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Annual Report 2011
Year ended March 31, 2011

Table of contents

  • Page 1
    Annual Report 2011 Year ended March 31, 2011

  • Page 2
    ... is a field of learning that brings together communication engineering and system control engineering technologies with the aim of reaching a uniform understanding of biological, human, mechanical, and social mechanisms.) An Early Protective Relay SSB Social Systems, Solutions and Service Business...

  • Page 3
    ...reality, we have drawn up a new long-term management strategy, entitled "Value Generation 2020," so that we can implement the Omron Principles to a greater degree than ever before. Omron will continue to take on the challenge of growing into a global group that its customers and society at large can...

  • 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
    ... Electronic Components Business SSB Social Systems, Solutions and Service Business HCB Healthcare Business Other Environmental Solutions, Electronic Systems & Equipments, Backlight, Micro Devices Businesses Intellectual Property Strategy 48 Corporate Governance, CSR, and Disaster Response...

  • Page 6
    ...a global business of value that supports "safety and security, health, and the environment" in the business domains of industry, society, and lifestyles. Sensing and Control Sensing and Control: Our Core Technologies The value that Omron provides is the realization of "the best matching of machines...

  • Page 7
    ...when they want it, Omron has established a global network and a highly localized service system covering its operating bases in Japan, North America, Europe, Greater China, and the Asia-Pacific region. Omron provides optimal local support to its business partners worldwide, through its comprehensive...

  • Page 8
    ... the sensing and control technology for the future of auto manufacturing. Connectors Display and Operating Devices Surface-mounting High-frequency Relays Indicator Display Equipment FPC Connectors Connectors are used as an interface between electronic devices and are widely used in mobile devices...

  • Page 9
    ... disease management at medical institutions. Micro Devices Omron provides new applications centering on micro electrical mechanical systems (MEMS) MEMS Acoustic Sensors MEMS Non-contact Temperature Sensors Body Glucose Meters Nebulizers Social Sensing Sensors located in public settings gather...

  • Page 10
    ... the Healthcare Business. • Increased EPS (earnings per share) from ¥110.7 (FY2003) to ¥185.9 (FY2007). • Raised 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...

  • Page 11
    ... Income Margin: 15% or higher 14 months (February 2009-March 2010) • Structural Reform (Strengthening of profit base over the medium term) 26 months • May 2010 Spun off the Automotive Electronic Components Business • April 2011 Spun off the Social Systems, Solutions and Service Business

  • Page 12
    ... of a new LCD backlight production base in China, increasing production capacity (Press release) NTT West, NTT East, and Omron collaborate to begin offering environmental solutions to corporate customers (Press release) August 3 (Tue) April 26 (Mon) May 6 (Thu) 2010 (YoY change) (YoY change) Q1...

  • Page 13
    ... support personal health management. Simultaneous launch of a WellnessLinkcompatible blood pressure monitor, body composition monitor and pedometer with built-in communication functionality January 14 (Fri) Enhancement of the product lineup of MEMS Flow Sensors for fuel cell systems (Press release...

  • Page 14
    ...-term strategy, called Value Generation 2020 (VG2020), the Omron Group has shifted to a new management team. Over the next 10 years, we will build a powerful "Team Omron," which we are confident will accelerate our growth as a truly global enterprise. Corporate Governance Embedded in Social Values...

  • Page 15
    ... of time. As a result, we achieved a V-shaped recovery in operating income in fiscal 2010. I feel that this recovery has given a great confidence boost to all Omron Group employees. Under GD2010, we worked hard to increase our responsiveness to changing business conditions while promoting business...

  • Page 16
    ... as president of Omron Healthcare Co., Ltd., from 2008. I was head of the Group Strategy Headquarters from April 2010. In this role, I worked on formulating our new long-term strategy, called Value Generation 2020 (VG2020), while planning and devising Group-wide business strategies. And now, I have...

