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統合レポート 2015
2015 年 3 月期
Integrated Report 2015
Year ended March 31, 2015
Integrated Report 2015
OMRON Corporation

Table of contents

  • Page 1
    統合レポートReport Integrated 2015 2015 Year March 31, 2015 2015ended 年 3 月期

  • Page 2
    ...on the foundation and spirit of our corporate motto. The Omron Principles have evolved in response to the changing times. Today, our businesses are growing across the world faster than ever as we pursue the longterm vision outlined in our Value Generation 2020 (VG2020) plan. We continue to raise our...

  • Page 3
    .... Our products include control equipment, electronic components, automotive electronic components, social infrastructure, healthcare, and environmental solutions. 1 % Industrial Automation Business (IAB) Omron' s mainstay business; innovating global manufacturing through factory automation (FA...

  • Page 4
    ... JAPAN 2014, we unveiled a table tennis-playing robot that had everyone talking. This robot was our way of showing the world how Omron sensing and control technologies create a seamless partnership between human and machine. Vegetable congee Devices with embedded real-time translation technology...

  • Page 5
    ...Headed Industrial Automation Business Labor shortages Factory safety and security Quality FA Equipment Electronics Information Useful for Solving Issues Electronic and Mechanical Components Business Electronic Components Automotive Corporate Value Initiatives Sensing and Control Technologies...

  • Page 6
    ... products and services. Safety Equipment Healthcare Business Corporate Value Initiatives Emergency Stop Switches Safety Light Curtains Safety Controllers Segment Information Electronic Components for Home Appliances and Other Industries P. 46 Body Composition Monitors Thermometers Blood...

  • Page 7
    ... power generation hybrid storage battery system (KP48S) June 2014 Released HEM- Omron' s absolute pressure sensor awarded Semiconductor of the Year 2014 in the semiconductor devices category 7280C upper arm blood pressure monitor with communications feature and backlight Cumulative production...

  • Page 8
    ...before it. 52 54 Healthcare Business (HCB) Other Businesses Environmental Solutions Business, Backlights Business, Electronic Systems & Equipment Business, and Micro Devices Business 6 8 10 14 16 18 20 Business Model Omron Products The Year in Review Financial Highlights Non-Financial Highlights...

  • Page 9
    ... improvement. Operating income margin breaks above the 10% level for the first time in 25 years. Our expected cost of capital for the EARTH-1 STAGE is set at 6%. ROIC management has led to fiscal 2014 ROIC significantly higher than our expected cost of capital. Omron paid a record-high ¥71...

  • Page 10
    ... emissions of global production sites 880,000 CO2 emissions of global production sites （ton-COâ,,） Corporate Value Foundation ton-CO2 Environmental contribution Ratio of Women in Managerial Roles (Japan) Ratio of Non-Japanese in Managerial Positions Overseas 17% Improvement vs. 2010 223...

  • Page 11
    ..., implemented cost reductions, and spun off Automotive Electronic Components Business and Social Systems, Solutions and Service Business GLOBE STAGE Establishment of profit and growth structures on a global basis Target*1 Net sales ¥ 750.0 billion Operating income ¥100.0 billion Gross pro...

  • Page 12
    ...Committee Member Yoshihito Yamada President and CEO Akio Sakumiya Executive Vice President Vice Chairman of the Personnel Advisory Committee Vice Chairman of the CEO Selection Advisory Committee Vice Chairman of the Compensation Advisory Committee 20 OMRON Corporation Integrated Report 2015 21

  • Page 13
    ... Earning Power Power to Deal with Challenge Corporate Value Initiatives Global Human Resources â- Globalize management by promoting talented individuals versed in global business â- Increase the ratio of women in managerial roles (particularly in Japan) Materiality Identification Process In...

  • Page 14
    ...to the spirit of this Corporate Motto, relying on the Omron Principles to bind the company together and to guide our management decisions. For Omron, our Principles drive us to become a stronger, better company, while at the same time they serve as the engine that supports our ongoing growth. In May...

  • Page 15
    ... Suzuki-himself an experienced corporate leader-and I as CEO, we plan to guide the Omron Group as a unified team. The business environment changes dynamically and on a global scale. Geopolitical risk, labor health and safety, procurement risk, employee safety, and other business issues are becoming...

  • Page 16
    ... new lines of business to generate growth for our company. Our cash on hand is another effective tool we use to invest in growth opportunities and to return profits to our shareholders. About Omron Where We' re Headed Corporate Value Initiatives Why Omron? â- Investor-oriented management goals...

  • Page 17
    .... in October 2014. NS is a top manufacturer of nebulizers in Brazil, and this acquisition has vaulted our Healthcare Business to the top share of the global nebulizer market. At the same time, this new sales channel within Brazil took us to the number one share for blood pressure monitors in that...

