OMRON Basic Information. November 2017 OMRON Corporation

Transcription

1 OMRON Basic Information November 2017 OMRON Corporation

2 Corporate Profile Established May 10, 1933 Head Office Shiokoji Horikawa, Shimogyo-ku, Kyoto Japan Capital 64.1bn Net Sales 794.2bn (Year ended Mar 31, 2017; Overseas: 58.4%) Number of Employees 36,008 (As of Mar 31, 2017) Stock Listing Tokyo (Ticker symbol: 6645) Number of Shares Issued 213,958 thousand shares (As of Mar 31, 2017) 1

3 Net Sales by Region 794.2bn (FY2016) Americas Europe 14.4% 13.6% 11.7% Asia Pacific 41.6% 18.7% Japan Greater China 2

4 Employees by Region 36,008 (As of Mar 31, 2017) Americas Europe 6.0% 16.7% 11.5% Asia Pacific 31.7% 34.1% Japan Greater China 3

5 History s 1960 s 1970 s Important Developments Established X-ray timer Factory automation devices (switches and relays) Automatic train ticket gates, and ticket vending machines Blood pressure monitors Aiming at greater convenience and comfort in civic life Aiming at improvement of industrial productivity Today The world's fastest, high-performance controller Aiming at a new relationship between humans and machines Expansion of business fields Micro switches Relays Sensors Controllers Technological development & innovation 4

6 Corporate Principles (Revised in 2015) 5

7 Core Competence Sensing & Control, which converts information into value, is OMRON s core technology. New value is created by adding think (human intelligence). Sensing Information IN & OUT Value Gathers only the required data Control Converts into value + Think 6

8 Business Segments Other Business under the Direct Control of HQ SSB PV inverters, backlights, etc. HCB Healthcare Supporting the health of people around the world (electronic blood pressure monitor, thermometer, etc.) Social Systems Solution & Service SSB Business Social Systems, Solution & Service Contributing to the comfortable and safe life by diverse systems for social infrastructure (automatic ticket gates, ticket vending machine, etc.) 13% 8% Eliminations & Corporate 1% 16% 8% FY2016 Net Sales by Segment AEC 12% Automotive Electronics Components Undertaking new challenges in the automotive 42% electronics field, to help make automobiles safer and friendlier toward people and environment (electric power steering controller, etc.) IAB Industrial Automation OMRON s mainstay business, leading the innovation of global manufacturing through factory automation (FA) EMC Electronic & Mechanical Components Contributing to the high performance of consumer electronics, telecommunication equipment, etc. (relays, switches, etc.) 7

9 Industrial Automation (IAB) Manufacture and sales of factory automation equipment % of Total Sales 42% *FY2016 Market Share* Control-Related Equipment (Japan) 40% OMRON s mainstay business, leading the innovation of global manufacturing through factory automation (FA) Vision Sensors Input Logic Output Fiber Sensors Controllers Motion Controllers Servomotors Servo Drivers Inverters Robots Robot Emergency Stop Switches Safety Light Curtains Safety Controllers Safety *Source: Nippon Electric Control Equipment Industries Association 8

10 Electronic & Mechanical Components (EMC) Manufacture and sales of electronic components for consumer electronics, automobiles, mobile devices and amusement equipment % of Total Sales 12% *FY2016 Market Share* Relays (Global) 20% Contributing to the high performance of consumer electronics, telecommunication equipment, etc. For Consumer Electronics and Automobiles For Amusement Equipment Relays Switches Pachinko Ball Sensors Connectors Pachinko Panel Keys *Source: Internal survey 9

11 Automotive Electronic Components (AEC) Development, manufacture and sales of on-board automobile electronic components % of Total Sales 16% *FY2016 Market Share* Body Control Units For Miniature Vehicles (Japan) 50% Undertaking new challenges in the automotive electronics field, to help make automobiles safer and friendlier toward people and environment Smart Entry Systems Electric Power Steering Controllers Power Window Switches Engine Start Systems Components for Eco-Friendly Vehicles (DC-DC Converters) *Source: Internal survey 10

