Omron 2015 Annual Report Download - page 15

4. Future Goals
■ Three-Year Total Shareholder Return Comparison*2
*2 Three-year stock trend after dividend adjustments
(March 30, 2012 = 100)
Source: Internal data; Bloomberg
2012
/3/30
2015/3/
31
2012/6/30
2013/6/30
2012/9/30
2012/12/31
2013/9/30
2013/12/31
2013/3/31
2014/6/30
2014/9/30
2014/12/31
2014/3/31
50
100
150
200
250
300
350 TSR (Annual Rate)
Omron 47%
TOPIX Electric Appliances 24%
5. Building a Better Governance Structure
“We moved our plan for EARTH-1 STAGE
goals forward by 12 months”
■ FY2015 Management Indicators
*3 Published April 24, 2014
FY
2014
Actual FY
2015
Plan EARTH-
1
STAGE Goals (FY
2016
)*
3
Net sales (¥ billion) 847.3900 > 900
Gross profit margin 39.3%39.6%> 40%
Operating income margin 10.2%10.0%> 10%
ROIC 13.4%> 13%approx. 13%
ROE 13.5%> 13%approx. 13%
EPS (¥) 283.9306.1approx. 290
USD rate (¥) 110.0
115.0
100.0
EUR rate (¥) 138.7
130.0
135.0
We have set fiscal 2015 targets for net sales
and operating income of ¥900 billion and ¥90
billion, moving our EARTH-1 STAGE goals up
by 12 months. We project earnings per share
to exceed our interim goal of ¥306 per share.
Similarly, we have set a target for dividend
payout ratio of 30% for fiscal 2015, 12 months
ahead of our original plan.
During fiscal 2015, we plan to work even
harder on our self-driven growth engine and
numerical targets:
(1) Achieve EARTH-1 STAGE goals one year
We believe that Omron can help solve social
issues through technology and innovation. This
is one reason why we established the new
position of chief technology officer (CTO) in April
2015. The mission of Omron’s CTO is to (1)
strengthen our core technologies, (2) promote
open innovation by working with outside entities,
and (3) develop new technologies looking toward
fiscal 2020 and beyond.
Kiichiro Miyata, formerly president of Omron
Healthcare, is serving as our CTO. Together with
CFO Yoshinori Suzuki—himself an experienced
corporate leader—and I as CEO, we plan to
guide the Omron Group as a unified team.
The business environment changes
dynamically and on a global scale. Geopolitical
risk, labor health and safety, procurement risk,
employee safety, and other business issues
are becoming more complex. So, with the
many new and evolving issues we face, we
have decided to place risk management and
legal affairs directly under the office of the
president to assure that proper attention is
given to these matters.
We published the new
Omron Corporate
Governance Policies in response to the
June 2015 enactment of
Japan’s Corporate
Governance Code
. As a company, we
continue to observe and improve our stance
regarding governance as a good corporate
citizen should.
We want Omron to be a company valued and
appreciated by the people of the world. To do
this, we must build a strong corporate culture
that combines growth, profits, and the ability to
respond to change. Our long-term management
vision looks ahead to the year 2020 and far
beyond. For Omron to be a company valued by
the people of the world, we must continue to
endeavor. I ask you for your continued support
as we pursue this vision.
earlier than planned
(2) Sustain efforts toward higher profitability
(GP%)
(3) Increase sales and profits in all business
segments
Our goals for VG2020 (fiscal 2020) are
net sales of over ¥1 trillion and an operating
income margin of 15%. Ongoing investment
will be key in accomplishing these goals.
We will increase the size of our growth
investments, primarily in our Industrial
Automation Business and Healthcare
Business. We also plan to increase capital
investment in our Backlights Business, where
the market is growing at a tremendous clip.
Omron builds a self-driven growth structure
not affected by the ups and downs of external
market changes.
reported strong results, driving overall
performance to reach net sales of ¥847.3
billion and operating income of ¥86.6 billion.
Operating income margin came in at 10.2%,
surpassing the 10% level for the first time
in 25 years. We are steadily building a more
self-driven growth structure, particularly in
our Industrial Automation Business. At the
same time, we are building more earnings
capacity, creating a stronger portfolio of
businesses. ROIC jumped 2.1 points over the
prior fiscal year, reaching 13.4%.
In terms of shareholder value, we made
a significant repurchase of shares for the
first time in six years. During fiscal 2014, we
purchased 2.82 million shares, after which we
retired a total of 9.72 million shares including
treasury stock. Our dividends were a record
¥71 per share.
Total shareholder return (TSR) compared to
fiscal 2013 was up 29%. Over the past three
years, our TSR has been 47%, outperforming
the TOPIX average of 24% for the electric
appliances sector.
26 OMRON Corporation Integrated Report 2015 27
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