To begin, Mitsubishi Electric would like to extend its deepest condolences to all those affected by the Great East Japan Earthquake, which occurred in March 2011. It is the sincerest wish of the entire Mitsubishi Electric Group for the earliest possible recovery of all stricken areas.
During the fiscal year ended March 31, 2011, although the business environment saw such setbacks as rapid yen appreciation and soaring raw material prices, conditions continued to improve overall on the back of a widespread recovery in the global economy, particularly in emerging markets. However, the business environment has been affected by the Great East Japan Earthquake, resulting in partial suspensions of production and, due to rolling blackouts and other factors, a decrease in the capacity utilization ratio at some operational sites.
Under these circumstances, the Mitsubishi Electric Group continued to emphasize Growth, Profitability and Efficiency, and Soundness, the three key viewpoints of Balanced Corporate Management. Accordingly, the Group placed greater emphasis than ever before on promoting growth strategies rooted in its competitive advantages as well as on Group efforts to boost its competitiveness and strengthen its management structure in accordance with the Balanced Corporate Management Policy.
As a result, the Mitsubishi Electric Group recorded consolidated net sales of ¥3,645.3 billion in the fiscal year ended March 31, 2011, up 9% compared with the previous fiscal year. Operating income rose 2.5 times year-on-year to ¥233.8 billion, for a Group operating income ratio of 6.4%. Meanwhile, net income jumped 4.4 times to ¥124.5 billion. Consequently, we achieved our operating income ratio, return on equity (ROE) and interest-bearing debt to total assets targets (above 5%, above 10% and below 15%, respectively).
The entire Mitsubishi Electric Group will make wholehearted efforts to contribute to future recovery activities in response to the Great East Japan Earthquake, beginning with efforts to restore social infrastructure. In addition, the Group is taking steps to strengthen its initiatives in growing market segments. To that end, we are engaging in activities that include: expanding business activities globally, beginning with newly emerging countries; promoting environment-related business strategies; bolstering the social infrastructure systems business; and developing the solutions business by combining our wide array of technologies with in-house expertise. Working to refine its robust management structure to be more resilient in today's ever-fluctuating business climate, the Mitsubishi Electric Group will further hone the "craftsmanship" capabilities integral to its operations. We are confident that such endeavors shall help further increase corporate value.
As we stride forward resolutely to achieve these goals, we ask for your continued support and understanding.