12 Social Systems, Solution & Service (SSB) Solutions and services for a safer, comfortable, more secure society % of Total Sales 8% *FY2016 Market Share* Station Equipment (Japan) 45% Public Transportation Contributing to the comfortable and safe life by diverse systems for social infrastructure Engineering Automated Ticket Gates Ticket Vending Machines Road Traffic Road Traffic Management Systems Installment and maintenance service for PV Power Generation System *Source: Internal survey 11

13 Healthcare (HCB) Manufacture, sales and services related to home-use/institutional healthcare and medical devices % of Total Sales 13% *FY2016 Market Share* Home-Use Blood Pressure Monitors 50% Supporting the health of people around the world Nebulizers Digital Blood Pressure Monitors Low-frequency Therapy Equipment Body composition Analyzers Activity Monitors Thermometers *Source: Internal survey 12

14 Business under the Direct Control of HQ (Other) % of Total Sales 8% *FY2016 Market Share* Residential-Use PV Inverters (Japan) 40% Mainly incubating OMRON s next generation of businesses Environmental Solutions Backlights Solar Power Generation Systems Micro Device LCD Backlights Electronic Systems & Equipment MEMS (Micro Electro Mechanical Systems) Uninterruptible Power Supply Units Embedded Mini- CPU Boards *Source: Internal survey 13

15 Earnings (Results & Forecasts) ( bn) Net Sales GP% OP (ROS) % 45.3 (7.0%) 38.5% 68.1 (8.8%) 39.3% 86.6 (10.2%) 38.5% 62.3 (7.5%) 39.3% 67.6 (8.5%) 41.6% 85.0 (10.0%) (est* ) ROIC 8.6% 11.3% 13.4% 9.7% 10.3% Approx. 12% ROE 8.8% 11.6% 13.5% 10.1% 10.1% Approx. 12% EPS ( ) * Announced in October

16 Distribution of Profits Basic Policy for Distribution of Profits (1)Aiming for sustainable corporate value growth, OMRON prioritizes investment necessary for the future growth, including R&D, capex, and M&A. (2) Annual dividends are based on consolidated earnings, payout ratio, and DOE, to provide stable and sustainable profit distribution to shareholders. For VG2.0 (FY FY2020), annual dividends are decided based on a guideline of approx. 30% payout ratio and approx. 3% DOE. (3) Accumulated retained earnings over a long period will be distributed to shareholders through strategic share repurchases and other measures. 15

17 Dividends & EPS Dividends ( ) EPS ( ) Dividends EPS (est.)

18 Corporate 2014 Value 年度の経営指標 施策目標 Creation Factors that support sustainable corporate value creation 4 Compensation and incentive scheme 1 Long-term vision and midterm strategy 3 Governance structure OMRON Principles 2 Management indices 17

19 Optimization Society Autonomous Society SINIC Theory* 2014 年度の経営指標 施策目標 SINIC as a management compass 10-year long-term vision <SINIC theory predicting the future> Industrial Society Mechanization Society Automation Society Cybernation Society Second Industrial Revolution Automation by Computer Information Sharing over Network Selection of Information and Function optimized to Individual Sensing & Control Technology Autonomous Action without Constraints Productivity, efficiency Manufacturer's viewpoint "Product" generation A purpose of life, work User's viewpoint "Heart" generation *SINIC: Seed-Innovation to Need-Impetus Cyclic Evolution 18

20 Long-Term Vision and Goal Announced the 3 rd long-term vision, Value Generation 2020, on July 13, 2011 (1 st : Golden 90s, 2 nd : Grand Design 2010) Vision Goal Sense, Think, and Control. For a Brighter Future for People & the Earth. Qualitative Quantitative A global value-creating group that is qualitatively and quantitatively superior Sales: Over 1 trillion yen Operating profit margin: 15% 19

21 Positioning of VG2.0 Take VG2.0 as the last stage of VG2020, to achieve discontinuous growth VG2020 Next Longterm Vision VG2.0 Next Long-term Vision GLOBE STAGE EARTH-1 STAGE EARTH-2 STAGE

22 VG2.0 Goals & Group Policy VG2.0 Goals A value-generator for people and the Earth that is qualitatively and quantitatively superior 1 trillion in Net Sales 100 billion in OP OMRON Group Policy Achieve self-driven growth by creating innovation originated by technological evolution 21

