based on fulfilling our social responsibilities as a company. To this end, we strive for management that is both appropriate and efficient at sustainably raising corporate value, while distributing an appropriate amount of the resulting profits to our shareholders and other stakeholders.
Star Micronics has adopted the structure of a company with an audit and supervisory committee in order to strengthen the supervisory function of its Board of Directors and to enhance its corporate governance capabilities.
Furthermore, an executive officer system was introduced to Star Micronics to speed up and raise the efficiency of business execution even further, and ensure that management as an organization is flexible and capable of prompt, rational decisions for executing business.
The Board of Directors is comprised of four Directors (one of whom is an Outside Director, excluding Directors who serve as Audit and Supervisory Committee Members) and three Directors who serve as Audit and Supervisory Committee Members (all of whom are Outside Directors), and is responsible for appropriate and efficient management decisions while supervising the execution of Directors’ duties from an independent standpoint.
On February 9, 2021, the Company established the Nomination and Compensation Committee as an arbitrary advisory body to the Board of Directors to increase the transparency and objectivity of procedures related to the nomination and compensation paid to Directors and Executive Officers. The Nomination and Compensation Committee is comprised of five Directors (four of whom are Outside Directors) appointed through a resolution of the Board of Directors. The Committee deliberates and reports on matters related to the selection, dismissal and compensation paid to Directors and Executive Officers in line with Board of Directors’ consultations.