Omron 2001 Annual Report Download - page 23

Omron Corporation 21
Interest Expenses and
Interest Coverage
(Millions of Yen/Times)
Earnings per Share and
Price–Earnings Ratio
(Yen/Times)
Net Income per Employee
(Millions of Yen)
1997 1998 1999 2000 2001 1997 1998 1999 2000 2001
20.05
1,731
3,557
2,412
2,518
1,897
58.8
69.8
8.3
44.5
85.3
36.6 28.3
175.0
64.9
23.6
12.27
5.56
26.83
14.64
Interest Expenses
Interest Coverage
Earnings per Share
Price–Earnings Ratio
1997 1998 1999 2000 2001
0.7
0.8
0.1
0.5
0.9
36.7 percent. SGA expenses decreased ¥2.5 billion, or
1.8 percent, year-on-year to ¥131.2 billion, and improved
to 22.1 percent of net sales from 24.1 percent for the
previous fiscal year. Primary factors included a reduction
in commissions for outsourcing. Research and
development expenses increased ¥5.9 billion, or 16.1
percent, to ¥42.5 billion, and represented 7.1 percent of
net sales, compared to 6.6 percent for the previous fiscal
year. R&D is essential to Omron’s growth strategy and
the Company intends to maintain the ratio of R&D
expenses at approximately 7 percent of net sales.
Costs, Expenses and Income as Percentages of Net Sales
2001 2000 1999
Net sales................................... 100.0% 100.0% 100.0%
Cost of sales............................. 63.3 64.6 65.6
Gross profit .............................. 36.7 35.4 34.4
Selling, general and
administrative expenses ........ 22.1 24.1 24.6
Research and
development expenses .......... 7.1 6.6 7.6
Interest expenses, net ............. 0.0 0.1 0.1
Income before income taxes
and minority interests ............ 6.7 3.8 1.5
Income taxes............................ 2.9 1.6 1.1
Net income............................... 3.8 2.1 0.4
Main factors in non-operating expenses included a
drop in interest expenses due largely to a reduction in
short-term debt. Income before income taxes and
minority interests increased ¥19.0 billion, or 90.3
percent, to ¥40.0 billion. Income taxes increased ¥8.3
billion, or 91.4 percent, to ¥17.3 billion, and the ratio of
income taxes to income before income taxes and
minority interests stood at 43.3 percent compared to 43.0
percent for the previous fiscal year. As a result of the
above, net income increased ¥10.7 billion, or 92.9
percent, to ¥22.3 billion. The ratio of net income to net
sales improved to 3.8 percent from 2.1 percent for the
prior fiscal year, and ROE improved to 6.7 percent from
3.5 percent for the prior fiscal year. Net income per share
improved by ¥42.4 to ¥87.4, and diluted net income per
share improved by ¥40.8 to ¥85.3.
Review of Operations by Company
In April 2000, Omron restructured marketing channels,
resulting in a change in the assignment to its internal
companies of sales of certain products and sales from
certain regions. Figures for the previous fiscal year have
been restated to conform with the new structure.
Composition of Net Sales
2001 2000 1999
Industrial Automation ............. 40.3% 38.7% 44.2%
Electronic Components........... 19.8 19.8 10.2
Social Systems Business ........ 23.9 23.1 24.5
Healthcare ................................ 6.6 7.7 7.9
Others ....................................... 9.4 10.7 13.2
Note: The composition of net sales is based on the classifications reported in the
Six-year Summary.