Omron 2013 Annual Report Download - page 30

Compatible Use of IC Cards Nationwide
Electricity storage system
Stationary Lithium-Ion Electricity Storage System
This system stores the electricity generated by solar power generation systems and
purchased from power companies and thus may be used as a power supply when
needed, such as during a blackout. The system employs lithium-ion rechargeable batter-
ies made with olivine-type lithium iron phosphate, known for their safety, and boasts
the high capacity of up to 19.2kWh coupled with a long lifespan that is resistant to
repetitive charging and discharging. Under normal operating conditions, the system
helps shift electricity usage away from peak hours, effectively cutting peak-hour usage
and conserving electricity. Should a blackout occur, the system automatically activates
to supply a defi ned load to specifi ed equipment, thereby ensuring that lighting, com-
munications facilities, and other equipment necessary to respond to disasters may be
kept functional.
As a means of realizing local electricity production and consumption, electricity stor-
age systems are gaining increased attention along with solar power generation systems,
which are an ever more important part of generation infrastructure. Omron’s electricity
storage systems can function as infrastructure for disaster countermeasures and will be
used to contribute to the development of safer, more secure, and more eco-friendly
social infrastructure.
56 Omron Corporation Integrated Report 2013 57
Corporate Value Initiatives
% of net sales
11%
(%)
–2
0
2
4
6
8
10
Changes in the number of rail
transport passengers (year on year)
123456789101112
Total
Japan Railways
(JR) Group
Private Railways
2012
Fiscal 2012 in Review
Sales and income increased signifi cantly
due to growth in the safety and security
and environmental solutions fi elds.
In fi scal 2012, SSB sales and income both increased signifi -
cantly, with net sales up 20.2% year on year, to ¥68.8 billion,
and operating income at ¥2.9 billion, compared with ¥0.1
billion in fi scal 2011.
In the railway infrastructure business, railway companies
saw improvements in tourism revenues due to the rebound
from the impacts of the Great East Japan Earthquake. As a
result, replacement demand for railway infrastructure was
solid throughout the year. In particular, deliveries of auto-
mated ticket vending machines, automated ticket gates, and
other equipment were up, as were orders for related installa-
tion. In addition, sales of safety and security solutions
Kiichiro Kondo
Managing Offi cer
President and CEO,
OMRON SOCIAL SOLUTIONS Co., Ltd.
centered on remote monitoring systems were strong.
Accordingly, full-year net sales increased substantially.
The traffi c control and road control systems business
continued to feel the negative trend toward limiting capital
investment seen among customers. Nevertheless, full-year
net sales proved favorable due to the strong performance of
safety and security solutions.
Environmental solutions related businesses recorded
impressive full-year net sales due to strong performance
centered on growth fi elds, such as solar power generation
system related services. Also, in the related maintenance
business, there was a signifi cant rise in the installation of
PV inverters, and full-year net sales were solid as a result.
Operating income improved greatly year on year, sup-
ported by higher net sales and the benefi ts of profi t structure
reforms in the railway infrastructure business.
Social Systems, Solutions and Service Business (SSB)
Providing solutions and services for contributing to a safer, more secure,
and comfortable society
OMRON SOCIAL SOLUTIONS Co., Ltd. (SSB), provides various equipment, systems, and services
to support secure and comfortable living environments and a safe social infrastructure.
Business Strategy and Outlook for Fiscal 2013
We will continue to strengthen competitiveness
and build foundations for growth.
In fi scal 2013, we are projecting a 10.5% year-on-year gain in
SSB net sales, to ¥76.0 billion, and a 54.4% rise in operating
income, to ¥4.5 billion.
In existing businesses, such as those related to railways
and traffi c control, we have achieved profi tability through the
implementation of ongoing profi t structure reforms. This
profi tability will be taken advantage of to steadily capture
replacement demand and thereby maximize earnings. In the
safety and security fi eld, the experience and expertise ac-
cumulated through operations thus far will help realize a
full-fl edged expansion.
In growth businesses, we will pursue sales growth in the
environmental solutions fi eld, where demand continues to
expand. In this pursuit, we will take advantage of the Group’s
ability to provide package offerings, including products,
system design, installation, maintenance, and other services,
to capture the expanding demand. Further, we will focus on
the development of new energy-related products and ser-
vices from the three perspectives of creation, storing, and
saving. Through these efforts, we hope to put SSB on the
track toward medium-to-long-term growth.
Ticket Reading Systems for Compatible Use
of IC Cards
On March 23, 2013, Japan’s major IC card systems became
compatible with each other, enabling one card to be used at
most stations in Japan’s largest cities between Hokkaido and
Kyushu. It was previously possible to use IC cards from one
area in others, but this was only available in limited areas. As
such, it was very inconvenient to travel through various different
regions. The introduction of the compatible-use system will
make travel and business trips much more convenient, creating
new potential for IC cards.
As a pioneer in the fi eld of automated ticket vending ma-
chines for almost 50 years, SSB contributed to society with its
automated ticket gate systems. Its 50 years of experience and
efforts to create social needs have led SSB to contribute to the
realization of the world’s largest IC card compatible-use system,
What’s New
Segment Information
Analysis of external environment
SSB Results and Forecasts
(Billions of yen)
Fiscal Year 2009 2010 2011 2012 2013
(Forecast)
Net sales 58.0 63.8 57.2 68.8 76.0
Japan 57.5 63.1 56.9 68.5 74.0
Overseas 0.5 0.7 0.3 0.3 2.0
Americas 0.0 0.0 0.0 0.0 0.0
Europe 0.0 0.0 0.0 0.0 0.0
Asia Pacifi c 0.0 0.0 0.0 0.0 0.0
Greater China 0.0 0.0 0.0 0.1 1.1
Direct exports 0.5 0.7 0.3 0.2 0.9
Operating income 2.7 1.7 0.1 2.9 4.5
Operating income margin 4.6% 2.6% 0.2% 4.2% 5.9%
R&D expenses 2.9 3.0 2.2 2.2
Depreciation and amortization 1.4 1.7 1.1 1.1
Capital expenditures 1.2 1.0 0.9 1.5
* Beginning in fi scal 2010, the Omron Group has been revising the management guidance fees for the purpose of concen-
trating 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.
Check it out!
Source: Rail Transport Overview,
Ministry of Land, Infrastruc-
ture, Transport and Tourism
SSB’s business covers a wide range of
social fi elds, and there are no specifi c
economic indicators that link closely to
performance. In the railway segment,
for example, SSB’s sales are strongly
infl uenced by customer budgets for IC
card equipment installation and new
railway and station construction plans.
During fi scal 2012, tourism levels
recovered from the slump seen
following the Great East Japan
Earthquake, and the investment
environment in the railway segment
improved as a result.
which enables the same card to be used across Japan at 52
railway companies, 96 bus companies, and approximately
200,000 stores.
IC Cards