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a recovery in demand in Russia, where
consumer spending has been weak.
Considering, however, the negative impact of
foreign exchange, we forecast a slight decrease
in overseas revenues, resulting in lower overall
revenues for the segment (Note 2). Despite lower
revenue projections, we forecast higher profits
for fiscal 2016. While we remain committed to
making up-front investments for future growth,
we will also review our fixed cost structure and
make efforts in productivity improvements.
The Other Businesses segment forecasts
overall fiscal 2016 segment net sales of ¥71.0
billion (12.6% increase year on year) and
operating income of ¥1.5 billion. We project
recovery in our Backlights Business, despite
slowing growth in the smartphone market. We
plan to grow by capitalizing on capturing
demand in response to changing consumer
needs in the market. In our Environmental
Solutions Business, we expect to create greater
demand in the solar power market for our
current solar panels, as well as for new systems
that integrate storage batteries. We plan on
building out our lineup of uninterruptible power
supply units within our Electronic Systems and
Equipment Business. At the same time, we
expect to see growing demand for smartphone
microphones and absolute pressure sensors.
led us to forecast lower overseas net sales
compared to fiscal 2015. Our forecast of lower
operating income for fiscal 2016 is mainly a
reflection of soaring labor expenses among the
emerging economies. We intend to rise to the
challenge for real revenue and profit growth
(excluding the impact of foreign exchange) by
creating more high-value-added products and
improving operations efficiencies.
The SSB forecasts overall fiscal 2016 segment
net sales of ¥70.0 billion (9.7% decrease year on
year) and operating income of ¥4.0 billion (25.1%
increase). We forecast lower revenues for our
train station solutions business due to a low point
in the demand cycle for upgraded station
equipment. At the same time, we forecast sales
in our traffic and road management systems
business to be level with the prior year, as we do
not expect significant changes in capital
investment trends. We do, however, project
continued strong demand for system computer
terminal upgrades. Due to continued weakness in
the solar power and related markets, we forecast
fiscal 2016 environmental solutions business
revenues lower than fiscal 2015.
The HCB forecasts overall fiscal 2016 segment
net sales of ¥108.0 billion (0.1% decrease year
on year), consisting of ¥32.5 billion (4.4%
increase) in domestic sales and ¥75.5 billion
(1.9% decrease) in overseas sales. We expect
operating income for the segment as a whole to
amount to ¥8.0 billion (9.8% increase).
Domestically, we expect an increase in lifestyle
diseases associated with aging and greater health
consciousness to create strong demand for our
products. Overseas, we anticipate economic
growth among emerging economies in Asia that
will result in lifestyle changes and a greater health
consciousness in those markets. We also expect
(Note 2) Fiscal 2016 forecasts do not include the impact of our
business tie-up with Fukuda Denshi Co., Ltd. or the pending sale of
subsidiary Omron Colin Co., Ltd. as announced on June 9, 2016.
Other Businesses
Social Systems, Solutions and Service
Business (SSB)
Healthcare Business (HCB)
Integrated Report 2016 91
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