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President’s Message
Newsletter "SEI WORLD" Vol. 454

Masayoshi Matsumoto President & CEO

Interim Revision of VISION 2017

On May 26, we announced revised targets for our mid-term management plan “VISION 2017” (“17V”).

In 17V, our five-year plan from FY2013 to FY2017, we set numerical targets as follows: net sales of 3,000 billion yen; operating income of 180 billion yen; and ROA*1 of 9%. However, we originally decided to conduct an interim review of 17V with consideration given to environmental changes made after the plan’s establishment. This was because during the period of the previous five-year plan (12V), we had experienced considerable changes in the external environment. These changes, including effects triggered by the Lehman Brothers bankruptcy, the super appreciation of the yen, and the Great East Japan Earthquake, were truly profound and totally out of control for a single company alone.

Consequently, considering changes in the external environment, such as the exchange rate, our business results, and other elements, we have set new numerical targets as follows: net sales of 3,300 billion yen, operating income of 200 billion yen, and ROA of at least 9%. Additionally, we have added ROE*2 to our target indices, with the FY2017 target ROE being at least 8%. Meanwhile, there will be no changes to the basic structure of 17V, which incorporates a growth strategy that aims for “Securing New Growth in Current Business Fields,” “Expanding Integrated Business Fields,” and “Challenging New Business Fields.”

None of the new numerical targets will be easy to attain. However, if everyone in the Sumitomo Electric Group always bears in mind Banji-nissei (Do your sincere best in not only business but also every aspect of your life), shares the courses of action, forms even stronger unity, and proceeds with the tasks at hand step by step, then the path to realizing the new 17V, as well as to becoming our future ideal “Glorious Excellent Company,” will be more clear.

I look forward to continuing to receive generous support and guidance from you all.

ROA: The concept that we employ for ROA is as follows: Operating Income / Invested Assets
ROE: Return on Equity

Masayoshi Matsumoto President & CEO

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