PDF 43kb

OMRON Corporation
November 2002
1
Agenda
1.
2.
3.
4.
5.
Interim Results as of September 2002
Full-year Forecast for March 2003
Segment Data
Structural Reforms
Growth Strategy
P3-P6
P7-P9
P10-P15
P16-P18
P19-P24
2
Interim
Interim Results
Results (P/L)
(P/L)
(Unit: Yen 1B, %)
Results
Net sales
Gross profit
Gross margin
Budget
246.9
246.0
94.9
83.0
38.4%
33.7%
SG&A exp.
83.4
86.0
Operating income
11.5
-3.0
Operating margin
Non-operating exp.
Pre-tax income
Pre-tax margin
Net income
4.7%
-1.2%
24.2
18.0
-12.7
-21.0
-5.1%
-9.7
-8.5%
-13.0
Difference
Ratio
0.9
100%
11.9
114%
4.7%
-2.6
97%
14.5
--5.9%
6.2
134%
8.3
--3.4%
3.3
---
Previous
256.2
91.1
35.6%
86.0
5.1
2.0%
1.5
3.6
1.4%
2.2
Difference
Ratio
-9.3
96%
3.8
104%
2.9%
-2.6
97%
6.4
225%
2.7%
22.7
1613%
-16.3
---6.5%
-11.9
---
3
Interim
Interim Results
Results (Sales)
(Sales)
(Unit: Yen 1B, %)
Results
Budget
Domestic sales
144.4
149.0
Overseas sales
102.5
97.0
Total
246.9
246.0
98.2
93.0
67.3
65.0
Business Company (Previous Segment)
41.8
46.5
HCB : Healthcare Company
20.4
18.5
Others : Creative Service Company
and Business Development Group
19.2
23.0
IAB : Industrial Automation
Company
ECB : Electronic Components
Company
SSB : Social Systems
Difference
Ratio
-4.6
97%
5.5
106%
0.9
100%
5.2
106%
2.3
104%
Previous
163.6
92.6
256.2
93.7
64.5
-4.7
90%
1.9
110%
-3.8
83%
Difference
Ratio
-19.2
88%
9.9
111%
-9.3
96%
4.5
105%
2.8
104%
-13.6
55.4
18.7
23.9
75%
1.7
109%
-4.7
80%
New Segment (Un-audited : For reference only)
SSB : Social Systems
Solutions & Service Business Company
AMB : Advanced Module
Business Company
32.2
36.5
9.6
10.0
-4.3
88%
-0.4
96%
4
Interim
Interim Results
Results (Operating
(Operating Income)
Income)
Components of O.I.
Details of O.I.
(Unit: Yen 1B, %)
Results
2.6
Prod. mix &
cost reduction
Total
1.7
11.5
Budget
-3.0
IAB
13.1
4.6
ECB
7.0
3.9
SSB*
-3.8
-5.0
HCB
1.9
-0.4
Others
1.2
1.4
-7.9
-7.5
11.5
Budget
10.6
Results
-3.0
-0.4
Sales decrease
Foreign
exchange
gain
SG&A
decrease
HQ Cost and
Eliminations
Difference
Ratio
14.5
--8.5
285%
3.1
179%
1.2
--2.3
---0.2
86%
-0.4
---
Previous
5.1
8.6
4.3
-2.8
0.4
2.1
-7.5
* Previous Segment : SSB includes AMB
Difference
Ratio
6.4
225%
4.5
152%
2.7
163%
-1.0
--1.5
475%
-0.9
57%
-0.4
---
5
Interim
Interim Results
Results (Non-Operating
(Non-Operating Exp.)
Exp.)
Results
Restructuring Charges
Early retirement program
Budget
22.9 16.5
17.7 15.0
Previous
0.0
0.0
Other personnel related
1.1
0.0
0.0
Others
4.1
1.5
0.0
1.3
1.5
1.5
Other Non-Operating. Exp.
Programs executed during 1st half of FY2002
Early Retirement Program
1,460 applicants
Business Eliminations
ECB: Withdrawal from paper handling unit business
SSB： Reorganized SSB and established AMB
Sold Parking system business
others
Office Consolidations
Valuation losses
1.1
0.5
1.5
Others
0.2
1.0
0.0
24.2 18.0
1.5
TOTAL
(Unit: Yen 1B)
Closed 3 factories
Closed Kumamoto R&D Center
HCB consolidated at Kyoto Sijyo Office
others
6
Forecast
Forecast for
for March
March 2003
2003 (P/L)
(P/L)
(Unit: Yen 1B, %)
Forecast
Budget
Net sales
535.0
550.0
Gross profit
202.0
195.0
Gross margin
SG&A exp.
