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Annual Report 2010
Year ended March 31, 2010

Table of contents

  • Page 1
    Annual Report 2010 Year ended March 31, 2010

  • Page 2
    ..., Mr. Tateisi celebrated the 26th anniversary of the Company's founding by adopting these words as the Corporate Motto: "At work for a better life, a better world for all." To his young employees and others, Mr. Tateisi would often illustrate his point, using an allegory from nature involving a bee...

  • Page 3
    ... THROUGH PHILOSOPHY SENSING & CONTROL Full Steam Ahead for Growth In the wake of the global economic crisis, Omron's earnings structure underwent dramatic changes. Making its earnings structure even more resilient and sustainable, while simultaneously aiming to meet the demand in China and other...

  • Page 4
    ...Omron's markets, which are primarily Japan, North America, Europe, Asia-Pacific, and Greater China; demand for and competitive pricing pressure on Omron's products and services in the marketplace; Omron's ability to continue to win acceptance for its products and services in these highly competitive...

  • Page 5
    ... Automation Business EMC Electronic and Mechanical Components Business AEC Automotive Electronic Components Business SSB Social Systems Solutions Business HCB Healthcare Business Other Environmental Solutions, Electronic Systems & Equipments, Backlight, Micro Devices Businesses 53 Corporate...

  • Page 6
    ...Net Sales ¥524.7 billion FY2009 AEC Automotive Electronic Components Business % SSB Social Systems Solutions Business % HCB Healthcare Business % Other Environmental Solutions, Electronic Systems & Equipments, Backlight, Micro Devices Businesses * % * Including "Eliminations and Corporate...

  • Page 7
    ...) Home-use Digital Blood Pressure Monitors (global market share) Approximately Approximately Approximately 40% *As of July 2010 Source: Nippon Electric Control Equipment Industries Association (NECA) 40% Source: Omron internal survey 50% Source: Omron internal survey Core Technologies: What...

  • Page 8
    ..., mobile devices, amusement devices, office automation (OA), and other equipment. AEC is an active contributor to the rapidly advancing car electronics market in the drive to realize a safe, comfortable, and environmentally friendly automotive society. The company supplies all types of controllers...

  • Page 9
    ... Solutions SSB provides systems solutions, including the newest models for automated ticket gates and ticket vending machines using universal designs, to increase the comfort and efficiency of train stations. Healthcare & Medical Devices for Home Use Digital Blood Pressure Monitors Pedometers...

  • Page 10
    ... Withdrawal from unprofitable business, spin off of the Healthcare Business. • Raising the level of corporate governance to the global standard. Notes: 1. 2. 3. 4. U.S. dollar amounts represent translations of Japanese yen at the approximate exchange rate on March 31, 2010, of ¥93 = $1. EBITDA...

  • Page 11
    ... a Growth Structure Fortification of growth business (high profitability) Revision of 3rd stage due to an abrupt change in the business environment Cash Dividends 50 40 30 20 10 0 (yen) Reinforcing business foundations through aggressive investment in growth areas, such as M&A, and cost cutting...

  • Page 12
    ... (relays, switches, and connectors). The Micro Devices business formerly part of the ECB segment was transferred to the newly created Micro Devices Business Promotion Headquarters under direct control of the Company president 2009 (YoY change) (YoY change) 1Q April Consolidated net sales...

  • Page 13
    ... output processing costs December 21 Japan's first! A solar-powered, environmentally friendly blood pressure monitor Online pre-orders begin for the Omron solar-powered upper arm blood pressure monitor HEM-4500-SOL February 10 Omron wins the Minister of Economy, Trade and Industry Award's Energy...

  • Page 14
    ... of mass-produced and mass-marketed, cutting-edge finished goods, such as flat panel display televisions (including 3D models) and electric vehicles. The factory automation markets are also expected to grow as emerging countries pursue increased production efficiency. Meanwhile, the economies of...

  • Page 15
    ... of our core com- petence in sensing and control technologies. In the future, companies especially in developed nations will need to build and implement business models that contribute to social innovation as a means of solving social issues. Such models will also help companies deploy their...

  • Page 16
    ... in its core businesses to achieve a recovery in revenue. This was evidenced by sales recovery in the Electronic and Mechanical Components Business (EMC), Automotive Electronic Components Business (AEC), and Industrial Automation Business (IAB). Although the Social Systems Solutions Business (SSB...

