Consol. PDF 810kb

Financial Results
for the First Quarter
Ended June 30, 2012
(FY12 Q1)
July 30, 2012
OMRON Corporation
© OMRON Corporation
Contents
1. FY12 Q1 Results & Full-Year Forecast
FY12 Q1 & Full-Year Highlights
P. 2
FY12 Q1 Results
P. 5
FY12 Full-Year Forecast
P. 15
2. References
P. 23
Æ Briefing of Healthcare Business strategies
to follow this presentation
© OMRON Corporation
1
FY12 Q1 Results & Full-Year
Forecast Highlights
© OMRON Corporation
2
FY12 Q1 & Full-Year Overview
¾ FY12 Q1 sales flat Y/Y. Operating income down.
• So far as initially projected.
• Sales up Q/Q, led by Industrial Automation Business.
¾ No change to external environment outlook: Gradual recovery overall
in the second half.
• Greater China and automotive markets solid.
• In short-term, we are responding flexibly and swiftly to business
environment changes, aiming to achieve first-half & full-year
goals, and post growth both in sales and profit in all of the main
businesses.
• We will continue to work on VG2020 mid-/long-term measures
and carry out strategic investments for growth as planned.
¾ FY12 interim dividend forecasted at ¥14.
© OMRON Corporation
3
Executive Summary
FY12 Q1 Results
¾ Sales almost in line Y/Y (-1.0%), operating income down (-32.7%).
¾ Industrial Automation Business (IAB) saw Y/Y sales drop, as the year-ago quarter had
disaster-related temporary demand increase. Other businesses posted increases to
cross off the IAB downturn.
¾ Operating income down Y/Y due to forex and increased investments for growth.
(Without forex impacts, ¥153.4 bn sales (+1.3%) and ¥9.7 bn OP (-20.5%))
¾ Exchange rates: 1 USD = ¥80.4; 1 EUR = ¥103.4 (FY11 Q1: 1 USD = ¥81.7; 1 EUR = ¥118.1)
¾ Raw material prices: Copper ¥721/kg; Silver ¥82,880/kg
(FY11 Q1: Copper ¥790/kg; Silver ¥96,455/kg)
Net Sales
Operating Income
Net Income attributable to shareholders
FY2012 Q1
149.9
8.2
FY2011 Q1
151.4
12.2
Y/Y
-1.0%
-32.7%
4.7
6.9
-31.8%
(Billions of yen)
First Half & Full-Year Forecast
¾ Looking to achieve first-half & full-year goals as originally planned, reviewing the initial
plans and market conditions.
¾ Q2-Q4 exchange rates: 1 USD = ¥78; 1 EUR = ¥97
(April 26 assumptions: 1 USD = ¥78; 1 EUR = ¥104)
¾ Raw material prices: Copper ¥700/kg; Silver ¥78,000/kg
(April 26 assumptions: Copper ¥700/kg; Silver ¥87,000/kg
© OMRON Corporation
4
FY12 Q1 Results
© OMRON Corporation
5
Consolidated P/L
¾ Sales almost in line with the year-ago quarter. OP down.
(Without forex impact, ¥153.4 bn sales (up 1.3%), ¥9.7 bn OP (down 20.5%))
¾ Gross profit margin down Y/Y due to last year’s post-disaster
increase.
FY2012 Q1
FY2011 Q1
Y/Y
149.9
54.8
151.4
57.9
-1.0%
-5.3%
(%)
(36.6%)
(38.2%)
(-1.6% pt)
SG&A
36.0
10.6
8.2
35.6
10.1
12.2
+1.2%
+4.7%
-32.7%
(5.5%)
(8.0%)
(-2.5% pt)
1.4
6.8
0.7
11.5
+99.8%
-40.5%
4.7
6.9
-31.8%
80.4
103.4
721
82,880
81.7
118.1
790
96,455
-1.3
-14.7
-69
-13,575
Net Sales
Gross Profit
R&D
Operating Income
(%)
Non-operating Income (loss), net
NIBT
Net Income
attributable to shareholders
1USD (JPY)
1EUR (JPY)
Copper (JPY/kg)
Silver (JPY/kg)
© OMRON Corporation
(Billions of yen)
6
Operating Income Analysis (Y/Y)
¾ OP down due mainly to forex loss on gross profit, and SG&A and
R&D for growth.
