Mid-Term Business Plan FY17-FY20

POLICY
Focus on employee proficiency,
developing a culture and systems
to promote Conscience and Creativity
across our organization worldwide.

Targets and Priorities

Targets

Unique items/Affordable prices

Quality & price for logical reasons, contributing local lifestyles

Professional & diverse affiliates

Sustainable growth

Priorities

Global Supply Chain Management

Product Development

Global HR Management

Group Corporate Governance

Detail per priority

Global Supply Chain Management
Improve planning accuracy to reduce in-store discounting
by 20% in Apparel
Review sourcing process to decrease warehouse stock level
by 50% at distribution centers
Product Development
Develop core items that fit to any local lifestyle
More flagship stores in major countries/regions
Enlarge stores in Japan (100 stores with 1600 m2 capacity)
Renovate existing stores (20 stores/year in China)
Narrow the price gap by location
same retail price for same strategic item
Global HR Management
Set up a global HR system
Start global incentive plan
Group Corporate Governance
Apply same standards within the group

Develop a culture and systems

First, install a system to standardize the same work done by various people and processes.

Next, foster a culture of creativity and empowerment.

Continue to develop brand and corporate values.

Financial Targets FY20

Revenue
JPY500billion
Operating Profit
JPY60billion
ROE
15% or greater
Stores Worldwide
1,200

Target No. of Stores including Café&Meal MUJI and IDÉE (MUJI stores in parentheses)

Policy on Shareholder Returns

We will continue to invest in store openings/renovations to increase our ability to communicate with customers. We will also invest in the information systems for back office work and digital marketing. We estimate annual investments of between JPY 10 billion and JPY 15 billion plus some additions for future growth. At the same time, we are committed to returning profits to our shareholders through an annual payout ratio of 30% of consolidated earnings.

FY12FY13FY14FY15FY16Estimate
Dividend/share (JPY)110155190246293
Dividend Total (JPY M)2,9474,1105,0486,5457,768
Dividend payout ratio (consolidated)26.9%24.0%30.3%30.1%30.1%
ROE12.5%17.0%14.3%16.4%17.7%