Omron 2015 Annual Report Download - page 27

We Solve Societal Issues
We Solve Societal Issues
* See notes on P. 43.
(Billions of yen)
FY2011 FY2012 FY2013 FY2014 FY2015
(Forecast)*
Net sales 57.2 68.8 82.780.485.0
Japan 56.9 68.5 82.479.183.5
Overseas 0.3 0.3 0.31.31.5
Americas 0 0 0 00
Europe 0 0 0 00
Asia Pacific 0 0 0 00
Greater China 0 0.1 0.20.30.5
Direct Exports 0.3 0.2 0.11.11.0
Operating income 0.1 2.9 5.65.05.5
Operating income margin 0.2%4.2%6.7%6.2%6.5%
R&D expenses 2.2 2.2 2.52.1
Depreciation and amortization 1.1 1.1 1.21.4
Capital expenditures 0.9 1.5 1.51.7
Fiscal 2015 Forecast and Strategies
Provide answers to needs for safety, security, and the environment
We have set a target of ¥85 billion for fiscal 2015
net sales and ¥5.5 billion for operating income,
representing year-on-year increases of 5.7% and
10.2%. We expect that rising demand for safety
and security in transportation hubs (stations, etc.)
will drive higher revenues for our public transpor-
tation business. Customers of our expressway
business products are also calling for more safety
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 plan to capture a greater share of new de-
mand for safety, security, and the environment by
offering unparalleled components and systems de-
velopment, software development, and engineering
services capabilities.
While our public transportation business experienced
lower demand in the wake of last year’s spending
rush prior to Japan’s consumption tax increases in
Japan, we recorded strong revenue growth related to
station equipment upgrades. As a result, this business
reported overall net sales level with the prior fiscal
year. We struggled to move the needle higher for traf-
fic and road management system revenues, as weak
capital spending resulted in lower revenues year on
year. Second-half demand for environmental solutions
business products and services was weak among
some customers. However, sales of solar power
generation-related products remained strong through-
out the year, leading to higher year-on-year revenues
for environmental solutions.
Operating income was down year on year, mainly
due to lower revenues.
Fiscal 2014 in Review
Strength overall; but weak capital spending results in lower revenues and profits
■ Railroad Passengers ■ Earnings and Projections
Market Share
(FY2014)
Ratio of Total Sales
(FY2014)
■ Sales by Product (Fiscal 2014)
8,000
7,000
6,000
5,000
0
(Millions)
Japan Railway Group
11
1H2H1H2H1H1H 2H
(FY) 12 13 14
Private railways
Integrated power systems for energy savings and emergency backup
We offer integrated power systems that combine solar power, storage batteries, and bidirectional chargers for electric
vehicles. These systems offer customers the minimum power necessary to keep their businesses up and running in
the event of a power outage or other unexpected event. During normal operations, power created by solar power
systems is stored in batteries that power a company’s
electricity needs. This allows for both energy savings and
a reduction in carbon footprint. A company can control
electricity discharge at certain power levels from their
storage batteries during summer peak usage, generating
significant savings. However, our systems assist in
something even more important than business continuity.
Using our systems, companies can turn their facilities into
a disaster shelter for use by the local community. As you
can see, business continuity is just one way in which we
plan to contribute to a safer, more secure society.
LED Lighting
LED Lighting
Solar Power Generation
Storage
Batteries
Emergency
Command/
Evacuation Center
Office
Electric
Vehicle
Electric
Vehicle
Charger
Emer-
gency
Business continuity planning systems
Source: Internal survey
Station Equipment (Japan)
Approx. 45%
10%
12%
Other
(Software
Development, etc.)
58%
Engineering, Environmental Solutions
5%
Road Traffic
(Road Traffic
Management
Systems, etc.)
25%
Public Transportation
(Automated Ticket Gates,
Ticket Vending Machines)
Automated
Ticket Gates
Road Traffic Management Systems
Ticket Vending
Machines
Segment Information
Solutions and services for a safer, comfortable,
more secure society
Social Systems, Solutions and
Service Business (SSB)
Increasing social needs for safety, security
Market Growth
Drivers
All-in-one solutions through our components and systems development,
software development, and engineering services capabilities
Strengths
Source: Rail Transport Overview , Ministry of Land,
Infrastructure, Transport and Tourism
The Social Systems, Solutions and Service Business is involved
in a wide range of markets. For example, our railway business
is involved in everything from IC card system integration to new
rail line construction. As such, we do not have a single
economic indicator that correlates to our business.
About Omron Where We’re Headed Corporate Value Initiatives Corporate Value Foundation Financial Section
50 OMRON Corporation Integrated Report 2015 51