Investor Relations – President's Message
To Our Shareholders
Looking back on the economic situation during the fiscal year ended March 31, 2016 (hereinafter fiscal 2016), the economies of China and elsewhere in East Asia experienced growth, yet at a gradual and constantly slower pace. Meanwhile, personal consumption remained weak in Japan. Globally, while the economies of some newly emerging nations stagnated, the U.S. economy was robust and some European economies saw modest but sustained recovery. Turning to movements in foreign currency exchange rates, although the yen remained weak against the U.S. dollar compared to the previous fiscal year, there was a turnaround in January 2016, leading to the appreciation of the yen during the fourth quarter.
Under these circumstances, the Mitsubishi Electric Group placed greater emphasis than ever before on promoting growth strategies rooted in its competitive advantages, as well as on initiatives to boost its competitiveness and strengthen its management structure.
As a result, the Mitsubishi Electric Group recorded consolidated net sales of ¥4,394.3 billion in the fiscal year ended March 31, 2016, an increase of 2% compared to the previous fiscal year. Operating income decreased 5% year-on-year to ¥301.1 billion, for a Group operating income ratio of 6.9%. Moving forward, the plan is to implement initiatives that will enable the Group to maintain a return on equity (ROE) above 10%, while keeping the ratio of interest-bearing debt to total assets below 15%, in accordance with management targets. At the same time, the goal is to achieve consolidated net sales of ¥5.0 trillion or more and an operating income ratio of 8% or more by fiscal 2021.
Toward securing these fiscal 2021 growth targets and sustained business expansion, the Mitsubishi Electric Group is accelerating and strengthening its initiatives to create additional value by combining and coordinating its technologies and technologies, and businesses and businesses while enhancing each product, system, and service.
Based on our Corporate Mission and Seven Guiding Principles, we of the Mitsubishi Electric Group position corporate social responsibility (CSR) initiatives as our main pillar of corporate management. Accordingly, we are committed to taking on the challenges that society is now confronting, such as environmental issues, and resource and energy issues, on a worldwide basis. In this way, we will become a global, leading green company capable of contributing to the realization of a prosperous society.
As we resolutely advance forward to achieve our goals, we ask for your continued support.
President & CEO
The Mitsubishi Electric Group will continually improve its technologies and services by applying creativity to all aspects of our business. By doing so, we enhance the quality of life in our society. To this end, all members of the Group will pursue the following Seven Guiding Principles.
Seven Guiding Principles
Establish relationships with society, customers, shareholders, employees, and business partners based on strong mutual trust and respect.
Provide the best products and services with unsurpassed quality.
Pioneer new markets by promoting research and development, and fostering technological innovation.
As a global player, contribute to the development of communities and society as a whole.
- Ethics and Compliance
In all endeavors, conduct ourselves in compliance with applicable laws and high ethical standards.
Respect nature, and strive to protect and improve the global environment.
Assure fair earnings to build a foundation for future growth.