June 29, 2012,17:41 +0900(JST) IR Meeting
On May 25, following the announcement of Sumitomo Electric's business results, the regular IR meeting was held at our Tokyo Head Office, at which we were happy to welcome the participation of more than 100 institutional investors. I would like to thank each and every investor for taking the time to join us, and also would like to apologize for having to leave the session early.
From the third week of May and on, the French presidential election, the Greek legislative election and subsequent issues including financial reform, and other factors have reignited the European credit uncertainty, causing a downturn in the marketplace. It is precisely due to this situation that I knew I needed to convey my thoughts and policies as the president of this company.
During the session, I was able to present the key points of the FY 2011 performance, the FY 2012 forecast, and future efforts by each segment in about 20 minutes or so, and also held a candid, if brief, Q&A session.
Taking into account the significant changes in the surrounding environment, including the changes to exchange rates that have occurred since determination of VISION2012, the final numerical goal of 210 billion yen in operating income was converted in accordance with current exchange rates as 135 billion yen; we feel that achievement of this new goal equals the achievement of VISION2012. In actuality, dollar-based overseas sales have grown at a steady pace, and were at a record high in FY 2011.
In addition, although we were unable to achieve the goals announced at the start of the previous year, we are determined to avoid two consecutive years of falling short. The achievement of the figures announced for this year, i.e. 2.2 trillion yen in sales and 110 billion yen in operating income, is an absolute must, and our determination to strive to the end for achievement of VISION 2012 is very strong.
In the automotive, electronics, and industrial materials sectors, our global customer bases are expanding. We intend to continue fortifying our global network, and at the same time, commit ourselves to speedy commercialization of new products and technologies, including superconductive cables and batteries, in the fields of environment, resources and energy.
Also, to accommodate the needs of the growing markets in emerging economies and other regions, 40% of our 160-billion-yen capital investment for this fiscal year will be actively invested overseas. The allocation for R&D is planned to be 93 billion yen, the highest ever, in order to pave a smooth path for our future business expansion.
As of now, the most difficult issue is the field of information and communications. This field is "high-tech," and short product cycles, wildly fluctuating needs, currency issues and other factors make it a bane for many companies, including ours. However, we are planning bold structural reform for this fiscal year.
We aim for a performance that is worthy of the final fiscal year of VISION 2012 and meets the expectations of our stakeholders. Your continued support and encouragement will be most appreciated.
For those interested, presentation materials used in the meeting are available on our website.