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19
OPERATING RESULTS IN FISCAL 2003
Domestically, demand related to electronic
fund transfer systems, including the
replacement and conversion of equipment
such as ATMs and automated bill chang-
ers, expanded rapidly in advance of the
planned introduction of new yen notes in
the second half of fiscal 2004. Demand
associated with public transportation sys-
tems also increased, in order to improve
passenger services such as the accept-
ance of IC cards. At the same time, the
demand for traffic and road management
systems was relatively strong due to large-
scale projects centered on an urban
expressway.
Overseas, meanwhile, sales were gen-
erally stagnant due to intensified competi-
tion in the Korean market and delayed
launch of the ATM business in the Chinese
market.
The SSB segment was thus generally
propelled by large domestic demand, with
sales rising 16.6% to ¥136.0 billion.
FUTURE OUTLOOK AND STRATEGY
For fiscal 2004, we anticipate growth in the
area of public transportation systems in
Japan’s Kansai region tied to replacement
and conversion to handle IC cards and the
new yen notes. However, demand for
electronic fund transfer systems is likely to
decrease as a reaction to the considerable
expansion recorded in fiscal 2003. In the
area of traffic and road management sys-
tems, we also expect a challenging busi-
ness environment due to constrained pub-
lic investment. As a result, we anticipate
that SSB will experience an 8.1% drop in
sales to ¥125 billion.
As a strategy for sales expansion in the
global market over the medium and long
term, the Group will become more aggres-
sive in seeking collaboration with other
equipment manufacturers. A joint venture
company in the information equipment
business is planned for October 2004 with
Hitachi, Ltd., with whom we have been
jointly developing next-generation ATMs
since 2000. Related to that move, we will
transfer its information equipment business
currently handled by SSB and AMB to the
new joint venture. Based on collaboration
between Omron and Hitachi, the new com-
pany will aim to reach the number one
position in three business areas: (1) the
domestic financial terminal machine busi-
ness; (2) the currency recycling ATM busi-
ness in China, where the financial infra-
structure is being rapidly developed; and
(3) in the currency recycling processing
module business in global scale.
Integrated into ATMs, financial
services kiosk and other net-
works. This unit recycles
deposited banknote for with-
drawals. Quick and accurate
processing of counting, sorting
and conveying banknotes is
possible.
Applicable in ATMs, financial
services kiosk and other net-
works. This next generation of
card reader/writer incorporates
the needs of both contact and
Contact-Less IC cards, and is
able to fit various IC card stan-
dards by modifying the pro-
gram.
Card Reader/Writer ModuleBanknote Recycler Unit