  • Page 17
    ... relate closely to the Omron Group. These factors should also underpin the ongoing turnaround in demand for factory automation control systems. With respect to electronic components and automotive electronic equipment, as well, we look forward to a recovery trend. For fiscal 2010, we forecast a 17...

  • Page 18
    ... and CEO "Becoming Leaner to 'Build a Robust Earnings Structure'" and "Changing Gears to 'High Growth'" The Omron Group's Next Long-Term Vision Targets an Operating Income Margin of 15%. Fiscal 2009 in Review - - - Amid a decline in net sales of more than ¥100 billion, earnings were higher than...

  • Page 19
    ...Can you give some specific examples of measures you have taken? We shifted the production and development of universal relays, switches, and connectors-products in which Omron excels-away from IAB and AEC and gave them to EMC. At the same time, we boosted IAB's domestic marketing personnel by around...

  • Page 20
    ... of a new switch business company Management integration of the relay business Establishment of an automotive electronic components business company Consolidation of production sites Dissolution of large-size backlight businesses (3 sites) Closure of the Minakuchi factory in Japan Closure of OMRON...

  • Page 21
    ... of parts purchased from the marketplace and assembling them together into a product. To be sure, there are no such synergies possible in the development of blood pressure monitors and fare payment systems for railway companies. However, if we think in terms of these manufacturing processes, there...

  • Page 22
    ... sales force in emerging countries (IAB/HCB) Strengthen sales in China and India [2] Develop new products for emerging markets Expand general purpose products (sensors, power supplies, PLCs*) Expand healthcare products [1] Bolster core products for the environmental solutions business e.g. Power...

  • Page 23
    ...we will focus on developing new products. Sales in Greater China, including Taiwan, were the first to recover from the effects of the recent economic crisis. To give an example using an IAB product, sales of programmable logic controllers (PLCs) developed for local Chinese companies were higher than...

  • Page 24
    ... a company to create new value and be more profitable than others-a company that can use those profits to consistently deliver products and services that make its customers even happier. We intend to devote all our energies to becoming one of those companies. Today, our rivals that are rated highly...

  • Page 25
    .... Omron got a major head start by developing operations in the Chinese market 30 years ago. This report outlines the deep involvement of the Company's Industrial Automation Business (IAB) in the manufacturing industry and the Healthcare Business (HCB) in the lifestyle in the Greater China region...

  • Page 26
    ... with a local company in Shanghai and the start of consignment production of thermometers and blood pressure monitors. As the Sales Trends in the Greater China Region (Billions of yen) market expanded in the 1990s, the Company's focus shifted from consignment production to direct investment, as it...

  • Page 27
    ... set up major bases centering on the three coastal growth areas. In Shanghai, the Company operates OMS, a core global development and production base, and sales companies for control equipment, trading companies and associated manufacturing companies for electronic components, and the Omron Shanghai...

  • Page 28
    ... Meeting Specific Market Needs The expanding production by manufacturers and the growth of local companies are leading to rising demand for control equipment, specifically programmable logic controllers (PLCs), temperature controllers, sensors, timers, and counters. In addition, the relays, switches...

  • Page 29
    ... actual equipment. Feature "Omron in China" China, Our Driving Force for Growth IAB Sites in China Distribution Sites Sales and Marketing Sites (Branch Offices) Sales Offices (including Taiwan) Control Equipment Production and Development Site (OMS) Customer Support Center Shanghai Heilongjiang...

  • Page 30
    ... of local control equipment manufacturers are primarily made up of general-purpose products, and competition with such companies is certainly a significant threat, if only price matters. However, while pricing is an important element, overall value in terms of quality, service, and reliability...

  • Page 31
    ... in-process defect rate. We also make the best use of the abundant local workforce by utilizing the same system as in Japan of 24-hour, manual cell production with cross-trained workers. The cell production system uses a workbench called a cell, which has parts boxes arranged in a Ushaped line with...

  • Page 32
    ... report introduces the current conditions for the healthcare business in the massive and still-growing Chinese market. (*As of August 2010, production in Vietnam accounts for the remaining roughly 20%.) The Chinese Market for Digital Blood Pressure Monitors (Units) (Thousand units) *As of May 2010...

