Message from the President
A message from the president about DENSO's mission and a vision
On behalf of all at the DENSO Group, I would like to take this opportunity to express our sincere gratitude for the support we have received from all our stakeholders.
In the first-half of fiscal year ending March 31, 2020, DENSO revenue, not including foreign exchange fluctuations, increased due to car production growth in Japan and North America despite market slowdown in Asia, mainly in China and India. However, with foreign exchange fluctuations included, it led to a slightly drop in overall revenue to 2,618.4 billion yen. In spite of production volume increase and variable cost reduction, operating profit decreased to 134.0 billion yen due to DENSO’s increased investment for future growth, as well as currency exchange loss. Considering the market slowdown and impact of currency exchange fluctuations, we have revised our financial result forecast in anticipation of these effects. The revenue is expected to be 5,260.0 billion yen and the operating profit to be 320.0 billion yen for the full-year financial results. As for dividends from surplus, we maintained the original forecast on each of interim and fiscal year-end. As a result, annual dividend payment will be 140 yen per one stock. While external environment is deteriorating, we will continue to strive to further improve our earning power through further improvement efforts and enhancement of investment efficiency especially in software development by automation and standardization.
We are approaching a paradigm shift in which new technologies will be created at a tremendous speed due to the further progression of digitization, thereby changing the nature of business itself. In order for the DENSO to make a leap forward under such an environment, we must provide competitive products and services speedily, establishing partners on a global basis and bringing together insight and wisdom from around the world.
Guided by such an approach, we have moved forward with a large number of external partnerships, the likes of which we have not pursued before. These include actively promoting alliances and collaborations with companies in different industries. At the moment, we are striving to build a global network with start-up competitive companies, centered on Silicon Valley, that possess business models and technologies that we do not have, including connected, AI, and security technologies. We are working to create businesses together with these companies while combining our mutual strengths. In addition, we have established laboratories around the world that conduct cutting-edge R&D, thus accelerating R&D activities that draw on local characteristics. In these ways, we are taking on the challenge of establishing partners globally and bringing together insight and wisdom from around the world. In 2018, we carried out over 20 investments. In 2019, we will continue to actively promote investment while keeping in mind the level of necessity.
By accelerating these activities, we will realize an enriched mobile society and contribute to sustainable social development. In these ways, we will deliver an even brighter future to the next generation. I would like to ask our stakeholders for their continued support as we pursue these endeavors going forward.
President and CEO