(Billions of yen)
12.2
Sales increase,
product mix, fixed
manufacturing costs
Material
costs
decrease
-0.9
SG&A, R&D
Exchange
gain
+0.8
SG&A, R&D
increase
+0.1
-2.3
8.2
-1.7
Exchange
loss
FY2011
Q1 Actual
Gross profit decrease ¥3.1 bn
FY2012
Q1 Actual
Operating income loss ¥4.0 bn (Exchange loss: ¥1.5 bn)
© OMRON Corporation
7
Consolidated B/S
¾ Production adjustments completed in FY11. Inventory well
managed in Q1.
(Billions of yen)
June 30, 2012
Assets
Cash and cash equivalents
Notes and accounts receivable - trade
Inventories
Deferred income taxes, other current assets
Property, plant and equipment
Investments and other assets
Liabilities
Short-term debt
Long-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
© OMRON Corporation
Mar. 31, 2012
(Ref. June 30,
2011)
517.8
537.3
538.4
50.7
122.4
91.3
29.8
118.3
105.3
45.3
141.1
92.3
29.5
120.7
108.4
64.0
120.9
90.8
30.6
117.6
114.5
201.5
215.6
220.1
23.7
0.0
69.2
59.0
49.6
18.8
0.0
79.3
60.4
57.1
30.4
0.0
73.4
64.1
52.2
316.3
321.7
318.3
438.5
-78.6
-44.5
0.9
433.8
-68.4
-44.5
0.8
430.5
-68.6
-44.6
1.0
517.8
537.3
538.4
8
Consolidated Cash Flows
¾ FCF down Y/Y as we carried out investments for growth as planned.
(Billions of yen)
FY2012 Q1
FY2011 Q1
(Ref. FY2011)
Operating activities
12.6
13.3
31.9
Investing activities
-7.5
-4.8
-26.5
Free cash flow
5.1
8.6
5.4
Financing activities
Effect of exchange rate changes
on cash and cash equivalents
Net increase/decrease in cash
and cash equivalents
Cash and cash equivalents
at end of the period
2.0
-18.7
-33.5
-1.7
-0.5
-1.5
5.5
-10.7
-29.5
50.7
64.0
45.3
Capital expenditures
7.0
5.4
28.3
Depreciation and amortization
5.3
5.3
22.6
*Capital investment is represented as capital expenditures on the consolidated cash flow statement.
© OMRON Corporation
9
Sales by Segment
¾ IAB, EMC and AEC up Q/Q. AEC notably up over the disasteraffected year-ago quarter.
¾ SSB and HCB up Y/Y.
(Billions of yen)
IAB
Industrial Automation
FY2012 Q1
FY2011 Q1
Y/Y
FY2011 Q4
Q/Q
66.0
74.9
-11.9%
64.9
+1.6%
21.3
20.4
+4.6%
21.0
+1.4%
24.1
18.4
+30.7%
23.8
+1.3%
10.0
9.6
+4.2%
24.2
-58.6%
15.4
14.3
+7.2%
16.1
-4.8%
11.5
12.2
-5.5%
14.0
-17.7%
1.6
1.6
+0.5%
2.5
-35.9%
149.9
151.4
-1.0%
166.6
-10.0%
EMC
Electronic & Mechanical
Components
AEC
Automotive Electronic
Components
SSB
Social Systems,
Solutions & Service
HCB
Healthcare
Other
Eliminations
& Corporate
Total
© OMRON Corporation
10
Operating Income by Segment
¾ IAB, EMC, AEC and HCB up Q/Q.
(Billions of yen)
FY2012 Q1
FY2011 Q1
7.8
12.4
-37.2%
5.6
+39.5%
(11.8%)
(16.5%)
(-4.7% pt)
(8.6%)
(+3.2% pt)
2.0
2.3
-12.2%
1.3
+52.7%
(9.6%)
(11.4%)
(-1.8% pt)
(6.4%)
(+3.2% pt)
1.5
0.5
+235.6%
0.8
+79.7%
(6.3%)
(2.5%)
(+3.8% pt)
(3.5%)
(+2.8% pt)
-1.7
-2.0
-
3.9
-
(-)
(-)
(-)
(16.1%)
(-)
0.9
1.2
-22.2%
-0.0
-
(5.9%)
(8.1%)
(-2.2% pt)
(-)
(+5.9% pt)
Other
-1.1
-1.3
-
-0.6
-
Eliminations
& Corporate
-1.2
-0.9
-
-1.0
-
8.2
12.2
-32.7%
10.0
-18.2%
(5.5%)
(8.0%)
(-2.5% pt)
(6.0%)
(-0.5% pt)
IAB
EMC
AEC
SSB
HCB
Total
Y/Y
FY2011 Q4
Q/Q
(%): Operating income/External sales
© OMRON Corporation
11
Performance by Segment (Y/Y)
Segment
FY12 Q1 Net Sales & Operating Income, vs. FY11 Q1
Net Sales
IAB
Operating Income
Net Sales
EMC
Operating Income
Net Sales
AEC
Operating Income
Net Sales
SSB
Operating Income
Net Sales
HCB
Operating Income
Net Sales
Other
Operating Income
© OMRON Corporation
• Japan: Automotive industry’s capital investment solid. Semiconductors &
electronic components slow.