  • Page 17
    ... strengthen this spirit as Omron's DNA. In fulfilling my management responsibilities, I will adhere to my belief: "Change what should be changed; don't change what should not be changed." We look forward to continuing our transformation with you. Net sales 655.0 Gross profit 253.5 SG&A expenses 152...

  • Page 18
    ... Feature 1] Interview with the President President and CEO Yoshihito Yamada Targeting "Transformation" with New Management Team New Strategy The goal I most want to achieve under Omron's new long-term strategy, Value Generation 2020 (VG2020), is for the Group to become a truly global enterprise...

  • Page 19
    ... based on a long-term strategy that emphasized strengthening corporate governance and introducing an internal company system. As a result, we made considerable progress in stakeholder-oriented management. On the performance side, in fiscal 2007 we generated year-onyear increases in both revenue...

  • Page 20
    ...IA) business (IAB & EMC). We changed our strategy focus because our perception of the global market has changed accompanying the growth of emerging countries. The second difference relates to management reforms. Under GD2010, we introduced the internal company system to promote autonomous management...

  • Page 21
    ..., we will continue forging links between manufacturing, sales, and development, including overseas sites. We use the term "Team Omron" to symbolize the promotion of this kind of vertically and horizontally integrated global matrix management, together with a new internal Company logo aimed at...

  • Page 22
    ... end, we will improve the product mix through a stronger IA business, develop material-saving technologies, increase automation in China and other parts of Asia. The fifth task is to strengthen global human resources. Recruiting and developing global human resources is a pressing task, and we will...

  • Page 23
    ... globalization" in VG2020. To become such a company, we will promote the localization of management to accelerate local strategy decisions, and recruit and retain local human resources to support this structure. Q7 Could you explain the policies regarding capital investment and shareholder return...

  • Page 24
    ... most important goal is for our strong management team to make Omron "a truly global enterprise underpinned by robust growth" through swift and agile management. A Unique Company that Links its Cutting-Edge Businesses, Underpinned by a Customer-Oriented Perspective It is only natural that a group...

  • Page 25
    ...) HCB (Healthcare Business) Koichi Tada AEC (Automotive Electronic Components Business) Kiichiro Miyata SSB (Social Systems, Solutions and Service Business) Yoshinori Suzuki Kiichiro Kondo Interviewer Satoshi Ando Executive Officer Senior General Manager, Investor Relations Headquarters

  • Page 26
    ...." In Japan's case, the manufacturing industry accounts for 40% of total electric power consumption. Being the number one in the "future" means becoming the top player by offering new value through a focus on controlling the energy used by machines in an automated factory setting. We at Omron will...

  • Page 27
    ... to supply relays and switches used in core products across the entire Group, I would like to see our operations underscored by a strong commitment to "coexistence." [Special Feature 2] Interview with the Heads of Business Segments EMC Current position: Executive Officer President, Electronic and...

  • Page 28
    ... in the number of engineers offering technical support. As for raising productivity, we will build a competitive advantage by reducing the materials we use and utilizing automation to lower manufacturing costs. In addition, because speed makes or breaks opportunities in an emerging market, we will...

  • Page 29
    ...products that are easier to assemble. In addition to our electronic control units, these include seat belts, motors, and batteries. [Special Feature 2] Interview with the Heads of Business Segments AEC Current position: Managing Officer CEO & President, Omron Automotive Electronics Co., Ltd. Date...

  • Page 30
    ..., blood glucose monitors, thermometers, and nebulizers. Meanwhile, we are implementing a policy that transforms area sales companies into business companies responsible for planning in their respective areas. This is because some areas have major health needs for specific conditions. One example is...

  • Page 31
    ... senior general manager of the Environmental Solutions Business HQ about this topic. a remote monitoring system business that sends sensed energy data to customers via application service providers, and (3) a solutions business that offers consulting and engineering services based on energy data and...

  • Page 32
    ... of key issues. Let me give a specific example. We are collaborating with IAB in the field of energy and environmental sensing for industrial machinery. Our first venture focuses on an electricity sensor that contributes to power saving. Here, our aim is to augment IAB's products and work jointly...