Operating income
Operating margin
Non-operating exp.
Pre-tax income
Pre-tax margin
Net income
37.8%
35.5%
172.0
174.0
30.0
21.0
5.6%
3.8%
26.0
19.0
4.0
2.0
0.7%
1.0
0.4%
1.0
Difference
Ratio
-15.0
97%
7.0
104%
2.3%
-2.0
99%
9.0
143%
1.8%
7.0
137%
2.0
200%
0.4%
0.0
100%
Previous
534.0
180.5
33.8%
176.3
4.2
0.8%
29.6
-25.4
-4.8%
-15.8
Difference
Ratio
1.0
100%
21.5
112%
4.0%
-4.3
98%
25.8
714%
4.8%
-3.6
88%
29.4
--5.5%
16.8
---
7
Forecast
Forecast for
for March
March 2003
2003 (Sales)
(Sales)
(Unit: Yen 1B, %)
Forecast
Budget
Domestic sales
328.0
348.0
Overseas sales
207.0
202.0
Total
535.0
550.0
197.5
193.0
139.5
138.0
119.5
128.5
HCB : Healthcare Company
42.5
40.0
Others : Creative Service Company
36.0
50.5
IAB : Industrial Automation
Company
ECB : Electronic Components
Company
SSB : Social Systems
Business Company (Previous Segment)
and Business Development Group
Difference
Ratio
-20.0
94%
5.0
102%
-15.0
97%
4.5
102%
1.5
101%
-9.0
93%
2.5
106%
-14.5
71%
Previous
344.9
189.1
534.0
184.2
131.9
128.1
40.6
49.2
Difference
Ratio
-16.9
95%
17.9
109%
1.0
100%
13.3
107%
7.6
106%
-8.6
93%
1.9
105%
-13.2
73%
New Segment (Un-audited : For reference only)
SSB : Social Systems
Solutions & Service Business Company
99.5
106.5
AMB : Advanced Module
Business Company
20.0
22.0
-7.0
93%
-2.0
91%
8
Forecast
Forecast for
for March
March 2003
2003 (Operating
(Operating Income)
Income)
Components of O.I..
Details of O.I..
Forecast
Sales
decrease
0.2
SG&A
decrease
30.0
21.0
Prod. Mix &
cost reduction
Budget
Budget
2.0
12.4
-5.6
(Unit: Yen 1B, %)
Foreign
Exchange gain
Forecast
Total
30.0 21.0
IAB
21.6 15.4
ECB
14.8 11.7
SSB
0.5
2.7
HCB
3.4
1.3
Others
2.2
3.9
HQ Cost and
Eliminations
-12.5 -14.0
Difference
Ratio
9.0
143%
6.2
140%
3.1
126%
-2.2
19%
2.1
262%
-1.7
56%
1.5
---
Previous
4.2
12.1
7.9
-3.0
1.6
2.6
-17.0
Difference
Ratio
25.8
714%
9.5
179%
6.9
187%
3.5
--1.8
213%
-0.4
85%
4.5
---
9
IAB
IAB :: Industrial
Industrial Automation
Automation Company
Company
Control Components and Systems for Factory Automation, and other sectors
System Components (30%)
30%
Programmable logic controllers,
motion controllers and others
Sensor Components (30%)
Proximity sensors, photoelectric sensors
and other sensors
Industrial Components (40%) Relays, switches, timers and others
30%
40%
1st half results
Sales
Full-year forecast
Results
Budget
49.1
45.0
Overseas
49.1
48.0
Europe
25.3
25.4
Americas
10.3
9.6
Asia
5.9
5.3
China+
7.6
7.7
98.2
93.0
Results
Budget
Operating
Income
Total
13.1
Ratio
4.1
109%
1.1
102%
-0.1
100%
0.7
107%
0.6
111%
-0.1
99%
5.2
106%
Japan
Total
Difference
4.6
Difference
Ratio
8.5
285%
Previous
Difference
Ratio
-0.6
99%
5.1
112%
1.9
108%
1.5
117%
0.6
111%
1.1
117%
4.5
105%
49.7
44.0
23.4
8.8
5.3
6.5
93.7
Previous
8.6
Difference
Ratio
4.5
152%
Sales
Forecast
(Unit: Yen 1B, %)
Budget
Japan
99.5
95.0
Overseas
98.0
98.0
Europe
51.5
52.1
Americas
19.9
19.1
Asia
11.7
11.6
China+
14.9
15.2
197.5
193.0
Forecast
Budget
Total
Operating
Income
Total
21.6
15.4
Difference
Ratio
4.5
105%
0
100%
-0.6
99%
0.8
104%
0.1
101%
-0.3
98%
4.5
102%
Difference
Ratio
6.2
140%
Previous
95.5
88.7
47.9
18.5
10.2
12.1
184.2
Previous
12.1
Difference
Ratio
4.0
104%
9.3
110%
3.6
108%
1.4
108%
1.5
115%
2.8
123%
13.3
107%
Difference
Ratio
9.5
179%
10
ECB
ECB :: Electronic
Electronic Components
Components Company
Company
Electronics Components for Cars, Home Appliances, Telecommunications, OA, etc.
