-2010 Global Consolidated Net Sales Target More than 4,000 Billion Yen-
TOKYO - DENSO Corporation today announced its mid-term plan for 2006 to 2010. The plan includes management direction and specific goals to achieve by 2010, based on the two themes for DENSO's long-term policy-DENSO Vision 2015-achieving an advanced automotive society and true globalization.
"An advanced automotive society enables people, cars and the environment to co-exist in harmony," said DENSO Corporation President and CEO Koichi Fukaya. "We want to help achieve such a society by providing innovative products worldwide while meeting local needs."
Fukaya said, "True globalization is more than just global business expansion. It also means building trust with customers worldwide, building and strengthening local operations and developing strong local management teams. We believe that our new mid-term plan will lead us to achieve these goals, helping us sustain long-term growth."
Advanced Automotive Society
To help achieve this kind of society, DENSO plans to:
In product development:
- Develop advanced technologies and products that meet the two main market trends of higher performance and lower cost;
- Develop world-first technologies and products that add new value to components and systems for our customers and society;
In new businesses:
- Establish non-automotive and aftermarket businesses as one of the main sectors for our growth;
- Develop and launch new products in non-automotive business areas by utilizing our automotive technologies and expertise;
In manufacturing capabilities:
- Strengthen manufacturing capabilities and continuously improve our product quality levels, aiming for zero defects, and
- Promote a dynamic working environment for employees to perform relentless improvements, and assure top standards in quality, cost and delivery in each region worldwide.
To achieve true globalization, DENSO will:
In business operations:
- Strengthen its worldwide business operations in development and design capabilities by utilizing the global knowledge and expertise of the DENSO group;
- Establish the most efficient global production and supply system by considering customer needs, product characteristics and regional situations;
In group management:
- Promote the autonomy of each group company by enhancing corporate and regional management functions while maintaining the current business group system;
- Heighten dedication worldwide to corporate social responsibility from environmental and social aspects;
In encouragement of employees striving for excellence:
- Enhance autonomous management of each group company by local managers who share DENSO's common values, experience and know-how, and
- Create an environment that allows diverse employees to contribute their individual talents for the entire group's benefit.
"As management targets, DENSO aims to achieve more than 4,000 billion yen for consolidated net sales, and 10 percent for return on equity (ROE) by 2010," Fukaya said. For the year ended March 31, 2006, DENSO's consolidated net sales totaled 3,188.3 billion yen and ROE was 9.4 percent.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs approximately 106,000 people in 32 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. For more information, go to www.globaldenso.com or visit our media website at www.densomediacenter.com.