Omron 2014 Annual Report Download - page 6

EARTH-2 STAGE
● Net sales
over ¥1 trillion
● Operating income
over ¥150 billion
● Operating profit margin
over
15%
EARTH-1 STAGE
Establishment of “self-driven” growth structure
● Net sales
over ¥900 billion
● Operating income
over ¥90 billion
● Gross profit margin
over
40%
● Operating profit margin
over
10%
● ROIC approx. 13%
● ROE approx. 13%
● EPS approx. ¥290
FY2020
Targets
FY2016
Targets
FY2001 – FY2003 FY2004 – FY2007 FY2011 – FY2013 FY2014 – FY2016 FY2017 – FY2020
2nd Stage Balancing Growth and Earnings
Reinforcing business foundations through aggressive
investment in growth areas, including M&A, and
cost reduction
Achievements
• Increased EPS (Earnings per Share)
from ¥110.7 (FY2003) to ¥185.9 (FY2007)
3rd Stage Achieving
a Growth Structure
Fortifying of growth business
(high profitability)
GLOBE STAGE
Establishment of profit and growth structures
on a global basis
Revival Stage (February 2009 to
March 2011) Revised 3rd-stage
targets due to an abrupt change in
the business environment, imple-
mented cost reductions, and spun
off Automotive Electronic Compo-
nents Business and Social Systems,
Solutions and Service Business
1st Stage Establishing a Profit Structure
Concentrating on cost structure reform and restructur-
ing the Company as a profit generating business
Achievements
• ROE of 10%
• Withdrew from unprofitable business, spun off
Healthcare Business
• Raised the level of corporate governance to the
global standard
Long-Term Management Strategy
Millions of yen Thousands of U.S. dollars (Note 1)
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2013
Operating Results (for the year):
Net sales ¥575,157 ¥598,727 ¥616,002 ¥723,866 ¥762,985 ¥627,190 ¥524,694 ¥617,825 ¥619,461 ¥650,461 ¥772,966 $7,504,524
Gross profit 235,460 245,298 248,642 278,241 293,342 218,522 184,342 231,702 227,887 241,507 297,208 2,885,513
Selling, general and administrative expenses
(excluding research and development expenses) 139,569 141,185 149,274 164,167 176,569 164,284 133,426 142,365 145,662 152,676 181,225 1,759,466
Research and development expenses 46,494 49,441 50,501 52,028 51,520 48,899 37,842 41,300 42,089 43,488 47,928 465,320
Operating income (Note 2)49,397 54,672 60,782 62,046 65,253 5,339 13,074 48,037 40,136 45,343 68,055 660,727
EBITDA (Note 3)77,059 83,314 91,607 95,968 101,596 38,835 40,088 71,021 62,753 67,795 93,144 904,309
Net income (loss) attributable to shareholders 26,811 30,176 35,763 38,280 42,383 (29,172)3,518 26,782 16,389 30,203 46,185 448,398
Cash Flows (for the year):
Net cash provided by operating activities 80,687 61,076 51,699 40,539 68,996 31,408 42,759 41,956 31,946 53,058 79,044 767,417
Net cash used in investing activities (34,484) (36,050) (43,020) (47,075) (36,681) (40,628) (18,584) (20,210) (26,486) (28,471)(31,125) (302,184)
Free cash flow (Note 4)46,203 25,026 8,679 (6,536)32,315 (9,220)24,175 21,746 5,460 24,587 47,919 465,233
Net cash provided by (used in) financing activities (28,119) (40,684) (38,320) (4,697) (34,481)21,867 (20,358) 3,333 (33,492) (18,550)(16,298) (158,233)
Financial Position (at year-end):
Total assets 592,273 585,429 589,061 630,337 617,367 538,280 532,254 562,790 537,323 573,637 654,704 6,356,350
Cash and cash equivalents 95,059 80,619 52,285 42,995 40,624 46,631 51,726 74,735 45,257 55,708 90,251 876,223
Total interest-bearing liabilities 56,165 23,203 2,468 19,988 18,179 52,970 36,612 45,519 18,774 5,570 488 4,738
Total shareholders’ equity 274,710 305,810 362,937 382,822 368,502 298,411 306,327 312,753 320,840 366,962 430,509 4,179,699
