To Our Shareholders

In the current consolidated fiscal year, the worldwide economy has maintained a sense of caution during the downturn due to trade problems between the U.S. and China, however, it has enjoyed comparatively stable growth.
Increased corporate profi ts thanks to tax reforms in the U.S. has resulted in increasing job creation and individual income and a steady economic trend.
Expanding domestic demand in Europe centered on individual consumers has led to ontinued economic recovery.
In Japan, continued improvements in corporate profi ts, jobs and income show a trend toward gradual recovery.
China and other emerging countries are enjoying a steady economic trend thanks to solid exports.
However, uncertainty also rose due to problems with the U.K. leaving the EU and concerns over the economic outlook in China, so the surrounding environment for our company remained unpredictable.

Furthermore, the automotive industry is now approaching a once-in-a-century turning point with signifi cant trends known as CASE (Connectivity, Autonomous, Sharing, Electricity) and MaaS(Mobility as a service: a new concept of a single, seamlessly connected mobility service via all forms of transportation).

Under this business environment, the 11th Midterm Management Plan, which runs from FY2017 to FY2019, is based on eff orts to achieve our three-point management policy of“predicting future changes and developing, proposing, and marketing leading technology products that are ahead of the curve”,“strengthening the revenue base through innovative approaches to productivity improvements”, and fi nally, “prioritizing customer satisfaction in everything we do”.

  1. Predicting future changes and developing, proposing and marketing leading technology products that are ahead of the curve
    We will take advantage of the current major turning point to acknowledge product proposals for changes in customer needs and advances in automobiles as a major factor, and develop and propose new value products based on our motor technology.
  2. Strengthening the revenue base through innovative approaches to productivity improvements
    We will utilize our group business network that spans 18 countries across the globe to improve productivity by optimizing the entire process including development, procurement, production and delivery in order to be engaged in building a solid revenue base. We will also attempt to enhance our product competitiveness by incorporating and increasing smart factories with IoT.
  3. Prioritizing customer satisfaction in everything we do
    Our number one priority is thorough quality assurance and a stable supply of products, which are fundamental business practices, so that we can enhance our global quality assurance system and take customer satisfaction to the next level.

As a means to wrap up the 11th Midterm Management Plan in FY2019, we strive to achieve our objectives as a group, based on our management policies.
We will continue our efforts to become a trusted company that meets society’s expectations, keeping to heart our philosophy of “To provide pleasure and peace of mind to the people of the world”.

We ask you, our shareholders, for your continued support and guidance.

Katsuyoshi Kitada
Representative Director, President
Katsuyoshi Kitada

Katsuyoshi Kitada