Omron 2001 Annual Report Download - page 5

Omron Corporation 3
Omron has long placed priority on addressing environmental issues. We
collaborate with customers and affiliated companies in implementing measures
to reduce environmental impact in every aspect of our business, including
development, manufacturing and distribution. All of our manufacturing facilities
have achieved ISO 14001 certification, and we are also obtaining this qualification
for our nine non-manufacturing divisions, including offices and research facilities.
In a challenging environment marked by globalization, the IT revolution and a
changing industrial structure, the market is undergoing a winnowing process. In
response, Omron is working to establish a solid and sustainable profit structure.
During the fiscal year ending March 2002, to continue strengthening our profit
structure, each internal company will invest in the future growth of its existing
businesses, while managing these businesses with a clear focus on profit. We will
also support earnings growth by expanding sales while improving the SGA expense
and cost of sales ratios, and will work to maintain a sound financial position.
At the same time, we will channel more investment toward entering and
expanding our presence in new businesses. Management will select investment
parameters and conduct focused investment in growth fields that will become the
cornerstones of Omron’s future growth.
The functions and roles of internal companies and management will be clearly
identified to assure the smooth execution of these two key strategies.
As the final step of our structural reform, we will focus on converting the results
of our efforts to date into the concrete benefit of higher productivity. For the fiscal
year ending March 2002, we are aiming for record consolidated income before
taxes of ¥45.0 billion, which would surpass the previous high of ¥43.9 billion in the
fiscal year ended March 1990.
We believe that our policy of emphasizing profitability is key to earning the trust
of shareholders, a central theme of our corporate philosophy.
Grand Design 2010 (GD2010), covering the first 10 years of the new century, is a
vision expressing where we want the Omron Group to be in the year 2010, and the
basic guidelines for the strategies to get us there. The main objective of GD2010 is
maximizing the corporate value of the Omron Group over the long term. To this
end, it presents three visions: a Corporate Transformation Vision for ongoing
change to build a stronger corporate structure and adapt to changes in the
environment; an Identity Vision for preserving the qualities that distinguish Omron;
and an Internal Business Company Vision that determines the direction of
development for each business area necessary for the Omron Group to achieve its
ideal image. I am confident that under GD2010, we will continue evolving as an
admirable company that has ambitious ideals and objectives.
The pages that follow cover this topic in detail, but I envision Omron in 2010 as a
company that can maintain continuous business growth on a global scale in
accordance with its own intentions while maintaining ROE above 10 percent. To
make this vision a reality, we will change our corporate structure to that of a holding
company, with all existing businesses becoming separate companies based on
strategic units. This structure will allow for more effective strategic planning and
execution and help the Omron Group establish an unshakable presence in the
global market economy. Other objectives are strengthening corporate governance
that is evaluated favorably by investors around the world, and listing our stock on
overseas exchanges, including the New York Stock Exchange.
I believe that our efforts to increase corporate value will lead to sustained returns
to Omron’s shareholders. We ask for your continued support.
MANAGEMENT STRATEGIES AND
PERFORMANCE TARGETS
GROWING THE OMRON GROUP