KYOTO, Japan — (BUSINESS WIRE) — April 27, 2010 — OMRON Corporation (TOKYO:6645)
| Exchanges Listed: | Tokyo, Osaka (first sections) | |
| Homepage: | ||
| Representative: | Hisao Sakuta, President and CEO | |
| Contact: |
Masaki Haruta, General Manager, Corporate Resources Innovation Headquarters, Accounting and Finance Center |
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| Telephone: |
+81-75-344-7070 |
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| U.S. GAAP: | Adopted | |
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Annual General Shareholders' Meeting (Scheduled): |
June 22, 2010 | |
| Start of Distribution of Dividends (Scheduled): | June 23, 2010 | |
| Filing of Securities Report (Yuka shoken hokokusho) (Scheduled): | June 23, 2010 |
| Note: This document has been translated from the Japanese original as a guide to non-Japanese investors and contains forward-looking statements that are based on managements' estimates, assumptions and projections at the time of publication. A number of factors could cause actual results to differ materially from expectations. |
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Note: All amounts are rounded to the nearest million yen. |
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1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2010 |
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(April 1, 2009 – March 31, 2010) |
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(1) Sales and Income |
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(Percentages represent changes compared with the previous fiscal year.) |
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| Millions of yen - except per share data and percentages | ||||||||||||
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Year ended
March 31, 2009 |
Year ended
March 31, 2010 |
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| Change (%) | Change (%) | |||||||||||
| Net sales | 627,190 | (17.8) | 524,694 | (16.3) | ||||||||
| Operating income | 5,339 | (91.8) | 13,074 | 144.9 | ||||||||
| Income (loss) before income taxes | (39,133) | — | 10,195 | — | ||||||||
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Net income (loss) attributable to
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(29,172) | — | 3,518 | — | ||||||||
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Net income (loss) attributable to
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(132.15) | 15.98 | ||||||||||
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Net income (loss) attributable to
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— | 15.98 | ||||||||||
| Return on equity | (8.7%) | 1.2% | ||||||||||
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Income before income taxes / total
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(6.8%) | 1.9% | ||||||||||
| Operating income / net sales ratio | 0.9% | 2.5% | ||||||||||
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(Reference) Equity in earnings (losses) of affiliates: Year ended March 31, 2009: JPY (811 million); Year ended March 31, 2010: JPY (2,792 million) |
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Notes: Net income attributable to shareholders is identical in content to net income for the year ended March 31, 2009. |
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(2) Consolidated Financial Position |
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Millions of yen - except per share data and
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As of March 31,
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As of March 31,
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| Total assets | 538,280 | 532,254 | ||||
| Net assets | 299,981 | 307,135 | ||||
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Shareholders' equity |
298,411 | 306,327 | ||||
| Net worth ratio (%) | 55.4 | 57.5 | ||||
| Net assets per share (JPY) | 1,355.41 | 1,391.41 | ||||
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(3) Consolidated Cash Flows |
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Millions of yen | |||||
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Year ended
March 31, 2009 |
Year ended
March 31, 2010 |
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| Net cash provided by operating activities | 31,408 | 42,759 | ||||
| Net cash used in investing activities | (40,628) | (18,584) | ||||
| Net cash (used in) provided by financing activities | 21,867 | (20,358) | ||||
| Cash and cash equivalents at end of period | 46,631 | 51,726 | ||||
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2. Dividends |
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Year ended
March 31, 2009 |
Year ended
March 31, 2010 |
Year ending
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Dividends
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1st quarter dividend (JPY) | — | — | — | ||||
| Interim dividend (JPY) | 18.00 | 7.00 | 10.00 | |||||
| 3rd quarter dividend (JPY) | — | — | — | |||||
| Year-end dividend (JPY) | 7.00 | 10.00 | — | |||||
| Total dividends for the year (JPY) | 25.00 | 17.00 | — | |||||
| Total cash dividends paid (JPY million) | 5,505 | 3,743 | ||||||
| Payout ratio (%) | — | 106.4 | — | |||||
| Net assets / dividends ratio (%) | 1.7 | 1.2 | ||||||
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Note: The year-end dividend for the year ending March 31, 2011 is undetermined. |
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3. Projected Results for the Fiscal Year Ending March 31, 2011 (April 1, 2010 – March 31, 2011) |
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(Percentages represent changes compared with the previous fiscal year or the previous interim period, as applicable.) |
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Interim period
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Change
(%) |
Full year ending
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Change
(%) |
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| Net sales | 268,000 | 15.3 | 580,000 | 10.5 | ||||
| Operating income | 11,000 | — | 33,000 | 152.4 | ||||
| Income before income taxes | 11,500 | — | 33,000 | 223.7 | ||||
| Net income attributable to shareholders | 7,000 | — | 20,000 | 468.5 | ||||
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Net income per share attributable to
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31.80 | 90.85 | ||||||
4. Other
(1) Changes in major subsidiaries during the period (changes in specified subsidiaries due to changes in the scope of consolidation): No
(2) Changes in accounting principles, procedures and methods of presentation pertaining to preparation of the Consolidated Financial Statements
(a) Changes in consolidated accounting methods: Yes
(b) Changes other than (a) above: No
Note: For more details, see "Preparation of the Consolidated Financial Statements" on page 18.