  • Page 33
    ... the growth strategies of SSB. Kondo (SSB): SSB provides solutions for railways, roads, and other social infrastructure that support our earnings base, as well as those that offer safety and security for commercial facilities. We also view the environmental solutions business as a new growth domain...

  • Page 34
    ...Figures for fiscal 2008 have been restated to reflect the new classifications. 3. Beginning in fiscal 2010, the Omron Group has been revising the management guidance fees for the purpose of concentrating capital funds at the headquarters in order to reinforce selection and concentration and allocate...

  • Page 35
    ... 10 11 Forecast (FY) 08 09 10 11 Forecast (FY) HCB Healthcare Business Net Sales by Segment Other Environmental Solutions, Electronic Systems & Equipments, Backlight, and Micro Devices Businesses Net Sales by Segment 10% Operating Income (Billions of yen) Operating Income Margin (%) 12...

  • Page 36
    36 Segment Information IAB Industrial Automation Business Manufacturing and sales of control systems and components for factory automation and industrial equipment IAB is guided by the management philosophy "To the machine, the work of the machine, to man the thrill of further creation." As a ...

  • Page 37
    ... Intel MPU that can interconnect a large number of ultra-high-speed and high-precision machine control equipment allowing integrated control of an entire system using a single software program. Laser Scanner Omron's Safety Laser Scanner OS32C, using a laser beam reflection method, is the world...

  • Page 38
    ...air conditioner units. These product demand trends boosted sales of the relays and switches for home appliances. Sales of automotive relays and switches also rose on expanding auto production in China and Asia and recovering auto production activity in North America. At the same time, soaring prices...

  • Page 39
    ... Omron Switch & Devices Corporation began mass production in May 2011 of new products in a new manufacturing facility located at its Okayama head office. We will strengthen this new facility as the production hub for the integration of the Company's switch monozukuri technology and global production...

  • Page 40
    ... and sales of electronic components for automobiles AEC conducts business operations catering specifically to the automotive electronics field, and produces technologies and products designed to create "the best matching of automobiles to people." % of Net Sales 14% Fiscal 2010 in Review Sales...

  • Page 41
    ... and our Thai manufacturing base will aim to provide production and services matched to local customer needs in the Asian region. AEC Automotive Electronic Components Business No. 3 Plant in Thailand (Conceptual Drawing) Electric Power Steering Controllers AEC anticipates that a growing number of...

  • Page 42
    ... social sector needs and contribute solutions in the safety, security, and environmental domains, steadily expanded business supported by installations of large-scale video surveillance systems, including face verification systems, intrusion detection systems, and other image processing technology...

  • Page 43
    ... vending machines that communicate with people SSB Social Systems, Solutions and Service Business Since August 2010, SSB has been supplying our "Segment Sensors" for use in the next-generation vending machines of JR East Water Business Co., Ltd. Using Omron's "OKAO Vision" face sensing technology...

  • Page 44
    ... to boost domestic sales of homeuse healthcare products were led in the first quarter by aggressive TV commercial campaigns for new products in its mainstay blood pressure monitors, body composition monitors and pedometers, but these efforts were unable to offset the trend among customers to select...

  • Page 45
    ... access for greater ease in uploading measurement data. Originally developed for use with three types of devices-blood pressure monitors, body composition monitors, and pedometers-in June 2011, Omron released an activity monitor enabling the daily monitoring of calories burned. Omron plans to offer...

  • Page 46
    ... fiscal 2010. The Environmental Solutions Business HQ drew strong demand for its CO2 reduction solutions using the real-time visualization of electric power consumption volume data and high-precision sensors for measuring electricity usage (energy-saving business) for use at production sites. Sales...

  • Page 47
    ...business management efficiency. We plan to increase sales by focusing efforts on sales of high-end products, particularly for the smartphone market. Segment Information What's New Japan's First Power Conditioner with Built-in Multiple-unit Anti-Islanding Control Technology (AICOT®) Other Omron...