• Overseas: Europe sluggish. US automotive and emerging markets strong.
Down. Sales down due to the strong yen and FY11 Q1 disaster-related
surge.
• Japan: Demand of consumer products industry slow. Automotive and
amusement strong.
• Overseas: Consumer goods makers in Europe still adjusting inventories.
Down due to the strong yen and internal sales decrease.
• Japan: Favorable thanks to the measures to support eco-car purchases.
• Overseas: Europe slow, but healthy overall.
Surged. Sales up. The year-ago quarter had temporary production cutback.
Railway companies orders up. Equipment delivery and related installation
up. Road management systems slow.
Smaller loss thanks to sales increase.
• Japan: New consumer products favorable.
• Overseas: Steady led by further growing demand for healthcare products
in emerging markets.
Down due to the strong yen.
Environmental Solutions healthy. Electronic equipment, micro devices, and
backlights slow.
Smaller loss thanks to Environmental Solutions sales growth.
12
Sales by Area (JPY)
¾ Greater China and Asia Pacific down Y/Y, because the year-ago
quarter had post-disaster temporary surge. Up Q/Q.
(Billions of yen)
FY2012 Q1
FY2011 Q1
Japan
70.3
67.7
+3.9%
90.6
-22.4%
Americas
20.1
18.0
+11.6%
21.0
-4.2%
Europe
18.8
22.9
-17.7%
20.1
-6.2%
Greater China
26.9
28.0
-3.7%
22.3
+20.9%
Asia Pacific
13.7
14.8
-7.6%
12.7
+8.2%
Total
149.9
151.4
-1.0%
166.6
-10.0%
© OMRON Corporation
Y/Y
FY2011 Q4
Q/Q
13
Sales by Area (FY11 Q1 Rates)
¾ Europe down 7.0% Y/Y in the flat exchange rate (with forex impact,
down 17.7% in JPY).
(Billions of yen)
FY2012 Q1
FY2011 Q1
Y/Y
FY2011 Q4
Q/Q
Americas
20.6
18.0
+14.1%
21.3
-3.4%
Europe
21.3
22.9
-7.0%
22.9
-6.9%
Greater China
26.8
28.0
-4.2%
22.9
+17.3%
Asia Pacific
14.4
14.8
-2.8%
13.6
+6.1%
*Flat FY11 Q1 rates applied.
© OMRON Corporation
14
FY12 Full-Year Forecast
© OMRON Corporation
15
FY12 Full-Year Forecast
¾ Sales and OP as initially planned, full-year and first-half as well.
¾ Aiming at growth both in sales and profit supported by robust sales
in emerging markets.
(Billions of yen)
FY2012
Net Sales
Gross Profit
(%)
SG&A
R&D
Operating Income
(%)
Non-operating Income (loss), net
NIBT
Net Income
attributable to shareholders
1USD (JPY)
1EUR (JPY)
Copper (JPY/kg)
Silver (JPY/kg)
© OMRON Corporation
FY2011
Y/Y
Apr. 2012
Forecast
650.0
243.5
619.5
227.9
+4.9%
+6.9%
650.0
243.5
(37.5%)
152.0
45.5
(36.8%)
145.7
42.1
(+0.7% pt)
+4.4%
+8.1%
(37.5%)
152.0
45.5
46.0
40.1
+14.6%
46.0
(7.1%)
3.0
43.0
(6.5%)
6.6
33.5
(+0.6% pt)
-54.5%
+28.2%
(7.1%)
3.0
43.0
28.5
16.4
+73.9%
28.5
78.7
99.0
693
78,323
79.3
110.3
738
92,379
-0.6
-11.3
-45
-14,056
78.0
104.0
700
87,000
16
Business Environment Forecast by Segment
Segment
IAB
Q2-Q4 Forecast, vs. Q1
• Japan: Capital investments of automotive and machine tools will remain strong.
Semiconductors and electronic components will remain slow.
• Overseas:
• Americas: Car-related investments in North America will stay strong.
• Europe: Exports will be steady. Italy and Germany will remain slow.
• Asia Pacific: Solid even after demand for Thailand restoration cools down.
• Greater China: Will recover gradually in the second half.
