2018 will be the year of Sustainable Growth at Mitsubishi Heavy Industries.
Only three months remain in the final year of our 2015 Medium-Term Business Plan. Since 2012, our reforms have focused on expanding the scale of our operations and improving profitability. 2017 marked the year we completed our structural reform agenda. We implemented a number measures, including a shift from headquarters-based management to a system based on industrial domains, further development of SBUs, a financial strategy emphasizing cash flow, and the establishment of an auditing committee.
However, despite these successful reforms, we have fallen short in reaching the financial targets set in the 2015 plan. While this is certainly disappointing, I want all of us to continue to make progress toward better results in the future.
Empowering local talent will help move the world forward.
In the more than 130 years since our company was founded, we at MHI have strived to create a positive impact on society and address our customers' diverse range of business needs. This idea is embodied in the first of our Company Principles: "Deliver reliable solutions that make a lasting difference to customers and communities worldwide."
Now, MHI is expanding our activities not only in Japan but across Asia, the Americas and the rest of the world. As we expand our business, we must continue to develop solutions that respond to global needs and take on the world's toughest challenges. Working together, our sophisticated management resources can help the world realize a future of sustainable development, as outlined in the UN Sustainable Development Goals.
We all know that expanding our business by supplying superior products and services on a global scale will maximize our impact on society. However, in each region that we operate in, we must also develop a keen local insight that addresses local needs in order to make a lasting impact. This is how we become Industrial Explorers-moving the world forward while growing a new kind of market.
By gaining a foothold and growing each region, we will also find overall success as a global corporation.
From 2018 we will enter uncharted territory, growing and evolving all the way.
MHI now stands at a crossroads in our evolution. We must create a new way forward that combines our core engineering strengths with revolutionary new advancements in IT and digital communications. By aligning these technologies with our wealth of knowledge and manufacturing excellence, we will continue to provide our customers with fundamental solutions that help move society forward. Based on these fundamental guidelines, 2018 will be the first step towards a new stage of sustainable growth for MHI.
Every day at MHI, we push into the uncharted territory of the future. To meet the challenges of a constantly-changing world, we must reinvent the concept of manufacturing.
I am certain that the MHI Group of the future will look very different to the MHI of today. As we reinvent manufacturing, we must ensure that this process doesn't end at the factory floor, but extends through all aspects of the supply chain.
So the next time you face a new challenge, I want you to remember these words:
"Make today's work better than yesterday. Make tomorrow's work better than today."
Though we've faced many challenges in pursuit of our 2015 Medium-Term Business Plan, we've managed to overcome nearly all of them thanks to the dedicated efforts of each member of the MHI Group. However, we must continue to make progress on the issues that remain. This May, I hope you all will join me to celebrate the release of our new Medium-Term Business Plan, when we take the next step toward our new phase of sustainable growth.
In 2018 and beyond, I hope we can continue our evolution with courage and determination. Each one of us has a vital role to play, and I believe that only through this spirit of teamwork can we achieve our ultimate goal: MOVE THE WORLD FORWARD.