Omron 2013 Annual Report Download - page 31

58 Omron Corporation Integrated Report 2013 59
Corporate Value Initiatives
% of net sales
11%
0
0.5
1.0
1.5
2.0
2.5
Japanese electronics market
(blood pressure monitors)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2011 FY2012
Omron Products
Other Products
(Billions of yen)
Fiscal 2012 in Review
A clear recovery was seen from the impacts
of the Great East Japan Earthquake. Sales
and income were substantially higher both
in Japan and overseas.
In fi scal 2012, HCB sales and income were substantially
higher, with net sales rising 14.5% year on year, to ¥71.5
billion, and operating income up 51.0%, to ¥4.4 billion.
In Japan, sales increased 8.2%, to ¥29.5 billion. Demand
for home-use healthcare devices recovered from the period
of stagnancy that followed the Great East Japan Earthquake,
and sales of mainstay blood pressure monitors and ther-
mometers were strong throughout the year. In addition, new
demand was stimulated by the launch of new products, such
as sleep duration trackers, sleep sensors, wrist-type blood
pressure monitors, body composition monitors with IT
functions, electric toothbrushes, and electronic massagers.
As a result, full-year sales were strong overall. Investment
among medical institutions recovered, and performance
proved favorable. As result, net sales in Japan increased year
on year.
Overseas sales were up 19.4%, to ¥42.0 billion. Demand
remained low in Southern and Eastern Europe. However,
this was offset by ongoing strong demand for healthcare
devices in Russia and China as well as in emerging countries
in the Asia Pacifi c and other regions, and overall sales were
favorable as a result. Operations also benefi ted from a busi-
ness alliance related to the sale of electric toothbrushes in
Europe and the infl uence of rapid yen depreciation in the
third quarter and onward. All these factors contributed to the
substantial rise in full-year overseas sales.
Operating income increased greatly due to sales growth
in Japan and overseas, which offset the impacts of the
weak euro.
Healthcare Business (HCB)
Providing health and medical devices and services for homes and
medical institutions
OMRON HEALTHCARE Co., Ltd. (HCB), is aiming to expand business with a focus on emerging
economies by developing innovative products and services to enable people around the world to
accurately and easily monitor their health status.
Segment Information
Business Strategy and Outlook for Fiscal 2013
Sales growth will be targeted
in emerging markets.
We forecast a year-on-year gain of 15.4% in HCB net sales, to
¥82.5 billion, accompanied by a 58.8% increase in operating
income, to ¥7.0 billion, in fi scal 2013.
Trends that accompany economic development, including
improved standards of living, the adoption of Western diets,
and other lifestyle changes in such emerging countries as
China and India as well as those in Central and South Ameri-
ca, have resulted in growing trends in lifestyle diseases. We
anticipate these trends will result in the continued expansion
of healthcare device markets in these countries. To respond
to such trends, we are strengthening sales systems on a
global basis and enhancing our network of distributors, phar-
macies, drugstores, and other sales channels. In these ways,
we are targeting increased sales in emerging countries.
In developed countries, people are growing more commit-
ted to preventing illness as obesity increasingly becomes a
social issue and healthcare costs rise. This trend is expected
to drive growth in the preventative medical care market. HCB
will act ahead of this market growth and develop new sens-
ing devices and solutions in the fi elds of sleep and exercise
that contribute to health improvement and illness prevention.
These offerings will be used to create new markets.
Kiichiro Miyata
Managing Offi cer
President and CEO,
OMRON HEALTHCARE Co., Ltd.
Simultaneous Launches of MedicalLink
Blood Pressure Management Service and
Blood Pressure Monitor That Automatically
Transmits Measurements Over 3G Networks
MedicalLink is an IT-based blood pressure management service
for medical institutions. This service supports the treatment of
hypertension by easily sending detailed at-home measurements
to one’s doctor. In conjunction with the start of this service on
May 10, 2012, Omron also launched the HEM-7251G digital
blood pressure monitor, which allows home measurement data
to be automatically transmitted to servers over 3G networks.
With MedicalLink, the blood pressure measurements taken
by hypertension sufferers at home are automatically analyzed
and shown in graph form on their doctors’ computers. Accord-
ingly, this service frees patients from the hassle of manually
keeping track of daily measurements. The service also makes
it easier for doctors to monitor changes in their patients’ blood
pressure, which was hard to do using hand-written records.
Further, users can share real-time data with family members,
who if living separately can quickly contact a doctor should they
notice a sharp rise in blood pressure.
MedicalLink is employed at more than 1,500 medical institu-
tions across Japan. This service was utilized in the regions that
were heavily impacted by the Great East Japan Earthquake to
watch over senior citizens living alone in temporary housing.
Further, Aizumisato Town, Fukushima Prefecture, used Medical-
Link as part of a system that enables citizens to earn points
each time they measure their blood pressure. These points can
be exchanged for gift certifi cates and other services in their
town. The system is a revolutionary new initiative that helps
raise health consciousness among citizens while simultaneously
stimulating the local economy.
What’s New
Karada Scan Body Composition
Monitor: HBF-252F
This monitor features a quick and easy-to-
use automatic recognition to turn on the
device and start measurements when
one stands on it. It transmits data to PCs
and smartphones and realizes Omron’s
fastest body composition measurement
time of approximately four seconds.
Blood Pressure Monitor:
HEM-6310F
The thinnest and lightest in the world,
this wrist-type blood pressure monitor is
easy to store and carry around. Equipped
with communication functions that allow
measurements to be viewed and man-
aged on PCs and smartphones, it has the
quietest monitoring of any Omron blood
pressure monitor.
Sleep Duration Tracker: HSL-002C
When placed bedside, this tracker re-
cords the user’s time to fall asleep, total
sleep time, and the number of times
rolled over while asleep by reading the
movements of bedding provoked by
bodily motion. Data can be sent to smart-
phones to determine the user’s sleep
type and provide advice.
HCB Results and Forecasts
(Billions of yen)
Fiscal Year 2009 2010 2011 2012 2013
(Forecast)
Net sales 63.4 60.6 62.4 71.5 82.5
Japan 29.6 26.9 27.2 29.5 31.0
Overseas 33.8 33.7 35.2 42.0 51.5
Americas 10.8 10.2 9.8 10.8 13.0
Europe 12.7 12.2 13.0 15.9 18.1
Asia Pacifi c 2.3 2.5 2.9 3.5 5.6
Greater China 7.4 8.0 8.6 11.1 14.3
Direct exports 0.7 0.8 0.9 0.7 0.5
Operating income 7.1 4.1 2.9 4.4 7.0
Operating income margin 11.1% 6.7% 4.7% 6.2% 8.5%
R&D expenses 5.0 5.0 5.1 5.0
Depreciation and amortization 1.3 1.2 1.5 1.9
Capital expenditures 1.5 4.7 2.8 3.1
* 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.
Analysis of external environment
Check it out!
Source: GfK
Sales of blood pressure monitors
surged in the second half.