Omron 2013 Annual Report Download - page 46

88 Omron Corporation Integrated Report 2013 89
Financial Section
Six-Year Summary
Omron Corporation and Subsidiaries
Years ended March 31
Millions of yen (except per share data)
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Net sales (Notes 3, 4):
Industrial Automation Business (IAB) ¥339,161 ¥271,204 ¥203,917 ¥271,894 ¥270,835 ¥262,983
Electronic and Mechanical Components
Business (EMC) 100,668 76,494 70,717 81,216 83,002 84,107
Automotive Electronic Components
Business (AEC) 107,521 82,109 75,163 84,259 85,027 97,643
Social Systems, Solutions and Service
Business (SSB) 76,876 72,336 57,981 63,846 57,200 68,754
Healthcare Business (HCB) 71,706 63,592 63,359 60,629 62,446 71,520
Other Businesses 56,841 50,989 43,592 49,672 53,535 59,240
Elimination and Corporate 10,212 10,466 9,965 6,309 7,416 6,214
762,985 627,190 524,694 617,825 619,461 650,461
Costs and expenses:
Cost of sales 469,643 408,668 340,352 386,123 391,574 408,954
Selling, general and administrative expenses 176,569 164,284 133,426 142,365 145,662 152,676
Research and development expenses 51,520 48,899 37,842 41,300 42,089 43,488
Other expenses, net 1,087 44,472 2,879 6,344 6,589 4,106
698,819 666,323 514,499 576,132 585,914 609,224
Income (loss) from continuing operations
before income taxes and equity in loss
(earnings) of affiliates 64,166 (39,133) 10,195 41,693 33,547 41,237
Income taxes 24,272 (10,495) 3,782 14,487 17,826 14,096
Equity in loss (earnings) of affi liates 348 811 2,792 190 (631) (2,976)
Income (loss) from continuing operations 39,546 (29,449) 3,621 27,016 16,352 30,117
Income from discontinued operations,
net of tax (Note 2) 3,054 — — — — —
Net income (loss) 42,600 (29,449) 3,621 27,016 16,352 30,117
Net income (loss) attributable to noncontrolling
interests 217 (277) 103 234 (37) (86)
Net income (loss) attributable to shareholders 42,383 (29,172) 3,518 26,782 16,389 30,203
Per share data (yen):
Income (loss) from continuing operations
Basic ¥ 172.5 ¥ (132.2) ¥ 16.0 ¥ 121.7 ¥ 74.5 ¥ 137.2
Diluted 172.4 — 16.0 121.7 74.5 137.2
Net income (loss) attributable to shareholders
Basic 185.9 (132.2) 16.0 121.7 74.5 137.2
Diluted 185.8 — 16.0 121.7 74.5 137.2
Cash dividends (Note 1) 42.0 25.0 17.0 30.0 28.0 37.0
Capital expenditures (cash basis) ¥ 37,848 ¥ 37,477 ¥ 20,792 ¥ 21,647 ¥ 27,502 ¥ 30,383
Total assets 617,367 538,280 532,254 562,790 537,323 573,637
Total shareholders’ equity 368,502 298,411 306,327 312,753 320,840 366,962
Value indicators:
Gross profit margin (%) 38.4 34.8 35.1 37.5 36.8 37.1
Income (loss) before tax / Net sales (%) 8.4 (6.2) 1.9 6.7 5.4 6.3
Return on sales (%) 5.6 (4.7) 0.7 4.3 2.6 4.6
Return on assets (%) 10.3 (6.8) 1.9 7.6 6.1 7.4
Return on equity (%) 11.3 (8.7) 1.2 8.7 5.2 8.8
Inventory turnover (times) 5.0 4.5 4.2 4.7 4.4 4.5
Price-earnings ratio (times) 11.0 — 135.8 19.2 23.9 16.9
Assets turnover (times) 1.2 1.1 1.0 1.1 1.1 1.2
Debt / Shareholders‘ equity ratio (times) 0.68 0.80 0.73 0.80 0.67 0.56
Interest coverage ratio (times) 44.34 6.01 22.15 101.96 153.01 153.01
Notes 1. Cash dividends per share represent the amounts applicable to the respective year, including dividends to be paid after the end of the year.
2. In accordance with Financial Accounting Standards Board (FASB) issued Accounting Standards Codifi cation (ASC) No. 250, “Presentation of Financial
Statements,” the fi gures of the consolidated statements of operations related to the discontinued operations have been separately reported from the
ongoing operating results.
