Omron 2012 Annual Report Download

Download and view the complete annual report

Please find the complete 2012 Omron annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

Year ended March 31, 2012
Integrated Report 2012

Table of contents

  • Page 1
    Integrated Report 2012 Year ended March 31, 2012

  • Page 2
    ...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 markets; and movements of currency exchange rates. 2 Omron Corporation Integrated Report 2012 1

  • Page 3
    ... Ando Executive Officer Senior General Manager, Investor Relations Headquarters Segment Information 30 34 36 48 49 Business Segments and Key Products Omron at a Glance Segment Information 36 Industrial Automation Business (IAB) 38 Electronic and Mechanical Components Business (EMC) 40 Automotive...

  • Page 4
    ... to report on our fiscal 2011 performance. Our efforts to develop businesses and introduce new products targeting emerging markets contributed to sales, and net sales edged up 0.3% year on year, to ¥619.5 billion, accordingly. However, the impacts of the strong yen and rising raw material prices...

  • Page 5
    ... Omron through the Year Segment Information Corporate Governance, CSR, and Others Financial Information Corporate Information CONTENTS Facets of Human Society INDuSTRIAL AuTOMATION BuSINESS (IAB) 44% 13% 14% Net Sales WEB Manufacturing and sales of control systems and components for factory...

  • Page 6
    ... bases in Japan, the Americas, Europe, Greater China, and the Asia Pacific region. Omron's 35,992 full time employees provide optimal local support to its business partners worldwide, through the Company's comprehensive support system ranging from development to production, distribution, and...

  • Page 7
    ... 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 EARTH STAGE (FY2014-FY2020) New value generation for growth Goals • Sales: ¥1 trillion • Operating Income...

  • Page 8
    ... March Product-Related Topics 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) Other Businesses July Launch of new KP K series of power...

  • Page 9
    ...Sales expansion in emerging markets 3. Focus on environmental solutions business 4. Profit structure reform 5. Strengthening global human resources Yoshihito Yamada President and CEO fiscal 2011. We also established Automation Centers in Japan, China, and Europe to strengthen our customer support...

  • Page 10
    ... other business areas? That is a question often asked by people from both inside and outside the Company. Other businesses, too, are important to Omron. Currently, our Automotive Electronic Components Business (AEC), Social Systems, Solutions and Service Business (SSB), and Healthcare Business (HCB...

  • Page 11
    ... have a clear picture of what work they wish to do in what part of the world. One specific human resources strategy we have developed is the Global Core Position Strategy, which was born out of our desire to actively provide opportunities to non-Japanese employees by allowing them to participate in...

  • Page 12
    ...: Satoshi Ando, Executive Officer, Senior General Manager, Investor Relations Headquarters) Electronic and Mechanical Components Business (EMC) -- Monozukuri (Product Creation) Is a Competitive Advantage That Other Companies Cannot Emulate Aiming to Heighten Our Engineering Prowess through Means...

  • Page 13
    ...our brand. -- One of your core products is blood pressure monitors, and according to your own estimates you have shares of around 50% of the global market, approximately 60% in Japan, and more than 60% in China. What is the core technology that supports this strength? Also, what are your strategies...

  • Page 14
    ...strive to create structures and systems that avoid these risks and minimize the damage they cause to ensure our business divisions can move ahead securely. Koji Nitto Executive Officer Senior General Manager, Global Resource Management Headquarters 24 Omron Corporation Integrated Report 2012 25

  • Page 15
    ... of risks. Kiyoshi Yoshikawa Executive Officer Senior General Manager, Global Process Innovation Headquarters the heads of purchasing from each business division to pursue the task force's initiatives. First, we worked to meet our responsibility for supplying products and services to our customers...

  • Page 16
    ... across the board in maintaining and restoring social infrastructure, and minimizing any impact on our customers and Omron's businesses. In developing disaster response plans, it is not sufficient to merely focus on short-term reconstruction 28 Omron Corporation Integrated Report 2012 29

  • Page 17
    ... and Key Products Omron at a Glance Segment Information: Industrial Automation Business (IAB) Other Businesses Electronic and Mechanical Components Business (EMC) R&D Automotive Electronic Components Business (AEC) Social Systems, Solutions and Service Business (SSB) Healthcare Business (HCB...

  • Page 18
    ... on the new challenge of supporting daily personal health management all over the world. *3 As of August 2012, Omron internal survey Thermometers Spot Check Monitors Sleep Sensors Body Composition Monitors Body Glucose Meters Blood Pressure Monitors Activity Monitors Portable Electrocardiogram...