  • Page 48
    ... in the direction of next-generation technological innovation to create new business while ensuring that the core businesses will remain vital in the future. The Center also identifies and analyzes technological trends in new markets, such as new energy businesses, to ensure the Company is fully...

  • Page 49
    ... 2007, he founded Industrial Growth Platform, Inc., which 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. An Unspoken Understanding in My Case - - - Mr. Sakuta...

  • Page 50
    ... of the Board of Directors/CEO Separation of management oversight and business execution Advisory board External directors External corporate auditors 1998 One member (member of founding family) 2003- President Hisao Sakuta (not member of founding family) 2011- President Yoshihito Yamada (not...

  • Page 51
    ... world market, it is essential to have global management that makes good use of worldwide resources. But management hasn't yet caught up with the globalization of the "hardware" side of the business, that is, sales and production sites. Unless we also recruit global personnel to management positions...

  • Page 52
    ...to survive the global competition by creating value with diverse cultures, values, and languages positioned on a single corporate platform. It has a different dimension from past globalization. However, people brought up in Japan are not used to diversity and neither are they good at dealing with it...

  • Page 53
    ... justice, morality, and ethics you question? Going Through a Life-Changing Experience Builds Courage - - - Is there a presidential quality that you emphasized? Sakuta: Mr. Yamada has been through a life-changing experience. After I spoke to him in Europe the first time, he came down with an illness...

  • Page 54
    ... headquarters division and in each business company as part of its internal auditing function. The Auditing HQ also offers specific advice for improving business functions. Appointment of External Directors To allow the Board of Directors to monitor business practices from a position that represents...

  • Page 55
    ... Committee Head office divisions Business companies (Internal companies) Global Internal Auditing HQ Board of Directors (BOD) The BOD oversees business activities and decides important business matters such as management objectives and strategies. Board of Corporate Auditors This board oversees...

  • Page 56
    ... recommended for improvement, the Company supports measures to complete the improvements. In addition, the Omron Group has established a Corporate Auditor Office and placed full-time auditors in each of its four regions of global business (the Americas, Europe, Asia Pacific, and Greater China) to...

  • Page 57
    ... security management conditions at subcontractor sites, and implements other measures. In addition, the Company annually reviews management rules based on changes in the external environment and results of worksite monitoring. In fiscal 2010, the company added encryption to notebook computers used...

  • Page 58
    ... 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 and head office...

  • Page 59
    ...into evacuation centers, the risk of the outbreak of infectious diseases contributed to high demand for nebulizers. Also, since there was no electricity due to power cuts, home-use blood pressure monitors and other battery-operated devices were far more useful than models used in a hospital setting.

  • Page 60
    ... equipping employees dispatched to affected areas with Geiger counters and devices that measure accumulated radiation. In order to confirm the safety of employees, Omron Colin adopted a system used for sales activities that ensures staff do not stay in a particular area for a long period of time...

  • Page 61
    ...gasoline supplies. Then, even when engineers managed to get hold of gasoline and reach the devastated areas, the extent of the damage was severe, and means of communication were also restricted. Not only were we unable to meet with our customers at the site, in many cases the stores and ATM machines...

  • Page 62
    ... 21, 2011 Kazuhiko Toyama Director (external) Fumio Tateisi Director and Executive Vice Chairman Yoshihito Yamada President and CEO Masamitsu Sakurai Director (external) Directors, Corporate Auditors, and Executive Officers Akio Sakumiya Senior Managing Director Hisao Sakuta Chairman of the...

  • Page 63
    ... of Cash Flows Notes to Consolidated Financial Statements Independent Auditors' Report Note: Financial Highlights, Six-year Financial Summary, Fiscal 2010 Management's Discussion and Analysis, and Business and Other Risks are unaudited. Financial Highlights Omron Corporation and Subsidiaries...

