OMRON's earnings distribution policy is to secure internal capital resources for future investments to promote growth, and distribute any surplus to the shareholders to the maximum extent possible. Accordingly, the company aims to maintain the dividend payout ratio in the 20% range relative to consolidated net income. The annual dividend paid per share for fiscal 2006 was 34 yen, up 4 yen per share from last year, with the payout ratio reaching 21%.

To provide a more stable return to shareholders for the next fiscal year and beyond, OMRON will make every effort to maintain the minimum payout ratio of 20%, while setting a new goal-dividends on equity (DOE*) of 2% for a while. OMRON will also continually and flexibly utilize retained earnings accumulated over a long period of time to repurchase and retire the company's stock to benefit shareholders. According to this policy, OMRON repurchased 4,160,000 shares of OMRON stock in fiscal 2006.

* Dividends on equity (DOE) = Return on equity (ROE) x Dividend payout ratio