  • Page 19
    ... and Key Products Omron at a Glance Segment Information: Industrial Automation Business (IAB) Other Businesses Electronic and Mechanical Components Business (EMC) R&D Automotive Electronic Components Business (AEC) Social Systems, Solutions and Service Business (SSB) Healthcare Business (HCB...

  • Page 20
    ... issues we will work to respond to the energy-saving and creation needs of customers in a wide range of environmental fields. What's New Omron Tongling Automation System (Hangzhou) Co., Ltd., Established as Joint Venture Company by Omron (China) Co., Ltd., and Chinese System Integrator / Sales...

  • Page 21
    ... in the load switching units used for directly controlling the supply of power to these smart meters. BST commands the leading position in the Chinese market for power latching relays. The company has gained a competitive advantage through its high-mix, low-volume production system and by enhancing...

  • Page 22
    ... and Key Products Omron at a Glance Segment Information: Industrial Automation Business (IAB) Other Businesses Electronic and Mechanical Components Business (EMC) R&D Automotive Electronic Components Business (AEC) Social Systems, Solutions and Service Business (SSB) Healthcare Business (HCB...

  • Page 23
    ... and Key Products Omron at a Glance Segment Information: Industrial Automation Business (IAB) Other Businesses Electronic and Mechanical Components Business (EMC) R&D Automotive Electronic Components Business (AEC) Social Systems, Solutions and Service Business (SSB) Healthcare Business (HCB...

  • Page 24
    ... medical devices market. What's New Start of Sleep Sensor Business HCB Results and Forecast (Billions of yen) Check it out! Analysis of external environment Changes in domestic electronics market (blood pressure monitors) (Billions of yen) Fiscal Year Net sales Domestic Overseas Americas Europe...

  • Page 25
    ... Smartphone unit shipment volume trend and forecasts (Million units) % Helping Solar Power Systems Stabilize Generation Volumes and Supporting Maintenance with Monitoring Services Fiscal Year Net sales Domestic Overseas Americas Europe Asia Pacific Greater China Direct exports Operating...

  • Page 26
    ... and Key Products Omron at a Glance Segment Information: Industrial Automation Business (IAB) Other Businesses Electronic and Mechanical Components Business (EMC) R&D Automotive Electronic Components Business (AEC) Social Systems, Solutions and Service Business (SSB) Healthcare Business (HCB...

  • Page 27
    ...These products contribute to safety and security at next-generation train stations and help ensure passenger safety. Automotive Electronic Components Business (AEC) P .40 Social Systems, Solutions and Service Business (SSB) P .42 Electronic and Mechanical Components Business (EMC) Omron uses high...

  • Page 28
    ... and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology The Omron...

  • Page 29
    ... and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology Corporate...

  • Page 30
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 03...

  • Page 31
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 03...

  • Page 32
    ... and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology Corporate...

  • Page 33
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology Fiscal...

  • Page 34
    ...Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology Directors, Corporate Auditors, and Executive Officers Risk Management « WEB As of June 21, 2012 Basic crisis management...

  • Page 35
    ... for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology Senior Managing Officer Executive Officers...

  • Page 36
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 04...

  • Page 37
    ... Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 04 Corporate...

  • Page 38
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 05...

  • Page 39
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 05...

  • Page 40
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 05...

  • Page 41
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 06...

  • Page 42
    ..., and Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology 06...

  • Page 43
    ...Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology Creating Value...

  • Page 44
    ...Risk Management Creating Value for Customers Directors, Corporate Auditors, and Executive Officers Creating Value for Local Communities Special Feature 5: Resolving Environmental Issues Creating Value for Shareholders and Investors Omron: Advancing Sensing and Control Technology Creating Value...

  • Page 45
    ... Divisions 86 Omron Corporation 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) Other Businesses Integrated Report 2012 87

  • Page 46
    ... Management's Discussion and Analysis Note: 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...

  • Page 47
    ... loss -5.4 bn (Exchange loss) 2010 Actual 2011 Actual (FY) EMC net sales increased 2.2% year on year, to ¥83.0 billion. However, operating income declined 39.2%, to ¥7 .2 billion, due to the lower sales of high-profit-margin factory automation 90 Omron Corporation Integrated Report 2012 91

  • Page 48
    ... Europe The Americas Japan * Includes direct exports Net cash used in investing activities amounted to ¥26.5 billion, up ¥6.3 billion from the previous fiscal year. This advance was the result of increased investments in such areas as the expansion of production sites and production facilities...