EMC
• Japan: Amusement will be strong.
• Overseas:
• Americas: Car-related demand will stay strong.
• Europe: Uncertainty due to the monetary crisis will continue.
• Asia Pacific: Will be slow, mainly in exports to Europe.
• Greater China: Will recover gradually, while consumer goods customers are still
adjusting inventories.
AEC
• Japan: Will see drop in the second half after special demand backed by eco-car
subsidiaries is over.
• Overseas: Solid in North America; China will see further demand increase.
SSB
Demand for environmental solutions will go up.
HCB
• Japan: Demand for healthcare services will continue to grow.
• Overseas: Emerging markets will keep growing with higher health consciousness.
Other
Demand for Environmental Solutions will keep growing. Backlights will recover in the
second half.
© OMRON Corporation
17
Full-Year Sales Forecast by Segment
¾ Looking to fulfill initial plans, full-year and first-half as well.
¾ Sales up Y/Y in all of the five main businesses.
(Billions of yen)
FY2012
Forecast
IAB
Industrial Automation
FY2011
Actual
Y/Y
Apr. 2012
Forecast
274.0
270.8
+1.2%
274.0
89.0
83.0
+7.2%
89.0
95.0
85.0
+11.7%
95.0
60.0
57.2
+4.9%
60.0
67.5
62.4
+8.1%
67.5
59.0
53.5
+10.2%
59.0
5.5
7.6
-25.8%
5.5
650.0
619.5
+4.9%
650.0
EMC
Electronic & Mechanical
Components
AEC
Automotive Electronic
Components
SSB
Social Systems,
Solutions & Service
HCB
Healthcare
Other
Eliminations
& Corporate
Total
© OMRON Corporation
18
IAB Sales
¾ Industrial Automation coming back after bottoming out in FY11 Q3.
¾ Expecting sales increase in the second half thanks to demand
recovery and efforts made since last fiscal year: new products
launch and sales & marketing enforcement.
80
(Billions of yen)
70
60
50
~
~
Q1
Q2
Q3
FY2010
Q4
Q1
Q2
Q3
FY2011
Q4
Q1
Q2
Q3
Q4
FY2012
[Q1 exchange rates] FY10: 1 USD = ¥91.5, 1 EUR ¥116.9; FY11: 1 USD = ¥81.7, 1 EUR =¥118.1; FY12: 1 USD = ¥80.4, 1 EUR = ¥103.4
© OMRON Corporation
19
Industrial Automation Outlook
Japan
¾ Automotive and machine tools, especially overseas shipment, will remain
strong.
¾ Electronic components and semiconductors will be slow. Demand related
to smartphones and tablet computers will be favorable. Uncertain overall
while expecting order increase from some customers in the second half.
Europe
¾ The economy will be sluggish due to the financial crisis in Europe,
especially Italy, Germany, and Spain. Slow overall, even with steady food
and automotive exports.
Greater China
¾ Domestic demand and capital investments will go up overall, thanks to the
Chinese government’s economic stimulus package in the second half.
¾ Wider range of our global-standard products launched last fiscal year,
which are designed to meet emerging markets too, will contribute to sales
growth.
© OMRON Corporation
20
EMC Outlook
Home Appliances
¾ Recovery of Europe and Greater China will take longer due to the financial
crisis in Europe.
¾ Greater China will see gradual recovery in the second half, mainly in white
goods.
Automotive Components
¾ Demand will grow for fuel-efficient cars in North America and mini-vehicles
in emerging markets.
¾ Production cutback in Europe is a concern.
Amusement
¾ Expecting growth thanks to our customers’ solid performance in the
leveling-off market.
© OMRON Corporation
21
Full-Year Operating Income Forecast by Segment
¾ Despite forex impacts on all segments, looking to achieve first-half
& full-year initial targets by cutting general costs where necessary.
¾ OP up Y/Y in all of the five main businesses.