(3) Number of shares issued and outstanding (common stock)
(a) Number of shares at end of period (including treasury stock): March 31, 2009: 239,121,372 shares; March 31, 2010: 239,121,372 shares
(b) Treasury stock at end of period: March 31, 2009: 18,958,944 shares; March 31, 2010: 18,966,294 shares
(c) Average number of shares during the period: Year ended March 31, 2009: 220,747,962 shares; Year ended March 31, 2010: 220,158,389 shares
Note: See "Per Share Data" on page 18 for the number of shares used as the basis for calculation of net income per share (consolidated).
(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2010 (April 1, 2009 – March 31, 2010)
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(1) Non-consolidated Sales and Income |
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(Percentages for net sales, operating income, income before income
taxes, and net income represent changes
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| Millions of yen - except per share data and percentages | ||||||||
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Year ended
March 31, 2009 |
Year ended
March 31, 2010 |
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| Change (%) | Change (%) | |||||||
| Net sales | 267,092 | (19.6) | 221,367 | (17.1) | ||||
| Operating income (loss) | (17,298) | — | (17,440) | — | ||||
| Ordinary income (loss) | (7,395) | — | 16,073 | — | ||||
| Net income (loss) | (19,526) | — | 22,788 | — | ||||
| Net income (loss) per share (JPY) | (88.43) | 103.49 | ||||||
| Net income per share, diluted (JPY) | — | 103.49 | ||||||
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(2) Non-consolidated Financial Position |
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Millions of yen - except per share data and
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| As of March 31, 2009 | As of March 31, 2010 | |||||
| Total assets | 360,732 | 371,743 | ||||
| Net assets | 197,413 | 221,363 | ||||
| Net worth ratio (%) | 54.7 | 59.5 | ||||
| Net assets per share (JPY) | 895.24 | 1,003.93 | ||||
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(Reference) Net worth: |
Year ended March 31, 2009: JPY 197,142 million; |
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Year ended March 31, 2010: JPY 221,070 million |
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| Notes Regarding Use of Projections of Results and Other Matters |
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1. Projections of 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 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) the economic conditions affecting the Omron Group's businesses in Japan and overseas, (ii) demand trends for the Omron Group's products and services, (iii) the ability of the Omron Group to develop new technologies and new products, (iv) major changes in the fund- raising environment, (v) tie-ups or cooperative relationships with other companies, and (vi) movements in currency exchange rates and stock markets. |
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For the assumptions that form the basis of the projected results, see "Qualitative Information and Financial Statements, etc., 1. Results of Operations, (1) Analysis of Results of Operations, 2) Outlook for the Fiscal Year Ending March 31, 2011" on pages 7 and 8. |
| 2. The Company applies the single step method for presentation of its Consolidated Financial Statements based on U.S. GAAP. However, to facilitate comparison with other companies, operating income on the Consolidated Income Statement is presented by subtracting selling, general and administrative expenses and research and development expenses from gross profit. |
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3. The interim and year-end dividends for the year ending March 31, 2011 will be set and disclosed in accordance with the Company's Basic Policy for Distribution of Profits at a point when there is a high level of certainty of achieving the Company's performance forecast. At the latest, the Company plans to make an announcement by April 2011. |
| Note: | The following abbreviations of business segment names are used in the attached materials. | |
| IAB: | Industrial Automation Business | |
| EMC: | Electronic and Mechanical Components Business | |
| AEC: | Automotive Electronic Components Business | |
| SSB: | Social Systems, Solutions and Service Business | |
| HCB: | Healthcare Business (includes Omron Healthcare Co., Ltd. and others) | |
| Other: | Environmental Solutions Business HQ, Electronic Systems & Equipments Division HQ, Micro Devices H.Q., OMRON PRECISION TECHNOLOGY Co., Ltd. and others | |
1. Results of Operations
(1) Analysis of Results of Operations
1) Results of Operations in Fiscal 2009 (Ended March 31, 2010)
General Conditions
Reviewing economic conditions during fiscal 2009, ended March 31, 2010, the impact of the global economic downturn that began in the second half of fiscal 2008, said to be a once-in-a-century event, continued in the first half of the period. However, the effects of economic stimulus measures in various countries gradually began to materialize around the start of autumn, and a moderate recovery took shape, led by China and other newly industrialized countries.
