Omron 2016 Annual Report Download - page 17

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2. Improving Shareholder Returns
payout ratio one year ahead of schedule.
Our dividend payout ratio for fiscal 2015
was 31.1%, up from 25% in the prior fiscal
year. Omron improved shareholder return,
even while actively engaging in M&As and
other growth investment policies.
　We intend to continue to provide stable
dividends and engage in strategic share
buybacks, balanced by considerations
related to earnings, financial status, and
growth investments.
Following fiscal 2014, Omron conducted
another share buyback during fiscal 2015
totaling ¥15 billion. This reflects our
ongoing consideration for strengthening
shareholder returns and improving capital
efficiency. We subsequently retired all 3.44
million shares of treasury stock acquired,
leaving a balance of 150,000 shares in
treasury stock (less than 0.1% of shares
outstanding). We are happy to announce
that we met our fiscal 2016 goal of a 30%
Company Overview News Release URL
Omron Oilfield &
Marine, Inc.
U.S.-based manufacturer
and seller of inverter
control systems for drilling
equipment, power houses,
and related equipment
http://www.omron.com/media/press/2016/06/c0603.
html
Omron Colin Co., Ltd.
Japan-based seller of patient
monitors, non-invasive
vascular screening devices,
and other medical equipment
http://www.omron.com/media/press/2016/06/h0609.
html
Divestments
purchasers (value growth).
　Under our system of portfolio
management, we generally set a cut-off
term of two years for businesses we
believe are struggling with significant
issues. We begin restructuring these
businesses as we formulate a policy for the
future. In some cases, restructuring does
not result in sufficient improvements, and
synergies with other Group businesses
remain weak. If, in our judgment, selling
this business will result in greater value, we
will investigate the potential for divestiture
or other measures.
　The essence of portfolio management is
to reallocate limited resources for the
purpose of maximizing overall value.
As Omron CFO, I plan to continue
promoting and exercising portfolio
management for the benefit of our
company. As we commit more resources to
growth businesses, we will also restructure
or shift resources to businesses that
struggle with certain issues. In so doing,
we will improve capital efficiency. At the
same time, structuring an optimal business
portfolio will improve the overall corporate
value of the Omron Group.
Integrated Report 2016 15
Where We
re HeadedAbout Omron Corporate Value Initiatives Corporate Value Foundation Financial Section