  • Page 64
    ... data) FY2010 Net sales (Notes) 3, 4: Industrial Automation Business Electronic and Mechanical Components Business Automotive Electronic Components Business Social Systems, Solutions and Service Business Healthcare Business Other Costs and expenses: Cost of sales Selling, general and administrative...

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

  • Page 66
    ... in demand for electronic components for consumer electronics and automobiles and for control equipment in Japan, marking a rebound from the immediate sharp decline in demand that followed the 2008 global financial crisis. By region, sales rose 15.9% in Japan (including direct exports) and also...

  • Page 67
    ... of new equipment (ticket vending machines and automatic ticket gates) by railway companies and a trend toward expanded investment in safety and security solutions for railway stations. The traffic control and road control systems business also generated solid sales by promoting the Financial...

  • Page 68
    ... of net sales is based on the classifications reported in the Six-year Summary (page 64). 2. Review of Operations by Region Japan A recovery in the production activity of the domestic automotive and electronic components industries, spurred by the government policies to offer subsidies and...

  • Page 69
    ... of healthcare management supported a 9.3% increase in the sales of HCB. Net sales in the Asia Pacific region rose 26.1% to ¥50.0 billion, and operating income grew by 60.3% to ¥3.5 billion. Financial Condition Assets Total assets amounted to ¥562.8 billion in fiscal 2010, representing an...

  • Page 70
    ...commercial electronic components used in the manufacture of electrical and electronic equipment, as well as control system equipment used by manufacturing sectors and in capital investment-related areas. Accordingly, demand for Omron Group products is affected by economic conditions in these markets...

  • Page 71
    ... Rights The Omron Group conducts research on technology developed by other companies and in the public domain in the course of its R&D and design activities. A very large number of intellectual property rights exist within the Group's range of business and products, and new intellectual property...

  • Page 72
    ...Omron Corporation and Subsidiaries March 31, 2011 and 2010 Millions of yen Thousands of U.S. dollars (Note 2) ASSETS Current assets: Cash and cash equivalents Notes and accounts receivable - trade... in and advances to affiliates Investment securities (Note 4) Leasehold deposits Deferred income...

  • Page 73
    ... (Note 2) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt (Note 8) Notes and accounts payable - trade Accrued expenses Income taxes payable Other current liabilities (Note 13) Current portion of long-term debt (Note 8) Total current liabilities FY2010 ¥ 45,519 77,836...

  • Page 74
    74 Consolidated Statements of Operations Omron Corporation and Subsidiaries Years ended March 31, 2011, 2010 and 2009 Millions of yen Thousands of U.S. dollars (Note 2) FY2010 Net sales Costs and expenses: Cost of sales Selling, general and administrative expenses Research and development ...

  • Page 75
    ... Consolidated Statements of Comprehensive Income (Loss) Omron Corporation and Subsidiaries Years ended March 31, 2011, 2010 and 2009 Millions of yen Thousands of... Net change in pension liability adjustments during the year Unrealized gains (losses) on available-for-sale securities: Unrealized...

  • Page 76
    ... with noncontrolling interests and other Transfer to legal reserve Other comprehensive income (loss) Acquisition of treasury stock Sale of treasury stock Grant of stock options 239,121,372 Balance, March 31, 2010 Net income Cash dividends paid to OMRON Corporation shareholders, ¥30 per share Cash...

  • Page 77
    ... Proceeds from issuance of long-term debt Repayments of long-term debt Dividends paid by the Company Dividends paid to noncontrolling interests Acquisition of treasury stock Sale of treasury stock Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash...

  • Page 78
    ... markets. Healthcare Business manufactures and sells products such as digital blood pressure monitors, digital thermometers, body composition monitors, pedometers, patient monitors and nebulizers. Other handles search and cultivation of new businesses, and as a headquarters' direct control business...

  • Page 79
    .... Available-for-sale securities are reviewed for other-than-temporary declines in the carrying amount based on criteria that include the length of time and the extent to which the market value has been less than cost, the financial condition and near-term prospects of the issuer and the Company...

