Omron 2013 Annual Report Download - page 27

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50 Omron Corporation Integrated Report 2013 51
Corporate Value Initiatives
% of net sales
40%
Yoshinobu Morishita
Representative Director and
Executive Vice President
Company President,
Industrial Automation Company
(Billions of yen)
100
80
60
40
20
0
Index of Machinery Orders*
(Seasonally adjusted) [left axis]
IAB Sales [right axis]
50
40
30
20
10
0
Index of Machinery orders and IAB sales
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2011 FY2012
Large-scale equipment
2.5m
2.0m
2.0m
Desktop equipment
0.7m
0.7m
0.7m
Business Strategy and Outlook for Fiscal 2013
We will continue to evolve as the best automation
partner for manufacturers worldwide.
In fi scal 2013 we are forecasting a year-on-year rise in net
sales of 7.2%, to ¥282.0 billion, and a 16.4% increase in
operating income, to ¥36.5 billion.
In Japan, sales are forecasted to be in line with fi scal
2012. While we expect customers to improve performance
due to yen depreciation, capital investment demand in the
automobile and machine tools industries will be unchanged
from fi scal 2012. Overseas, we are projecting a year-on-year
increase in sales. Markets are becoming increasingly linked
on a global scale, resulting in higher volatility, but the
expectations for ever growing automation are surely
rising nonetheless. Evolving as an automation partner to
manufacturers worldwide, IAB will relentlessly invest and
put plans into action throughout fi scal 2013.
Leveraging the monozukuri (manufacturing) capabilities we
have developed through our global operations, we will launch
more products than in the previous fi scal year, providing
them to customers around the world through our global
network consisting of more than 160 bases.
We will continue to contribute to the substantial improve-
ments in machine productivity by realizing safer, faster, and
more precise control. In this pursuit, we will work to create
machines that anyone can operate with ease and realize
a deeper understanding of applications while developing
new applications on a global scale.
We will continue to strengthen our operations in emerging
countries, where automation needs continue to grow, and
also actively work to acquire new technologies that will
contribute to the future of manufacturing. Aiming to evolve
as an automation partner to manufacturers worldwide, IAB
will develop stronger ties within and outside Omron.
Fiscal 2012 in Review
Sales in Americas and China were solid
regardless of the rebound from the previous
year’s temporary sales increases.
IAB net sales declined 2.9% year on year, to ¥263.0 billion,
and operating income decreased 11.6%, to ¥31.3 billion, in
fi scal 2012.
In Japan, sales were down 5.6% year on year, to ¥116.3
billion. Capital investment demand in the automobile industry
was relatively unchanged, but demand was poor in electronic
component related industries, and particularly in the semicon-
ductor industry. In addition, IAB experienced a rebound from
the temporary increase in sales seen in the previous fi scal year
due to the infl uences of the Great East Japan Earthquake and
the Thailand fl oods.
Overseas, sales were strong in China, ASEAN countries,
and Americas, while conditions remained uncertain in Eu-
rope due to ongoing fi nancial instability. As a result, overseas
sales were relatively unchanged from the previous fi scal
year, declining only 0.7% year on year, to ¥146.7 billion.
Industrial Automation Business (IAB)
Manufacturing and sales of control systems and components
for factory automation and industrial equipment
IAB has established a complete lineup of state-of-the-art equipment that plays a principal role in
automation. This lineup includes the sensors that provide automation systems with the senses of “vision”
and “touch,” the controllers that serve as their “brain,” the drives that form their “limbs,” and the networks that
connect these various items as the “nerve system.” With these sophisticated products, we are contributing to
quality, safety, and the environment by supporting the innovation of manufacturing industries around the world.
In China, demand for automobiles and machine tools was
down, but demand remained relatively stable on a full-year
basis, and sales proved solid even when compared with the
previous fi scal year, when temporary increases stemming
from earthquake-related demand were recorded. In Asia,
while sales held fi rm in ASEAN and emerging countries,
the impacts of limited capital investment in South Korea’s
semiconductor industry weighed heavy, and overall sales
were down as a result.