  • Page 33
    ...name is already strongly associated with blood pressure monitors. Q A Shinya Tomoda Assistant Director Market and Sales Headquarters Healthcare & Medical Business Omron (China) Co., Ltd. Q A What is HCB's market share in China for its core blood pressure monitors? Company research found that our...

  • Page 34
    ... sales of blood pressure monitors surpassed 100 million units in September 2009. Using the Advantages of Geographic Industry Concentration The city of Dalian is home to numerous Japanese-affiliated companies. Manufacturers of necessary parts and materials have gradually gathered in the area...

  • Page 35
    ...our supply chain management (SCM). Local Product Planning and Development for the Chinese Market-Blood pressure monitors with backlights are a hit- Omron Healthcare Product Development Dalian Co., Ltd. (OHP) is also located in the city of Dalian. OHP combines existing general-purpose technology with...

  • Page 36
    ... market. Omron's strengths in sensing and control technology are already widely contributing to and increasing its presence in China's manufacturing sites. The company also has outstanding experience in applying its unique technological capabilities, such as its systems for making machines learn...

  • Page 37
    ... Center Chairman Shanghai Medical Facilities and Equipment Quality Control Department Most Shanghai residents know of Omron as a healthcare and medical equipment maker of blood pressure monitors, thermometers, and other devices. It is evidence that Omron's products are contributing to the health...

  • Page 38
    ... of ultra-high-speed and high-precision machine automation equipment. The segment is also introducing a steady stream of products to contribute to fulfilling the need for ongoing improvement in production site "quality, safety, and the environment." Outlook The restructuring of the switch and relay...

  • Page 39
    ... engineering and IT-related businesses, and by developing new business areas using its language and imaging technology in the software business. HCB HEALTHCARE BUSINESS Net Sales by Segment OTHER ENVIRONMENTAL SOLUTIONS, ELECTRONIC SYSTEMS AND EQUIPMENTS, BACKLIGHT, AND MICRO DEVICES BUSINESSES...

  • Page 40
    ... sales of control systems and components for factory automation and industrial equipment IAB is strengthening links between its sales, service, development, and production networks worldwide to enhance its "full lineup of control equipment" and "ultra-high-speed, high-precision machine automation...

  • Page 41
    ... settings, such as for fan filter air flow volumes and air conditioner temperatures, which contribute to energy saving at the worksite. Proximity Sensors Photoelectric Sensors Temperature Controllers Vision Sensors Digital Panel Indicators Programmable Logic Controllers Power Supply Units...

  • Page 42
    ... S INE SS Manufacturing and sales of electronic components for consumer appliances, telecommunications equipment, mobile telephones, amusement devices, and office automation equipment EMC utilizes its cultivated strength in monozukuri (product creation) technology, integrating its relays, switches...

  • Page 43
    ... production structure. Segment Information What's New Omron Switch & Device Corporation commences operation, aiming to be the world leader in the switch field High-capacity Relays for Hybrid Cars Small-sized relays with large capacity capable of regulating the high-voltage, high-current DC...

  • Page 44
    ... the third quarter. In particular, sales in Greater China grew 32% year on year, boosted by the region's expanding market. The consolidation and streamlining of overseas factories as part of the restructuring of production, the transfer of a portion of the relay unit production operations to the EMC...

  • Page 45
    ... power steering controllers, power window switches, and electronic components for electric vehicles; and components for motorcycles and automobiles. By focusing its core strengths in these three business areas, AEC aims to enhance its creation of customer value, bolster its technical capabilities...

  • Page 46
    ... sales of mobile phones in Japan and restrained investment by the distribution industry. The recently launched"Social Sensor Solutions Business" focuses on applying our sensor technology to meet social sector needs, and is beginning to develop a new solutions market to meet a growing need for train...

  • Page 47
    ... business growth by achieving the transformation into a full-fledged solutions company through the provision of innovative social infrastructure equipment. Segment Information What's New Identification of specified persons now possible with our Specified Person Detection System "Evidence Sensor...

  • Page 48
    ... year as hospitals and private medical practitioners postponed or cut back equipment investment spending. However, steady demand for home-use blood pressure monitors, digital thermometers, and other personal healthcare devices led to a 5.2% year-on-year rise in domestic sales, to ¥29.6 billion...

  • Page 49
    ... readings in a home setting. In fiscal 2009, HCB launched its solar-powered blood pressure monitors. Recharged via solar panels embedded in the back of the device, the monitors reduce waste by not requiring disposable batteries, and lower CO2 emissions by using solar energy. The Omron Solar-powered...

