Omron 2003 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2003 Omron annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 58

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

For the year ending March 31, 2004, we will focus on establishing a strong and sustainable
earnings structure, with the objective of maximizing business strength. In the first half of the period,
we will push ahead with the VIC21 (Value-added Innovation Committee 21) Structural Reforms for
Group Productivity that are currently under way.
We initiated VIC21 because major changes in the economic environment and deterioration of
business results just after the start of GD2010 had caused us to deviate from the path to profitability
that we had originally set.
In implementing the VIC21 reforms, we have reduced our domestic workforce by 1,460 people
through an early retirement program, closed three domestic production facilities, and sold or
integrated eight businesses and ten subsidiaries. In addition to these results, by completing the
various measures we are currently implementing, we expect to nearly achieve all of the structural
reform targets necessary to reduce Group consolidated fixed and variable costs by ¥30 billion.
In the second half of the fiscal year, we will maintain our stronger earnings base, and gradually
steer our efforts toward improving our platform for growth.
For our growth platform, our basic policy for the first two years will be to focus on linking the
existing seeds of growth, including internal companies, to businesses, rather than creating new
seeds for growth.
Toward this aim, we will accelerate the creation of a high-profit model in our core businesses.
In addition, we will position “Sensing Network Solutions” as the image of our targeted growth
businesses, and establish the Device Business and the Solutions Business as our two main
strategic areas.
Annual Report 2003 • 5
Position in the Current Fiscal Year
Shifting Gears toward Growth
VIC21
3/2000
3.5%
3/2001
6.7%
3/2004 (est.)
7.5%
1st STAGE
3/2005 Target
3/2011
GD2010
Medium-Term Target
ROE 10%
2nd STAGE
Group Corporate Value
3/2002
(5.1%)
3/2003
0.2%
Management Stance
Maximizing Group Corporate Value on a Long-Term Basis through GD2010