Omron 2009 Annual Report Download - page 15

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13
We are confronting the challenges of the current
conditions with the confidence that we will achieve
profit levels exemplifying complete recovery.
At this point in time, the economic recession
appears to have eased to a certain degree, but we
have not crawled out from the bottom yet. As demand
was brisk in the first half of fiscal 2008, we anticipate
demand to remain substantially below the previous-
year level in fiscal 2009.
Our foremost priority is to look toward the future
and not only survive the current situation but to
reemerge in a strong competitive position. We will
take this opportunity to make our operations “lean and
keen” and take a radical outside-the-box approach to
reform our operations in the core IAB, ECB, and AEC
segments, along with emergency measures to con-
centrate our resources on select domains.
Overcoming Adversity to Achieve Complete
Recovery
We expect the severe operating environment for the
Omron Group to persist in the coming year and fore-
cast fiscal 2009 net sales falling a further 18.7% year
on year to ¥510.0 billion. In addition, under the current
situation, we are seeking to avoid producing a loss for
the year and to achieve operating income of “positive
zero” as a productive step for the future.
We are resolved to confront the challenges of the
current conditions with the confidence that we will
achieve profit levels exemplifying a complete recov-
ery. At this point in time, it is still impossible to set a
target date for achieving recovery. In terms of results,
however, we have set the bar for sales at the fiscal
2007 level of ¥750 billion and for operating income
above ¥100 billion (compared with ¥65.3 billion in fis-
cal 2007). To achieve this, we plan to pare down our
operation to only the most essential elements and sub-
stantially lower the break-even point for sales.
Dividends Depend on Bottom Line and Cash
Reserves
We intend to continue our basic policy for sharehold-
er return of maintaining a minimum 20% dividend
payout ratio, and to continue aiming for a 2% dividend
on equity (DOE) ratio. In fiscal 2008, taking into con-
sideration that we had a net loss of ¥29.2 billion, we
paid an annual dividend of ¥25 per share, which rep-
resented a ¥17 decrease from the previous fiscal year
and a 1.7% DOE ratio.
Based on our target of achieving “positive zero”
operating income in fiscal 2009, we do not expect to
be able to meet our 2% DOE ratio standard. We will
review our bottom line and cash reserve status when
we have a better view of how the business environ-
ment will take shape for the year.
We ask for your patience and understanding until
we can provide a reliable outlook for shareholder return
for the coming year, and we appreciate your ongoing
support as we pull together all of our resources to
achieve full recovery of the Omron Group.
August 2009
Hisao Sakuta, President and CEO
Apr. 2001 Mar. 2011Apr. 2010Apr. 2009Apr. 2008Apr. 2004
“Grand Design 2010” (GD2010) Omron’s long-term management vision
New Long-term
Management
Vision
(Post-GD2010)
1st Stage 2nd Stage 3rd Stage
Revival Stage
(Structural Reform Period)
Emergency
Measures
Abandon the 3rd stage and
designate 26-month period until
Mar. 2011 as “Revival Stage;”
focus on structural reform
2009/2