Consol. PDF 896kb

Q3 2015 Earnings
Financial Results
for the Third Quarter
Ended December 31, 2015
January 28, 2016
OMRON Corporation
Summary
 FY15 Q1-Q3 Results
• Sales remained flat while operating income decreased, Y/Y.
• The worse-than-expected business environment had a negative
impact on performance.
 FY15 Full-Year Forecast
• The full-year forecast is revised down as the business
environment in Q4 is worse than expected in Q2.
 Shareholder Return
• 30% dividend payout ratio is applied; full-year dividend forecast
is lowered to ¥68.
• All of the 3.44 million shares of treasury stock (equivalent to
¥15bn) acquired in Q3 have been cancelled.
1
Contents
1. FY15 Q1-Q3 Results
P. 3
2. FY15 Full-Year Forecast
P. 10
3. Shareholder Return
P. 20
References
P. 25
2
FY15 Q1-Q3 Results
3
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Q1-Q3 Results
Sales flat, OP down.
(¥bn)
FY14
Q1-Q3
FY15
Q1-Q3
Y/Y
Net Sales
614.3
614.0
±0%
Gross Profit
243.9
237.4
-2.7%
(39.7%)
(38.7%)
(-1.0%pt)
63.0
44.2
-29.9%
(10.3%)
(7.2%)
(-3.1%pt)
65.5
44.7
-31.8%
49.3
33.9
-31.3%
1USD(JPY)
107.2
121.5
+14.3
1EUR(JPY)
140.5
133.5
-7.0
(%)
Operating Income
(%)
NIBT
Net Income
Attributable to Shareholders
4
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Sales by Business Segment
• IAB, EMC, AEC, and HCB posted sales growth.
• SSB and Other down due to drop in PV inverters and backlights.
(¥bn)
FY14
Q1-Q3
IAB
Industrial Automation
EMC
Electronic & Mechanical Components
AEC
Automotive Electronic Components
SSB
Social Systems, Solutions & Service
HCB
Healthcare
Other
Businesses under the Direct Control of HQ
Eliminations & Corporate
Total
FY15
Q1-Q3
Y/Y
244.6
251.6
+2.9%
75.6
78.7
+4.1%
100.9
104.0
+3.0%
48.0
44.9
-6.5%
73.5
81.0
+10.3%
67.8
50.1
-26.1%
3.9
3.7
-4.4%
614.3
614.0
±0%
5
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Operating Income by Business Segment
• HCB up.
• The other segments down mainly due to increase in growth investments.
(¥bn / % of net sales)
FY14
Q1-Q3
IAB
Industrial Automation
EMC
Electronic & Mechanical Components
AEC
Automotive Electronic Components
SSB
Social Systems, Solutions & Service
HCB
Healthcare
Other
Businesses under the Direct Control of HQ
Eliminations & Corporate
Total
FY15
Q1-Q3
Y/Y
Main Reasons
40.3
36.8
-3.5
(16.5%)
(14.6%)
(-1.9%pt)
7.0
6.6
-0.5
(9.3%)
(8.3%)
(-0.9%pt)
7.1
5.2
-1.8
(7.0%)
(5.0%)
(-1.9%pt)
-1.0
-2.7
-1.7
(-)
(-)
(-)
5.8
6.3
+0.5
(8.0%)
(7.8%)
(-0.1%pt)
8.4
-1.9
-10.3
(12.3%)
(-)
(-)
-4.6
-6.1
-1.6
63.0
44.2
-18.8
(10.3%)
(7.2%)
(-3.1%pt)
PMI costs,
increase in R&D
Investment to
increase productivity
Increase in R&D
Sales decline
Sales decline
IT investment
6
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Operating Income Analysis, Y/Y
• Added value down due to drop in PV inverters and backlights sales.
• SG&A and R&D up intended for growth.
63.0
Forex,
Raw material
impacts
±0
Added value
down
-11.5
Fixed
manufacturing
costs down
+0.8
SG&A up
-5.1
R&D up
-3.0
Gross profit
44.2
(¥bn)
-10.7
(excl. forex & raw material impacts)
Operating income
Q1-Q3 2014
Actual
-18.8
Q1-Q3 2015
Actual
7
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Consolidated B/S
Current assets down, investments and other assets up.