  • Page 49
    ... and Exchange Act of Japan). (1) Economic Conditions The primary businesses of the Omron Group are the Industrial Automation Business, Electronic and Mechanical Components Business, Automotive Electronic Components Business, Social Systems, Solutions and Service Business, and Healthcare Business...

  • Page 50
    ... Net Assets Total See notes to consolidated financial statements. 320,840 840 321,680 ¥537,323 312,753 899 313,652 ¥562,790 3,912,683 10,244 3,922,927 $6,552,720 ¥ 537,323 ¥ 562,790 $ 6,552,720 Total See notes to consolidated financial statements. 96 Omron Corporation Integrated Report...

  • Page 51
    ... Income (Loss) OMRON Corporation and Subsidiaries Years ended March 31, 2012, 2011 and 2010 Millions of yen Thousands of U.S. dollars (Note 2) FY2011 Net Sales (Note 1) Costs and Expenses: Cost of sales Selling, general and administrative expenses (Note 1) Research and development expenses Other...

  • Page 52
    ... (repayments) of short-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 Other, net Net cash provided by (used in) financing activities Effect of Exchange Rate Changes on Cash and Cash...

  • Page 53
    ...regional management centers in the United States, the Netherlands, China and Singapore. Products, classified by type and market, are organized into business segments as described below. Industrial Automation Business manufactures and sells control components and systems, including programmable logic...

  • Page 54
    ... at the rates of Finished products Work in process Materials and supplies Total ¥52,033 14,177 26,043 ¥92,253 4. Marketable Securities and Investments Cost, gross unrealized holding gains and losses, and fair value of available-for-sale and held-to-maturity securities at March 31, 2012 and 2011...

  • Page 55
    ...holding losses Fair value 2012 Gross unrealized holding losses Industrial Automation Business Electronic and Mechanical Components Business Automotive Electronic Components Business 2012 Social Systems Solution and Service Business Healthcare Business Less than 12 month Equity securities ¥2,020...

  • Page 56
    ... Control Section In accordance with ASC No. 350, the Companies recognized impairment losses for the fiscal year ended March 31, 2012, of ¥2,009 million ($24,500 thousand) in other. Due to the increasing competition in the backlight business market, the fair value of the associated reporting unit...

  • Page 57
    ... dollars 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 58
    ... 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 59
    ... activity and related information for the year ended March 31, 2012, are as follows: Unit: Yen Weighted-average exercise price Weighted-average fair value of options granted during the year The Black-Scholes option-pricing model used by the Company was developed for use in estimating the fair value...

  • Page 60
    ..." method for convertible bonds and by the treasury stock method for stock options. A reconciliation of the numerators and denominators of the basic and diluted net income per share computations as of March 31, 2012, 2011, and 2010, was as follows: 116 Omron Corporation Integrated Report 2012 117

  • Page 61
    ... (losses) on available-for-sale securities: Beginning balance Change for the year Ending balance Net gains (losses) on derivative instruments: Beginning balance Change for the year Ending balance Total accumulated other comprehensive loss: Beginning balance Change for the year Ending balance (66...

  • Page 62
    ... or losses of open contracts. Dealer quotes are available for most of the 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. 18...

  • Page 63
    ...The Companies place their short-term cash investments with high credit quality financial institutions. Concentrations of credit risk with respect to trade receivables, as approximately 48% of total sales are concentrated in Japan, are limited due to the large number of well-established customers and...

  • Page 64
    ... 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 Business" . These...

  • Page 65
    ... Solutions and Components Components Service Business Business Business 2010 Millions of yen Industrial Automation Business Electronic and Mechanical Components Business Automotive Electronic Components Business Social Systems Solutions and Service Business Healthcare Business Other Total...

  • Page 66
    ... Yukashouken-Houkokusho (Annual Securities Report filed under the Financial Instruments and Exchange Act of Japan) for the year ended March 31, 2012 was available to be issued. Kyoto, Japan June 22, 2012 Member of Deloitte Touche Tohmatsu Limited 128 Omron Corporation Integrated Report 2012 129

  • Page 67
    ...of assessment of internal control over business processes, we selected locations and business units to be tested based on annual consolidated net sales (after the elimination of transactions between consolidated companies), and companies with net sales of approximately two-thirds of the total amount...

  • Page 68
    ...-6835-2711 India OMRON Management Center of India (Haryana) Tel 91-124-4921700 Fax 91-124-4921777 Greater China Omron (China) Co., Ltd. (Shanghai) Tel 86-21-5888-1666 Fax 86-21-5888-7933 Major Domestic Manufacturing, Marketing, and Research & Development Locations Manufacturing Kusatsu Office Tel 81...