For home appliances, telecommunications,
(Electronic Mechanical Components)
industrial machinery
Automotive Components (40%) Relays, switches, sensors and other devices for
automotives
Other Components (15%)
For amusement, OA products, MLA and
other devices
EMC Group (45%)
15%
45%
40%
1st half results
Sales
Results
Budget
Japan
31.9
31.5
Overseas
35.4
33.5
6.0
6.3
17.9
16.3
Asia
6.3
6.2
China+
5.2
4.7
67.3
65.0
Europe
Americas
Total
Operating
Income
Total
(Unit: Yen 1B, %)
Full-year forecast
Results
7.0
Budget
3.9
Difference
Ratio
0.4
101%
1.9
106%
-0.3
95%
1.6
110%
0.1
102%
0.5
111%
2.3
104%
Difference
Ratio
3.1
179%
Previous
32.2
32.3
5.0
16.4
5.6
5.3
64.5
Previous
4.3
Difference
Ratio
-0.3
99%
3.1
110%
1.0
120%
1.5
109%
0.7
113%
-0.1
98%
2.8
104%
Difference
Ratio
2.7
163%
Sales
Forecast
Budget
Japan
68.0
68.5
Overseas
71.5
69.5
Europe
12.6
13.1
Americas
36.2
34.2
Asia
12.4
12.5
China+
10.3
9.7
139.5
138.0
Total
Operating
Income
Total
Forecast
14.8
Budget
11.7
Difference
Ratio
-0.5
99%
2.0
103%
-0.5
96%
2.0
106%
-0.1
99%
0.6
106%
1.5
101%
Difference
Ratio
3.1
126%
Previous
65.7
66.2
11.1
33.7
11.2
10.2
131.9
Previous
7.9
Difference
Ratio
2.3
104%
5.3
108%
1.5
114%
2.5
107%
1.2
111%
0.1
101%
7.6
106%
Difference
Ratio
6.9
187%
11
SSB:
SSB:Social
SocialSystems
SystemsBusiness
BusinessCompany
Company(Previous
(PreviousCompany)
Company)
SSB
SSB::Social
SocialSystems
SystemsSolutions
Solutionsand
andService
ServiceBusiness
BusinessCompany
Company
Provides solutions and services to financial institutions, railway companies and traffic sector
To Financial Institutions (25%) Selling ATM, BTR and solutions
25%
40%
20%
15%
To Railway Companies (20%)
Selling pass-gate, ticket vending machines
To Traffic Sector (15%)
Selling systems to traffic control sector
Service and Maintenance(40%) Engineering and maintenance work and others
New Segment
1st half results
Full-year forecast
(Unit: Yen 1B, %)
New SSB (New Segment) Difference
Sales
Japan
Results
32.2
Budget
36.4
Ratio
Difference
Previous
Ratio
-4.2
Difference
Sales
Japan
88%
Forecast
99.5
Budget
106.5
Ratio
Difference
Previous
Ratio
-7.0
93%
Previous SSB (Previous Segment) Audited. Including AMB.
