Basic Policy on the Distribution of Profits
OMRON applies the following basic policy with regard to distribution of profits to shareholders:
- 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 the 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 company's policy to provide stable and sustainable profit distribution to shareholders.
Specifically, the company has established a guideline of approximately 30% in payout ratio and approximately 3% of DOE for profit distributions for fiscal years 2017 through 2020 covered by our medium-term management plan, VG2.0.
- The company will distribute retained earnings accumulated over the long term to shareholders through strategic share repurchases and other measures.