3. Starting with fi scal 2010, the PV inverter business in the “Industrial Automation Business” was transferred to “Other.” The fi gures of the segment informa-
tion for the prior years have been restated to conform with the current year presentation.
4. From fi scal 2009, the Companies adopted the ASC No. 280, “Segment Reporting. The fi gures of the segment information for the prior years have been
restated to conform with the current year presentation.
Fiscal 2012 Management’s Discussion and Analysis
Note: The business divisions are presented using their abbreviated names: Industrial Automation Business (IAB), Electronic and Mechanical Components Business
(EMC), Automotive Electronic Components Business (AEC), Social Systems, Solutions and Service Business (SSB), and Healthcare Business (HCB).
Market Environment
1. Macroeconomic Environment
In fiscal 2012, the Japanese economy benefited from the
gradual alleviation of the residual impacts of the Great East
Japan Earthquake. However, recession in the semiconductor
industry continued, and overall conditions remained relatively
unchanged from fiscal 2011. While real GDP experienced
negative growth in the second quarter, the rapid rise in
Japanese stock prices and depreciation of the yen seen in the
latter half of the fiscal year helped improve consumer
confidence. Personal consumption drove GDP at the end of
the fiscal year, and year-on-year growth of 0.9% was recorded
in the fourth quarter.
Overseas, the financial crisis in Europe persisted and
economic growth decelerated in China, resulting in an
operating environment that was opaque on the whole.
However, signs of economic recovery were seen in ASEAN
countries and there was a clear recovery trend centered on
the United States that began in the fourth quarter.
As a result of these factors, Japan’s real GDP grew 1.2%
over the full fiscal year and 2.0% for the calendar year.
Growth Rates of Real GDP for Each Country / Region (Calendar-Year Basis)
Japan U.S. EU China India Brazil Total
2011 –0.7 0.2* 1.8 1.4 9.3 7.7 2.7 4.0
2012 2.0 1.2* 2.2 –0.6 7.8 7.8 0.9 3.2
2013 Estimates 1.6 1.9 –0.3 8.0 8.0 3.0 3.3
Source: IMF, “World Economic Outlook,” April 2013
Note: Fiscal-year basis for fi gures marked with an asterisk (*)
Japanese Macroeconomic Environment
2. The Omron Group Market Environment
In regard to markets related to the Omron Group, white goods,
other consumer electronics, electronic components, and
healthcare devices saw robust demand throughout the entire
fiscal year, while demand for semiconductors and machine
tools was generally sluggish. Concerning automotive electronic
components, capital investment and component demand was
brisk outside Europe. However, the end of the government
subsidies for the purchase of eco-friendly automobiles in Japan
resulted in a decline in demand during the second half of the
fiscal year.
Further, we were freed from the heavy impacts of the strong
yen, which placed pressure on earnings throughout fiscal 2011,
as the yen began to depreciate in the third quarter. Similarly, the
prices of raw materials, which had also placed pressure on
earnings previously, remained low throughout the first half of
the year, but then rose once again during the second half of the
year in conjunction with the depreciation of the yen. The
average exchange rates for fiscal 2012 were ¥83.2 to the U.S.
dollar, down ¥3.9 from the previous fiscal year, and ¥107.6 to
the euro, a ¥2.7 year-on-year rise. In raw material prices, the
average price per kilogram of silver was ¥83,042, down ¥9,337
year on year, and copper was ¥686 per kilogram, down ¥52.
2011 2012
Note: Seasonally adjusted
Source: Cabinet Office, Government of Japan
(FY)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(%)
–8
–6
–4
–2
0
6
2
4
8
Production Shipments Inventory
Source: Ministry of Economy, Trade and Industry
50
200
250
300
150
100
2009 2010 2011 2012
(FY)
Growth Rate of Real Private
Capital Investment
Index of Electronic Parts and Devices
(Seasonally adjusted indices, 2005 average =100)
Growth Rate of Machinery Orders
(Manufacture)
Silver and Copper Prices Exchange Rates
2011 2012
(Billions of yen) (%)
Orders [left axis]
Change from the previous quarter [right axis]
Note: Seasonally adjusted
Source: Cabinet Office, Government of Japan
(FY)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
0
850
900
950
1,000
–20
0
20
40
60
(Yen/kg) (Yen/kg)
Silver [left axis] Copper [right axis]
0
40,000
60,000
80,000
120,000
0
400
20,000 200
600
800
100,000 1,000
1,200
2009 2010 2011 2012
(FY)
(Yen)
US$ EUR
70
110
120
130
140
100
90
80
2009 2010 2011 2012
(FY)