KYOTO, Japan, May 29, 2014 /PRNewswire/ --
- Establishing "Self-driven" Growth Structure -
OMRON Corporation (TOKYO: 6645,
ADR: OMRNY) announced on May 29 its
new medium-term business plan for the three years from FY2014 to
FY2016.
In 2011, OMRON launched its long-term business strategy for the
decade leading up to 2020, called "Value Generation 2020" or
"VG2020." With this strategy, OMRON has specified goals; "global
value-creating group that is qualitatively and quantitatively
superior," "over 1 trillion yen in
sales and 15% return on sales (ROS)." For the first three years
(FY2011-FY2013) of VG2020; called the "GLOBE STAGE," also for the
next seven years (FY2014-FY2020) of VG2020; called the "EARTH
STAGE." In GLOBE STAGE, OMRON worked to establish a profit
structure that enables the company to remain competitive for the
upcoming decade, attaining growth worldwide by centering on
emerging markets. The three pivotal strategies for the growth were:
(1) reinforcement of industrial automation business; (2) pursuit of
growth in emerging markets, and (3) business development for the
"Optimization Society*." These pivotal strategies were combined
with supporting functional strategies: "profit structure reform"
and "strengthening of global human resources." As a result of
steady implementation of these strategies in GLOBE STAGE, OMRON was
able to record net sales of 773 billion
yen and operating profit of 68.1
billion yen in FY2013 on a consolidated basis, with ROS of
8.8%. This represents the first achievement of record high sales
and operating profit for OMRON in six years.
The first three years (FY2014-FY2016) of EARTH STAGE are
designated "EARTH-1 STAGE," during which OMRON will enhance its
efforts toward establishing a "self-driven" growth structure. To
this end, OMRON will continue to focus on the aforementioned three
pivotal strategies and two functional strategies, and further
strengthen their implementation.
Management Policy of EARTH-1 STAGE
- The key to "reinforcement of OMRON's industrial automation
business" is the Global Industry Strategy. This strategy is
intended to provide value through our automation, with focus on
global fast-growing industries such as mobile, automotive, foods
and daily commodities, and social infrastructure industries. To
this end, OMRON will make full use of its extensive global network
of more than 150 business locations in some 40 countries around the
world.
- For growth in emerging markets, OMRON will expand its
China-focused strategy to a
well-balanced growth policy that includes China as well as other parts of Asia (ASEAN countries and India).
- Through business development for the "Optimization Society,"
OMRON will seek to create new businesses in its specialty fields,
with the aim of satisfying potential demands or
yet-to-be-recognized needs of society. This conforms to the
company's commitment to addressing social challenges through its
operations.
- To accelerate growth, OMRON will also implement an aggressive
investment strategy during the EARTH-1 STAGE. The investment
plan for the upcoming three years will include strategic
investments and investments for growth (including M&A)
amounting to about 100 billion yen in
total. OMRON will also invest another 100 billion yen for capital expenditures, and
some 150 billion yen for research and
development to support planning and development of new technologies
from a long-term perspective.
Goals for EARTH-1 STAGE (FY2014-FY2016)
Policy: Establishment of "self-driven" growth structure
Targets (for FY2016):
Sales: Over 900 billion
yen (up from
773 billion yen in FY2013)
ROS: Over
10%
(up from 8.8% in FY2013)
Gross profit ratio: Over 40% (up
from 38.5% in FY2013)
Principal Strategies:
(1) Reinforce industrial automation business
(2) Pursue growth in emerging markets
(3) Engage in business development for the "Optimization
Society"
(4) Implement profit structure reform
(5) Strengthen global human resources
Key Measures:
(1) Strengthen industrial automation business
(2) Promote growth throughout Asia
(China and ASEAN countries)
(3) Create environmental solutions business and other
next-generation businesses
By turning societal changes into opportunities, OMRON will
continue to promote growth by helping tackle issues our society
faces through the company's business, while creating innovations to
spur new demand. OMRON seeks to remain a corporate group that
people can always depend on as the company strives to boost its
corporate value.
* The Optimization Society is a new society that OMRON has
envisioned after the industrial society. The concept is based on
OMRON's original SINIC (Seed-Innovation to Need-Impetus Cyclic
Evolution) theory. Such a society is thought to emerge by creating
a complete balance and harmonious relationships between individuals
and society, between humans and the environment, and between people
and machines.
About OMRON Corporation
OMRON Corporation is a global leader in the field of automation
based on its core technology of sensing and control. OMRON's
business fields cover a broad spectrum, ranging from industrial
automation and electronic components to automotive electronic
components, social infrastructure systems, healthcare, and
environmental solutions. Established in 1933, OMRON has over 36,000
employees worldwide, working to provide products and services in
more than 110 countries and regions.
For more information, visit OMRON's website at:
http://www.omron.com/.
Contact:
Atsushi Fujita
Corporate Communications Department
OMRON Corporation
Tel: +81-75-344-7175
E-mail: atsushi_fujita@omron.co.jp
SOURCE OMRON Corporation