Difference
Sales
Japan
Operating
Income
Total
Results
41.8
Budget
46.5
Ratio
-4.7
90%
Difference
Previous
55.4
Difference
Results
-3.8
Budget
-5.0
Ratio
1.2
76%
Ratio
-13.6
75%
Difference
Previous
-2.8
Ratio
-1.0
136%
Difference
Sales
Japan
Operating
Income
Total
Forecast
119.5
Budget
128.5
Ratio
-9.0
93%
Difference
Previous
128.1
Difference
Forecast
0.5
Budget
2.7
Ratio
-2.2
19%
Ratio
-8.6
93%
Difference
Previous
-3.0
Ratio
3.5
-17%
12
AMB
AMB :: Advanced
Advanced Module
Module Business
Business Company
Company
Financial modules and railway modules
25%
Financial devices for domestic
customers (30%)
Selling ATMs to domestic manufacturers
Financial devices for overseas
customers (45%)
Selling ATMs to overseas manufacturers
30%
45%
Modules and other devices (25%) Selling modules and railway devices
. 1st half results
Sales
Difference
Results
Budget
Japan
3.3
4.2
Overseas
6.3
5.8
Americas
0.2
0.1
Asia
0.1
0.1
China
0.1
0.7
Exports
5.9
4.9
9.6
10.0
Total
(Unit: Yen 1B, %)
Full year forecast
Ratio
-0.9
79%
0.5
109%
0.1
--0.0
100%
-0.6
14%
1.0
120%
-0.4
96%
Sales
Japan
Difference
Forecast
Budget
7.0
9.0
13.0
13.0
Americas
0.3
0.3
Asia
0.1
0.1
China
0.3
1.3
12.3
11.3
20.0
22.0
Overseas
Exports
Total
Ratio
-2.0
78%
0.0
100%
0.0
--0.0
100%
-1.0
23%
1.0
109%
-2.0
91%
Un-audited : for reference only. AMB established July 2002
13
HCB
HCB :: Healthcare
Healthcare Company
Company
Home and professional medical devices
Blood pressure monitors (50%)
30%
Thermometers (10%)
50%
Nebulizers (10%)
10%
10%
Other products (30%) : Massage chairs, massagers, etc.
1st half results
Sales
Japan
Results
Budget
9.6
9.0
10.8
9.5
Europe
3.0
2.6
Americas
6.3
5.7
Asia
0.6
0.5
China+
0.9
0.7
20.4
18.5
Overseas
Total
Operating
Income
Total
(Unit: Yen 1B, %)
Full-year forecast
Results
1.9
Budget
-0.4
Difference
Ratio
0.6
107%
1.3
114%
0.4
115%
0.6
111%
0.1
120%
0.2
129%
1.9
110%
Difference
Ratio
2.3
-475%
Previous
9.3
9.4
2.6
5.6
0.5
0.7
18.7
Previous
0.4
Difference
Ratio
0.3
103%
1.4
115%
0.4
115%
0.7
113%
0.1
120%
0.2
129%
1.7
109%
Difference
Ratio
1.5
475%
Sales
Forecast
Budget
Japan
19.5
19.0
Overseas
23.0
21.0
7.1
6.1
12.7
12.4
Asia
1.3
1.0
China+
1.9
1.5
42.5
40.0
Europe
Americas
Total
Operating
Income
Total
Forecast
3.4
Budget
1.3
Difference
Ratio
0.5
103%
2.0
110%
1.0
116%
0.3
102%
0.3
130%
0.4
127%
2.5
106%
Difference
Ratio
2.1
262%
Previous
19.0
21.6
6.3
12.6
1.1
1.6
40.6
Previous
1.6
Difference
Ratio
0.5
103%
1.4
106%
0.8
113%
0.1
101%
0.2
118%
0.3
119%
1.9
105%
Difference
Ratio
1.8
213%
14
Other
Other segment
segment
Business Development Group
Creative Service Company
Business Development Group
Creative Service Company
1st
Entertainment devices and software
PC peripheral devices,
Voice recognition systems Machine to machine business
others
Logistics, personnel, office services, advertising, etc.
(Unit: Yen 1B, %)
half results
Sales
Japan
Overseas
Total
Operating
Income
Total
Full-year forecast
Results
Budget
18.3
22.8
0.9
0.2
19.2
23.0
Results
1.2
Budget
1.4
Difference
Ratio
-4.5
80%
0.7
450%
-3.8
83%
Difference
Ratio
-0.2
86%
Previous
23.6
0.3
23.9
Previous
2.1
Difference
Ratio
-5.3
78%
0.6
300%
-4.7
80%
Difference
Ratio
-0.9
57%
Sales
Japan
Overseas
Total
Operating
Income
Total
Forecast
Budget
34.5
50.0
1.5
0.5
36.0
50.5
Forecast
2.2
Budget
3.9
Difference
Ratio
-15.5
69%
1.0
300%
-14.5
71%
Difference
Ratio
-1.7
56%
Previous
48.4
0.8
49.2
Previous
2.6
Difference
Ratio
-13.9
71%
0.7
188%
-13.2
73%
Difference
Ratio
-0.4
85%
15
Structural
Structural Reform
Reform
Action time frame
- April 2002- September 2003
Objectives
- Reduce consolidated fixed & variable costs
by 30 billion yen
- Increase overseas production by 50%
- Eliminate non/low profit yielding businesses
16
Executed
Executed Structural
Structural Reform
Reform Programs
Programs
Personnel
Personnelcost
costreduction
reduction
1,460 persons : Early retirement program 394 persons : Sold Omron Alphatec Corp. to IBM
291 persons : Closure of 3 domestic factories
Other
Othercost
costreductions
reductions
Closed or sold 7 subsidiaries (Omron Alphatec and others)
Reorganized or sold 4 businesses (Parking systems at SSB and others)
Consolidated offices of HCB
Closed Kumamoto R&D Center
Closed 3 domestic factories (Omron Amakusa and others)
Finalized agreements to sell 9 assets (properties)
Other
Otherprograms
programs
Division and reorganization of SSB
17
Projected
Projected Cost
Cost Savings
Savings
Projected achievement of original target of reducing
total fixed and variable costs by 30B yen
Projected cost savings
March 2003
March 2004
Plan
Forecast
Plan
Personnel cost
4.0 B
8.0 B
15.0 B
General Exp.