23 VG2.0 Pivotal Strategies VG2.0 Pivotal Strategies 1) Redefine focus domains and maximize the strengths of businesses 2) Evolve business model 3) Reinforce core technologies Strengthen collaborative creations with partners 22

24 Management 2014 Indices 年度の経営指標 施策目標 Set management indices as decision making tools to achieve midterm targets ROIC Management Down-top ROIC tree Portfolio management By business segment (structure, issues) Key items (drivers) to improve ROIC, and specific actions & KPIs Plan out reinforcement/ market withdrawal, taking each business segment status into account Decide on resource allocation 23

25 Management Indices (Down-Top ROIC Tree) GP margin 24

26 Sales Growth Rate(%) Market Growth Rate(%) Management Indices (Portfolio Management) After assessing economic and market value, allocate investment resources in an optical manner Assessing Economic Value Assessing Market Value B Expecting Growth S Investment B S C Profit Restructuring A Examining Regrowth C A ROIC(%) Market Share(%) 25

27 ROIC Management Upgrading (ROIC 2.0) Upgrading ROIC management to encourage an awareness and better understanding on ROIC <ROIC Interpreted Formula> ROIC Value to Customers (stakeholders) (V) Necessary Management Resources (N) Goods, Money, Time + Loss-Making Management Resources (L) Muri, Muda, Mura (waste, unevenness, overburden) (1) Increase investments in Necessary Management Resources (N) for growth based on growth strategies (2) Raise (V) more than (N) (3) Reduce Loss-Making Management Resources (L) to shift to/invest in (N) 26

28 Corporate Governance Scheme OMRON has highly transparent and effective corporate governance scheme as a basis for sustainable value creation Separation of management oversight and business execution Separate position: Chairperson of the BoD and CEO Of 8 directors, 3 are independent, with majority being non-executive Larger authority given to business company presidents for swifter decision-making Personnel/ CEO selection/ compensation advisory committees and corporate governance committee While OMRON is a company with an audit & supervisory board under Japan's Companies Act, it has 3 advisory committees and 1 committee The four chaired by independent directors President does not belong to any of the committees Audit & Supervisory Board Audit & Supervisory Board Office Accounting Auditor Executive Organization Sustainability Committee Board of Directors Office Sustainability Office Shareholders Meeting Board of Directors President & CEO Executive Council Head Office Divisions Chairman: Chairman of the Board Personnel Advisory Committee CEO Selection Advisory Committee Compensation Advisory Committee Corporate Governance Committee Internal Audit Division Business Companies (Internal Companies) 27

29 Governance (CEO Selection) CEO Selection Advisory Committee As specialized in president s selection, discussing the next president personnel and the succession candidate when an emergency has formed Independent director is chaired, two of four commissioners are independent directors, all members are non-executive Shareholders Meeting Audit & Supervisory Board Audit & Supervisory Board Office Accounting Auditor Board of Directors Office Sustainability Office Board of Directors Chairman: Chairman of the Board Personnel Advisory Committee CEO Selection Advisory Committee Compensation Advisory Committee Corporate Governance Committee Executive Organization President & CEO Internal Audit Division Executive Council Sustainability Committee Head Office Divisions Business Companies (Internal Companies) *Annual Report 2011, Page

30 Governance (Compensation Scheme) Motivation towards mid to long-term value creation = directors' interests aligned with shareholders Shareholders Meeting Director Compensation *1 Audit & Supervisory Board Audit & Supervisory Board Office Accounting Auditor Executive Organization Board of Directors Office Sustainability Office Board of Directors President & CEO Chairman: Chairman of the Board Personnel Advisory Committee CEO Selection Advisory Committee Compensation Advisory Committee Corporate Governance Committee Internal Audit Division Base (fixed) compensation +Short-term performance-lined bonuses +Medium- to long-term performancelined bonuses (performance-linked and share-based incentive) *2 Sustainability Committee Executive Council Head Office Divisions Business Companies (Internal Companies) *1 Compensation for outside directors consists of a base salary only. *2 The new performance-linked and share-based incentive plan is resolved to be submitted for approval at the 80 th Ordinary General Meeting of Shareholders to be held in June

31 Contact OMRON Corporation Global Investor Relations & Corporate Communications Headquarters Investor Relations Department Phone : omron_ir@omron.co.jp Website : 30