  • Page 50
    ... for blood pressure monitors. The Environmental Solutions Business posted strong results for its in-house developed service to contribute to energy conservation and CO2 emissions reduction, utilizing its knowledge information control technology, such as the world's first "visualization" system that...

  • Page 51
    ...of sales to overseas customers and by continuing to make inroads in low-cost product markets. The micro devices business will focus on maintaining the volume of business for key existing IC and MEMS prod- uct lines and on pursuing collaborations with business partners in the development of new MEMS...

  • Page 52
    ... perspective of fortifying current core businesses and from the long-term perspective of advancing in the direction of next-generation technological innovation to ensure that the core businesses will remain vital in the future. Investment target areas are selected using rigorous reviews of the...

  • Page 53
    .... As a global corporation, Omron too had to establish some sort of governance system to accommodate capital markets. We also had to increase our corporate competitiveness and conduct our business operations in a highly transparent manner. In 1999, we introduced an executive officer system and

  • Page 54
    ... supervises and monitors business execution, while the Board of Corporate Auditors fulfills an auditing function. Moreover, we have incor- porated the best elements of corporate governance carried out by companies that operate under a committee system. Omron strives to raise management fairness and...

  • Page 55
    ...officers independent officers, and registered them with the Tokyo Stock Exchange and the Osaka Securities Exchange. Details were also disclosed in a Corporate Governance report. Corporate Governance, Compliance, and Risk Management - - - What are your thoughts on Omron's future system of corporate...

  • Page 56
    ... business matters such as company objectives and management strategies, while overseeing business practices. Board of Corporate Auditors This board verifies the effectiveness of the corporate governance system and its implementation, while also monitoring the day-today operations of executives...

  • Page 57
    ... provides management support services focused on realizing long-term sustainable business operations and elevating corporate value, and assumed the role of CEO and Representative Director. The Lehman Shock in 2008 did not leave Omron unscathed, as it caused a decline in net sales. At this time of...

  • Page 58
    ... as from new business activities or business expansion into emerging countries. Overseas, the Company appointed corporate ethics promotion officers in the Greater China region in 2006 and in the Asia-Pacific region in 2008. We are also establishing a comprehensive compliance system in the Americas...

  • Page 59
    ... of worksite monitoring, such as adding rules to minimize the risk of information leaks via mobile phones. In this way, the Company is conducting information security management activities using the PDCA cycle group-wide under its information security management promotion system, centered on the...

  • Page 60
    ... companies, general managers of head office administrative divisions, and presidents of overseas regional group head offices, the committee's main tasks include formulating the Omron Group's CSR policy and strategies and promoting and monitoring CSR activities in key areas. The business companies...

  • Page 61
    ...blood pressure monitors produced: See link www.healthcare.omron.co.jp/english/factory.html Aim to increase sales by meeting needs in emerging and growth countries. Corporate Social Responsibility (CSR) Environment (Products/services supporting a low-carbon society) Environmental solutions Promoted...

  • Page 62
    ... Directors (external) Kazuhiko Toyama Masamitsu Sakurai Corporate Auditors Soichi Yukawa Satoshi Ando Hidero Chimori Eisuke Nagatomo Executive Advisor Nobuo Tateisi Executive Officers Senior Managing Officer Yoshinobu Morishita Managing Officers Koichi lmanaka Takuji Yamamoto Yoshinori Suzuki...

  • Page 63
    ...' Report Notes: Financial Highlights, Six-year Financial Summary, Fiscal 2009 Management's Discussion and Analysis, and Business and Other Risks are unaudited. Financial Highlights Omron Corporation and Subsidiaries Years ended March 31, 2010, 2009, and 2008 Millions of yen (except per share data...

  • Page 64
    ... share data) FY2009 Net sales (Notes 2, 4, 5, 6, 7): Industrial Automation Business Electronic and Mechanical Components Business Automotive Electronic Components Business Social Systems Solutions Business Healthcare Business Other Businesses Costs and expenses: Cost of sales Selling, general and...

  • Page 65
    ...Note: The business divisions are presented using their abbreviated names. Industrial Automation Business (IAB), Electronic & Mechanical Components Business (EMC), Automotive Electronic Components Business (AEC), Social Systems Solutions Business (SSB), Healthcare Business (HCB). Market Environment...

