Omron 2009 Annual Report Download - page 44

Fiscal 2008 in Review
Earnings declined despite efforts to meet the
demand for energy conservation equipment
In fiscal 2008, net sales in this division declined 7.0% year
on year to ¥14.5 billion and operating income broke even.
In existing businesses, restrained capital investment
led to sluggish sales of uninterruptible power supply units,
broadband routers, and other devices in the computer
peripheral equipment business. Intensifying competition
caused a decline in sales of radio frequency identification
(RFID) devices, which are the core products of the new
businesses segment. Sales of energy monitoring systems
expanded amid growing awareness of energy consump-
tion issues.
Business Strategy and Outlook for Fiscal 2009
Establishment of the Environmental Solutions
Business Headquarters and Electronic Systems and
Equipments Headquarters
We forecast an increase of 20.4% year on year to ¥17.5
billion in net sales and an operating loss of ¥1.0 billion in
fiscal 2009.
In fiscal 2009, the environmental products and com-
puter peripheral equipment businesses carried out by the
Business Development Group were established as inde-
pendent operations and respectively designated the
Environmental Solutions Business Headquarters and
Electronic Systems and Equipments Headquarters. In addi-
tion, the RFID business was transferred to the Industrial
Automation Business (IAB) and Electronic Components
Business (ECB).
The Environmental Solutions Business Headquarters
is focused on growing operations of the existing energy
management business as well as the industrial and social
environmental solutions business. The Omron Group has
taken extensive steps to measure and make visible the
energy used by each of the Group companies with the result
of significant energy savings through fiscal 2008.
The new Environmental Solutions Business Head-
quarters is charged with cultivating the environmental
business operations currently dispersed throughout the
Group to create a new profit base for the company, with
the objective of raising the total net sales from environ-
mental operations to ¥50.0 billion in fiscal 2013.
The operations of the Electronic Systems and Equip-
ments Headquarters are focused on the computer
peripheral equipment business and expanding the mar-
ket for embedded computers that are optimized for
industrial applications requiring the highest level of relia-
bility and consistent long-term supply capabilities.
* FY2009 (Plan) adopted from FASB Statement No.131,
Disclosures about Segments of an Enterprise and
Related Information.
* Projections for FY2009 are based on exchange rates of ¥95/US$ and ¥125/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 head office expenses that are not apportionable.
* Projected figures for R&D costs, depreciation costs, and capital expenditures are not publicized.
Other Businesses Results and Plans
Net sales*
Domestic
Overseas
Operating income*
Operating income margin*
R&D expenses*
Depreciation and amortization*
Capital expenditures*
15.2
15.0
0.2
0.3
2.2%
10.2
1.0
7.0
2005
15.0
14.9
0.1
0.4
2.9%
9.7
1.3
3.6
2006
15.6
15.4
0.3
0.1
0.6%
8.6
1.7
1.4
2007
14.5
14.3
0.2
0.0
0.3%
7.5
3.2
1.4
2008
17.5
16.5
1.0
(1.0)
—
2009
（Plan）
Fiscal Year
% of Net Sales
2%
In fiscal 2009, the Business Development Group was reorganized into
the Environmental Solutions Business Headquarters and the Electronic
Systems and Equipments Division.
42
Embedded Mini-CPU Boards
Omron’s embedded central processing unit (CPU)
board is a high performance and low energy con-
sumption processor the size of a credit card.
Designed specifically to provide the high level
of reliability and long-term steady supply essen-
tial for industrial applications, the CPU board’s
small size vastly facilitates product development
of industrial electronic devices.
Analysis of external environment
(Million tons)
1,175
1,205
1,235
1,265
1,295
1,325
Changes in Japan’s CO2
emissions level
98 99 00 01 02 03 04 05 06 07
Source: Based on the data of National
Institute for Environmental Studies
（Billions of yen）
CO2emission volumes in Japan
are rising both overall and on a
per-person basis.
Segment Information
ENVIRONMENTAL SOLUTIONS BUSINESS HQ,
ELECTRONIC SYSTEMS & EQUIPMENTS DIVISION HQ,
AND OTHER BUSINESSES
Providing environmental equipment and solutions, computer peripheral equipment, and industrial
embedded CPU boards
Check It Out!