Notice Regarding Interim Dividend Forecast for Fiscal 2013 (ending March 31, 2014) and Revision of Basic Dividend Policy

April 25, 2013

Company Name: OMRON Corporation
Representative: President and CEO
Yoshihito Yamada
Stock Code: 6645
Stock exchanges: Tokyo and Osaka
(First Sections)
Contact: Shunji Okumura,
General Manager
Investor Relations Department
Phone: +81-3-6718-3421

Tokyo, Japan - The Board of Directors of OMRON Corporation (TOKYO: 6645; ADR: OMRNY) today resolved to announce the interim dividend forecast for fiscal 2013 (ending March 31, 2014) and the following revision of the Company's basic dividend policy.

  1. OMRON's Basic Dividend Policy

    * Revised section underlined below (the minimum dividend payout ratio has been increased from 20% to 25%).
    * This revised payout ratio will come into effect retroactively from April 1, 2013.

    OMRON views its dividend policy as one of its most important management issues, and applies the following basic policy in regard to distribution of profits to shareholders.

    1. In order to maximize corporate value over the long term, internal capital resources will be secured for measures that will increase corporate value. These measures include investments in R&D and capital investments, which are vital to future business expansion.
    2. After taking into consideration the required investments for future growth and the level of free cash flow, surplus will be distributed to the shareholders to the maximum extent possible.
    3. For dividends in each fiscal year, OMRON's policy is to enhance stable, uninterrupted profit distributions by taking into account consolidated results as well as indicators including dividends on equity (DOE), which is return on equity (ROE) multiplied by the payout ratio, although this is subject to the level of internal capital resources necessary. Specifically, OMRON will aim to maintain the payout ratio at a minimum of 25% and make profit distributions with a near-term DOE target of 2%.
    4. Utilizing retained earnings that have been accumulated over a long period of time, OMRON intends to systematically repurchase and retire the Company's stock to benefit shareholders.

  2. Dividend Forecast

      Dividends for the year (JPY)
    Term 2nd quarter
    Year-end Full-year total
    Fiscal 2013 Forecast
    (ending March 31, 2014)
    18.00 Undecided Undecided
    Fiscal 2012 Actual
    (ended March 31, 2013)
    14.00 23.00
    (Ordinary Dividend: 18.00)
    (Commemorative Dividend: 5.00)
    (Ordinary Dividend: 32.00)
    (Commemorative Dividend: 5.00)


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