Omron 2013 Annual Report Download - page 3

2 Omron Corporation Integrated Report 2013 3
About Omron
the establishment of a global profi t and growth
structure. Fiscal 2013 is the fi nal year of this stage,
and our goal for this year is to transform Omron
into a stronger company that realizes synergetic
relationships between growth potential, profi tability,
and responsiveness to change. As such, we will
work even harder on profi t and growth structure
reform. The economic climate is currently under-
going substantial change as the too-strong yen
depreciates. We will transform such changes into
opportunity and accelerate our growth strategies.
To Become a Company That Society Requires
Omron will remain dedicated to resolving the numer-
ous issues facing people through its business. We
will strive to make Omron a company that people
around the world require, with high expectations.
I would like to ask for your continued support.
operating processes. These steadfast efforts led
to a 0.3-percentage-point rise in the gross profi t
margin, to 37.1%.
To shareholders, we paid total annual cash divi-
dends of ¥37.00 per share, including a commemora-
tive dividend of ¥5.00 per share and up from ¥28.00
in fi scal 2011. This resulted in a dividend payout ratio
Message from the President
The Milestone of 80 Years
Omron Corporation celebrated the 80th anniversary
of its founding on May 10, 2013. Reaching this mile-
stone could not have been done without your sup-
port, for which I am most grateful.
In the 80 years since Omron’s founding, the
world has changed dramatically. In 1933, the
world’s population was around 2 billion; today, it
exceeds 7 billion. Not only that, per capita GDP has
increased by roughly four times and the average
lifespan has nearly doubled. Throughout its 80-year
history, Omron has taken on countless challenges
as it pursued technological innovation ahead of
social needs. By creating new value centered on
automation, I am confi dent that we contributed to
the sound and sustainable growth of society and
the improvement of people’s lives. Omron has
grown by leaps and bounds and is now a global
leader in the fi eld of automation with over 35,000
employees working in more than 110 countries
around the world.
Omron’s core corporate value is “Working for the
benefi t of society.” This represents our commitment
to coexist and grow in harmony with society. To
accomplish this intrepid spirit everyone will work
together to propel the Company forward to quickly
uncover latent social needs around the world and
provide products and services to contribute to the
sustainable development of society.
Fiscal 2012 Performance
and Shareholder Returns
In fi scal 2012, of our fi ve mainstay businesses, Auto-
motive Electronic Components Business (AEC),
Social Systems, Solutions and Service Business
(SSB), and Healthcare Business (HCB) saw favor-
able growth in sales. As a result, overall net sales
increased 5.0% year on year to ¥650.5 billion, and
operating income was up 13.0%, to ¥45.3 billion. In
regard to profi t structure reforms, sales and market-
ing divisions worked to increase profi tability while
production and development divisions introduced
competitive, new products and improved their
of 27.0% and a dividend on equity (DOE) ratio of
2.4%. In fi scal 2012, we raised the defi ned minimum
for the dividend payout ratio from 20% to 25%,
targeting a 2% DOE ratio in consideration of stable
dividend payments. Further, we cancelled a portion
of treasury stock and introduced a shareholder
benefi t program to enhance shareholder returns.
Pursuit of Higher Corporate Value
In pursuit of higher corporate value, we emphasize
capital effi ciency in our management. To that end,
we have been utilizing return on invested capital
(ROIC) as an internal management index. In April
2013, we disclosed our consolidated ROIC target.
In order to facilitate our efforts on this front,
we established the new position of Chief Financial
Offi cer (CFO) in fi scal 2013. This is a change that
I advocated myself based on the belief that it
would help accelerate our decision making, im-
prove the quality of management, and heighten
corporate value.
In Value Generation 2020 (VG2020), the long-term
management strategy released in July 2011,
we declare our dedication to growth. The
fi rst three years of the 10-year period
leading up to 2020 have been desig-
nated as the “GLOBE STAGE,”
during which we will target
Omron Reaches 80-Year Milestone
On its way to becoming a sustainable company that contributes to
the global society through innovative products and services
Net Sales and Gross Profi t Margin
2008 2009 2010 2011 2012
Gross Profit Margin (%)
Net Sales (Billions of yen)
627.2
524.7
617.8 619.5
650.5
34.8 35.1
37.5 37.1
36.8
700
500
600
(FY)
Dividend, Dividend Payout Ratio, and EPS
Dividend Payout Ratio (%)
Net Income per Share Attributable
to Shareholders (Yen)
Annual Dividend (Yen)
2008 2009 2010 2011 2012
25
17
30
37
106.4
16.0
24.7
121.7
37.6
74.5
27.0
137.2
25
0
50
28
(FY)
Operating Income and Operating Income Margin
2008 2009 2010 2011 2012
Operating Income Margin (%)
Operating Income (Billions of yen)
5.3
13.1
48.0
40.1
45.3
0.9
2.5
7.8 7.0
6.5
25
0
50
(FY)
July 2013
Yoshihito Yamada
President and CEO