Consol. PDF 364kb

OMRON Investor Meeting
FY13 Full-Year Earnings &
VG2020 Midterm Strategy
(EARTH-1 Stage)
April 24, 2014
OMRON Corporation
Contents
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1. GLOBE Stage
(1) FY13 Full-Year Performance
(2) GLOBE Stage Review
2
10
2. EARTH-1 Stage
(1) EARTH-1 Stage Plans
(2) FY14 Plans
3. References
16
24
33
2/38
GLOBE Stage
(1) FY13 Full-Year Performance
FY13 Consolidated P/L
3/38
Highest-ever in sales, gross profit, operating income and
net income.
(Billions of yen)
FY2013
FY2013
last forecast
vs. Fcst
(fcst = 100%)
FY2012
Y/Y
Net Sales
773.0
750.0
+3.1%
650.5
+18.8%
Gross Profit
297.2
292.5
+1.6%
241.5
+23.1%
(38.5%)
(39.0%)
(-0.5%pt)
(37.1%)
(+1.4%pt)
68.1
65.0
+4.7%
45.3
+50.1%
(%)
(8.8%)
(8.7%)
(+0.1%pt)
(7.0%)
(+1.8%pt)
NIBT
62.0
62.0
+0.0%
41.2
+50.4%
Net Income
attributable to shareholders
46.2
43.0
+7.4%
30.2
+52.9%
EPS (JPY)
210
195
+7.4%
13.7
+52.9%
1USD (JPY)
100.1
98.3
+1.8
83.2
+16.9
1EUR (JPY)
134.0
131.6
+2.4
107.6
+26.4
(%)
Operating Income
Operating Income Analysis, Y/Y
4/38
OP soared y/y due to higher sales and better GP margin.
Sales up,
GP% up
Fixed
manufacturing
costs up
-7.1
Forex,
Raw material costs
+25.7
(Billions of yen)
SG&A up
-13.3
R&D up
68.1
-3.1
(incl. strategic investments)
45.3
+20.6
Gross profit up ¥18.6bn
(excl. forex & raw materials)
Operating income up ¥22.8bn
FY2012
Actual
FY2013
Actual
Operating Income Analysis, vs. Forecast
5/38
Higher-than-forecasted OP due to last-minute purchase
before consumption tax hike and favorable forex.
Sales up,
Product mix
+4.1
Fixed
manufacturing
costs up
-2.6
Forex,
Raw material costs
65.0
(Billions of yen)
SG&A up
R&D down
-0.2
+0.2
68.1
+1.6
Gross profit up ¥1.5bn
(excl. forex & raw materials)
Operating income up ¥3.1bn
FY2013
Last Forecast
FY2013
Actual
Consolidated B/S
6/38
Sales up, but inventory well managed.
(Billions of yen)
Assets
Cash and cash equivalents
Notes and accounts receivable - trade
Inventories
(w/o forex impact)
Deferred income taxes, other current assets
Property, plant and equipment
Investments and other assets
Liabilities
Short-term debt
Notes and accounts payable - trade
Termination and retirement benefits
Other liabilities
Net Assets
Common stock and retained earnings
Accumulated other comprehensive income (loss)
Treasury stock
Non-controlling interests
Total Liabilities and Shareholders’ Equity
Shareholders' equity to total assets
Mar. 31, 2014
Mar. 31, 2013
654.7
573.6
90.3
172.4
97.7
91.2
36.2
135.6
122.5
55.7
156.9
91.0
30.1
126.8
113.1
221.9
204.9
0.5
85.2
50.7
85.5
5.6
75.6
56.9
66.8
432.8
368.8
462.2
-15.2
-16.5
2.3
427.7
-44.3
-16.4
1.8
654.7
573.6
65.8%
64.0%
Consolidated Cash Flows
7/38
FCF jumped y/y due to net income increase.
(Billions of yen)
FY2013
FY2012
79.0
-31.1
47.9
-16.3
53.1
-28.5
24.6
-18.6
2.9
4.4
Net increase/decrease in cash
and cash equivalents
34.5
10.5
Cash and cash equivalents
at end of the period
90.3
55.7
33.7
25.1
28.3
22.5
Operating activities
Investing activities
Free cash flow
Financing activities
Effect of exchange rate changes
on cash and cash equivalents
Capital expenditures
Depreciation and amortization
Sales by Segment
8/38
All business segments posted two-digit y/y increase.