Yen U.S. dollars (Note 1)
Per Share Data:
Net income (loss) attributable to shareholders (basic) (EPS) ¥ 110.7¥ 126.5¥ 151.1¥ 165.0¥ 185.9¥ (132.2) ¥ 16.0 ¥ 121.7 ¥ 74.5¥ 137.2¥ 209.8$ 2.04
Shareholders’ equity 1,148.3 1,284.8 1,548.1 1,660.7 1,662.3 1,355.4 1,391.4 1,421.0 1,457.5 1,667.01,956.1 18.99
Cash dividends (Note 5)20.0 24.0 30.0 34.0 42.0 25.0 17.0 30.0 28.0 37.053.0 0.51
Financial Ratios:
Gross profit margin 40.9%41.0%40.4%38.4%38.4%34.8%35.1%37.5%36.8%37.1%38.5%
Operating income margin 8.6%9.1%9.9%8.6%8.6%0.9%2.5%7.8%6.5%7.0%8.8%
EBITDA margin 13.4%13.9%14.9%13.3%13.3%6.2%7.6%11.5%10.1%10.4%12.1%
Return on invested capital (ROIC) 8.2%9.0%10.1%9.9%10.4% (7.6%) 1.0%7.8%4.8%8.6%11.3%
Return on shareholders’ equity (ROE) 10.2%10.4%10.7%10.3%11.3% (8.7%) 1.2%8.7%5.2%8.8%11.6%
Ratio of shareholders’ equity to total assets 46.4%52.2%61.6%60.7%59.7%55.4%57.6%55.6%59.7%64.0%65.8%
Total return ratio (Note 6)49.2%29.1%47.8%49.7%74.7%ー106.7%25.2%37.7%27.0%25.3%
Non-Financial Data:
Number of employees 24,576 24,904 27,408 32,456 35,426 32,583 36,299 35,684 35,992 35,411 36,842
Ratio of overseas employees to total employees (%) 56.1 58.4 61.1 64.9 65.7 63.4 68.1 67.8 67.7 67.469.1
Number of patents 4,154 4,426 4,538 5,206 5,717 5,205 5,218 5,452 5,959 6,448 6,635
Environmental contribution of products and services (t-CO2) (Note 7)216,467 211,364 331,222 671,953
CO2 emissions volumes from global production sites (t-CO2) (Note 8)191,103 183,953 176,055 207,426
Grand Design 2010 （GD2010）Value Generation 2020 （VG2020）
11-Year Financial and Non-Financial Highlights
Omron Corporation and Subsidiaries
Target Result
Net sales ¥750.0 billion ¥773.0 billion
Operating income ¥100.0 billion ¥68.
1 billion
Gross profit margin 42.0%38.5%
Operating income
margin 13.3%8.8%
ROE over 15%11.6%
FY2008 – FY2010
Note: Target values are those at time of VG2020 announcement
(July 2011)
Operating Income
Omron applies the
“single step” presentation of income under U.S. GAAP (that is, the various levels of income are not presented) in its consolidated statements of income. For
easier comparison with other companies, operating income is presented as gross profit less selling, general and administrative expenses and research and development expenses.
Discontinued Operations
Figures for FY2006 and prior years have been restated to account for businesses discontinued in FY2007.
Notes: 1. U.S. dollar amounts represent translations of Japanese yen at the approximate exchange rate on March 31, 2014, of ¥103 = $1.
2. Operating income for fiscal 2005 includes an ¥11,915 million gain recorded on the return of pension assets to the government.
3. EBITDA = Operating income + Depreciation and amortization
4. Free cash flow = Net cash provided by operating activities + Net cash used in investing activities
5. Cash dividends per share represent the amounts applicable to the respective year, including dividends to be paid after the end of the year.
6. Total return ratio = (Total dividends paid + Amount of Company’s own shares repurchased) / Net income (loss) attributable to shareholders
7. Environmental contribution: Reduction in CO2 emissions resulting from the use of Omron’s energy-saving or energy-creating products
8. CO2 emissions volumes calculated based on fuel consumption and electricity purchase volumes for the Company
About Omron Where We’re Headed Corporate Value Initiatives Corporate Value Foundation Financial Section
8 Omron Corporation Integrated Report 2014 9