1.Review of Fiscal 2016
I wish to express my deepest sympathies to all the persons stricken by the 2016 Kumamoto earthquakes and am hoping for the quickest possible recovery of the devastated region. The AISIN Group was also affected by the earthquake and damage to Aisin Kyushu Co., Ltd. and Aisin Kyushu Casting Co., Ltd. caused great concern and inconvenience to all our stakeholders.
Nevertheless, Aisin Kyushu Casting was able to resume production immediately after the disaster and Aisin Kyushu has restored operations effective September 2016 thanks to the warm and prompt support of numerous stakeholders, beginning with our customers, business partners, team members and suppliers.
Going forward, we will make Group-wide efforts to further reinforce our disaster prevention system.
Although the Japanese market declined below the level of fiscal 2015, which reflected lower unit sales of compact cars, the auto industry trended firmly on a global basis during fiscal 2016. Under these conditions, AISIN posted increases in both revenue and profits. To ensure that we remain a company that can continuously achieve growth, I believe we must become “a vibrant company that possesses true competitiveness and proposes new value.” With this in mind, during fiscal 2016 we focused on undertaking “problem-solving activities” and “strengthening Group competiveness” to reinforce our underlying foundation. At the same time, we actively implemented a variety of initiatives for securing our future growth potential.
Fiscal 2016 Consolidated Financial Highlights
|Net Sales||Ordinary Income||Profit attributable
to owners of parent
2.Implementing “Problem-solving Activities” to Strengthen Our Underlying Foundation
First, in keeping with the principle of genchi genbutsu (go and see for yourself), during the past year I visited 220 of our 311 locations at approximately 200 companies worldwide to personally confirm the current state of our production, development and management. These visits reaffirmed my awareness that we have various issues in each function, geographic region and product. I immediately identified and examined 350 of the most critical issues and then implemented initiatives across the entire company to solve them. The issues I observed spanned a broad area. These ranged from those directly related to business activities such as development, procurement, production and quality to issues that concern our corporate culture.
I am confident that solving these issues will be the first step toward raising our competitive strengths, and for this reason, I quickly launched “problem-solving activities.” As an example of these measures, we moved to rejuvenate our bed business, which has continuously operated in the red, by launching promotional activities on an unprecedented scale to raise recognition levels for our ASLEEP brand of beds, bedding and furniture. These initiatives underscore my strong determination to attain profitability in this business. As another notable initiative during the year, we unveiled the slogan, “Do what you want to do to make tomorrow better.” This slogan aims at solidifying Group collaboration and unityto solve problems and reinvigorate AISIN’s corporate culture of taking on challenges. It also expresses our resolve to pursue sustainable growth by sharing the aspirations of the nearly 100,000 AISIN employees worldwide and encouraging all individuals to devote their utmost efforts to their favorite activities.
- Our aim in fiscal 2018