Omron 2014 Annual Report Download - page 44

84 Omron Corporation Integrated Report 2014 85
Assets
Total assets amounted to ¥654.7 billion at the end of
fiscal 2013, representing an increase of ¥81.1 billion,
or 14.1%, compared with the previous fiscal year-end.
This rise was mainly due to increases in cash and cash
equivalents and notes and accounts receivable–trade
accompanying substantially higher sales and income.
Liabilities and Shareholders’ Equity
Total liabilities amounted to ¥221.9 billion, up by ¥17.1
billion from the previous fiscal year-end. This increase
was largely due to higher notes and accounts
payable–trade.
Total shareholders equity was up by ¥63.5 billion,
to ¥430.5 billion. Factors behind this rise included
the substantial increase in net income attributable to
shareholders, foreign currency translation adjustments
stemming from yen depreciation, and higher unrealized
gains on available-for-sale securities due to stock
price improvements. Accordingly, the shareholders
equity ratio rose by 1.8 percentage points, to 65.8%,
compared with 64.0% at the end of the previous fiscal
year. The debt / equity ratio was 0.52 times, showing
improvement from the previous years 0.56 times.
Shareholders equity per share was ¥1,956.06 at the
end of the fiscal year, compared with ¥1,667.04 per
share at the previous fiscal year-end.
2. Review of Operations by Region
Japan
In Japan, economic recovery drove sales increases in
a wide range of fields. During the second half of the
fiscal year, capital investment demand for automation
equipment improved, and this improvement combined
with the fourth quarters pre-consumption tax hike
demand rush supported performance. As a result, sales
in IAB, EMC, SSB, HCB, and the Other increased year
on year. Accordingly, net sales in Japan rose by 8.4%
year on year, to ¥344.8 billion. Sales increases were
particularly strong in the second and third quarters,
which contributed to a 50.4% year-on-year rise in
operating income, to ¥47.4 billion.
Americas
In the Americas, uncertainty regarding U.S. monetary
policy was dispelled, and the United States saw clear
economic improvements in the forms of brisk corporate
activity, higher wages, and a better job market. Sales
were particularly strong for automotive electronic
components as well as electronic components for the
consumer and commercial product industries. While oil
and gas related business conditions were sluggish during
the first half of fiscal 2013, recovery was seen in the
second half. As a result, net sales in the Americas rose by
25.6% year on year, to ¥101.0 billion. However, operating
income was down by 80.8%, to ¥0.2 billion, due to higher
costs associated with South American operations.
Cash and cash equivalents at the end of the fiscal year
stood at ¥90.3 billion, a ¥34.5 billion increase from the
end of the previous fiscal year. Changes in cash flows
are described below.
Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥79.0
billion, up by ¥26.0 billion from the previous fiscal year.
Major factors included net income before the deduction
of noncontrolling interests.
Cash Flows from Investing Activities
Net cash used in investing activities amounted to ¥31.1
billion, up by ¥2.7 billion from the previous fiscal year.
This increase was the result of higher investments in
such areas as production facilities.
■ Growth in Net Sales by Business Segment
FY2011 FY2012 FY2013
IAB (0.4)% (2.9)% 10.9%
EMC 2.2 1.3 16.2
AEC 0.9 14.8 29.7
SSB (10.4)20.220.3
HCB 3.0 14.524.8
Other 7.8 10.7 33.3
■ Composition of Net Sales by Business Segment
FY2011 FY2012 FY2013
IAB 43.7%40.4%37.7%
EMC 13.4 12.912.6
AEC 13.7 15.016.4
SSB 9.2 10.610.7
HCB 10.1 11.011.5
Other 8.6 9.110.2
Note: The composition of net sales is based on the classifications reported
in the Six-Year Summary (page 80).
