Message from the President
A message from the president about DENSO's mission and a vision
Review of Fiscal Year ending March 31, 2019(Fiscal 2019)
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 2019, the revenue of the DENSO Group increased to 2,625.0 billion yen due to the global production volume increase and sales expansion. Increase in investment for future growth led to a drop in operating profit to 152.4 billion yen. Considering the first-half financial results and the latest movement in the foreign exchange markets, we have revised up our financial result forecast of operating profit for the full-year. As a result, the revenue is expected to be 5,400.0 billion yen and the operating profit to be 393.0 billion yen for the full-year financial results. By accelerating initiatives in focus fields, we will reach our targets for fiscal 2026 of 7.0 trillion yen in revenue and an operating margin of 10%.
As for dividends from surplus, annual dividend payment will be 140 yen per one stock, a 5 yen increase from the previous forecast on each of interim and fiscal year-end payment. To increase returns to shareholders and improve capital efficiency, a resolution was adopted at the board of directors meeting held on October 31 to acquire own shares. Total number of shares to be purchased is up to 6 million shares or 30 billion yen. A resolution was also adopted to cancel 6.12 million of its own shares. We will continue to enhance corporate value and further profit return to our shareholders.
Since our founding, we have constantly given consideration to the sustainability of society through the DENSO Creed, as well as our basic management philosophies and long-term policies. Under our Long-term Policy for 2030, we will contribute to a sustainable society by providing new value in the fields of “green” and “peace of mind.” To this end, we determined issues toward which we must give the utmost priority in July 2018 to contribute to society and the Sustainable Development Goals (SDGs),* which were adopted by the United Nations in 2015.
With passion and devotion, 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