In Europe, various economic indicators improved during
the second half of the year. However, production and new
investments continued to be limited, resulting in low de-
mand. In the Americas, meanwhile, automobile-related
demand was favorable, and sales were solid accordingly.
IAB pursued more effi cient operations to reduce fi xed
costs while steadily conducting investment necessary for
the future. However, the heavy impacts of overall sales
declines could not be offset, and operating income de-
creased as a result.
Segment Information
What’s New
Industry First—Integrated Tool with 3D Motion
Trace Functions
Sysmac Studio is for high-speed, high-precision motion control
design and safety control in an engineering environment. Using
this tool, the movements of machine structures can be simu-
lated using 3D animations on one’s desktop before construction.
This makes it easier to discover errors in control programs and
parameter confi gurations. These features employ a new, light 3D
drawing engine developed for industrial applications.
Industry First—Photoelectric Sensor Reborn
through the Production Method
This sensor is the fi rst in the FA industry to be produced using
laser bonding technologies, thereby realizing quality not im-
pacted by differences in parts. Requiring one-tenth the normal
capital investment and half the average development period,
this method allows us to swiftly respond to customer needs.
IAB Results and Forecasts
(Billions of yen)
Fiscal Year 2009 2010 2011 2012 2013
(Forecast)
Net sales 203.9 271.9 270.8 263.0 282.0
Japan 91.2 123.9 123.1 116.3 117.0
Overseas 112.7 148.0 147.7 146.7 165.0
Americas 18.9 26.7 29.3 31.6 32.5
Europe 51.2 56.7 55.3 50.4 56.0
Asia Pacifi c 16.8 25.0 25.3 24.7 29.9
Greater China 25.5 38.8 36.8 39.4 46.0
Direct exports 0.3 0.7 1.0 0.6 0.6
Operating income 14.6 41.1 35.4 31.3 36.5
Operating income margin 7.2% 15.1% 13.1% 11.9% 12.9%
R&D expenses 12.0 14.2 15.4 16.5
Depreciation and amortization 5.2 4.5 4.2 3.5
Capital expenditures 1.9 2.2 3.8 2.8
* From fi scal 2013, certain operations previously included in EMC have been included in IAB following a change in
management categorizations. Accordingly, the segment information fi gures for fi scal 2012 and prior fi scal years have
been restated to refl ect this change.
* Beginning in fi scal 2010, the Omron Group has been revising the management guidance fees for the purpose of
concentrating capital funds at the headquarters to reinforce selection and concentration and strategically allocate
resources. This inclusion has had an effect on the operating income of each segment.
* The sales fi gures given indicate sales to external customers and exclude intersegment transactions. Operating income
indicates income including internal income prior to the deduction of such amounts as intersegment transactions and
head offi ce expenses that are not apportionable.
* The forecasts for R&D expenses, depreciation and amortization, and capital expenditures are not publicized.
Analysis of external environment
Check it out!
*Source: Calculated based on
materials prepared by
the Cabinet Offi ce,
Government of Japan
Japanese IAB sales trends tend
to refl ect those in the machinery
orders index.
Sysmac automation platformIntegrated engineering tool
Joint Project with Microsoft Japan to Utilize Big Data
Manufacturers are increasingly seeking higher levels of quality
and safety. At the same time, there is a rising need for trace-
ability that allows information to be collected and analyzed on a
single item basis to instantly determine when, where, and under
what conditions certain items were produced. By strengthening
Omron’s lineup of advanced “Sensing and Control” products,
indispensable to the process of control, we have made it pos-
sible to quickly and accurately upload vast quantities of data
related to individual items mass-produced at production sites to
top servers in real time. By combining these products with
Microsoft’s technologies, we have realized systems for monitor-
ing and analyzing vast quantities of data at production sites in an
accurate, quick, and easy manner. Further, these systems en-
able data to be arranged in a way that is meaningful to onsite
staff and management.
This new solution directly links Omron’s Sysmac control with
the SQL Server of Microsoft Corporation to help advance re-
forms at production sites by providing the world with a new
means of tracking and utilizing data related to manufacturing.