Basic Policy on the Distribution of Profits

OMRON consults with our general meeting of Shareholders regarding decisions on dividends from retained earnings, with the exception of interim dividends, which are decided by resolution of the Board of Directors based on the provisions of the Articles of Incorporation. We applied the following policy regarding distribution of profits to shareholders, including shareholder returns, for fiscal years 2017 through 2020 covered by our medium-term management plan (VG.2.0).

  • Aiming for sustainable corporate value growth, OMRON prioritizes investment necessary for future business expansion. These investments include research and development, capital investments, mergers and acquisitions, and other investments for future growth. Having secured internal reserves, the company makes decisions regarding ongoing profit distribution to shareholders in consideration of capital efficiency.
  • Annual dividends are based on consolidated earnings, payout ratio, and dividends on equity (return on equity multiplied by payout ratio).
    These considerations reflect the company's policy to provide stable and sustainable profit distributions to shareholders.
    Specifically, the company has established a guideline of approximately 30% in payout ratio and DOE of approximately 3% for profit distributions throughout the period covered by VG2.0.
  • The company will distribute retained earnings accumulated over the long term to shareholders through strategic share buybacks and other measures.

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