In fiscal 2016, the first year of
the new FY2018 Medium-Term Management Plan,
we will implement growth strategies and
improve profitability as we pursue
the further renovation of Fuji Electric.
To Our Shareholders and Investors
In fiscal 2015, we advanced growth strategies and strengthened profitability with the aim of completing the FY2015 Medium-Term Management Plan and poising the Company for growth in fiscal 2016 and beyond.
In fiscal 2015, we took steps to establish foundations for the expansion of overseas operations in order to facilitate the advancement of our growth strategies. In Asia, for example, we acquired engineering companies in India and Vietnam with the goal of expanding operations in the Industrial Infrastructure and Power Electronics segments. Other acquisitions included a power plant service company and railcar electrical equipment manufacturer in the United States and a fuel cell sales company in Europe. We also endeavored to reinforce power electronics manufacturing capabilities and promote local production and consumption. To this end, we reorganized domestic mother factories and established production bases in the United States and India.
Measures to strengthen profitability included the Companywide advancement of Pro-7 Activities, a series of initiatives targeting the reinforcement of profit structures. In addition, we reduced fixed costs and other expenses while conducting a ground-up review of work processes in order to improve operational quality.
Consolidated operating performance in fiscal 2015 included net sales of ¥813.6 billion, up ¥2.9 billion year on year, and operating income of ¥45.0 billion, up ¥5.7 billion. In addition, profit attributable to owners of parent rose ¥2.7 billion and reached a new record high of ¥30.6 billion. While we failed to meet the net sales target described in the FY2015 Medium-Term Management Plan, largely due to the deterioration of market conditions, we succeeded in achieving our operating income target through a concerted Group effort to reinforce profit structures.
In consideration of these performance trends, we decided to issue a year-end dividend of ¥5 per share, which, combined with the interim dividend, will make for a total of ¥10 per share in fiscal 2015, an increase of ¥1 per share over the previous fiscal year.
In April 2016, we announced the FY2018 Medium-Term Management Plan known as Renovation 2018. In fiscal 2016, the first year of this plan, we will implement growth strategies and improve profitability as we pursue the further renovation of Fuji Electric.
I ask investors and other stakeholders for their continuing support and understanding of these endeavors.
President and Chairman of the Board of Directors