Omron 2007 Annual Report Download - page 22

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are giving top priority to finalizing that structure during the current
fiscal year. At the same time, we have strengthened our sales
framework for China, which is about one year behind schedule
in terms of sales, and we plan to widen and deepen our sales
activities by expanding our market of AOI instruments. As a
result, we expect to boost growth in sales in the Chinese mar-
ket by 30% or more (See P14 for details).
MEASURES FOR ACCELERATING GROWTH
Completion of the BRICs Market Sales Network with
IAB’s Full-fledged Entry into the Russian Market
In October 2006 Omron established OEE-RUS in Moscow,
Russia as a sales company under the control of IAB and com-
menced operations. This marked the first full-fledged entry of a
Japanese maker of FA control devices in the Russian market.
With the establishment of OEE-RUS, we have put in place a
framework where we can look after the needs of our cus-
tomers quickly provide them with close support. We already
have sales companies in Brazil, India, and China, so the estab-
lishment and operation of the new sales company for control
devices in Russia marks the completion of our sales network in
the BRICs markets which are expected to grow further. During
fiscal 2007 we expect sales amounting to 20 million euros
(approximately ¥2.7 billion) and by 2010 we plan to increase
sales to 50 million euros, which represents an approximate
five-fold increase in sales from the fiscal 2005.
Expanding the Scope of Business through Laser
Fine Processing Technology
In June 2007 Omron acquired a 95% stake from principal
shareholders in Laser Front Technologies, Inc. (LFT), an inde-
pendent developer and manufacturer of laser fine processing
devices, spun off from NEC Corp., and made it a consolidated
subsidiary under the name Omron Laser Front Co., Ltd. With
the integration of LFT’s laser processing business and IAB’s
testing and measuring business units, IAB will be able to pro-
vide total quality solutions across all production processes
where progress in fine processing is accelerating at a rapid
pace. Moreover, using LFT’s technical capabilities in areas
such as liquid crystals, semiconductors, and electronic com-
ponents, and IAB’s full advantage of the merits of having a
broad customer base that encompasses all manufacturing
industries worldwide, and we plan to develop our operational
base further (see the special feature on P33).
IAB RESULTS AND PLANS Billions of yen
2007 Plan
339.5
154.5
185.0
38.3
85.8
16.2
38.0
6.6
64.6
19.0%
21.0
13.0
YoY
112.1%
103.4%
120.7%
137.2%
116.8%
110.1%
120.2%
120.3%
115.7%
+0.5% pt.
98.1%
109.9%
137.2%
2005
272.7
136.2
136.5
25.4
69.6
12.7
24.0
4.8
41.9
15.4%
18.5
10.2
10.0
2004
250.3
130.2
120.1
20.3
65.6
10.4
19.5
4.3
41.4
16.5%
16.7
7.6
8.8
*Projections for FY2007 are based on exchange rates of ¥115/US$ and ¥150/Euro.
*The sales figures given indicate sales to external customers and exclude inter-segment transactions. Operating income indicates income including internal income prior to
the deduction of amounts such as inter-segment transactions and headquarters expenses that are not apportionable.
*Projections for depreciation and amortization are not publically released.
2003
229.6
117.1
112.5
19.6
60.7
13.6
18.4
0.3
34.2
14.9%
14.5
10.0
7.3
Fiscal Year
Net sales*
Domestic
Overseas
North America
Europe
Asia
China
Direct exports
Operating income*
Operating income margin*
R&D expenses
Depreciation and amortization*
Capital expenditures
2006
305.6
140.8
164.8
34.8
81.3
14.0
28.8
5.8
48.5
15.9%
18.1
11.2
13.7
INDUSTRIAL AUTOMATION BUSINESS(IAB)
*Figures for the profit structure plan are based on management of IAB
itself. The share of operating expenses is approximately 1 percentage
point lower than figures released due to the way in which operating
expenses for headquarters are allocated.
Safety Laser Scanner OS3101
Utilizing reflected laser light, this is a non-contact sensor for
detecting the presence of a human body. A system that achieves
both safety and productivity, it has two possible settings: one for
shutting down machines and one for monitoring and warning of
the proximity of workers to machines.
Portable Multilogger ZR-RX Series
An electronic device for storing data of measurement results
recorded by various sensors, it can be connected to a PC and
convert data into graphs or send it via e-mail in abnormal situ-
ations. In addition to contributing to ISO compatibility measures
and traceability, the device, at one third of the market price for
devices of this type price, represents the highest cost-per-
formance in the market.
High Speed Accuracy Measurement Devices
Enabling high-speed and accurate measurement of the line
width and overlap of TFT substrates in the LCD array fabrication
process, these devices warn of and prevent the incidence of
defective products. With proprietary technology and algorithms
for image processing, this device achieves high-accuracy meas-
urement of 0.1 nanometer repeatable accuracy and measuring
speed of 1 item per second.