Our Creations Inspire Creativity
Reinforcing the Group's management foundation for adapting to changes Ceaseless evolution
In appreciation of the ongoing support of the shareholders of PILOT Corporation (the "Company"), we are pleased to present our 2024 business report in English. With recovery underway from the 2024 Noto Peninsula Earthquake in January last year, heavy rains in September caused further damage. We would like to express our deepest sympathies to all those who have been affected, and we sincerely hope for a quick recovery and reconstruction of the affected areas.
In 2022, we established our purpose, "Our Creations Inspire Creativity and formulated our *2030 Vision," and have been implementing our 2022-2024 Medium-Term Management Plan. We positioned the 2022-2024 Medium-Term Management Plan as the first phase toward the achievement of the 2030 Vision. We were able to largely fulfill our action plan, which was positioned as "Building the Foundation for 2030" and formulated according to the five basic strategies.
We achieved our target, with consolidated net sales for 2024 of 126.1 billion yen, compared to a management target of 118.0 billion yen. However, the market environment changed more than expected, due to soaring material expenses among other factors, and personnel and outsourcing expenses increased as we stepped up investments for the future in areas such as human resources and infrastructure development. As a result, the operating profit margin fell short of our target. The business environment has been changing rapidly, and we have identified new issues about the management foundation, including the fact that it takes time to develop effective measures with our current capabilities of collecting and analyzing information.
This year marks the start of the 2025-2027 Medium-Term Management Plan. The 2025-2027 Medium-Term Management Plan is a phase for reinforcing the Group's management foundation for adapting to changes, as we achieve ceaseless evolution, towards attaining the 2030 Vision.
In our mainstay business, writing instruments, our top-priority management issue is to focus on growth in the global market. We will deliver attractive tools and opportunities that support the value of writing and the act of writing to people all over the world, thereby maintaining and improving our margin.
We will also reinforce the structure of non-writing instrument businesses to create new businesses. We will create the seeds of future creation and new value by transcending the value of the act of writing that we have been providing at PILOT.
To reinforcing our management foundation, we will prioritize and move forward on issues on which we place particular emphasis as a Group, such as driving operational reforms from the viewpoint of total optimization, reinforcing the Group management structure and driving human resource development, and reforming the global supply chain of writing instrument business. In closing, we sincerely ask shareholders for their continued support.
March, 2025
Fumio Fujisaki
Representative Director & President
PILOT Corporation