(Billions of yen)
FY2013
IAB
Industrial Automation
FY2013
last forecast
vs. Fcst
FY2012
Y/Y
291.7
283.0
+3.1%
263.0
+10.9%
97.7
98.0
-0.3%
84.1
+16.2%
126.6
121.0
+4.6%
97.6
+29.7%
82.7
83.0
-0.4%
68.8
+20.3%
89.3
88.0
+1.4%
71.5
+24.8%
78.9
72.0
+9.7%
59.2
+33.3%
6.1
5.0
+22.0%
6.3
-3.2%
773.0
750.0
+3.1%
650.5
+18.8%
EMC
Electronic & Mechanical
Components
AEC
Automotive Electronic
Components
SSB
Social Systems,
Solutions & Service
HCB
Healthcare
Other
Eliminations & Corporate
Total
Operating Income by Segment
9/38
All business segments posted large y/y increase.
(Billions of yen)
FY2013
FY2013
last forecast
vs. Fcst
FY2012
Y/Y
IAB
38.8
37.0
+4.7%
31.3
+23.6%
Industrial Automation
(13.3%)
(13.1%)
(+0.2%pt)
(11.9%)
(+1.4%pt)
8.7
8.5
+1.8%
4.4
+98.9%
(8.9%)
(8.7%)
(+0.2%pt)
(5.2%)
(+3.7%pt)
9.1
8.5
+6.9%
5.0
+81.4%
(7.2.%)
(7.0%)
(+0.2%pt)
(5.1%)
(+2.1%pt)
5.6
5.5
+0.9%
2.9
+90.5%
(6.7%)
(6.6%)
(+0.1%pt)
(4.2%)
(+2.5%pt)
7.5
7.5
+0.6%
4.4
+71.2%
(8.5%)
(8.5%)
(+0.0%pt)
(6.2%)
(+2.3%pt)
8.7
7.0
+23.9%
2.5
+243.5%
(11.0%)
(9.7%)
(+1.3%pt)
(4.3%)
(+6.7%pt)
-10.3
68.1
-9.0
65.0
+4.7%
-5.2
45.3
+50.1%
(8.8%)
(8.7%)
(+0.1%pt)
(7.0%)
(+1.8%pt)
EMC
Electronic & Mechanical Components
AEC
Automotive Electronic Components
SSB
Social Systems, Solutions & Service
HCB
Healthcare
Other
Eliminations & Corporate
Total
(%): Operating income/External sales
10/38
GLOBE Stage
(2) GLOBE Stage Review
GLOBE Stage Performance
11/38
Sales and operating income notably up, with better profit structure.
773.0
+25%
Net Sales
617.8
+1.0%pt
Gross Profit
Margin
Operating
Income
(%)
38.5%
37.5%
+42%
48.0
(7.8%)
FY2010
+1.0%pt
68.1
(8.8%)
FY2013
(Billions of yen)
GLOBE Stage: Shareholder Value Up
12/38
GLOBE STAGE
FY2013
FY2010
EPS
+72%
¥210
¥122
ROIC
+3.5%pt
11.3%
7.8%
ROE
+2.9%pt
11.6%
8.7%
¥4,260
¥2,338
Share Price
+82%
(Year-end)
Record-high
¥4,730 on
Jan 7. 2014
Dividend Per Share
+77%
¥53
¥30
3-Year TSR
87%
--
--
(Total Shareholder Return)
(Year-end)
GLOBE Stage: Management Indicators
FY2013 Actual
Sales
Operating Income
FY2013 Targets
(Apr. 2012)
13/38
FY2010 Actual
¥773.0bn
approx.
¥700bn
¥617.8bn
¥68.1bn
approx.
¥63.0bn
¥48.0bn
GP Margin
38.5%
39%
37.5%
OP Margin
8.8%
9%
7.8%
ROIC
11.3%
(not disclosed)
7.8%
ROE
11.6%
11%
8.7%
1USD = ¥100
1USD = ¥78
1USD = ¥86
1EUR = ¥134
1EUR = ¥104
1EUR =¥114
GLOBE Stage: Top Tasks
14/38
FY2013 Actual FY2013 Targets FY2010 Actual
(Apr. 2012)
IA Sales
¥389.4bn
¥392.0bn
¥353.1bn
Emerging Market
Sales
¥247.6bn
¥220.0bn
¥163.6bn
Sales in New Business
for Optimization Society
(Environment-related)
¥52.2bn
¥40.0bn
¥12.8bn
1USD = ¥100
1USD = ¥78
1USD = ¥86
1EUR = ¥134
1EUR = ¥104
1EUR = ¥114
GLOBE Stage: Done & Undone
Achievements
Growth
15/38
• Big growth in emerging markets and environmental
business.
