Omron 2010 Annual Report Download - page 45

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45
Segment Information
Yoshinori Suzuki
Managing Officer
President and CEO,
OMRON Automotive Electronics Co., Ltd.
What’s New
Business Strategy and Outlook for Fiscal 2010
Aiming to complete the establishment of a new
management base
We forecast AEC attaining year-on-year increases of 8.4%
to ¥81.5 billion in net sales and 47.1% to ¥2.5 billion in
operating income in fiscal 2010. (We forecast an 88.2%
rise in operating income before the subtraction of man-
agement guidance fees, to ¥3.2 billion in fiscal 2010.)
Automobile manufacturers are transforming their busi-
ness structures and engaging in a battle for survival for the
industry’s next stage, which is epitomized by the arrival of
electric vehicles. We anticipate a whole new level of inten-
sity in global competition in terms of both technology and
cost. In preparation for this business environment, AEC
plans to fortify its operations in three specific areas of
business: systems, including passive entry and engine
push-start systems; modules/switches, such as electric
power steering controllers, power window switches, and
electronic components for electric vehicles; and compo-
nents 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 techni-
cal capabilities, which is the source of its competitive
advantage, and improve its cost competitiveness.
The AEC segment’s operations were split off from the
Company on May 6, 2010, and relaunched as Omron
Automotive Electronics Co., Ltd. The AEC segment was
thoroughly reorganized and its earning structure base was
completely restructured last year prior to the new compa-
ny’s founding. This year, the new company is conducting
business operations with the objective of completing the
establishment of the new management base.
Passive Entry and Push Engine
Start Systems
Passive entry and push engine start systems
enable automobile owners to lock and unlock
doors by simply touching a button on the car
door, eliminating the need to take the
portable transmitter (key fob) out of a pocket
or bag. Further, in conjunction with another
specific operation, these systems will start or
turn off the engine by pressing a switch on
the driver’s side of the dashboard.
Electric Power Steering Controllers
Electric power steering controllers facilitate
automobile steering and improve fuel sav-
ings compared with conventional hydraulic
steering systems.
Actively contributing to the creation of
eco-friendly vehicles
AEC is active in a variety of ways to fulfill its aim of establishing “harmony with the envi-
ronment and nature” for our car society, such as by contributing to improving fuel efficiency,
promoting the spread of hybrid vehicles, and realizing viable electric vehicles. Through the
close partnerships it has built with automobile manufacturers, the segment applies its
sensing and control technologies to the development and production of a variety of envi-
ronmental technologies and products.
For example, AEC’s electric power steering systems, which are becoming increas-
ingly common, enable better fuel efficiency than conventional hydraulic steering
systems. Moreover, the development and manufacture of the system controllers
have given the segment a wealth of experience and practical accomplishments. AEC
also recently began manufacturing controllers with an idling stop function that pro-
vides significant fuel savings by automatically shutting off the engine when a vehicle
is stopped.
In the promising growth area of electric
vehicles, AEC is moving toward mass pro-
duction of electricity leakage sensors and
voltage monitoring units that will monitor the
electric circuit conditions and support the
more efficient usage of batteries in electric
vehicles. AEC will continue contributing to
the creation of environmentally friendly vehi-
cles following its fundamental concept of
realizing “the best match between people
and automobiles.” Electricity leakage sensor