Omron 2015 Annual Report Download - page 29

* See notes on P. 43.
(Billions of yen)
FY2011 FY2012 FY2013 FY2014 FY2015
(Forecast)*
Net sales 53.5 59.2 78.987.4105.0
Japan 29.5 41.4 51.045.855.0
Overseas 24.0 17.8 27.941.650.0
Americas 0 0 0 00
Europe 0 0 0 00
Asia Pacific 0 0 0 00
Greater China 22.6 16.3 25.638.246.0
Direct Exports 1.4 1.5 2.33.44.0
Operating income (loss) (3.6)2.5 8.78.410.0
Operating income margin ー4.3%11.0%9.6%9.5%
R&D expenses 2.8 3.0 4.35.5
Depreciation and amortization 0.9 1.4 2.02.5
Capital expenditures 2.1 2.5 4.06.9
Fiscal 2015 Forecast and Strategies
Sharply higher earnings and profits driven by energy and smartphones
We have set a target of ¥105 billion for fiscal 2015
net sales and ¥10 billion in operating income, repre-
senting year-on-year increases of 20.2% and 19.5%.
We plan to grow our Environmental Solutions Busi-
ness by generating demand and capturing market
share for solar power hybrid storage systems and
monitoring products. We intend to move ahead to
become a total energy solutions business that helps
society generate, store, and use energy intelligently.
We plan to make capital investments in our Back-
lights Business to expand our production capacity.
We also intend to reinforce specialists who will
boost our development capacity and productivity.
Given the strong demand in the market for thin
backlights used in high-spec smartphones, we
expect to see significant growth in this business.
During fiscal 2014, we reported wide revenue gains
as a whole. On the other hand, operating income was
down year on year, mainly due to significant advanced
investment activity.
Despite some weakness during the second half
of the year, demand in the Japanese market for PV
inverters sold by our Environmental Solutions Busi-
ness remained strong—a reflection of this nation’s
growing interest in renewable energy. Accordingly,
Environmental Solutions reported higher year-on-year
revenues overall.
Our Backlights Business likewise reported higher
revenues, owing to our ability to capture new demand
for thin, high-function backlights used in smartphones.
This product is the subject of increasing demand in
Greater China and other regions.
Our Electronic Systems & Equipment Business
recorded revenue gains due to strong sales of uninter-
ruptible power supply units and industrial-use built-in
computers, as well as for contract development and
manufacturing services.
Our Micro Devices Business experienced reve-
nue gains as well, citing high demand for smart-
phone microphones.
Fiscal 2014 in Review
Environmental Solutions and Backlights Businesses contribute to revenues,
despite some weakness in demand
■ Smartphone Shipments ■ Earnings and Projections
■ Main Business and Products
2,000
1,500
1,000
500
0
(Millions of units)
Low spec (Less than HD720) 4K class
High spec (HD720 or higher)
(FY) 12 13 14*15*16*17*18*
Source: Internal survey
Residential-Use
PV Inverters (Japan)
Approx. 40%
10%
PV Inverters for
Solar Power
Generation
Systems
Backlights
Environmental Solutions
Electronic Systems and Equipment
Uninterruptible Power
Supply Units
LCD Backlights
Micro Devices
Micro Electro
Mechanical
Systems
Segment Information
We Solve Societal Issues
Hybrid storage systems for solar power
offer energy efficiency
Since its introduction in 2012, the feed-in tariff scheme has driven major revenue growth in the solar power
generation market. Today, the energy-related markets in Japan are going through even more changes.
Energy laws promulgated in January 2015 have been revised to deal with output restrictions, and we will see
the complete deregulation of electricity retailing during 2016. We expect the future to bring more balanced
energy supply and demand, as well as calls for even higher levels of energy-efficient operations. Here, the
Environmental Solutions Business has responded by extending our PV inverter lineup and introducing a
hybrid storage system for solar power.
This system lets customers consume or sell electricity generated during the daylight hours. It also allows
them to store extra electricity to use during the night or in case of emergency. We have created the lightest,
most compact storage unit in the world, tailored
specifically to the Japanese housing market. This unit
offers an optimal balance between supply and demand.
We are truly meeting the needs of a new energy era.
Approx. 5.2GW
PV inverter cumulative shipment
volume (equivalent to five power plants)
Hybrid Storage System for Solar Power
(lightest, most compact storage battery unit in the world)
A new energy era
Mainly incubating Omron’s next generation of businesses
Other
Businesses
Market Share
(FY2014)
Ratio of Total Sales
(FY2014)
Source: DisplaySearch
We anticipate the market for high-spec smartphones to
continue to grow.
* Forecast (as of January 2015)
In the Electronic Systems & Equipment Business,
we plan to grow sales by expanding our uninterrupt-
ible power supply lineup.
Our Micro Devices Business should see higher
revenues as well, driven by growing demand for
smartphone microphones and pressure sensors.
About Omron Where We’re Headed Corporate Value Initiatives Corporate Value Foundation Financial Section
54 OMRON Corporation Integrated Report 2015 55