EDITORIAL – Denso expects strong growth in sales and profit under ‘Long-term 2025 Plan’
Leading Japanese supplier is intensifying focus on vehicle electrification, autonomous driving and connected car technologies to achieve sales of JPY7 trillion and operating profit of 10% by FY2025/26
Last month, Denso announced ‘Long-term Policy 2030’ and ‘Long-term Plan 2025,’ while announcing financial results for the second quarter and first half ended 30 September 2017. According to the Japanese supplier, while the Long-term Policy 2030 defines its business goals to achieve by the end of the next decade, the Long-term Plan set, the milestones to achieve these goals. In terms of financial performance, under its Long-term Plan 2025, Denso aims to generate revenue of JPY7 trillion by FY2025/26, an increase of 55% in next nine years compared with JPY4.5 trillion in FY2016/17. In terms of profitability, the Japanese supplier is targeting an operating profit margin of 10% by FY2016/17over 7.4% in FY 2016/17.