  • Page 66
    ... for the electronic components, automotive electronic components, and domestic FA businesses. By region, sales declined 18.0% in Japan (including direct exports) and fell 23.9% in North America, 24.7% in Europe, and 1.7% in the Asia Pacific. In contrast, sales in the Greater China region rose...

  • Page 67
    ...in the Greater China and Asia-Pacific regions, particularly for relays for air con- ditioners and other consumer electronics, flexible printed circuit (FPC) connectors for optical disks, and mobile phone input devices. AEC (Automotive Electronic Components Business) AEC net sales declined 8.5% year...

  • Page 68
    ... year. Sales were brisk in the environmental business for energy-conservation services using electricity usage visualization systems and other services. Improving market conditions in the electronic systems and equipment business supported a gradual recovery for contracted production and development...

  • Page 69
    ... end of the previous fiscal year. The decline was primarily caused by strict control of new capital investment and reduced inventories, which outbalanced the increased valuation of investment securities from the rising trend in stock values since the end of fiscal 2008 and an increase in notes and...

  • Page 70
    ... 23, 2010 (date of submission of the Securities Report). (1) Economic Conditions The primary business of the Omron Group is consumer and commercial electronic components used in the manufacture of electrical and electronic equipment, as well as control system equipment used by manufacturing sectors...

  • Page 71
    ... in R&D as part of its technology-centered business operations for the realization of sustainable growth. As a result, the R&D expenses ratio remains at approximately 7%. The Omron Group strives to increase the new product contribution ratio by reflecting such considerations as market needs in its...

  • Page 72
    72 Consolidated Balance Sheets Omron Corporation and Subsidiaries March 31, 2010 and 2009 Millions of yen Thousands of U.S. dollars (Note 2) ASSETS Current assets: Cash and cash equivalents Notes and accounts receivable - trade Allowance for doubtful receivables Inventories (Note 3) Deferred ...

  • Page 73
    ...trade Accrued expenses Income taxes payable Other current liabilities (Note 13) Current portion of long-term debt (Note 8) Total current liabilities 2010 ... 11): Common stock, no par value: Authorized: 487,000,000 shares in 2010 and 2009, respectively Issued: 239,121,372 shares in 2010 and 2009, ...

  • Page 74
    ...,871 3,659,699 1,434,688 406,903 30,957 5,532,247 Net sales Costs and expenses: Cost of sales Selling, general and administrative expenses Research and development expenses Other expenses, net (Note 12) Total Income (loss) from continuing operations before income taxes and equity in loss (earnings...

  • Page 75
    ... (Loss) Omron Corporation and Subsidiaries Years ended March 31, 2010, 2009 and 2008 Millions of yen Thousands of U.S. dollars (Note 2) 2010 Net income... income Net change in pension liability adjustments during the year Unrealized gains (losses) on available-for-sale securities: Unrealized holding...

  • Page 76
    ...' Equity Omron Corporation and Subsidiaries Years ended March 31, 2010, 2009 and 2008 Millions of yen Number of common shares issued Common stock Capital surplus Legal reserve Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Noncontrolling Shareholders...

  • Page 77
    ... debt Repayments of long-term debt Dividends paid by the Company Dividends paid to noncontrolling interests Acquisition of treasury stock Sale of treasury stock Exercise of stock options Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase...

  • Page 78
    ... equipment and systems with advanced computer, communications and control technologies. The Company conducts business in over 30 countries around the world and strategically manages its worldwide operations through 5 regional management centers in Japan, North America, Europe, Asia-Pacific and China...

  • Page 79
    ... by Japanese tax regulations. Product Warranties A liability for the estimated warranty related cost is established at the time revenue is recognized and is included in other current liabilities. The liability is established using historical information including the nature, frequency, and average...

  • Page 80
    ... sheet or to specific firm commitments or forecasted transactions. Based on the Companies' policy, all foreign exchange forward contracts, foreign currency swaps and interest rate swaps entered into must be highly effective in offsetting changes in cash flows of hedged items. Changes in fair value...

  • Page 81
    ...dollars 2010 Finished products Work-in-process Materials and supplies Total ¥ 43,228 12,129 22,298 ¥ 77,655 2009 ¥ 49,122 13,068 22,518 ¥ 84,708 2010 $ 464,817 130,419 239,764 $ 835,000 4. Marketable Securities and Investments Cost, gross unrealized holding gains and losses and fair value of...