(¥bn)
Mar. 31, 2015
Dec. 31, 2015
vs. March
Current assets
434.1
378.4
-55.7
Property, plant & equipment
151.5
151.0
-0.5
Investments and other assets
125.5
154.3
+28.8
Total Assets
711.0
683.6
-27.4
Current liabilities
176.8
146.0
-30.8
42.2
43.6
+1.4
Total Liabilities
218.9
189.6
-29.3
Shareholders' equity
489.8
491.6
+1.8
2.3
2.5
+0.1
Total Net Assets
492.1
494.0
+1.9
Total Liabilities and Shareholders' Equity
711.0
683.6
-27.4
68.9%
71.9%
+3.0%pt
Long-term liabilities
Noncontrolling interests
Shareholders' equity to total assets
8
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Consolidated Cash Flows
Negative FCF due to increase in investing activities including M&A.
(¥bn)
FY14
FY15
Q1-Q3
Q1-Q3
Y/Y
Operating activities (Operating CF)
42.6
47.6
+5.0
Investing activities (Investing CF)
-27.9
-58.1
-30.2
14.8
-10.4
-25.2
-28.9
-31.6
-2.7
83.1
58.6
-24.5
Capital expenditures
25.7
26.3
+0.6
Depreciation and amortization
20.5
23.2
+2.7
Free cash flow (FCF)
Financing activities (Financing CF)
Cash and cash equivalents
at end of the period
9
FY15 Full-Year Forecast
10
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
H2 Business Environment by Business Segments (vs. Q2 Estimates)
Compared with the Q2 estimates, business environment for IAB and
EMC gets worse.
Q2 Estimastes
Q3
Q4
Q3 Estimates
Q3
Q4
IAB
Industrial Automation
EMC
Electronic & Mechanical Components
AEC
Automotive Electronic Components
SSB
Social Systems, Solutions & Service
HCB
Healthcare
Other
Businesses under the Direct Control of HQ
11
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Q4 Business Environment by Business Segment (vs. Q2 Estimates)
Japan: Semiconductors will remain weak. Auto will recover as the delayed capex to be incurred.
IAB
Overseas: China will remain weak. Southeast Asia will slow down due to China’s impact and
Industrial Automation
currency depreciation. Auto in Americas will go solid, while oil & gas will get slower. Europe will
recover slowly.
EMC
Home electronics: Will slow down as production adjustment in China, e.g. air conditioners.
Electronic & Mechanical
Auto: China will recover due to tax cuts. Americas solid, whereas Japan will remain weak.
Components
AEC
Japan: Will remain weak, but export to North America will go solid due to Yen's depreciation and
Automotive Electronic
oil price decline.
Components
Overseas: China will recover temporarily due to tax cuts. Americas will remain solid.
SSB
Transportation: Demand in general will remain strong, although some customers show a
Social Systems,
tendency of weak investment.
Solutions & Service
Environmental Solutions: The market for small-sized biz-use will remain weak.
Japan: Home-use will slow down due to mild winter. Professional-use will decline due to subdued
HCB
capex.
Healthcare
Overseas: Retailers sales in China will remain weak but Internet sales will stay solid. Brazil will
remain weak.
Other
Environmental Solutions: Both residential-/small-sized biz-use will remain low.
Businesses under the
Backlight: China's smartphone market will remain weak.
Direct Control of HQ
12
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Full-Year Forecast
Revised down by incorporating business environment deterioration.
(¥bn)
(1) FY2015 (2) FY2015
Oct. Fcst
Jan. Fcst
(2)/(1)
(3) FY2014
Actual
(2)/(3)
Net Sales
860.0
835.0
-2.9%
847.3
-1.4%
Gross Profit
338.0
323.5
-4.3%
332.6
-2.7%
(39.3%)
(38.7%)
(-0.6%pt)
(39.3%)
(-0.5%pt)
70.0
62.0
-11.4%
86.6
-28.4%
(8.1%)
(7.4%)
(-0.7%pt)
(10.2%)
(-2.8%pt)
NIBT
71.0
65.5
-7.7%
87.4
-25.0%
Net Income
Attributable to Shareholders
53.5
47.5
-11.2%
62.2
-23.6%
1USD(JPY)
120.8
120.5
-0.3
110.0
+10.5
1EUR(JPY)
134.6
132.0
-2.6
138.7
-6.7
(%)
Operating Income
(%)
*Q4 forex assumption: 1USD = ¥117, 1EUR = ¥127
13
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Full-Year Sales Forecast by Business Segment
Sales up in IAB, EMC, AEC and HCB.
