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18
Hisao Sakuta
President and CEO
“Becoming Leaner to ‘Build a Robust Earnings Structure’” and
“Changing Gears to ‘High Growth’”
The Omron Group’s Next Long-Term Vision Targets an Operating Income Margin of 15%.
Fiscal 2009 in Review
——— Amid a decline in net sales of more than ¥100
billion, earnings were higher than forecast. Looking
back, what sort of year was fiscal 2009?
Fiscal 2009 was a year in which our employees worked
together as one to improve the foundation of the
Omron Group.
It’s now seven years since I was appointed presi-
dent. In the first five years, we were blessed with
favorable external business conditions that drove ongo-
ing improvements in performance, culminating in
record-high net sales and operating income in fiscal
2007. However, we were concerned that under a
favorable operating environment, we tend to amass
management resources that do not generate business
value, to the point where we gain excess “fat” that
has the potential to endanger momentum on a variety
of fronts. This is why we targeted an operating income
margin of 10% for fiscal 2007. However, although net
sales and operating income reached new records, the
operating income margin, at 8.6%, was well short of
the 9.9% posted in fiscal 2005.
Straight after that, in fiscal 2008, there was a glob-
al economic recession, which hit manufacturers
everywhere extremely hard. Omron’s operating income
margin slumped to 0.9%, and we recorded a net loss
attributable to shareholders for that year. It is precise-
ly during troubled times like this when you can clearly
see what is surplus to requirements. Confronted with
this situation in fiscal 2009, it also became an oppor-
Interview with the President
Results of Emergency Measures in FY2009
Variable costs
Fixed costs
Total
Manufacturing fixed costs
SG&A expenses
R&D expenses
¥5 bn
¥55 bn
¥60 bn
Annual reduction target
(YoY Change)
¥5 bn
¥58 bn
¥63 bn
Actual result
(YoY Change)
Close to target level
Exceeded target
Exceeded target
Note: These figures are approximations.
Achievement rate