In accordance with our long-term plan first announced in 2006, we are eyeing consolidated net sales in excess of ¥4 trillion and an ROE of 10% by fiscal 2011. In striving to meet this ROE benchmark, we are seeking to improve the operating income margin as well.
Profits, however, are expected to plateau momentarily in fiscal 2008 due to the increasingly large burden of upfront investments related to capital expenditures, recruitment, and other spending required for future growth.
DENSO is nevertheless determined to meet its goals for fiscal 2011. To cope with anticipated conditions, the Company will accelerate the pace of initiatives outlined in the long-term plan in order to overcome the temporary lull in profit growth.
In this year’s feature, we introduce several programs and activities that DENSO is pursuing in an effort to make the long-term plan a reality.