Within the spirit of our corporate statement, "Changes for the Better," we will continually seek to improve, pressing ahead with sincerity, and we will continue our efforts indefinitely in order to help realize a sustainable society.
Prioritizing Corporate Social Responsibilities Since the Time of Our Founding
In recent years, the corporate operating environment has been undergoing dramatic changes reflecting the global situation, revisions of laws, and other factors. What must remain steadfast regardless of how the times may change is a commitment to corporate ethics and compliance and not to compromise on environmental issues and product quality.
This commitment of the Mitsubishi Electric Group was first articulated in the Keiei no Yotei, or Keys to Management, which was drawn up at the time of the company's founding in 1921. The spirit of this document, which states our contributions in areas such as the prosperity of society, product quality and customer satisfaction, lives on today in our Corporate Mission and Seven Guiding Principles. With these tenets as our core principles, the company promotes various initiatives in order to carry out our Corporate Social Responsibilities.
Economic Aspects: Enhancing Corporate Value
In fiscal 2008, the Mitsubishi Electric Group maintained its focus on making strong businesses stronger, implementing various structural reform initiatives for greater profitability, and establishing and strengthening operations in Japan and overseas to fortify our production and sales forces. As a result, we have achieved our target ratio of operating income to net sales and ROE, and improved our ratio of interest-bearing debt to total assets over the previous fiscal year, a management target that was revised upward in fiscal 2008.
In fiscal 2009, we will further endeavor to adhere to constant achievement of all established targets. We will build on our solid foundations, firmly rooted in the "craftsmanship" integral to our operations. Our path to steady growth is charted by business strategies that focus on the global environment and take us into newly emerging markets.
Management Targets to be Continuously Achieved
| Management Target | 2007 results | |
|---|---|---|
| Operating income ratio | 5% or more | 6.6% |
| ROE | 10% or more | 15.1% |
| Interest-bearing debt to total assets | 15% or less | 15.8% |
* As of April 2007, the then-valid target of 20% or less was replaced with a tighter and lower target of 15% or less.
Environmental Aspects: Promoting Environmental Initiatives based on Environmental Vision 2021
The Mitsubishi Electric Group promotes environmental management through its Environmental Plan, which we develop every three years. In fiscal 2008, the second year of our Fifth Environmental Plan, we implemented countermeasures against global warming and reduced 13,000 tons of CO2 emissions from our production processes, among other significant results. In October 2007, we announced Environmental Vision 2021, which sets 2021 as the target year, in commemoration of the 100th anniversary of the company's founding. It defines initiatives to prevent global warming and to create a recycling-based society, including a 30% reduction (compared to fiscal 2001) of CO2 emissions from product use and measures to reduce, reuse and recycle (the 3Rs) throughout the product life cycle.
In fiscal 2009, we will continue our efforts to achieve the targets of the Fifth Environmental Plan, while also promoting initiatives based on Environmental Vision 2021.
Social Aspects: Contribution to Society through Technology
As a member of society, we are responsible for upholding corporate ethics and compliance and engaging in social activities. We also have a responsibility to contribute to society through the technologies we have accumulated over the years. One example is the DIGUARD total security solution, which we launched in fiscal 2008. As the culmination of the Mitsubishi Electric Group's expertise in security-related products, systems, maintenance technologies, and services, we believe it will contribute to providing safety and security in a sustainable society. In fiscal 2009, we will continue our efforts to uphold corporate ethics and compliance and take an active part in social activities, while also contributing to society through our technologies, products, and services.
Through these initiatives, the Mitsubishi Electric Group will work to gain trust from stakeholders and help realize a sustainable society. Within the spirit of our corporate statement, "Changes for the Better," we will constantly pursue improvement and continue to make our best efforts. We greatly appreciate everyone's understanding and support.