(¥bn)
(1) FY2015 (2) FY2015
IAB
Industrial Automation
EMC
Electronic & Mechanical Components
AEC
Automotive Electronic Components
SSB
Social Systems, Solutions & Service
HCB
Healthcare
Other
Businesses under the Direct Control of HQ
Eliminations & Corporate
Total
(2)/(1)
(3) FY2014
(2)/(3)
Oct. Fcst
Jan. Fcst
350.0
338.0
-3.4%
331.8
+1.9%
108.0
104.0
-3.7%
103.9
+0.1%
138.0
140.0
+1.4%
137.9
+1.5%
80.0
77.5
-3.1%
80.4
-3.6%
111.0
107.0
-3.6%
100.6
+6.3%
68.0
64.0
-5.9%
87.4
-26.8%
5.0
4.5
-10.0%
5.3
-13.1%
860.0
835.0
-2.9%
847.3
-1.4%
Actual
14
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Full-Year Operating Income Forecast by Business Segment
Profits down by continuously making eclectic investments for growth.
(¥bn / % of net sales)
(1) FY2015 (2) FY2015
IAB
Industrial Automation
EMC
Electronic & Mechanical Components
AEC
Automotive Electronic Components
SSB
Social Systems, Solutions & Service
HCB
Healthcare
Other
Businesses under the Direct Control of HQ
Eliminations & Corporate
Total
(2)/(1)
(3) FY2014
Actual
(2)/(3)
Oct. Fcst
Jan. Fcst
55.0
50.0
-5.0
54.6
-4.6
(15.7%)
(14.8%)
(-0.9%pt)
(16.5%)
(-1.7%pt)
10.5
8.0
-2.5
10.2
-2.2
(9.7%)
(7.7%)
(-2.0%pt)
(9.8%)
(-2.1%pt)
7.5
7.5
±0
9.2
-1.7
(5.4%)
(5.4%)
(-0.1%pt)
(6.7%)
(-1.3%pt)
3.5
3.2
-0.3
5.0
-1.8
(4.4%)
(4.1%)
(-0.2%pt)
(6.2%)
(-2.1%pt)
7.0
7.0
±0
6.5
+0.5
(6.3%)
(6.5%)
(+0.2%pt)
(6.5%)
(+0.1%pt)
-3.5
-4.5
-1.0
8.4
-12.9
(-)
(-)
(-)
(9.6%)
(-)
-10.0
-9.2
+0.8
-7.3
-1.9
70.0
62.0
-8.0
86.6
-24.6
(8.1%)
(7.4%)
(-0.7%pt)
(10.2%)
(-2.8%pt)
15
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Initiatives for Future Growth
Implement the initiatives for future growth from two perspectives.
■Business Growth
IAB
Industrial
Automation
HCB
Healthcare
Acquisitions of Delta Tau and Adept
To contribute to Industry 4.0 with broad product lines
Acquisition of NS, development of ultra-compact wrist-type
blood pressure monitor
To help realize healthy and comfortable lives for people around the world
■Problem-solving
Backlights
PV Inverters
Business restructuring
To convert to a profit-generating structure
16
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Toward the Realization of Industry 4.0
• Strengthen the product lines and technological capabilities by M&A.
• Contribute to the realization of Industry 4.0 by leveraging big data.
Omron’s
Sensing & Control
Technology
Information
(ILO+S)
Technology
(Big Data)
Robotics
Technology
(+R)
Industry4.0
17
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Innovation at Production Sites
• Delta Tau  Processing Line: machine evolution (high-speed, highprecision and informatization).
• Adept  Assembly Line: creation of new automation by humanmachine harmony.
Information Technology (IoT Models)
High-Precision Surface Finish
Processing Line
From Laborsaving to Human-Machine Harmony
Conveyor Line
Assembly Line
Inspection Line
Robotics Technology (+R)
Omron’s Sensing & Control Technology (ILO+S)
18
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
All for Healthcare
To help realize healthy and comfortable lives for people around the world.
