Omron 2013 Annual Report Download - page 32

Omron Receives METI Minister’s Prize in New Energy
Grand Prix Program
Omron was awarded the highest Minister of Economy, Trade
and Industry Prize (METI Minister’s Prize) in the Excellent Prod-
ucts / Services Category of the 2012 New Energy Grand Prix
Program in recognition of its proprietary AICOT® technology,
which is anticipated to make signifi cant contributions to the
spread of solar power generation systems.
In recent years, there has been rising interest in renewable
energy, which in turn has driven a rapid rise in solar power
generation system installations.
When solar power generation systems are connected to the
power grids of power companies, it is necessary to ensure the
systems remain safe during blackouts. For this reason, the PV
inverters used in solar power generation systems must be able
to detect when the system is islanding and contain provisions to
prevent power from being transmitted during blackouts. However,
the islanding detection methods used by PV inverters vary be-
tween different manufacturers, and it is therefore possible that
PV inverters will interfere with each other, leading PV inverters to
operate even during islanding condi-
tions. To prevent this situation from
occurring, it was previously necessary
for tests to be conducted to verify that
interference problems will not occur between differing systems.
Moreover, because islanding detection over a wide area was
diffi cult, solar power systems were limited by safety regulations
to approximately 10% of the sites in each area in order to keep the
power grid safe. This issue has been a relatively unnoticed obstacle
hindering the proliferation of solar power generation systems.
Omron’s answer to this issue is PV inverters that employ the
proprietary AICOT® technology.
Employing an islanding detection method that is signifi cantly
faster than conventional methods, AICOT® successfully eliminates
the danger of interference. AICOT® can also be easily introduced
into systems without gathering data through interference tests.
On top of this, it features a wider area detection capacity, thereby
removing the limitations on system installations. It is anticipated
that these benefi ts will help AICOT® make substantial contribu-
tions to the spread of solar power generation systems.
60 Omron Corporation Integrated Report 2013 61
Corporate Value Initiatives
Segment Information
Fiscal 2012 in Review
Demand related to renewable energy
and smartphones contributed to sales.
In the Other segment, net sales increased 10.7% year on
year, to ¥59.2 billion, and operating income of ¥2.5 billion
was recorded in fi scal 2012, compared with an operating
loss of ¥3.6 billion in fi scal 2011.
The Environmental Solutions Business HQ experienced
a signifi cant increase in full-year sales, with sales being
particularly strong for PV inverters (energy-creation busi-
ness). The strong sales can be attributed to the rise in
renewable energy opportunities in society and the launch
of the feed-in tariff scheme for renewable energy in Japan
during July 2012.
In the Electronic Systems & Equipments Business HQ,
sales of uninterruptible power supply (UPS) units were brisk
Business Strategy and Outlook for Fiscal 2013
The Environmental Solutions Business
is targeting further growth.
In the Other segment, in fi scal 2013 we are forecasting
a 4.7% year-on-year rise in net sales, to ¥62.0 billion, and
a 38.6% increase in operating income, to ¥3.5 billion.
In the Environmental Solutions Business HQ, we will
further expand the scale of operations by developing
comprehensive energy solutions businesses that combine
energy creation, storage, and saving. As the feed-in tariff
scheme is expected to boost market activity for industrial
solar power generation systems in Japan, we will work to
expand sales of PV inverters in the Japanese market as we
target a higher market share. We will also expand the energy-
creation business by providing services that support the
stable operation of solar power generation systems over the
long term. At the same time, we forecast higher sales in
the energy-saving components and services business.
In the Electronic Systems & Equipments Business HQ,
we aim to capture a higher volume of orders from major
customers for industrial-use computers and contract
Other Businesses
Several other business incubation operations
% of net sales
9%
Analysis of external environment
(Thousands of kW)
Facilities by approved output
7 8 9 10 11 12 1 2
Megasolar (more than 1,000kW)
Middle solar (less than 1,000kW)
Small-scale solar (less than 10kW)
0
3,000
6,000
9,000
12,000
15,000
20132012
Other Businesses Results and Forecasts
(Billions of yen)
Fiscal Year 2009 2010 2011 2012 2013
(Forecast)
Net sales 43.6 49.7 53.5 59.2 62.0
Japan 24.7 27.5 29.5 41.4 36.5
Overseas 18.9 22.2 24.0 17.8 25.5
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 17.5 20.7 22.6 16.3 23.5
Direct exports 1.3 1. 5 1. 4 1.5 2.0
Operating income (loss) (5.8) (4.7) (3.6) 2.5 3.5
Operating income margin — — — 4.3% 5.6%
R&D expenses 1.7 2.5 2.8 3.0
Depreciation and amortization 1.2 1.2 0.9 1.4
Capital expenditures 1.1 1.9 2.1 2.5
* 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.
What’s New
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The main objective of operations in the Other segment is to undertake incubation activities
for future business expansion. The Other segment advances business in future growth areas,
including the environmental fi eld, where energy-conservation and CO2-reduction needs are
expected to continue growing, and the expanding smartphone market.
development and manufacturing services for electronic
devices. Simultaneously, we will bolster our lineup of UPS
units, which continue to experience rising demand, in order
to better promote sales of these items.
In the Micro Devices Business H.Q., demand for custom
integrated circuits and other existing products will likely
remain at the same level as in fi scal 2012. As such, we will
focus our efforts on MEMS microphones and sensors, which
are expected to see soaring demand, in markets for mobile
devices and consumer electronics. Through these efforts,
we will work to expand sales.
In the Backlight Business, we expect to enjoy the benefi ts
of demand created by the ever increasing need for thinner
smartphones and tablets with larger screens. Taking advan-
tage of these benefi ts, we will utilize our unique ultrafi ne
processing technologies and pressing technologies to ex-
pand orders for backlight units to be used in high-end smart-
phones and tablets. Moreover, we will continue to advance
the automation of and boost the productivity of production
lines for mass-produced products while simultaneously
reducing costs in the pursuit of improved profi tability.
Source: Agency for Natural Resources
and Energy (ANRE)
The number of solar power installations
is growing rapidly due to the infl uences
of the feed-in tariff scheme.
due to concern for electricity supplies in Japan, which re-
sulted from the Great East Japan Earthquake. However, we
saw reduced demand from major customers for industrial-
use computers and contract development and manufacturing
services for electronic devices. This decrease in demand
resulted in overall lackluster full-year sales.
In the Micro Devices Business HQ, contract semiconduc-
tor manufacturing demand was down. Nevertheless, this
decline was offset by the benefi ts of increased demand for
micro electrical mechanical systems (MEMS) microphone
chips and custom integrated circuits for industrial use, and
sales proved favorable.
In the Backlight Business, we worked to take advantage of
increased demand in the smartphone market and success-
fully began fi lling large-scale orders during the second half of
the fi scal year. As a result, full-year sales were strong.
Backlight Units for High-End
Smartphones
This range of backlight units has been
refi ned to better meet customer needs
by using our breadth of experience and
sophisticated technologies.
Uninterruptible Power Supply
Units: BU-2RW Series
This series provides a range of 200V
rack-mounted, continuous inverter UPS
units ideal for industrial or embedded
system applications. Moreover, these
units are equipped with LCD monitors to
easily confi rm the status of the unit.
MEMS Differential Pressure Sensor
This thermal fl ow-type sensor measures
with superior sensitivity and reproduc-
ibility in low pressure environments and
with a wider pressure range. Embedded
application specifi c integrated circuits
carry out digital correction to read pres-
sure with higher preci-
sion and with less
infl uence from tempera-
ture than conventional
analog output sensors.