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Review of Operations by Business Segment
Our Industrial Automation Business recorded
domestic net sales of ¥130.5 billion for fiscal 2015,
a 2.9% gain year on year. This growth was mainly
due to strong demand for capital investment in the
automobile and electronic components fields.
Revenues were lower overseas, primarily due to
lower demand in the petroleum industry of the
Americas. Europe reported revenue gains based on
slightly improving business conditions in the region.
The slowdown of the Chinese economy during the
second half of the year resulted in overall sluggish
demand. However, the positive impact of foreign
exchange rates led to higher sales in the region.
Weakening market conditions and currency
weakness in Asia led to revenue declines in the
ASEAN markets. Korea, however, experienced
strong demand for electronic components,
pushing revenues higher in that nation. As a result,
overseas net sales amounted to ¥205.5 billion, an
increase of 0.2% compared to fiscal 2014. While
the segment reported higher revenues as a whole,
investments for future growth resulted in
increased R&D expenses, driving operating
income down to ¥47.9 billion (12.2% year-on-year
decline) for the year.
(Billions of yen)
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (Forecast)
Net sales 270.8263.0291.7331.8336.0336.0
Japan 123.1116.3119.4126.7130.5136.0
Overseas 147.7146.7172.3205.1205.5200.0
 Americas 29.331.636.947.640.4 37.5
 Europe 55.350.461.967.869.3 71.0
 Greater China 36.839.443.855.058.3 55.0
 Asia Pacific 25.324.728.934.136.9 36.0
 Direct Exports 1.0 0.6 0.8 0.70.6 0.5
Operating income 35.431.338.854.647.9 46.5
Operating income margin 13.1%11.9%13.3%16.5%14.3%13.8%
R&D expenses 15.416.515.715.318.2
Depreciation and amortization 4.2 3.5 3.6 3.54.0
Capital expenditures 3.8 2.8 3.3 4.25.3
86.6
-2.4
Forex, raw materials
impacts
Added value down
Gross profit　-11.5
(excl. forex & raw materials impacts)
Fixed manufacturing
costs down SG&A up
R&D up
-12.5
1.0-5.8-4.662.3
FY2014 Actual FY2015 Actual
(Billions of yen)
Consolidated Operating Income Analysis (YoY)
Note: SG&A and R&D expenses do not reflect foreign exchange or material costs. Accordingly, these figures do not match prior-year comparative figures on P84.
Omron Group operating income for the year was
¥62.3 billion (28.1% decrease), with avn operating
income margin of 7.5% (2.7-point decrease).
Operating Income, Income before Income Taxes,
and Net Income Attributable to Shareholders Income before income taxes amounted to
¥65.7 billion (24.8% decrease), while net
income attributable to shareholders came in at
¥47.3 billion for the year (23.9% decrease).
Industrial Automation Business (IAB)
Integrated Report 2016 85
Where We
re HeadedAbout Omron Corporate Value Initiatives Corporate Value Foundation Financial SectionFinancial Section