Omron 2014 Annual Report Download - page 42

80 Omron Corporation Integrated Report 2014 81
2010 2011 2012 2013
Production Shipments
Inventory
Source: Ministry of Economy, Trade and Industry
（FY）
0
200
150
175
100
125
75
≈
Market Environment
■ Index of Electronic Parts and Devices
■ Silver and Copper Prices
■ Exchange Rates
0
40,000
60,000
80,000
120,000
0
20,000
100,000
Yen / kg Yen / kg
Silver [left axis] Copper [right axis]
2010 2011 2012 2013
（FY）
200
400
600
800
1,000
1,200
Yen
USD EUR
2010 2011 2012 2013
（FY）
0
80
90
100
110
120
130
140
150
≈
Conditions held firm in principal markets related to
the Omron Group, both in Japan and overseas. In the
automotive sector, domestic capital investment showed
recovery and market conditions were support by strong
component demand in Japan and emerging countries.
Domestic capital investment related to semiconductors
recovered due to the popularity of smartphones, and
there were signs of potential improvements in domestic
and overseas capital investment in machine tools.
Conditions for consumer electronics and electronic
components benefited from increased capital investment
and robust overseas component demand. Meanwhile,
medical devices saw solid demand accompanying
growing health awareness in emerging countries.
In foreign exchange, the Bank of Japans massive
monetary easing policy caused the yen to depreciate
rapidly against the U.S. dollar and the Euro. This trend
buoyed the Groups earnings. Yen depreciation also
caused the price of copper to rise, while the price
of silver continued to drop, as was the case in fiscal
2012. The average exchange rates for fiscal 2013 were
¥100.1 to the U.S. dollar, up by ¥16.9 from the previous
fiscal year, and ¥134.0 to the Euro, a ¥26.4 year-on-
year rise. In raw material prices, the average price per
kilogram of silver was ¥76,713, down by ¥6,329 year
on year, and copper was ¥733 per kilogram, up by ¥47.
Note: The business divisions are presented using their abbreviated names: Industrial Automation Business (IAB), Electronic and Mechanical Components Busi-
ness (EMC), Automotive Electronic Components Business (AEC), Social Systems, Solutions and Service Business (SSB), and Healthcare Business (HCB).
Fiscal 2013 Managements Discussion and Analysis
(Seasonally adjusted indices, 2010 average = 100)
Note: Segment operating income is prepared using the single-step method (which does not show individual income levels) based on U.S. GAAP. For an
easier comparison with other companies, operating income represents gross profit minus selling, general and administrative (SG&A) expenses and
research and development (R&D) expenses.
■ Net Sales and Income before
Income Taxes and Equity in
Earnings of Affiliates
■ Net Income Attributable
to Shareholders and ROE
■ Shareholders’ Equity and Ratio of
Shareholders’ Equity to Total Assets
09 10 11 12 13 （FY）
Net sales [left axis]
Income before income taxes and equity in earnings
of affiliates [right axis]
0
200
400
600
800
0
40
80
120
160
Billions of yen Billions of yen
524.7
10.2
617.8
41.7
619.5
33.5
650.5
41.2
773.0
62.0
In this market environment, the Omron Groups
consolidated net sales in fiscal 2013 rose by 18.8%
year on year, to ¥773.0 billion, following large revenue
improvements in all segments. The gross profit margin
improved as a result of lower fixed costs in manufacturing
operations and reduced variable costs. Combined with
higher sales, this improvement resulted in operating
income rising by 50.1%, to ¥68.1 billion; income before
income taxes and equity in earnings of affiliates increasing
by 50.4%, to ¥62.0 billion; and net income attributable to
shareholders growing by 52.9%, to ¥46.2 billion. In this
manner, the significant increases in income figures seen
in fiscal 2012 continued in fiscal 2013.
Total assets rose by 14.1% from the end of the previous
fiscal year, to ¥654.7 billion, mainly due to increased cash
and cash equivalents and notes and accounts receivable–
trade. Total shareholders equity was up by 17.3%, to
¥430.5 billion, as a result of foreign currency translation
adjustments as well as the substantial increase in net
income attributable to shareholders. This led to a rise in the
shareholders equity ratio, to 65.8%, from 64.0% at the
end of the previous fiscal year.
Return on equity (ROE) stood at 11.6%, and return on
invested capital (ROIC) was 11.3%, both percentages
up from 8.8% and 8.6%, respectively, in the previous
fiscal year.
