Message from the President
A message from the president about DENSO's mission and a vision
Review of Fiscal 2018
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 fiscal year ended March 31, 2018, revenue of the DENSO Group increased to ¥5,108.3 billion due to increased production and sales expansion. Operating profit also increased to ¥412.7 billion mainly due to favorable production volume variance due to increase in sales and the effect of rationalization.
As for dividends from surplus, the Company intends to improve the dividend level stably on an ongoing basis by comprehensively taking into account the consolidated operating results, the payout ratio and the amount of dividends. Moreover, the Company intends to allocate retained earnings not only to the capital investment and R&D investment required to maintain long-term business development but also to the acquisition of treasury stock in the pursuit of distributing its profits to the shareholders while paying attention to the status of funds.
Accordingly, the Company, at its Board of Directors meeting held on April 27, 2018, resolved that the fiscal year-end dividend for the fiscal year ended March 31, 2018, be ¥65 per share. The annual dividend for the fiscal year under review, including the interim dividend, is ¥130 per share. We will continue to enhance corporate value and further profit return to our shareholders.
The automobile industry currently faces a paradigm shift with significant societal developments such as electrification, automated driving and car sharing. Since its foundation in turbulent times, DENSO has made concerted company-wide efforts to address quality improvement and product development under the strong conviction of “Delivering new value to the world.” Given the drastically changing business environment, we consider this period of time as the era of our second foundation. To achieve sustainable growth by overcoming difficulties, we must address challenges even more aggressively than we did in the era of our initial foundation.
Last autumn, the Company formulated the DENSO Group Long-term Policy 2030 together with the slogan “Bringing hope for the future for our planet, society and all people.” Based on the three concepts of “Green,” “Peace of mind” and “Inspiring” that was added this time, DENSO will endeavor to create new value and contribute to ensuring a society filled with smiling faces. The “Inspiring” concept represents our vision to provide society with new value that will be created via synergies from the strengths of various stakeholders inspired by the Company’s initiatives.
I sincerely appreciate the ongoing support of all our stakeholders.
President and CEO