  • Page 82
    ... Financial Statements Omron Corporation and Subsidiaries Thousands of U.S. dollars 2010 Cost (*) Gross unrealized gains Gross unrealized losses Fair value Available-for-sale securities Debt securities $ 624 $ - 148,882 212,075 Equity securities $ 212,699 $ 148,882 Total $ $ - $ 624 (914...

  • Page 83
    .... This acquisition was to expand laser business by enhancing line-up of products focusing on laser processing technology. The consolidated financial statements for the year ended March 31, 2008 include the operating results of OLFT from July 2007. The estimated fair values of the assets acquired and...

  • Page 84
    ...Financial Statements Omron Corporation and Subsidiaries Estimated amortization expense for the next five years ending March 31 is as follows: Millions of yen Thousands of U.S. dollars Years ending March 31 2011 2012 2013 2014 2015 Intangible assets not subject to amortization at March 31, 2010 and...

  • Page 85
    ... and medical equipment sector, the fair value of the associated reporting unit was decreased. The impairment losses are included in other expenses, net in the consolidated financial statements of operations. And, the fair value of the reporting unit was estimated using the expected present value of...

  • Page 86
    ... Notes to Consolidated Financial Statements Omron Corporation and Subsidiaries Long-term debt at March 31 consisted of the following: Millions of yen Thousands of U.S. dollars 2010 Unsecured debt: The weighted average annual interest rates 2009 1.3% 2010 1.3% Other Total Less portion due within...

  • Page 87
    ... balances of the benefit obligations and the fair value of the plan assets at March 31: Millions of yen Thousands of U.S. dollars 2010 2009 2010 Change in benefit obligation: Benefit obligation at beginning of year Service cost, less employees' contributions Interest cost Actuarial loss (gain...

  • Page 88
    ...: 2010 Discount rate Compensation increase rate 2.0% 2.0% 2009 2.0% 2.0% Weighted-average assumptions used to termination and retirement benefit cost for the years ended March 31, 2010, 2009 and 2008 are as follows: 2010 Discount rate Compensation increase rate Expected long-term rate of return on...

  • Page 89
    ...-term rate of return on plan assets, the Company revises the model portfolio to the extent necessary to achieve it. Target allocation of plan assets is 20% equity securities, 66% debt securities and life insurance general account assets and 14% other. Equity securities are mainly composed of stocks...

  • Page 90
    ... and ¥258 million, respectively. 11. Shareholders' Equity Japanese companies are subjected to the Corporate Law. The Corporate Law requires that all shares of common stock be issued with no par value and at least 50% of amount paid of the issue price of new shares is required to be recorded as...

  • Page 91
    ... in the parent company's general books of account. Stock Options The Company has authorized the grant of options to purchase common stock of the Company to certain directors and executive officers of the Company under a fixed stock option plan. Under the above plan, the exercise price of each...

  • Page 92
    ...: 2008 Risk-free interest rate Volatility Dividend yield Expected life No fixed stock options were granted for the years ended March 31, 2009 and 2010. The Black-Scholes option-pricing model used by the Company was developed for use in estimating the fair value of fully tradable options, which...

  • Page 93
    ... of property, plant and equipment Loss on impairment of goodwill Loss on impairment of investment securities and other assets Net gain on sales of investment securities Interest income, net Foreign exchange loss, net Dividend income Net loss on sales of business entity Other, net Total ¥ 558 217...

  • Page 94
    ...2009 Deferred tax liabilities Deferred tax assets 2010 Deferred tax liabilities Inventory valuation Accrued bonuses and vacations Termination and retirement benefits Enterprise taxes Marketable securities Property, plant and equipment Allowance for doubtful receivables Pension liability adjustment...

  • Page 95
    ... operations. The Companies have no continuing involvement with the business of Omron Entertainment Co., Ltd. The following table summarizes selected financial information for the year ended March 31, 2008 for the discontinued operations. Millions of yen 2008 Net sales Cost of sales and expenses...

  • Page 96
    ... Omron Corporation and Subsidiaries Denominator Weighted average common shares outstanding Dilutive effect of: Stock options Diluted common shares outstanding 2010 2009 2008 220,158,389 - 220,158,389 220,747,962 - 220,747,962 228,005,106 61,624 228,066,730 16. Supplemental Information...

