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business portfolio based on ROIC
indicators. In May, we sold all shares of
Omron Oilfield & Marine, Inc. (North
American subsidiary providing control
systems for oil excavation equipment) to
Schlumberger Limited, a global leader in oil
field services. We recently announced a
business tie-up with Fukuda Denshi Co.,
Ltd., a leading manufacturer of medical
equipment in Japan, in the fields of home-
use healthcare and nursing care products*1.
In conjunction with this tie-up, we decided
to sell all shares in Omron Colin Co., Ltd.
(Healthcare Business subsidiary dealing in
medical equipment) to Fukuda Denshi.
　As we rebuild our earnings structure
through improved gross profit margins,
restructured operations, and a review of our
business portfolio, we will create new
resources. With these new resources, we
will reinvest in future growth. Despite
challenges in the external environment, we
plan to continue concentrated investment
in our Industrial Automation and Healthcare
Businesses, where we expect to see future
growth. Investment in these businesses
and leading-edge technology development
will help create an engine for self-driven
growth.
2. Fiscal 2016 Policies and Plans
Given the projected slowdown in the
Chinese economy, Britain’
s exit from the
EU, and a strong Japanese yen, the global
economy for fiscal 2016 does not inspire
an overly optimistic outlook. We have set
fiscal 2016 goals of ¥820 billion in net
sales, ¥63 billion in operating income, and
¥47.5 billion in net income (assuming
exchange rates of ¥110 to the U.S. dollar
and ¥125 to the Euro). For fiscal 2015, our
dividend payout ratio rose to 30%. We
intend to maintain this level for fiscal 2016
as well.
　Our corporate focus for fiscal 2016 is to
rebuild our earnings structure and create an
engine for self-driven growth. Learning
from the lessons of last year, we will keep
a close watch on the external environment,
preparing for risks, while investing in
growth for the future.
　First, we will create a complete structure
to strengthen our earnings ability. We are
also determined to increase profits through
organization-wide initiatives to revise our
fixed cost structure and improve gross
profit margins. In addition to company-wide
cost-saving initiatives, we plan to grow
sales in our high-profit businesses and
related products. Further, we will embark
on rebuilding our operating structure, which
will include reorganizing smaller
subsidiaries and locations.
　At present, we are reviewing our
*1 Signed a concurrent business tie-up agreement to build a cooperative structure
for product development, manufacturing, sales, and maintenance. The
companies will establish a mutually beneficial relationship moving forward.
Integrated Report 2016 7
Where We
re HeadedAbout Omron Corporate Value Initiatives Corporate Value Foundation Financial Section