Omron 2014 Annual Report Download - page 23

42 Omron Corporation Integrated Report 2014 43
Industrial Automation Business (IAB)
Fiscal 2013 in Review
Despite uncertainty in emerging countries,
overall sales and income increased.
In fiscal 2013, sales in Japan increased year on
year due to the contributory factors in the second
half, including a recovery trend in capital investment
demand, mainly in the semiconductor and electronic
component industries, and sales of new products.
Overseas sales showed a significant increase
due partly to the weak yen. In the Americas,
FA-related demand recovered from the second
half, and oil and gas related business sales also
grew in the second half. In Europe, sales were
firm amid a moderate economic upturn. Certain
countries in Asia experienced political instability
and currency depreciation, but demand was solid
in South Korea. Circumstances in the Chinese
market were still uncertain, but sales were up
year on year due to favorable conditions in the
electronic component and automobile industries.
While steadily investing in the future, IAB
showed a significant increase in operating income.
Business Strategy and Outlook for Fiscal 2014
We will contribute to manufacturing innovation by delivering valuable products and services.
■ Breakdown of Sales by Product Line (Fiscal 2013)
Yutaka Miyanaga
Senior Managing Officer
Company President,
Industrial Automation Company
Manufacturing and sales of control systems
and components for factory automation (FA) and
industrial equipment Source: Nippon Electric Control
Equipment Industries
Association (NECA)
Market Share
（FY2013）
Control-Related Equipment (Japan)
Approx. 40%
38%
Fiber Sensor
Safety Light Curtains
Temperature Controller
Programmable Logic Controller
60%
Control Equipment
(Programmable
Logic Controllers) 30%
Sensing Equipment
(Sensors and Switches)
10%
Safety Equipment
(Safety Light Curtains)
Segment Information
*Source: Calculated based on materials
prepared by the Cabinet Office,
Government of Japan
■ Index of Machinery
Orders and IAB Sales
35
30
25
20
15
10
5
0
100
90
80
70
60
50
40
30
20
10
0
Q1Q2Q3Q4Q1Q2Q3Q4
FY2012 FY2013
Index of Machinery Orders*
(Seasonally adjusted) [left axis]
IAB Sales [right axis]
Billions of yen
■ Past Performance and Forecast
See notes on page 38.
(Billions of yen)
FY2010 FY2011 FY2012 FY2013 FY2 014
(Forecast)
Net sales 271.9 270.8 263.0291.7300.0
Japan 123.9 123.1 116.3119.4123.0
Overseas 148.0 147.7 146.7172.3177.0
Americas 26.7 29.3 31.636.937.5
Europe 56.7 55.3 50.461.963.5
Asia Pacific 25.0 25.3 24.728.930.5
Greater China 38.8 36.8 39.443.844.5
Direct exports 0.7 1.0 0.60.81.0
Operating income 41.1 35.4 31.338.840.0
Operating income margin 15.1%13.1%11.9%13.3%13.3%
R&D expenses 14.2 15.4 16.515.7
Depreciation and amortization 4.5 4.2 3.53.6
Capital expenditures 2.2 3.8 2.83.3
In fiscal 2014, ending March 31, 2015, IAB is tar-
geting net sales of ¥300.0 billion, a 2.8% increase
year on year, and operating income of ¥40.0 billion,
up 3.2%. In Japan, we expect sales to remain firm,
mainly to the semiconductor and electronic com-
ponent industries. Overseas, despite such negative
factors as the slowing economic growth rates in
emerging markets, we anticipate demand will be ro-
bust mainly in developed countries and thus expect
an overall increase in sales.
We posted higher sales and profits in fiscal 2013
but were unable to achieve the business growth
initially envisaged under the GLOBE STAGE. IAB
was impacted by the ongoing sense of uncertainty
centered on emerging economies and the greater
than expected amount of time needed to launch
and market new products.
The wide range of products we have launched
over the past three years and our controllers that
realize advanced control boast industry-leading
competitiveness. We will keep working to better
propose solutions based on an extensive product
lineup, ranging from sensors to programmable
logic controllers and drives. Through our global
business sites and service network, we will bring
about business growth by delivering higher-
value-added products and services to customers
in targeted industries.
We will also contribute to innovation in manufac-
turing by providing valuable products and services
to our customers mainly in the electronic device and
automobile industries, which are expected to con-
tinue to expand in the years to come centered on
emerging countries.
Wide range of products
Europe
China Japan
Asia Pacific
America
Sales base
Automation Center*
Global business sites and service network (150 plus bases)
* Engineering center that helps realize optimal automation
% of Net Sales
（FY2013）
Japanese IAB sales trends tend to reflect
those in the machinery orders index.
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