Omron 2016 Annual Report Download - page 90

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Review of Financial Condition
(Billions of yen)
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (Forecast)
Net sales 53.5 59.2 78.9 87.463.0 71.0
Japan 29.5 41.4 51.0 45.844.0 42.0
Overseas 24.0 17.8 27.9 41.619.0 29.0
 Americas 0.0 0.0 0 .0 0.00.0 0.0
 Europe 0.0 0.0 0.0 0.00.0 0.0
 Greater China 22.6 16.3 25.6 38.217.1 25.5
 Asia Pacific 0.0 0.0 0.0 0.00.0 0.0
 Direct Exports 1.4 1.5 2.3 3.41.9 3.5
Operating income (3.6)2.5 8.7 8.4(4.1) 1.5
Operating income margin －4.3%11.0%9.6%−2.1%
R&D expenses 2.8 3.0 4.3 5.54.6
Depreciation and amortization 0.9 1.4 2.0 2.53.1
Capital expenditures 2.1 2.5 4.0 6.95.3
The Other Businesses segment recorded net sales
of ¥63.0 billion, down 27.9% year on year. The
segment recorded an operating loss of ¥4.1 billion.
With the decrease in demand in the Chinese
smartphone market, revenues for the Backlights
Business decreased by a significant margin. In the
meantime, slow demand in the solar power market
drove revenues down in our Environmental
Solutions Business. Net sales in our Electronic
Systems and Equipment Business outperformed
the prior year, driven higher by strong demand for
uninterruptible power supply units and
development/contract production services for
electronic devices. On the other hand, revenues
were lower in our Micro Devices Business due to
slow demand for smartphone microphones.
Total assets at the end of the period amounted
to ¥683.3 billion, which was ¥27.7 billion lower
than the end of the prior fiscal year. This
decrease was mainly due to decreases in cash
and cash equivalents used for share buybacks.
In addition, we established a retirement benefit
trust designed for more efficient pension
reserves. As we have transferred a portion of
investment securities to this retirement benefit
trust, the balance of investment securities
decreased ¥20.1 billion compared to the end of
the prior fiscal year. Total liabilities amounted to
¥236.3 billion, which was a ¥17.4 billion
increase. The main factor in this increase was a
¥31.9 billion increase in allowance for
retirement benefits due to a major reduction in
the discount rate used for calculating benefit
obligations. Total net assets amounted to
¥447.0 billion, which was a decrease of ¥45.1
billion. Pension liability adjustments, affected by
low interest rates, and foreign currency
translation adjustments, impacted by a strong
yen, contributed to other comprehensive loss of
¥50.2 billion. This decreased shareholders’
equity by ¥45.1 billion compared to the end of
the prior fiscal year. Shareholders’
equity ratio
fell by 3.8 points to 65.1%, while the debt
equity ratio increased 0.08 points to 0.53.
Other Businesses
88 OMRON Corporation