• Brisk growth in AEC, SSB, HCB and Backlight Business.
Profitability
Response to
Changes
Remaining
Tasks
• Constant GP margin improvements.
• Better profitability in all business segments.
• Establishment of systems resistant to forex fluctuation.
• ROIC-oriented, stronger global vertical-horizontal
“matrix” management. (Intra-BC top-down & BCs-HQ ties)
• IA Business: Establishment of growth structure.
• Growth by better working with external enterprises.
16/38
EARTH Stage
(1) EARTH-1 Stage Plans
(FY14-16)
VG2020 EARTH-1 Stage: Policy & Targets
FY2016
Targets
Policy
Establishment of
"Self-driven" Growth Structure
Sales
> ¥900bn
GP Margin
> 40%
OP Margin
> 10%
ROIC*
approx.
13%
ROE
approx.
13%
EPS*
approx.
¥290
*New
**FY2016 assumed exchange rates: 1USD = ¥100; 1EUR = ¥135
17/38
EARTH-1 Stage Scenario
GLOBE STAGE
EARTH-1 STAGE
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EARTH-2 STAGE
Sales
Existing business strategy
Profit structure reform
Global HR strategy
FY2011
FY2013
FY2016
FY2020
EARTH-1 Stage Focus vs. GLOBE Stage
Existing Business
Continued efforts in
IA Business reinforcement
Super-Global
Establishment of basis to achieve
dramatic growth in wider Asia,
(incl. Greater China)
New Business for
Optimization
Society
Creation of NBs in industry, society
and daily life in addition to
environmental business
19/38
EARTH-1 Stage Targets
20/38
FY2016 Targets
FY2013 Actual
Up by
Existing Business
IA Sales
¥440.0bn
¥389.4bn
¥50bn
Super-Global
Emerging Market Sales
¥320.0bn
¥247.6bn
¥72bn
New Business for
Optimization Society
New Business Sales
¥90.0bn
¥52.2bn
¥38bn
Sales Target by Segment
21/38
FY2016 Targets
FY2013 Actual
¥325.0bn
¥291.7bn
¥33bn
4%
¥115.0bn
¥97.7bn
¥17bn
6%
¥135.0bn
¥126.6bn
¥8bn
2%
¥95.0bn
¥82.7bn
¥12bn
5%
¥120.0bn
¥89.3bn
¥30bn
10%
¥105.0bn
¥78.9bn
¥26bn
10%
IAB
Industrial Automation
EMC
Electronic & Mechanical
Components
AEC
Automotive Electronic Components
SSB
Social Systems,
Solutions & Service
HCB
Healthcare
Other
*Excluding “Eliminations & Corporate”
Up by value, %/yr
Investments for Growth
Three-year Investment Total
Growth Investment
approx.
¥100bn
Capital Investment
approx.
¥100bn
R&D
approx.
¥150bn
22/38
Toward Higher Shareholder Return
OMRON aims to increase payout ratio
to 30% by FY2016
(Three-year payout total of ¥50bn)
30%
Payout ratio
>25%
Annual dividend
per share
¥53
FY2013
FY2016
23/38
24/38
EARTH Stage
(2) FY14 Plans: Earth-1 Startup
FY14 Conditions
25/38
External Environment
 Developed countries will come back slowly, but emerging markets will still be uncertain.
 By Area:
Japan will recover moderately after one-time drop due to consumption tax hike.
Overseas Europe will keep going on a slow recovery track.
US will be firm thanks to consumer spending and capital investment.
China will still be vulnerable.
Emerging markets will remain uncertain with some countries staying flat.
Exchange Rates & Raw Material Costs
Exchange rates
Raw material costs
• 1 USD = ¥100
• Silver = ¥72,000/kg
• 1 EUR = ¥135
• Copper = ¥760/kg
¥1 fluctuation impact (full-year, approx.)
USD
EUR
Sales
¥3.1bn
¥0.8bn
OP
¥0.4bn
¥0.4bn
Price change impact (full-year, approx.)
Silver
Copper
Price change
¥1,000/kg
¥10/kg
OP
¥100mn
¥100mn
FY14 Consolidated P/L
26/38
Aiming at another highest-ever year in sales and profit.