Business Vision
Circulatory Business
Respiratory Business
Zero event of brain and
cardiovascular diseases
Zero severe childhood asthma
Blood
pressure
monitor
Nebulizer
19
Shareholder Return
20
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Dividend Per Share
Applied 30% dividend payout ratio to the updated net income
forecast; full-year dividend forecast is lowered to ¥68.
FY2015
Oct. Fcst
FY2015
Jan. Fcst
Payout Ratio
30.1%
30.9%
Full-Year
Dividend
¥74
¥68
Interim ¥34
Year-end ¥34
21
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Cancellation of the Treasury Stock
All of the 3.44 million shares of treasury stock (equivalent to
¥15bn) acquired in Q3 have been cancelled.
・Number of shares acquired
3.44 million shares
(equivalent to ¥15bn)
・Number of shares cancelled
3.44 million shares
・Percentage to total shares outstanding
(excl. treasury stock)
1.58%
・Number of issued shares after
the cancellation of treasury stock
213.96 million shares
22
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Total Return Ratio
Over 60% total return ratio for FY15.
80%
60%
62.4%
49.1%
40%
37.7%
27.0%
20%
25.3%
0%
FY2011
FY2012
FY2013
FY2014
FY2015
Estimates
23
24
References
25
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
Conditions: Exchange Rates & Raw Material Costs
Revising Q4 conditions taking market fluctuations into account.
FY15 Q4 conditions (changes from the Oct 27 conditions)
Exchange rates
Raw material costs
• 1 USD = ¥117 (-¥3)
• Silver = ¥63,000/kg (-¥2,000)
• 1 EUR = ¥127 (-¥8)
• Copper = ¥700/kg (-¥70)
¥1 fluctuation impact (full-year, approx.)
Price change impact (full-year, approx.)
Sales
OP
USD
¥3.4bn
¥0.3bn
Silver
EUR
¥0.8bn
¥0.4bn
Copper
Price change
OP
¥1,000/kg
¥80mn
¥10/kg
¥30mn
*FY14 results used to calculate exchange rates & raw material costs fluctuation impacts.
26
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
ROIC Management: Down-Top ROIC Tree
On-site
To-Dos
Cycle
KPI
• Sales in focus
industries/areas
• Sales of new/focus products
• Selling price control
• Variable costs reduction,
value/%
• Defect costs %
• Per-head production #
• Automation %
(headcount reduction)
• Labor costs–sales %
• Inventory turnover months
• Slow-moving inv. months
• Credits & debts months
• Facilities turnover
(1/N automation ratio)
Drivers
GP Margin
Added
-value %
ROS
Fixed manuf.
costs %
ROIC
SG&A %
R&D %
Working capital
turnover
Fixed assets
turnover
Invested
Capital
Turnover
27
Q1-Q3 Results
Full-Year Forecast
Shareholder Return
References
ROIC Definition
<Consol. B/S>
Net income
ROIC = attributable to shareholders
Invested capital
Invested capital*
= Net assets + Interest-bearing debt
*The average of FY14 year-end result, FY15
quarterly results and forecasts.
Capital cost forecast at 6%
for EARTH-1 STAGE (FY14-16)
28
Notes
1. The consolidated statements of Omron Corporation (the Company) are prepared in accordance with U.S. GAAP.
2. Projected results and future developments are based on information available to the Company at the time of writing,
as well as certain assumptions judged by the Company to be reasonable. Various risk and uncertain factors could
cause actual results to differ materially from these projections.
For the preconditions of projections and matters, etc. to be aware of when using the projections, please refer to
"1. Qualitative Information on Quarterly Financial Results (3) Description of Information on Outlook, Including
Consolidated Performance Forecast" in "Summary of Consolidated Financial Results for the Third Quarter of the Fiscal
Year Ending March 31, 2016 (U.S. GAAP)."
3. The presentation slides are based on “Summary of Consolidated Financial Results for the Third Quarter of the Fiscal
Year Ending March 31, 2016”. Figures rounded to the nearest JPY million and percentage to one decimal place.
Contact:
Investor Relations Department
Global Investor Relations & Corporate Communications Headquarters
Omron Corporation
Phone: +81-(0)3-6718-3421
Email: [email protected]
Website: www.omron.com
*To subscribe to Omron IR email newsletters:
Send us an email titled "subscribe".
29
Similar pages