Automotive Electronic Components Business (AEC) PDF 297KB

Segment Information
Automotive Electronic
Components Business (AEC)
Ratio of Total Sales
Market Share
(FY2014)
(FY2014)
Development, manufacture, and sales of on-board
automobile electronic components
Body Control Units for
Miniature Vehicles (Japan)
16%
Approx. 50%
Source: Internal survey
Fiscal 2014 in Review Strong earnings in North America;
growth in China / Asia despite economic slowdown
Revenues in Japan were down year on year, mainly
due to higher consumption taxes and slow demand
among certain customers.
Overseas, favorable exchange rates contributed
to sharply higher earnings compared to the prior
fiscal year. A strong U.S. economy drove revenues
in North America, while a more gradual recovery in
Europe still supported revenue growth in that region.
We found revenue gains in China and the nations of
Asia, pushed by slightly weaker —but still positive—
economic growth.
Revenue growth and the weakness of the yen were
two major factors contributing to significant operating
income gains overseas.
Fiscal 2015 Forecast and Strategies Focus on North America and emerging economies;
new business projects for greater growth
We have set a target of ¥140 billion for fiscal 2015
net sales (1.5% year-on-year growth), with operating income scheduled to reach ¥9.3 billion (0.8%
growth). We expect domestic revenues to decline,
mainly due to bearish automobile demand. Looking
overseas, we forecast overall growth, supported by
strong North American markets. At the same time,
it is difficult to predict the direction of the economies of China and other Asian nations with any
certainty.
To drive growth under the EARTH-2 STAGE
(FY2017-2020) plan, we will focus on developing
products that solve new needs arising in our car
society. We will also look beyond products that answer the stated needs of our clients, actively seeking
answers to future car society issues.
We intend to answer the challenges presented by
s long-term vision (VG2020),
the goals set in Omron’
winning new projects and building a foundation for
a new stage of growth.
■ Earnings and Projections
■ Worldwide Automobile
(Billions of yen)
FY2011
FY2013
FY2014
FY2015
(Forecast)*
Net sales
85.0
97.6
126.6
137.9
140.0
Japan
28.9
30.2
28.4
25.9
20.0
Overseas
56.1
67.4
98.2
112.0
120.0
21.5
25.0
33.3
39.3
42.5
2.4
2.8
3.3
3.6
4.0
Americas
Europe
16.2
19.5
29.2
32.2
34.0
Greater China
9.5
13.9
25.4
29.9
32.0
Direct Exports
6.5
6.2
7.2
7.1
7.5
2.7
5.0
9.1
9.2
9.3
3.2%
5.1%
7.2%
6.7%
6.6%
R&D expenses
6.6
7.0
8.2
8.5
Depreciation and amortization
2.1
2.4
3.4
4.7
Asia Pacific
Operating income
Operating income margin
Capital expenditures
* See notes on P. 43.
48
FY2012
OMRON Corporation
5.2
5.5
6.7
6.5
Production
(Millions of units)
30
China
25
Europe
20
North
America
15
Asia
10
Japan
Korea
South
America
Other
5
0
(FY) 14
15*
16*
17*
18*
* Forecast (as of May 2015)
Source: IHS Automotive
We expect notable growth in China.
19*
20*
Stable growth in automobile demand; higher installation rates of electronic
automotive components in emerging markets
● Increase in electronic automotive components for safety and environmental
impact reduction
●
Market Growth
Drivers
Strengths
●
% to 10%
5Fuel
efficiency gains
A more environmentally responsible car society
Idle-off for better fuel efficiency
from idle-off technology
Other
(Passive Entry/Push-Button
Engine Start Systems,
Keyless Entry Systems, etc.)
Financial Section
52%
23%
Switches
(Power Window Switches,
Power Seat Switches, etc.)
Corporate Value Foundation
■ Sales by Product (Fiscal 2014)
Corporate Value Initiatives
Stricter CO2 laws and rising consumer awareness of their own carbon footprint have driven improvements
in automobile fuel efficiency. One example is the popular idle-off function that has become a more visible
feature over the past few years. This function reduces the use of fuel when a driver stops their car, leading to
expected fuel efficiency gains of 5% to 10%, depending on individual driving patterns. However, electric
vehicles and hybrids can experience a dramatic drop in voltage once the car is restarted. This can interfere
with car audio and other electrical systems. To solve this problem, we invented a compact, high-function DC/
DC converter that provides stable voltage when starting after idle-off. Our business also produces a number
of other products that contribute to fuel efficiency and smaller carbon footprints, including electronic power
steering controllers, fuel pump modules,
high-output DC/DC converters for hybrid
vehicles, and more.
Where We’
re Headed
We Solve Societal Issues
About Omron
Development and production delivering high-quality electronic components
Relationships of trust with a wide range of customers as an independent supplier
● Ability to work closely with customers to plan and develop products that anticipate
future car society needs
●
Power Window
Switches
Electronic Power Steering
Controllers
25%
Motor Controllers
(Electronic Power Steering
Controllers, Power Sliding Door
Controllers, etc.)
Integrated Report 2015
49
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