  • Page 97
    ...component of other comprehensive income (loss) including other comprehensive income (loss) attributable to noncontrolling interests and reclassification adjustments for the years ended March 31, 2010, 2009 and 2008 were as follows: Millions of yen 2010... Net change in...-for-sale securities: Unrealized...

  • Page 98
    ... Omron Corporation and Subsidiaries Thousands of U.S. dollars 2010 Before...Companies' derivatives. For the rest of the companies' derivatives, pricing or valuation models are applied to current market information to estimate fair value. The Companies do not use derivatives for trading purposes...

  • Page 99
    ... not use derivatives for trading purposes. The Companies are exposed to credit risk in the event of non-performance by counterparties to derivatives, but management considers the exposure to such risk to be minimal since the counterparties are major financial institutions. Changes in the fair value...

  • Page 100
    ... to trade receivables, as approximately 51% of total sales are concentrated in Japan, are limited due to the large number of well-established customers and their dispersion across many industries. The Company normally requires customers to deposit funds to serve as security for ongoing credit sales...

  • Page 101
    ...that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3- Inputs are significant to measure fair value of assets or liabilities and unobservable. Assets and...

  • Page 102
    ... devices, power window switches, various auto motive relays. (4) Social Systems Solutions Business (SSB): Railway infrastructure systems, traffic control and road control systems, security systems, payment systems. (5) Healthcare Business (HCB): Digital blood pressure monitors, digital thermometers...

  • Page 103
    ...Total Eliminations Consolidated and others I Sales and Segment profit (loss) [1] Sales to external customers ¥ 339,815 [2] Intersegment Sales 10,085 Total... about the above segment information: -No.1 Intersegment sales are recorded at the same prices used in transactions with third parties...

  • Page 104
    104 Notes to Consolidated Financial Statements Omron Corporation and Subsidiaries Millions of yen For the year ended March 31, 2010 IAB EMC AEC SSB HCB Other Total Eliminations Consolidated and others I Sales and Segment profit (loss) [1] Sales to external customers ¥ 206,197 ¥ 70,717 ...

  • Page 105
    ...Major Countries or areas belonging to segments other than Japan are as follows: (1) North America: the United States of America and Canada (2) Europe: the Netherlands, Great Britain, Germany, France, Italy and Spain (3) Greater China: China, Hong Kong and Taiwan (4) Asia Pacific: Singapore, Republic...

  • Page 106
    ...'s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management...

  • Page 107
    ... of internal control over business processes, we selected locations and business units to be tested based on the previous year's consolidated net sales (after the elimination of transactions between consolidated companies), and the companies whose net sales reaches two-thirds of total amount on...

  • Page 108
    ... estimates and the management's judgment and/or (iii) a business or operation dealing with high-risk transactions, taking into account their impact on the financial reporting. (TRANSLATION) Independent Auditors' Report June 22, 2010 To the Board of Directors of OMRON Corporation. Deloitte Touche...

  • Page 109
    ... Headquarters Europe Omron Europe B.V. (The Netherlands) Tel 31-23-568-1300 Fax 31-23-568-1391 North America Omron Management Center of America, Inc. (Illinois) Tel 1-224-520-7650 Fax 1-224-520-7680 Asia-Pacific Omron Asia Pacific Pte. Ltd. (Singapore) Tel 65-6835-3011 Fax 65-6835-2711 Greater China...

  • Page 110
    ...the desire for a comfortable life, the quest of lifelong learning, and the wish to enjoy leisure time. In order to further advance the fields of safety/security, healthcare, and environmental preservation, Omron is also placing its priority on activities that bring technologies ever closer to people...

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    ...Frequency Smart Entry Systems Electric Power Steering Controllers Travel Time Measurement Systems Core 60th Year 1993 Switch Mode Power Supplies Smart Sensors Body Composition Monitors LCD Backlights Ultra-small Pressure Sensors for Wrist Blood Pressure Monitors 70th Year 2003 Current Business...

  • Page 112
    ... Annual Report 2010, OMRON Corporation is promoting the use of natural energy resources in Japan. IR and M&A Planning Headquarters Investor Relations Department 3-4-10 Toranomon, Minato-ku, Tokyo 105-0001 JAPAN Phone: +81-3-3436-7170 Fax: +81-3-3436-7180 Homepage: http://www.omron.co.jp (Japanese...