Overview of Consolidated Results and Financial Condition
10
09 11 12 13 （FY）
Net income attributable to shareholders
[left axis]
ROE [right axis]
0
25
50
75
0
5
10
15
Billions of yen %
3.5
26.8
16.4
30.2
46.2
11.6%
8.8%
5.2%
8.7%
1.2%
1.2%
当社株主に帰属する当期純利益［左軸］
株主資本利益率（ROE）［右軸］
09 10 11 12 13 （FY）
Ratio of shareholders’ equity to total assets
[right axis]
Billions of yen %
Shareholders’ equity [left axis]
0
100
200
300
500
400
0
20
40
60
100
80
306.3 312.8 320.8 367.0 430.5
57.6% 55.6% 59.7% 64.0%
65.8%
Millions of yen (except per share data)
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Net sales (Notes 2, 3):
 Industrial Automation Business (IAB) ¥271,204 ¥203,917 ¥271,894 ¥270,835 ¥262,983 ¥291,739
Electronic and Mechanical Components
Business (EMC) 76,494 70,717 81,216 83,002 84,107 97,699
Automotive Electronic Components
Business (AEC) 82,109 75,163 84,259 85,027 97,643 126,620
Social Systems, Solutions and Service
Business (SSB) 72,336 57,981 63,846 57,200 68,754 82,695
Healthcare Business (HCB) 63,592 63,359 60,629 62,446 71,520 89,275
Other Businesses 50,989 43,592 49,672 53,535 59,240 78,949
Elimination and Corporate 10,466 9,965 6,309 7,416 6,214 5,989
627,190 524,694 617,825 619,461 650,461 772,966
Costs and expenses:
Cost of sales 408,668 340,352 386,123 391,574 408,954 475,758
Selling, general and administrative expenses
(excluding research and development expenses) 164,284 133,426 142,365 145,662 152,676 181,225
Research and development expenses 48,899 37,842 41,300 42,089 43,488 47,928
Other expenses, net 44,472 2,879 6,344 6,589 4,106 6,048
666,323 514,499 576,132 585,914 609,224 710,959
Income (loss) before income taxes and
equity in loss (earnings) of affiliates (39,133)10,195 41,693 33,547 41,237 62,007
Income taxes (10,495)3,782 14,487 17,826 14,096 19,475
Equity in loss (earnings) of affiliates 811 2,792 190 (631) (2,976)(3,782)
Income (loss) from continuing operations (29,449)3,621 27,016 16,352 30,117 46,314
Net income (loss) (277)103 234 (37) (86)129
Net income (loss) attributable to shareholders (29,172)3,518 26,782 16,389 30,203 46,185
Per share data (yen):
Income (loss) from continuing operations
Basic (132.2)16.0 121.7 74.5 137.2209.8
Diluted ー16.0 121.7 74.5 137.2ー
Cash dividends (Note 1) 25.0 17.0 30.0 28.0 37.053.0
Capital expenditures (cash basis) 37,477 20,792 21,647 27,502 30,383 32,218
Total assets 538,280 532,254 562,790 537,323 573,637 654,704
Total shareholders’ equity 298,411 306,327 312,753 320,840 366,962 430,509
Value indicators:
Gross profit margin (%) 34.8 35.1 37.5 36.8 37.138.5
Income (loss) before tax / Net sales (%) (6.2)1.9 6.7 5.4 6.38.0
Return on sales (%) (4.7)0.7 4.3 2.6 4.66.0
ROIC (Return on invested capital) (%) (7.6)1.0 7.8 4.8 8.611.3
ROE (Return on equity) (%) (8.7)1.2 8.7 5.2 8.811.6
ROA (Return on asset) (%) (6.8)1.9 7.6 6.1 7.410.1
Assets turnover (times) 1.1 1.0 1.1 1.1 1.21.3
Inventory turnover (times) 4.5 4.2 4.7 4.4 4.55.0
Debt / Shareholders equity ratio (times) 0.80 0.73 0.80 0.67 0.56 0.52
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. Starting with fiscal 2010, the PV inverter business in the Industrial Automation Business was transferred to Other. The figures of the segment
information for the prior years have been restated to conform with the current year presentation.
3. From fiscal 2009, the Companies adopted the ASC No. 280, Segment Reporting. The figures of the segment information for the prior years have
been restated to conform with the current year presentation.
Six-Year Summary
Omron Corporation and Subsidiaries
Years ended March 31
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