9.3%
18.4%
13.1%
13.1%
46.1%
16.3%
8.5%
13.5%
12.1%
49.6%
16.3%
8.4%
12.4%
12.4%
50.5%
09 10 11 12 13 （FY
）
10
0
20
30
50
40
Billions of yen
24.2 21.7
5.5
24.6
47.9
11
9.3%
1.5%
18.4%
13.1%
13.1%
44.6%
16.3%
8.5%
1.8%
13.5%
12.1%
47.8%
16.3%
8.4%
1.6%
12.4%
12.4%
48.9%
12 13 （FY）
Asia Pacific
Direct Exports
Greater China
Europe
Americas
Japan
0
20
40
80
100
60
%
■ Sales Breakdown by Region
Financial Condition
Cash Flows
9.3%
18.4%
13.1%
13.1%
46.1%
16.3%
8.5%
13.5%
12.1%
49.6%
16.3%
8.4%
12.4%
12.4%
50.5%
09 10 11 12 13 （FY）
Working capital [left axis]
Current ratio [right axis]
0
100
150
200
250
0
160
50 130
190
220
250
≈
Billions of yen
%
183.7% 180.7%
201.5%
243.7%
130.2 146.5 155.2
188.0
229.0%
233.8
■ Working Capital and Current Ratio
9.3%
18.4%
13.1%
13.1%
46.1%
16.3%
8.5%
13.5%
12.1%
49.6%
16.3%
8.4%
12.4%
12.4%
50.5%
09 10 11 12 13 （FY）
Outstanding interest-bearing debt [left axis]
Debt / equity ratio [right axis]
0
15
30
45
60
0
0.5
1.0
1.5
2.0
Billions of yen Times
36.6
0.73 0.80 0.67 0.56 0.52
45.5
18.8 5.6 0.5
■ Outstanding Interest-Bearing Debt and Debt / Equity Ratio
■ Free Cash Flow
Europe
In Europe, corporate and consumer confidence
improved, creating a modest recovery trend.
Previously sluggish sales of electronic components
for the consumer and commercial product industries
benefited particularly from this recovery. HCB sales
also expanded. Overall sales exceeded fiscal 2012s
levels throughout the year, and income growth was
exceptionally strong during the fourth quarter. As a
result, net sales in Europe increased by 25.5% year on
year, to ¥100.9 billion, and operating income rose by
68.6%, to ¥3.9 billion.
Greater China
In China, economic uncertainty persisted in light of
sluggish corporate activity and consumer spending and
a poor housing market, but growth rates remained high
regardless. In particular, strong performance contributions
were made by the large increases in sales of electronic
components for the mobile device and consumer
electronic industries, automotive electronic components,
and medical devices. As a result, net sales in the Greater
China region rose by 34.0% year on year, to ¥142.4
billion, and operating income increased by 58.3%, to
¥17.9 billion, with the Greater China region once again
accounting for the largest portion of sales and income
compared with other overseas segments.
Asia Pacific
In the Asia Pacific region, political unrest and poor market
sentiment in certain countries continued to create an air
of uncertainty. Nevertheless, overall demand expanded
for medical devices. Demand was also strong for
automation equipment for the semiconductor, flat panel
display, and automobile industries as well as for electronic
components for the mobile device and consumer
electronics industries. Performance exceeded fiscal
2012s levels throughout the year due to this trend, which
was particularly robust in South Korea. As a result, net
sales in the Asia Pacific region increased by 31.8% year
on year, to ¥72.3 billion, and operating income rose by
77.5%, to ¥7.1 billion.
Healthcare Business (HCB)
In the home-use healthcare and medical device field
in Japan, sales of mainstay blood pressure monitors
and thermometers proved favorable, and we worked
to stimulate new demand through the introduction
of new products. Performance was also strong for
use in medical institutions, and full-year domestic
sales increased accordingly. Overseas, demand for
healthcare and medical devices continued to increase
in emerging countries, excluding Russia and certain
Southeast Asian countries, while sales of blood
pressure monitors rose in developed countries.
Overseas performance was exceptionally strong
overall, with sales showing large increases.
Due to the aforementioned, HCB net sales increased
by 24.8%, to ¥89.3 billion, and operating income rose
by 71.2%, to ¥7.5 billion, as a result of the benefits of
ongoing cost reduction measures and yen depreciation.
Other Businesses
The Environmental Solutions Business experienced a
substantial increase in sales of PV inverters supported
by rising interest in renewable energy. The Electronic
Systems & Equipments Business suffered from
reduced demand for industrial-use computers and
contract development and manufacturing services for
electronic devices. Conversely, sales of uninterruptible
power supply units were favorable due to the rise in
capital investment stemming from improved corporate
performance as well as the demand rush that preceded
the consumption tax hike. The Micro Devices Business
saw rapid growth in microphone demand. Meanwhile,
the Backlight Business benefited from the brisk
smartphone market as well as large performance
contributions from the tablet PC field, which the
Company entered in fiscal 2013.
Due to the aforementioned, the Other segments net
sales increased by 33.3% year on year, to ¥78.9 billion,
and operating income surged by 243.5%, to ¥8.7 billion.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥16.3 billion,
down by ¥2.3 billion from the previous fiscal year.
Major outflows included those to repay short-term debt
and issue dividend payments.
About Omron Where Were Headed Corporate Value Initiatives Corporate Value Foundation Financial Section