(Billions of yen)
FY2014
Forecast
Net Sales
Gross Profit
(%)
Operating Income
(%)
NIBT
Net Income
attributable to shareholders
FY2013
Actual
Y/Y*
800.0
773.0
+3.5%
317.0
(39.6%)
74.0
(9.3%)
71.0
297.2
(38.5%)
68.1
(8.8%)
62.0
+6.7%
51.0
46.2
(+1.2%pt)
+8.7%
(+0.4%pt)
+14.5%
+10.4%
*FY14 & FY13 figures rounded to million to calculate Y/Y growth.
Operating Income Analysis, Y/Y
27/38
Aiming at higher OP while working on investments for growth.
Sales up,
Product mix
Fixed
manufacturing
costs up
-1.4
(Billions of yen)
SG&A up
-11.8
+21.2
R&D up
74.0
-2.1
68.1
(incl. strategic investments)
Gross profit up ¥19.8bn
(excl. forex & raw materials)
Operating income up ¥5.9bn
FY2013
Actual
FY2014
Forecast
FY14 Business Environment by Segment
Segment
IAB
Industrial Automation
FY2014 Business Environment
• Japan: Automotive-related demand will come back gradually after one-time drop.
Electronic components will remain solid as smartphone/tablet-related demand goes up.
Infrastructure/ equipment-replacement related demand will show upward trend thanks
to Abenomics economic policy.
• Overseas:
• Europe will show recovery signs.
• Americas will remain steady, led by Automotive-related demand.
• Greater China will remain uncertain.
• Asia Pacific will be slow, especially Thailand.
EMC
• Japan: Home electronics will drop temporarily due to consumption tax hike in April.
Automotive-related demand will slow down due to manufacturing transfer to overseas.
Electronic & Mechanical
Components
• Overseas: Europe will recover gradually. US Automotive-related demand will go solid.
Greater China and Asia, too, will go steady.
AEC
Automotive Electronic
Components
SSB
Social Systems,
Solutions & Service
HCB
Healthcare
Other
28/38
• Japan: Consumption tax won’t hit so long, with automakers’ launching new models, and the
government’s cutting automotive acquisition tax.
• Overseas: North America and China will be solid. Europe will go back on a recovery track.
Asia will slow down due to sluggish economy.
Demand for train system will go flat, after one-time, consumption-tax-related investment is over.
Environmental solutions will go brisk.
• Japan: Consumer spending will go down temporarily, but will go healthy overall.
• Overseas: Europe, Americas, and China will be solid. Asia will turn around
Environmental Solutions and Backlight business will be brisk.
Full-Year Sales & OP by Segment
29/38
Aiming at sales & OP growth in all segments 2 years in a row.
(Billions of yen)
Net Sales
Operating Income, (%)*
FY2014
Forecast
FY2013
Actual
300.0
291.7
+2.8%
101.0
97.7
+3.4%
128.5
126.6
+1.5%
85.5
82.7
+3.4%
Healthcare
98.5
89.3
+10.3%
Other
83.0
78.9
+5.1%
3.5
6.1
-42.6%
800.0
773.0
+3.5%
IAB
Industrial Automation
EMC
Electronic & Mechanical Components
AEC
Automotive Electronic Components
SSB
Social Systems, Solutions & Service
HCB
Eliminations & Corporate
Total
Y/Y
FY2014
Forecast
FY2013
Actual
40.0
38.8
+3.2%
(13.3%)
(13.3%)
(0.0%pt)
9.2
8.7
+6.3%
(9.1%)
(8.9%)
(+0.2%pt)
9.2
9.1
+1.3%
(7.2%)
(7.2%)
(0.0%pt)
6.5
5.6
+17.1%
(7.6%)
(6.7%)
(+0.9%pt)
8.0
7.5
+6.0%
(8.1%)
(8.5%)
(-0.4%pt)
9.5
8.7
+9.5%
(11.4%)
(11.0%)
(+0.4%pt)
-8.4
-10.3
--
74.0
68.1
+8.7%
(9.3%)
(8.8%)
(+0.5%pt)
Y/Y
*(%): Operating income/External sales
FY14 Goals:
Management Indicators & Top Tasks
FY2014 Targets
FY2013 Actual
GP Margin
39.6%
38.5%
OP Margin
9.3%
8.8%
ROIC
approx. 12%
11.3%
ROE
approx. 12%
11.6%
Existing Business
IA Sales
¥401.0bn
¥389.4bn
Super-Global
Emerging Market Sales
¥268.0bn
¥247.6bn
¥60.0bn
¥52.2bn
New Business for
Optimization Society
New Business Sales
30/38
FY14 Dividend Forecast
Annual dividend payout forecast:
¥63 (¥27 interim + ¥36 year-end)
Annual dividend
per share
up ¥10
¥63
¥53
FY2013
FY2014
31/38
32/38
33/38
References
2015/01
80
