Omron 2007 Annual Report Download - page 49

48
04 05 06
(FY)
(%)
20
40
80
60
100
Sales Breakdown, by Region
0
63.7%
10.8%
15.2%
5.6%
4.8%
59.1%
12.7%
15.8%
6.7%
5.7%
55.9%
13.3%
15.8%
9.4%
5.5%
Japan
North America
Europe
Greater China
Southeast Asia and Others
2. Review of Sales by Region
Japan
Net sales grew solidly in IAB and ECB as capital investment in
semiconductors and digital household appliances continued to be
high. Also, net sales in SSB grew significantly on demand for
improvements and replacement to the railway station equipment as
railway boarding passes using IC cards were introduced nationwide.
Meanwhile, AEC net sales remained level with the previous fiscal
year as the domestic market for sales of new automobiles matured.
As a result, total net sales in Japan increased 11.2 percent over the
previous fiscal year to ¥412.1 billion, and operating income
increased by 17.7 percent over the same period to ¥62.3 billion.
North America
Net sales in IAB and ECB grew solidly as capital investment
remained firm. Also, net sales in AEC grew with the launch of
new products in wireless control equipment, power window
switches and others. As a result, net sales in North America
increased 23.0 percent over the previous fiscal year to ¥98.0 bil-
lion, but operating income decreased 27.1 percent over the
same period to ¥300 million.
Europe
As capital investment in Europe increased along with improved
earnings at European corporations, net sales at IAB grew, center-
ing on inverters and servomotors. Also, AEC and HCB performed
solidly. As a result, net sales in Europe increased 17.6 percent over
the previous fiscal year to ¥116.4 billion, and operating income
increased 40.8 percent over the same period to ¥10.3 billion.
Greater China
As a result of actively investing in strengthening our marketing in
China, where high growth is expected, IAB’s net sales grew signifi-
cantly. Also, the sales of the subsidiary of OPT contributed greatly
to ECB. As a result, net sales in Greater China increased 66.4 per-
cent over the previous fiscal year to ¥69.4 billion, and operating
income increased 44.5 percent in the same period to ¥1.5 billion.
Southeast Asia and Others
IAB and ECB performed solidly as export led economies
expanded. As a result, net sales in Southeast Asia increased 14.0
percent over the previous fiscal year to ¥40.7 billion, and operating
income increased 7.2 percent in the same period to ¥4.0 billion.
Financial Condition
Assets
Total assets rose ¥41.2 billion (7.0 percent) from the previ-
ous fiscal year to ¥630.3 billion. Trade notes and accounts
receivable both increased ¥36.7 billion from the previous fiscal
year along with the increase in net sales due to improved busi-
ness results and acquisitions (refer to Note 5 on page 63), and
inventory increased ¥19.2 billion in the same period.
Meanwhile, land was reduced by ¥18.3 billion from the previ-
ous fiscal year due to a loss from the sale of land and buildings
of the Tokyo head office, and investment securities were
reduced ¥15.7 billion by such factors as establishment of a
retirement benefits trust.
Liabilities and Shareholders’ Equity
The total of current liabilities, long-term liabilities and minority
interests increased ¥21.4 billion (9.5 percent) from the previous fis-
cal year to ¥247.5 billion. The major factors behind the increase
were an increase in short-term liabilities by ¥17.4 billion from the
previous fiscal year to ¥19.9 billion, and increases in other current
liabilities and deferred income taxes (refer to Note 12 on page 72).
In addition, interest bearing debt outstanding increased ¥18.0 billion
from the previous fiscal year due to the effects of M&A activities
(refer to Note 7 on page 64), to ¥21.8 billion. However, accrued
retirement benefits (refer to Note 9 on page 66) decreased ¥14.3
billion (21.4 percent) from the previous fiscal year.
Shareholders’ equity rose ¥19.9 billion from the previous
Composition of Net Sales by Business Segment
IAB
ECB
AEC
SSB
HCB
Other
Note: The composition of net sales is based on the classifications reported in the
Six-year Summary.
FY2005 FY2004
41.1%
16.6
10.6
18.9
8.3
4.5
43.5%
15.6
12.4
14.6
9.7
4.2
FY2006
41.5%
18.8
12.7
14.4
8.9
3.7
ing loss in the previous fiscal year was ¥2.0 billion).
As railway boarding passes shifted to using IC cards across
Japan, there was demand to improve or replace automated
passenger gate and automatic ticket vendors, and SSB net
sales increased 15.4 percent over the previous fiscal year to
¥105.9 billion. Meanwhile the effects of structural reform
began to emerge and operating income increased 82.0 percent
over the same period to ¥8.1 billion.
HCB was boosted by a worldwide movement to prevent
lifestyle related illness and recorded a 7.6 percent increase in net
sales over the previous fiscal year to ¥65.7 billion. However, oper-
ating income recorded only an 0.4 percent increase over the same
period to ¥8.7 billion, due to the inclusion of expenses for restruc-
turing the business and price competition on a global scale.
Other business was primarily in the Business Development
Group, which searches for and fosters new businesses, and is
in charge of fostering and strengthening businesses that are
not handled by division companies. The total net sales for other
segments increased 6.9 percent over the previous fiscal year to
¥27.7 billion, and operating income increased 44.8 percent in
the same period to ¥2.4 billion.