-Targets 930 billion yen net sales and 120 billion yen operating profit of the 1st phase (financial year 2024)
KYOTO, Japan, March 9, 2022 /PRNewswire/ — OMRON Corporation (Headquarters: Shimogyo-Ku, Kyoto. President and CEO: Yoshihito Yamada) announced its new long-term vision for fiscal 2030 and three-year medium-term management plan during a virtual press conference today. With the aim of increasing the pace and extent of sustainable development around the world, the vision strives to solve more diverse and varied social problems through OMRON’s Sensing & Control + think technologies, as explained in its President and CEO Yoshihito Yamada.
Named “Shaping the Future 2030 (SF2030)”, the vision is an extension of the organization’s renowned corporate principles-based management philosophy that underlines OMRON’s sincere desire to shape a sustainable society through continuous creation of social and corporate value through the integration of growth and the sustainability of the company.
In tune with the dynamic nature of the socio-economic environment, over the past 89 years since its inception (since 1933), OMRON has thrived and sustained its growth by adhering to its vision of contributing to the creation of a better society through solving social problems through solutions in industrial automation, healthcare and social systems.
Envisage that the coming decade will mark the advent of an “autonomous society” [1] and unfolding many more diverse and complex social problems, OMRON’s long-term vision, SF2030, lists ways to maximize human capabilities through people-centric automation technologies. This encompasses creating more harmonious and stronger relationships between humans and machines. The company believes that this harmony is the key to bringing out the best in people by helping them solve problems and lead more fulfilling and better lives. This in turn will lead the company to create new corporate and social values to support and strengthen its purpose of existence.
“Although we have been able to strengthen our profitability, our responsiveness to change, the implementation of sustainable management and our enterprise value through strengthened corporate governance and risk management, the socio-economic system remains dynamic and continues to undergo major changes. We aim to create a self-sustaining growth model and evolve our business management to ensure sustainable business growth,” said Mr. Yoshihito YamadaPresident and Chief Executive Officer, OMRON Corporation.
Recognizing the impending transition of economic systems – from mass consumption and production to the pursuit of global sustainability as one of the major transformations of self-reliant society, Mr. Yamada further explains: “The transition will be accompanied by disruptions in social systems caused by many factors such as climate change, aging populations and growing economic disparity between people, to name a few. a few. This scenario will give rise to new and complex social problems that will require new technological and sustainable solutions. And this is where we aim to improve our contribution. If we do so, we will not only create more social value , but we will also maximize our automatically the value of the company.”
The three social issues that OMRON has identified as relevant opportunities and aims to address through its activities in SF2030 are achieving carbon neutrality, achieving a digital society and extending the healthy life expectancy.
The company aims to achieve net sales of 930.0 billion yen and an operating profit of 120.0 billion yen (FY2022-FY2024) – the 1st phase of the three-year medium-term management plan SF2030 – by pursuing the following commercial orientations for the social issues identified:
- Industrial automation: The company will catalyze the advancement of well-prepared manufacturing to support a sustainable society. Pursuing its goal of alleviating labor shortages and improving productivity in various industries, OMRON will evolve its innovative approach to automation with the aim of building a production floor that shapes a sustainable future where the harmony with the global environment and worker satisfaction are achieved.
- Health care : Building on significant progress in its current direction of “Zero Events” (the efforts to reduce cardiovascular disease events to zero), OMRON will intensify its efforts in the area of preventative and remote healthcare monitoring while continuing to advocate adoption of medical devices for home use and data-driven hypertension management ensuring more accessible healthcare and healthier lives for people everywhere.
- Social Solutions: Contributing to the adoption and efficient use of renewable energy, OMRON will help create a sustainable infrastructure to support the digital livelihood of the future autonomous society. OMRON will use its advanced energy control technology for energy recovery, conservation and optimization.
- Device and module solution area: OMRON will further contribute to the spread of new energy and high-speed communications by enabling the creation of more robust, advanced and efficient devices, making people’s lives easier and better.
Apart from the financial milestones, the company has also enlisted 10+1 non-financial targets as part of its management objective. These non-financial goals have a relevant link with many of the Sustainable Development Goals (SDGs) and the needs of local communities, underscoring the alignment of the company’s commitment to society.
To support these ambitious directions, OMRON also aims to bring about strong transformations in its business management and organizational capabilities. Here is an overview of the main initiatives:
- Moving from a product perspective to a core value perspective: The organization will work to change its perspective from simply creating value based on performance and quality to creating essential value that will provide users with much more than the resolution of immediate operational problems. It will help them to participate in the development of solutions responding to broader social and industrial issues.
- Evolution of business models: The company aims to expand the scope of its collaborations and networking with like-minded organizations and business associates to deliver better and newer solutions.
- More attention to “diversity & inclusion”: Believing that its human resources are key to the success of SF2030, this includes investing in talent development and developing a psychologically safe and inclusive organizational work culture that encourages diverse individuals to manifest their talents and abilities to create. innovations.
- Improve supply chain resilience: to help withstand rapid changes in the business environment, such as natural disasters and geopolitical risks. It also includes efforts to increase operational efficiency, improving design development prowess and decentralizing production sites.
- Reinforce sustainable development initiatives: To ensure that companies achieve carbon neutrality, reduce their environmental impact through targeted reduction of greenhouse gas emissions and respect human rights on a global scale. By prioritizing these mandates, OMRON will not only fulfill its corporate social responsibilities, but also strengthen its competitive advantage by adding “environmental and people value”.
- Accelerating “Data-Driven Business Operations Through DX”: to support the transformation of the company and give its employees a robust, safe and progressive work style based on digitization.
“With SF2030, our goal is to shape a better society and, in doing so, to become a group of companies that people can always rely on. An organization that continues to meet the high expectations of people around the world,” summarizes Mr. Yamada. .
[1] : According to the SINIC theory, conceptualized by the founder of OMRON, Kazuma Tateisi, the optimization society – the final phase of the industrialized society – began in 2005, succeeding the information society, and this will pass eventually to the autonomous society by 2025. The autonomous society will be characterized by human desires aimed at achieving abundant lives and personal fulfillment based on a harmonious relationship between people and machines. Read more here
Editor’s note:
- More details on SF2030 & Medium Term Management Plan: please access here
About Omron:
OMRON Corporation, as a leading automation company, which has its unique “Sensing & Control + Think” core technology, is engaged in a wide range of business, including control equipment, electronic components, social systems and health care. Founded in 1933, OMRON Corporation currently employs approximately 30,000 people and provides products and services to approximately 120 countries and regions around the world.
For more details, visit: https://www.omron.com/global/en/
SOURCE OMRON Asia-Pacific
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