(Billions of yen)
FY2012
Forecast
FY2011
Actual
Apr. 2012
Forecast
Y/Y
35.0
33.3
+5.0%
35.0
(12.8%)
(12.3%)
(+0.5% pt)
(12.8%)
8.0
7.2
+10.5%
8.0
(9.0%)
(8.7%)
(+0.3% pt)
(9.0%)
5.0
2.7
+85.8%
5.0
(5.3%)
(3.2%)
(+2.1% pt)
(5.3%)
1.0
0.1
+920.4%
1.0
(1.7%)
(0.2%)
(+1.5% pt)
(1.7%)
4.0
2.9
+37.1%
4.0
(5.9%)
(4.7%)
(+1.2% pt)
(5.9%)
Other
-2.0
-3.6
-
-2.0
Eliminations
& Corporate
-5.0
-2.5
-
-5.0
46.0
40.1
+14.6%
46.0
(7.1%)
(6.5%)
(+0.6% pt)
(7.1%)
IAB
EMC
AEC
SSB
HCB
Total
(%): Operating income/External sales
© OMRON Corporation
22
References
© OMRON Corporation
23
Exchange Rates & Raw Material Costs
Full-Year Fluctuation Impact
• Exchange rates, ¥1 fluctuation impact (full-year, approx)
USD
EUR
Sales
¥2.8 bn
¥0.8 bn
OP
¥0.7 bn
¥0.4 bn
• Silver & copper price change impact (full-year, approx)
Silver
Copper
© OMRON Corporation
Price change
¥1,000/kg
¥10/kg
OP
¥100 mil
¥100 mil
24
© OMRON Corporation
110
FY11 ¥79.3
2013/01
FY09 ¥130.3
2012/10
2012/07
2012/04
2012/01
FY08 ¥100.7
2011/10
FY10 ¥113.5
2011/07
2011/04
2011/01
2010/10
130
2010/07
2010/04
2010/01
2009/10
2009/07
2009/04
2009/01
2008/10
2008/07
2008/04
2008/01
90
2007/10
2007/07
100
2007/04
150
2007/01
2006/10
2006/07
2006/04
2006/01
2005/10
2005/07
160
2005/04
2005/01
2004/10
2004/07
2004/04
Exchange Rates (USD, EUR)
170
1JPY
USD
EUR
FY07 ¥161.9
140
FY08 ¥144.5
FY11 ¥110.3
120
FY12 Q1
¥103.4
FY07 ¥114.1
FY10 ¥85.8
FY12 Q1
¥80.4
80
FY09 ¥92.9
70
25
Raw Material Prices (Silver, Copper)
Silver price quotation, JPY/kg
Copper price quotation, JPY/kg
140,000
1400
Silver
120,000
FY11 ¥91,854
Copper
FY07 ¥916
100,000
March 2006
Silver: ¥40,160
Copper: ¥643
FY12 Q1
¥77,477 1000
(¥82,880)**
FY10 ¥739
FY08 ¥657
80,000
1200
800
FY09 ¥610
March 2003
Silver: ¥18,510
Copper: ¥240
60,000
600
FY11 ¥717
40,000
FY10 ¥66,387
FY07 ¥54,230
FY12 Q1
¥674
(¥721)** 400
FY09 ¥48,067
FY08 ¥46,265
20,000
200
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
2006/04
2006/01
2005/10
2005/07
2005/04
2005/01
2004/10
2004/07
2004/04
2004/01
2003/10
2003/07
0
2003/04
0
*Monthly simple moving average (SMA) of price quotations. **Average used for financial results.
© OMRON Corporation
26
Businesses and Major Products
• Electronic signal sensing
• Electrical current/voltage control
Relays, switches, connectors,
amusement equipment parts,
mobile device parts
• Human sensing
• Traffic sensing
• IC card technology
LCD backlights, semiconductors/MEMS,
energy saving/environmental solutions business,
electronic systems and equipment
Other
AEC
EMC
Automotive
Electronic
Components
Business
Electronic and
Mechanical
Components
Business
Automated ticket gates
and ticket vending machines,
SSB
road management systems,
Social Systems,
security management
Solutions
systems, face recognition
& Service
systems
Business
IAB
Industrial Automation
Business
• Radio wave sensing
• Automotive body control
Keyless entry systems,
power window switches,
automotive relays, EPS
(electronic power steering)
• Bio-information sensing
• Behavior sensing
Home- and professional-use
digital blood pressure monitors,
Healthcare body composition analyzers,
Business thermometers, pedometers,
nebulizers, patient monitors,
cardiovascular screening monitors
HCB
Sensing
• Displacement and measurement sensing
• Temperature control
• Machine control
• Vision sensing
Proximity/photoelectric/vision sensors, PLCs,
temperature controllers, machine safeguarding
equipment, inspection systems
© OMRON Corporation
&
Control
Consolidated subsidiaries
151
Affiliates accounted for by
the equity method
12
(as of June 30, 2012)
27
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.
© OMRON Corporation
Contact:
Investor Relations Department
Investor Relations Headquarters
Omron Corporation
Phone: +81-(0)3-6718-3421
Email: [email protected]
Website (English): www.omron.com
*To subscribe to Omron IR email newsletter:
Send us an email titled "subscribe".
28
Similar pages