Omron 2015 Annual Report Download - page 44

2. Review of Operations by Region
Asia Pacific
Our businesses in Asia Pacific reported net sales of
¥83.1 billion, 14.9% higher year on year. Operating
income came in at ¥7.9 billion, representing an 11% gain.
Despite currency weaknesses, the economies
of Thailand, Indonesia, and Korea were generally
strong throughout the year. Our Industrial Automation
Business was supported by strong demand in the
electronic components industry. Electronic components
for automobiles and consumer health and medical
equipment likewise experienced strong demand.
9.3
1.5
18.4
13.1
13.1
44.6
9.8
1.6
21.4
12.8
14.6
39.9
16.3
8.4
1.6
12.4
12.4
48.9
12 13 14 (FY)
Europe Greater ChinaJapan
Asia Pacific
Americas
Direct Exports
0
10
20
40
30
50
(%)
■ Sales Breakdown by Region
146.5
1410 11 12 13 (FY)
Working capital [left] Current ratio [right]
0
120
180
240
300
60
(Billions of yen)
100
160
130
190
220
250
（
%
）
245.6%
257.3
155.2
188.0
180.7%
201.5%
243.7%
229.0%
233.8
1410 11 12 13 (FY)
Outstanding interest-bearing debt [left]
Debt/equity ratio [right]
0
15
30
45
60
0
0.5
1.0
1.5
2.0
(Billions of yen)
(Times)
0.45
0
0.80 0.67 0.56 0.52 0.45
45.5
18.8
5.6
0.5 0
Financial Condition
■ Working Capital and Current Ratio
■ Outstanding Interest-Bearing Debt and Debt/Equity Ratio
40
1410 11 12 13 (FY)
10
0
20
30
50
(Billions of yen)
37.5
24.6
47.9
21.7
5.5
Cash Flows
■ Free Cash Flow
Japan Greater China
Assets
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Liabilities and Shareholders’ Equity
Americas
Europe
Total net sales for Japan came in at ¥337.7 billion,
representing a 2.1% year-on-year decline. Operating
income, however, grew a healthy 17.2% to ¥55.6
billion, due mainly to productivity and added value ratio
improvements.
During the fiscal year, 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 made a significant contribution to earnings.
Meanwhile, the impact of higher consumption taxes was
seen widely across our businesses in Japan, causing
challenges in growing our Electronic and Mechanical
Components Business, Automotive Electronic
Components Business, and our Social Systems,
Solutions and Service Business.
Our businesses in Greater China reported net income
of ¥181.0 billion, 27% higher than the prior fiscal year.
Operating income amounted to ¥19.7 billion, representing
9.8% year-on-year growth. This result for revenues and
profits was the highest of any of our regions.
Experts cited concerns of a slowdown in certain
sectors of the Chinese economy during the fiscal year.
Even so, we experienced significant earnings growth
for our Industrial Automation Business, driven by higher
demand in the electronic components market and steady
capital investment. This region is demonstrating growing
interest in mobile communications, home electronics,
and electronic components for automobiles. As well,
rising interest in personal health has spurred growth
is sales of our health and medical equipment.
Total assets at the end of the period amounted to
¥711.0 billion, which was ¥56.3 billion (8.6%) higher
compared to the end of the prior fiscal year. This
increase was mainly due to increases in cash and cash
equivalents, inventories, and other current assets.
Acquisitions of property, plant and equipment also
contributed to this total.
Net cash provided by operating activities amounted to
¥77.1 billion for year, down ¥2.0 billion compared to
the prior fiscal year. This decrease was mainly due to a
lower allowance for retirement benefits stemming from
contributions to employee pension funds.
Net cash used in investing activities amounted to ¥39.5
billion for the year, an increase of ¥8.4 billion over the
prior year. This increase was mainly due to investments in
production and other facilities, as well as our acquisition
of a nebulizer manufacturing and sales company in Brazil.
Net cash used in financing activities amounted to ¥29.3
billion, an increase of ¥13.0 billion compared to the prior
fiscal year. This result was mainly due to payments of
dividends and stock repurchases.
Cash and cash equivalents at the end of the fiscal year
amounted to ¥102.6 billion, an increase of ¥12.4 billion
compared to the end of the prior fiscal year.
Total liabilities amounted to ¥218.9 billion, which was
a ¥3.0 billion (1.4%) decrease compared to the end
of the prior fiscal year. This decrease was mainly due
to a reduction in allowance for retirement benefits.
Shareholders’ equity amounted to ¥489.8 billion, an
increase of ¥59.3 billion (13.8%). This increase was
mainly due to significantly higher net income attributable
to shareholders, fluctuations in foreign currency
translation adjustments associated with a weaker yen on
the foreign exchange markets, and a decrease in treasury
stock. As a result, shareholders’ equity ratio improved
3.1-points compared to the prior fiscal year, up to 68.9%.
Our debt/equity ratio likewise improved to 0.45 versus
0.52 in the prior year. Shareholders’ equity per share was
¥2,254.37 compared to ¥1,956.06 in the prior year.
Our businesses in the Americas reported net sales
of ¥123.5 billion, a 22.3% improvement year on year.
Operating income was 713.5% higher, reaching ¥1.7
billion.
The Americas are in an overall recovery economically.
Greater corporate activity, higher employment, and rising
payrolls are all indicators pointing to a clear recovery
in the United States. Strength in automobile demand
in the Americas drove significantly improved earnings
for our Industrial Automation Business and Automotive
Electronic Components Business. At the same time,
growth in the oil and gas sectors pushed demand for
our Industrial Automation Business, while consumer
and commercial product demand resulted in gains for
our Electronic and Mechanical Components Business.
Recovering consumer spending supported growth in
our Healthcare Business during the fiscal year.
In Europe, our businesses reported net sales of ¥108.4
billion, representing a 7.4% increase year on year.
Operating income came in 51.8% higher at ¥5.9 billion.
Despite the slowdown in the Russian economy and
political instability in Ukraine, the European economy
overall showed indications of a gradual recovery, with
demand essentially level with the prior fiscal year. While
our Healthcare Business in Russia and surrounding
regions had been growing, we experienced slower
growth in this region this year. However, earnings were
supported by strong demand for products in our Industrial
Automation Business and Electronic and Mechanical
Components Business.
84 OMRON Corporation Integrated Report 2015 85
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