In the first mid-range plan (FY 2012 - FY 2014), we addressed our most pressing issue: the revitalization of our electronics business. In FY 2014, the final year of the first mid-range plan, we resolved to deal with difficult problems, not put them off until later, and implemented structural reforms. As a result, in areas other than the smartphone business we have completed large-scale restructuring efforts in our businesses where we have faced challenges. From this fiscal year, we began our second mid-range plan spanning the three years to FY 2017. In this second mid-range plan, we are drastically changing our course from the previous restructuring phase to a new growth phase. The following points are our key strategies for achieving our transformation into a highly profitable enterprise during our second mid-range plan.
- Business management that emphasizes profitability, without necessarily pursuing volume
- Business management that grants each business unit greater autonomy and mandates a focus on shareholder value
- Clearly defined positioning of each business within a broader business portfolio perspective
We have set return on equity ("ROE"), and operating profit as the key performance indicators for management in this mid-range plan. For fiscal year 2017, the final fiscal year covered in this mid-range plan, we aim to achieve an ROE of 10%+ and operating profit of more than 500 billion yen.
Sony is engaged in a diverse range of businesses and the competitive landscape, market growth potential, and competitive edge of each business is not the same across our businesses. In order to clarify what we will prioritize when managing each of these businesses, we have classified each one as either a "Growth driver," "Stable profit generator," or "Area focusing on volatility management." We have assigned a target for Return on Invested Capital to each business unit, which is coupled with the Group's target ROE and we will manage each business with an emphasis on profitability.