  • Page 18
    ...Mechanical Components Business is a good case study to illustrate ROIC Reverse Tree Management. This is a business that involves significant capital investment in production equipment, which means that production facilities turnover is an important performance indicator. Production volume for relays...

  • Page 19
    ... Components North America Corporate Value Foundation North American Headquarters Plants Design Centers Sales Offices Omron Automotive Electronics, Inc. (St. Charles) Silao, Mexico Financial Section Randy Wara President Omron Automotive Electronics, Inc. 34 OMRON Corporation Integrated Report...

  • Page 20
    ... the Omron Principles in May 2015. As you say, it was very good timing. At the time that President Yamada took over in 2011, we all felt that our employees had come to interpret our corporate philosophy as simply doing things correctly. We needed more awareness of creating solutions to social needs...

  • Page 21
    ... of monitoring. However, since Omron is a company with an audit and supervisory board, I am involved in several important areas that affect the s continuation as a corporation. Other company' than that, I essentially keep out of the business of executive decision-making. The CEO Selection Advisory...

  • Page 22
    ... Omron global development. Programmable controllers include printed circuit boards. During the mounting process, workers install electronic components and memory onto the circuit boards. About Omron Kusatsu Plant Kyoto Kusatsu Plant Small-Lot Production for More than Printed Circuit Board Line...

  • Page 23
    ... fiscal 2012 and earlier has been restated to reï¬,ect this change. 2. Fiscal 2015 forecasts are those as originally disclosed on April 27. Social Systems, Solutions and Service Business (SSB) Healthcare Business (HCB) Other Businesses â- Net Sales/Operating Income/ Operating Income Margin...

  • Page 24
    ...0 11 12 13 14 Programmable Controllers Temperature Controllers Fiber Sensors * Machinery orders index calculated by Omron based on Cabinet Office (Japan) reports. IAB domestic sales generally correspond to trends in the machinery orders index. 44 OMRON Corporation Integrated Report 2015 45

  • Page 25
    ... rates, helped push operating income higher. We Solve Societal Issues A lifeline in times of emergency Making gas appliances safer and more secure 100% Share of the domestic pressure switch market (internal survey) Where We' re Headed New businesses in new markets We have set a target of ¥109...

  • Page 26
    ...23% Switches (Power Window Switches, Power Seat Switches, etc.) Power Window Switches Financial Section 25 Other (Passive Entry/Push-Button Engine Start Systems, Keyless Entry Systems, etc.) 20 North America 15 Asia 10 Japan Electronic Power Steering Controllers 5 Korea South America Other...

  • Page 27
    ...and security features, which has led us to forecast higher revenues in our traffic and road management systems business as well. In our environmental solutions business, we anticipate growing demand for solar power generation-related products to drive performance higher compared to fiscal 2014. We...

  • Page 28
    ... core business after our blood pressure monitors. In October 2014, Omron acquired Brazilian nebulizer manufacturer NS Industria de Aparelhos Medicos Ltda., leapfrogging to the top share of the global market. Moving forward, we plan to speed up the process by which we supply products to Brazil and...

  • Page 29
    ... & Equipment Business, we plan to grow sales by expanding our uninterruptible power supply lineup. Our Micro Devices Business should see higher revenues as well, driven by growing demand for smartphone microphones and pressure sensors. Fiscal 2014 in Review Environmental Solutions and Backlights...

  • Page 30
    ... Supporting career advancement for women KPI: Ratio of women in managerial roles â- Providing products and services that contribute Non-Financial Highlights P. 16 -17 Human Resources Management P. 59 - 61 Where We' re Headed Corporate Value Initiatives To respond to business globalization, Omron...

  • Page 31
    ... opened the door for younger or new employees to advance rapidly, while providing motivation for all to aspire to more challenging work and central roles within our company. Where We' re Headed Corporate Value Initiatives A System to Identify and Develop the Next Generation of Omron Leaders Fumio...

  • Page 32
    ...Human Resources in China Selected as a Best Company in the U.S. In December 2014, Omron Electronics LLC in the U.S. (Industrial Automation Business) was selected as one of the Best and Brightest Companies to Work for. This award recognized Omron Electronics as an excellent company in terms of staff...

  • Page 33
    ... this by replacing mercury-based equipment with digital thermometers and blood pressure monitors. About Omron New Environmental Policy In line with Omron Principles, we will contribute to realizing sustainable societies, globally, by providing eco-friendly products or services that can contribute...