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

  • Page 81
    ... Work-in-process Materials and supplies Total ¥ 48,945 11,644 25,562 ¥ 86,151 2010 ¥ 43,228 12,129 22,298 ¥ 77,655 $ 2011 589,699 140,289 307,976 $ 1,037,964 Note 4. Marketable Securities and Investments Cost, gross unrealized holding gains and losses and fair value of available-for-sale...

  • Page 82
    ... In regards to the gross unrealized holding losses of available-for-sale securities, the related securities have been at a loss position for a relatively short period of time. Based on this fact and other relevant factors, management has determined that these investments are not considered otherthan...

  • Page 83
    ... on sales for the year ended March 31, 2010. Losses on impairment of available-for-sale securities recognized to reflect declines in market value considered ...the Companies did not identify any events or changes in circumstances that might have had a significant adverse effect on the fair value of ...

  • Page 84
    ...Omron Corporation and Subsidiaries The carrying amount of goodwill in each segment at March 31, 2011 and 2010 and changes in its carrying amount in each segment for the year ended March 31, 2011 and 2010... loss Total Acquisition Impairment Sales of business entity Foreign currency translation ...

  • Page 85
    ...million ($3,819 thousand) in Automotive Electronic Component Business and Other Business, respectively. There was no material impairment loss for the year ended March 31, 2010. Note 8. Short-Term Debt and Long-Term Debt Short-term debt at March 31, 2011 and 2010 consisted of the following: Millions...

  • Page 86
    ...Benefit obligation at beginning of year Service cost, less employees' contributions Interest cost Actuarial loss Benefits paid Settlement paid Benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Employers' contributions...

  • Page 87
    ... plans included the following components for the years ended March 31, 2011, 2010 and 2009: Millions of yen Thousands of U.S. dollars 2011 2010 2009 2011 Service cost, less employees' contributions Interest cost on projected benefit obligation Expected return on plan assets Amortization...

  • Page 88
    ... necessary. Target allocation of plan assets is 20% equity securities, 69% debt securities and life insurance general account assets and 11% other. Equity securities are mainly composed of stocks that are listed on various securities exchanges. The Company has investigated the business condition of...

  • Page 89
    ... 1 assets are comprised principally of equity securities, which are valued using unadjusted quoted market prices in active markets with sufficient volume and frequency of transactions. Level 2 assets are comprised principally of joint trusts and life insurance general account assets that invest in...

  • Page 90
    ... the issue price of new shares is required to be recorded as common stock while the remaining net proceeds are required to be presented as additional paid-in capital, which is included in capital surplus. The Corporate Law permits Japanese companies, upon approval of the Board of Directors, to issue...

  • Page 91
    ... 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 option exceeded the market price of the Company's common the Corporate Law, certain limitations were imposed on...

  • Page 92
    ... are fully transferable. Additionally, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. It is management's opinion that the Company's stock options have characteristics significantly different from those of traded options and...

  • Page 93
    ... 2009: 2011 2010 2009 Japanese statutory effective tax rates Increase (decrease) in taxes resulting from Permanently non-deductible items Tax credit for research and development expenses Losses of subsidiaries for which no tax benefit was provided Difference in subsidiaries' tax rates Change in the...

  • Page 94
    ...its result of operations, financial condition or cash flows. The Companies recognize interest and penalties accrued related to unrecognized tax benefits in income taxes in the consolidated statements of operations. The Companies file income tax returns in Japanese and foreign jurisdictions. With few...

  • Page 95
    ... GAAP) 2011 2010 2009 2011 Foreign currency translation adjustments Beginning balance Change for the year Ending balance Pension liability adjustments Beginning balance Change for the year Ending balance Unrealized gains (losses) on available-for-sale securities Beginning balance Change for the...

  • Page 96
    ...Omron Corporation and Subsidiaries Tax effects allocated to each component of other comprehensive income (loss) including other comprehensive income (loss) attributable to noncontrolling interests and reclassification adjustments for the years ended March 31, 2011, 2010...available-for-sale securities...