2014/10
160
2014/07
2014/04
2014/01
2013/10
FY12 ¥83.2/$
2013/07
2013/04
140
2013/01
FY11 ¥79.3/$
2012/10
90
2012/07
FY11 ¥110.3/€
2012/04
2012/01
2011/10
2011/07
130
2011/04
2011/01
2010/10
2010/07
2010/04
2010/01
2009/10
2009/07
2009/04
2009/01
2008/10
2008/07
2008/04
2008/01
2007/10
100
2007/07
150
2007/04
2007/01
2006/10
2006/07
2006/04
Exchange Rates (USD, EUR)
34/38
1JPY
170
USD
EUR
FY07 ¥161.9/€
FY14 ¥135.0/€
FY13 ¥134.0/€
FY12 ¥107.6/€
120
110
FY07 ¥114.1/$
FY13 ¥100.1/$
FY14 ¥100.0/$
70
Raw Material Prices (Silver, Copper)
Silver price quotation, JPY/kg
35/38
Copper price quotation, JPY/kg
140,000
1400
Silver
■ FY11
Copper
120,000
◆ FY07
¥91,854
¥916
1200
■ FY12
¥83,059
100,000
1000
◆ FY14
◆ FY13
¥757
(¥733)**
¥760
80,000
800
60,000
600
■ FY14
◆ FY11
¥717
◆ FY12
¥72,000
¥697
■ FY13
40,000
■ FY07
¥70,655
(¥76,713)**
¥54,230
400
20,000
200
*Monthly simple moving average (SMA) of price quotations. **(¥): Average used for FY13 earnings.
2015/01
2014/10
2014/07
2014/04
2014/01
2013/10
2013/07
2013/04
2013/01
2012/10
2012/07
2012/04
2012/01
2011/10
2011/07
2011/04
2011/01
2010/10
2010/07
2010/04
2010/01
2009/10
2009/07
2009/04
2009/01
2008/10
2008/07
2008/04
2008/01
2007/10
2007/07
2007/04
2007/01
2006/10
2006/07
0
2006/04
0
ROIC Definition
36/38
Consol. B/S
Net income
ROIC = attributable to shareholders
Invested capital
Invested capital*
= Net assets + Interesting-bearing debt
*Average of FY12 year-end & FY13 quarterly figures.
Businesses and Major Products
LCD backlights, semiconductors/MEMS,
energy saving/environmental business,
electronic systems and equipment
• Electronic signal sensing
• Electrical current/voltage control
• Radio wave sensing
• Automotive body control
Other
Relays, switches, connectors,
amusement equipment parts,
mobile device parts
AEC
EMC
Automotive
Electronic
Components
Business
Electronic and
Mechanical
Components
Business
・ Ticket gate mechanisms
・ Car & human sensing
37/38
Keyless entry systems,
power window switches,
automotive relays, EPS
(electronic power steering)
• Bio-information sensing
• Behavior sensing
Automated ticket gates
and ticket vending machines,
SSB
road management systems, Social Systems,
environmental solutions
Solutions
business
& Service
IAB
Industrial Automation
Business
Business
Sensing
• Displacement and measurement sensing
• Temperature control
• Machine control
• Vision sensing
Proximity/photoelectric/vision sensors, PLCs,
temperature controllers, machine safeguarding
equipment, inspection systems
Home- and professional-use
digital blood pressure monitors,
HCB
body composition analyzers,
Healthcare
thermometers, pedometers,
Business nebulizers, sleep sensors, patient
monitors, cardiovascular screening
monitors, health management
service
&
Control
Consolidated subsidiaries
156
Affiliates accounted for by
the equity method
10
(as of March 31, 2014)
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 current
time, as well as certain assumptions judged by the Company to be reasonable. Various factors could cause
actual results to differ materially from these projections. Major factors influencing Omron's actual results include,
but are not limited to,
(i) economic conditions affecting the Company's businesses in Japan and overseas
(ii) demand trends for the Company's products and services
(iii) the ability of the Company to develop new technologies and products
(iv) major changes in the fundraising environment
(v) tie-ups or cooperative relationships with other companies
(vi) movements in currency exchange rates and stock markets, and
(vii) accidents and natural disasters.
Investor Relations Department
Investor Relations 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".
38/38
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