1.5 B
2.5 B
9.0 B
Variable Cost / G.P.
5.0 B
6.0 B
6.5 B
Total
10.5 B
16.5 B
30.5 B
18
Growth
Growth Strategy
Strategy(Long-term
(Long-termdirection
direction::GD2010)
GD2010)
In the ubiquitous society (broadband)
= Omron will provide sensor net solutions
Customer B
Core competencies
Sensing & Control
Customer E
Customer A
Sensing Technology
Control Technology
Variety of sensors
Fuzzy analysis / others
Control components
Optical control / Applications
Customer D
Market
collaboration
Machine
Surroundings
Sensor
+
Sensor
Sensor Net
Network Technologies
Sensor
Sensor
Sensor Net Solutions
New needs from
manufacturing area
Transparency
Central data
control
Customer C
New needs from
new society
Information
service
Safety &
security
Human
SENSING
Machine
Business
collaboration
NETWORK
COMMUNICATION
CONTROL
COMPUTING
19
Growth
Growth Strategy
Strategy (Direction)
(Direction)
ECB
MLA
DR-LED
Optical devices
MEMS business
Automotive devices
Others
AMB
IAB / ECB
Chinese Market
SSB/AMB/HCB
IAB
User segment businesses
Others
SSB/HCB
Components
Businesses
Device Businesses
Existing Businesses
Solutions Businesses
20
High
High Value-added
Value-added Device
Device Business
Business
“Only One” products creation
MLA
MLA
Micro Lens Array
SPICA
SPICA
Stacked Polymer optical
IC/Advanced
DR-LED
DR-LED
MEMS
MEMS
Double Reflection - LED
Micro Machined Relay
光エレラボ
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Chinese
Chinese Market
Market
(Unit: Yen 1B)
Sales
22.5
(March 2002)
Manufacturing
22.8
(March 2002)
50.0
(March 2005)
IAB Sales
IAB Factory
Dalian
ECB Sales
50.0
Beijing
ECB Factory
(March 2005)
Topics in 2002
Established China HQ (April)
IAB / Established EMS managing company (July) ECB / Opened Shenzhen factory (June)
HCB / Established R&D company (Oct) Shanghai
HCB Sales
HCB Factory
Chengdu
Shenzhen
R&D
Hong Kong
Taiwan
Others
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Solutions
Solutions Business
Business
User Segment Business
u
u
Focus on auto, semiconductor,
food processing industries
Provide high value and unique solutions
Sales expectations
24B yen
(Mar. 05)
12B yen (Mar.03)
Domestic solutions businesses
Inspection systems
Overseas solutions businesses
Safety, environment, quality,
traceability and others
PCB solder inspection
Lead-free solution
Spread domestic applications
Spread to non-FA market
13B yen (Mar. 05)
7B yen (Mar. 05)
4B yen (Mar. 05)
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Growth
Growth Strategy
Strategy (Target
(Target Volume)
Volume)
Target
by
March
2005
MLA
Optical control
technology
DR-LED
Optical devices
High value-added
device business
13B+ yen
MEMS business
Automotive device
Automotive
device businesses
20B+ yen
Total
80B – 100B
yen
User segment
Amusement business
Solutions business
22B+ yen
Others
Chinese market
Chinese Market
25B+ yen
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NOTE
The performance forecasts presented in these slides were
calculated based on the best information and assumptions
available to us.
Factors including, but not limited to, domestic and international
economic conditions, relative demand for Omron’s products and
services, currency exchange rate fluctuations and stock market
trends are unpredictable and subject to change. Consequently,
actual performance may differ from the performance forecasts.
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