  • Page 97
    ... Net change in...on available-for-sale securities: ...value Carrying amount 2010 Fair value Carrying amount 2011 Fair value Nonderivatives Long-term debt, including current portion Derivatives Included in Other current assets (liabilities) Forward exchange contracts Foreign currency swaps Interest rate...

  • Page 98
    ... 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. Note 18. Derivatives and Hedging Activities The Companies enter into foreign exchange forward contracts and...

  • Page 99
    ... effective part) Transfer from other comprehensive income (loss) to profit and loss (Hedge effective part) Millions of yen Cash flow hedge Forward exchange contracts Foreign currency swaps Interest rate swaps The amount of hedging ineffectiveness was not material. ¥ 771 (9) (24) 2010 ¥ (186...

  • Page 100
    ... The Companies place their short-term cash investments with high-creditquality financial institutions. Concentrations of credit risk with respect to trade receivables, as approximately 49% of total sales are concentrated in Japan, are limited due to the large number of well-established customers and...

  • Page 101
    ... Liabilities Derivatives Foreign exchange forward contracts Interest rate swaps Foreign currency swaps Investment Securities Investment securities mainly consist of listed stocks. Since fair value of the investment securities is valued using a quoted market price in active markets for identical...

  • Page 102
    ... based on the nature of the products and services offered. The Company discloses five operating segments: "Industrial Automation Business", "Electronic and Mechanical Components Business", "Automotive Electronic Components Business", "Social Systems Solution and Service Business" and "Healthcare...

  • Page 103
    ... Intersegment sales are recorded at the same prices used in transactions...2010 IAB EMC AEC SSB HCB Other Total Eliminations Consolidated and others I Sales and Segment profit (loss) [1] Sales to external customers ¥ 203,917 [2] Intersegment Sales 4,088 Total 208,005 ¥ 12,694 Segment profit...

  • Page 104
    ... Financial Statements Omron Corporation and Subsidiaries Millions of yen For the year ended March 31, 2009 IAB EMC AEC SSB HCB Other Total Eliminations Consolidated and others I Sales and Segment profit (loss) [1] Sales to external customers ¥ 271,204 [2] Intersegment Sales 10,327...

  • Page 105
    ... equipment separated into major geographic areas as of and for the years ended March 31, 2011, 2010 and 2009 is as follows: Millions of yen For the year ended March 31, 2011 Sales to external customers Property, plant and equipment ¥ ¥ Japan North America Europe Greater China Southeast Asia...

  • Page 106
    ...Japanese yen. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America...

  • Page 107
    ...Management's Report on Internal Control 1. Matters relating to the basic framework for internal control over financial reporting Yoshihito Yamada, President and Chief Executive Officer is responsible for designing and operating effective internal control over financial reporting of Omron Corporation...

  • Page 108
    ...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, 2011 To the Board of Directors of OMRON Corporation. Deloitte Touche Tohmatsu LLC...

  • Page 109
    ...-8530, Japan Tel 81-75-344-7000 Fax 81-75-344-7001 Overseas 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...

  • Page 110
    ... time. To address social needs in the areas of safety/security, healthcare, and environmental preservation, Omron is placing priority on establishing technologies to realize the best matches between individuals and society, between humans and the environment, and between people and machines as well...

  • Page 111
    ...Entry Systems Electric Power Steering Controllers Core 60th Year 1993 Switch Mode Power Supplies Smart Sensors Travel Time Measurement Systems LCD Backlights Omron: Advancing Sensing and Control Technology Body Composition Monitors Ultra-small Pressure Sensors for Wrist Blood Pressure Monitors...

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    Investor Relations Headquarters Investor Relations Department Shinagawa Front Building 7F 2-3-13, Konan, Minato-ku, Tokyo 108-0075 JAPAN Phone: +81-3-6718-3421 Fax: +81-3-6718-3429 Homepage: http://www.omron.co.jp (Japanese) http://www.omron.com (English)