To Our Shareholders and Investors:
To transform into a company that drives sustainable growth even in a constantly changing business environment, we have been working on key measures under our three basic policies of “Accelerate growth in new domains,” “Qualitatively change businesses in the existing domains,” and “Strengthen the management base” under our five-year Mid-Term Management Plan 2023 “Challenges for Evolution” starting from fiscal year ended March 31, 2020.
Since the announcement of this plan, there have been significant changes in our business environment, including the COVID-19 pandemic, shortages of semiconductor supply, supply chain disruptions, and the realization of geopolitical risks.
Amid these changes, we have been striving to expand our automotive business to accelerate growth in new domains. We have also driven qualitative changes in existing domains by continuously reviewing our business portfolio, as well as strengthening our businesses and taking initiatives to improve efficiency such as reviews of production sites. At the same time, we have been taking a number of initiatives to strengthen our management base, such as enhancing governance, relocating our head office to Tochigi, and introducing workstyle reforms.
We also worked steadily on the developing and proposing products that anticipated the technology trends. As a result, net sales for mobile IT devices increased with the expansion of existing high value-added products and the contribution of new products. In addition, products for non-mobile IT equipment, including automotive products, power tools, and E-Scooter (electric motorcycles), have been growing significantly. This has led to the beginning of an evolution into a corporate structure that is not susceptible to changes in the business environment and an improvement in our earnings strength. In the fiscal year ended March 31, 2022, we achieved the revised targets for final year of the Mid-Term Management Plan, which we announced last year, two years ahead of the schedule.
While we have been able to maintain our strong business performance through these initiatives, a high degree of volatility remains in the external environment, and the future is uncertain. As such, we believe that strategies and measures for achieving growth and reinforcing our management base, including sustainable investment, have been growing increasingly important.
Consequently, in the coming two years, we will steadily drive each measure based on the three basic policies under the current mid-term management plan, aiming for sustainable growth in the period up to the fiscal year ending March 31, 2024. Moreover, we position the two years as the preparation period for the next mid-term management plan to be launched in April 2024. We will further strengthen our management base, and execute our growth strategies ahead of schedule, as we seek to achieve sustainable growth and enhance our corporate value.
We ask our shareholders and investors for their continued support.