Omron 2016 Annual Report Download - page 16

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status of these businesses two-to-three
years in the future. Based on this high-
altitude view, we considered the negative
factors and the positive factors to the
company as a whole, eventually making a
decision that was best for our entire
organization. We also considered our
customers, our employees, the acquiring
companies, and a variety of other
stakeholders, reaching an optimal solution
for the benefit of all. We believe that these
transactions generated significant value for
both Omron (portfolio optimization) and the
Portfolio management not only accelerates
business growth, but also serves as a tool
for management decisions regarding
business divestiture or restructuring. As
CFO, I believe I should provide particular
leadership in making decisions regarding
business divestiture. Recently, we made
the decision to sell Omron Oilfield &
Marine, Inc. and Omron Colin Co., Ltd. We
announced the sale of these companies in
June 2016. In making this decision, we
made a rational assessment from a
corporate-wide perspective, projecting the
these three acquisitions came entirely from
internal reserves. If Omron should require
capital in excess of cash on hand for future
mergers and acquisitions (M&A), we will
raise capital through debt financing within
a scope that allows us to maintain our
current long-term credit rating*. At present,
we estimate that our debt capacity is ¥100
billion. We will actively leverage debt
financing to pursue new growth
opportunities if we encounter a promising
investment target.
Our mid-term plan
“EARTH-1 STAGE”
calls
for priority allocation of resources to
accelerate growth in our Industrial
Automation and Healthcare businesses. To
set a foundation for growth, we acquired
three companies over the past two fiscal
years: NS Industria de Aparelhos Medicos
(Brazilian nebulizer manufacturer), Delta Tau
Data Systems (U.S.-based motion control
manufacturer), and Adept Technologies
(U.S.-based robot manufacturer). We intend
to leverage the synergies each company
brings to create new value for our customers
and business partners.
　Incidentally, the ¥40 billion used for
Acquisitions
Year of
Acquisition Company Overview News Release URL
NS Industria
de Aparelhos
Medicos Ltda.
Fiscal 2014
Nebulizer manufacturer with
No.1 share of the nebulizer
market in Brazil
http://www.healthcare.omron.co.jp/english/
news/2014/0905.html
Delta Tau Data
Systems, Inc. Fiscal 2015
U.S.-based manufacturer of
motion controllers offering
world-leading performance
http://www.omron.com/media/press/2015/07/c0730.
html
Adept
Technologies,
Inc.
Fiscal 2015
U.S.-based manufacturer of
a wide range of industrial
robot models
http://www.omron.com/media/press/2015/09/c0916.
html
1.2. Accelerating Business Growth
1.3. Improving Capital Efficiency through Divestiture and Restructuring
*Rating and Investment Information, Inc. rating: AA-
Standard & Poor’
s rating: A
(as of July 2016)
14 OMRON Corporation