  • Page 34
    ...-based blood pressure monitors. Here, Omron Healthcare (Thailand) Co., Ltd. has started a digital blood pressure monitor program to solve this social issue. During fiscal 2014, we replaced 1,000 old mercury-based monitors with new digital ones. Moving forward, we have set a goal of replacing more...

  • Page 35
    ... deliberation about important corporate matters. Omron has also separated the management oversight and business execution functions with the company, creating a system whereby the majority of board directors are not engaged directly in business operations. We have also adopted a policy setting the...

  • Page 36
    ... new structure, the Company aims for encouraging directors to continually enhance corporate value by positively achieving short-, medium-, and long-term management targets. Fundamental principles and policy for the compensation for directors and officers are as follows: Revised in June 2014 stock...

  • Page 37
    ...Initiatives Integrated Global Risk Management Vision We will integrate and carry out risk-related activities from a global perspective for the purpose of securing the continued existence of the Companies and enabling them to achieve their targets and fulfill their corporate social responsibilities...

  • Page 38
    ... to management and share data with related business divisions to promote our two-way communications between Omron and our shareholders. Corporate Value Initiatives Corporate Value Foundation Discussing purchasing policies with suppliers in Japan President Yamada visited an automotive electronics...

  • Page 39
    ... Law Office (now Miyake & Partners) Partner, Miyake & Partners (to present) Registered as patent attorney with the Japan Patent Attorneys Association Audit & Supervisory Board Member (Independent), Omron (to present) Jan. 1996 Jun. 1997 Jun. 2013 74 OMRON Corporation Integrated Report 2015 75

  • Page 40
    ...Isao Ogino President and CEO, OMRON HEALTHCARE Co., Ltd. Izumi Echizen Senior General Manager, Global Human Resources and Administration HQ Ken Tanikawa Financial Section President and Representative Director, OMRON PRECISION TECHNOLOGY Co., Ltd. 76 OMRON Corporation Integrated Report 2015 77

  • Page 41
    ...data) FY2009 Net sales (Note 1): Industrial Automation Business (IAB) Electronic and Mechanical Components Business (EMC) Automotive Electronic Components Business (AEC) Social Systems, Solutions and Service Business (SSB) Healthcare Business (HCB) Other Businesses Eliminations and Corporate (Total...

  • Page 42
    .... During fiscal 2014, the global automobile market experienced strong capital investment particularly so for components in markets outside Japan. The machine tools and the smartphone markets continue to grow, driving recovery in demand â- Index of Electronic Parts and Devices (Seasonally adjusted...

  • Page 43
    ... new products, such as TENS, in the Americas helped drive earnings, as did strong performance of healthcare and medical devices in China, India, and other emerging countries. 1. Review of Operations by Business Segment Industrial Automation Business (IAB) Our Industrial Automation Business recorded...

  • Page 44
    ...the Japanese market experienced strong demand for capital investment in the automobile and electronic components sectors. This demand helped push earnings growth in our Industrial Automation Business. In our Healthcare Business, sales of home-use healthcare and medical devices and other new products...

  • Page 45
    ... 2,325 492,904 ¥711,011 4,081,408 19,375 4,100,783 $5,925,092 Corporate Value Foundation Note: U.S. dollar amounts represent translations of Japanese yen at the approximate exchange rate on March 31, 2015, of ¥120 = U.S. $1. Financial Section 86 OMRON Corporation Integrated Report 2015 87

  • Page 46
    ... the approximate exchange rate on March 31, 2015, of ¥120 = U.S. $1. 137.20 283.89 2.37 Note: U.S. dollar amounts represent translations of Japanese yen at the approximate exchange rate on March 31, 2015, of ¥120 = U.S. $1. Financial Section 88 OMRON Corporation Integrated Report 2015 89

  • Page 47
    ... Statements of Cash Flows OMRON Corporation and Subsidiaries Years ended March 31, 2013, 2014 and 2015 Millions of yen Number of common shares issued Common stock Capital surplus Legal reserve Retained earnings Accumulated other comprehensive Treasury stock income (loss) Total shareholders' equity...

  • Page 48
    ...Manager Global Investor Relations & Corporate Communications HQ â- July 2015 â- â- Omron Integrated Report 2014: Awarded for Excellence Omron Integrated Report 2014 was selected winner of the Award for Excellence in Integrated Reporting from the World Intellectual Capital Initiative Japan...

  • Page 49
    ...-0075, Japan 30.8% 32.5% Financial instruments dealers Financial institutions 2012 2013 2014 （FYE） Global Investor Relations & Corporate Communications HQ Investor Relations Department Tel: +81-3-6718-3421 Fax: +81-3-6718-3429 Board of Directors Office Corporate Social Responsibility...

  • Page 50
    Printed in Japan