In the Japanese economy, bright spots finally began to appear in the second half of the period, supported by exports due to the recovery of overseas economies. Overseas, the United States and Europe at last began to show a trend toward recovery in the second half as the effects of economic stimulus measures in various countries emerged. China continued to perform strongly, due in part to the government measures to stimulate consumption, and other economies in Asia were also solid.
In markets related to the Omron Group, demand for Omron's factory automation equipment, a core product line, was weak through the first quarter due to sluggish capital investment stemming from excess production capacity in the manufacturing sector. From the second quarter onward, demand centered on commercial and environment-related products increased, supported by government measures in various countries aimed at encouraging consumption and preserving the environment. Following on from this growth, investment demand among manufacturers, Omron's core customer group, also continued to recover gradually, primarily in the automotive and electronic components industries.
The Omron Group's net sales for the year ended March 31, 2010 were JPY 524,694 million, a decrease of 16.3 percent compared with the previous fiscal year, reflecting the significant global economic slowdown and flat capital investment among manufacturers through the second quarter. In addition, operating income was JPY 13,074 million, an increase of 144.9 percent compared with the previous fiscal year, as a result of implementing profitability initiatives under the fiscal 2009 policies of "Working Together as One" and "Sweeping Profit Structure Reform Guided by 'Selection and Focus.'" Income before income taxes was JPY 10,195 million, and net income attributable to shareholders was JPY 3,518 million.
The average exchange rates for the year ended March 31, 2010 were USD 1 = JPY 92.9 and EUR 1 = JPY 130.3 (7.8 yen and 14.2 yen less than the previous fiscal year, respectively).
Segment Information
In the third quarter, the Omron Group reorganized the Electronic Components Business (ECB) into the Electronic and Mechanical Components Business (EMC) to strengthen mechanical components, transferring ECB's backlight and micro device businesses into a new organization under the direct supervision of Omron's president and CEO.
Accordingly, business segments heretofore classified as IAB, ECB, AEC, SSB and HCB have been reclassified as IAB, EMC, AEC, SSB, HCB and Other from the third quarter. Figures from previous fiscal years have been restated to reflect the new classifications.
IAB
In Japan, demand for Omron's products was weak through the first quarter due to the substantial impact from reduced production and investment among manufacturers from the second half of fiscal 2008. Demand for sensors and other products finally began to turn upward at the start of the second quarter, reflecting a rebound in production centered on customers in the automotive and electronic component industries. The recovery trend in demand for Omron's products continued in the third quarter, with a rise in production among customers in the semiconductor industry and improved sales of energy-related products.
Overseas, demand for Omron's products in China continued to recover and in the fourth quarter returned to the pre-downturn level, as the effect of measures to expand internal demand since the start of the previous year became apparent and production capacity utilization and capital investment increased. In Europe, demand for Omron's products has been gradually recovering since the fourth quarter. In North America, there has been gradual improvement since the third quarter despite the impact of a slump in petroleum-related industries and the automotive industry.
As a result, segment sales to outside customers for the fiscal year totaled JPY 206,197 million, a decrease of 24.2 percent compared with the previous fiscal year.
EMC
In Japan, demand for many products recovered as inventory adjustments in the commercial and consumer products and automotive components industries that began in the second half of the previous fiscal year reached the end of a cycle in the first quarter. However, compared to the levels prior to fiscal 2008, a full-scale recovery has not yet been reached.
Overseas, although sales were weak in an unprecedentedly severe operating environment in Europe and North America, particularly in the first half, signs of recovery gradually surfaced in the second half. In China and Southeast Asia, economic conditions began recovering in the second quarter and demand turned upward, particularly for relays for home electronics, flexible printed circuit connectors for optical disks, and mobile phone input devices.
As a result, segment sales to outside customers for the fiscal year totaled JPY 70,717 million, a decrease of 7.6 percent compared with the previous fiscal year.
AEC
In Japan, despite a sharp drop in automobile sales due to the strong impact of the global economic downturn, demand for Omron products picked up from the third quarter because of preferential tax treatment for eco-friendly cars.
Overseas, demand for Omron products in North America, the main market of this segment, fell sharply due to the major impact from the failure of a large auto manufacturer and production shutdowns. However, the effects of prompt restructuring support from the government and stimulus programs to promote new automobile purchases in various countries became apparent, and demand started to recover gradually from the third quarter.
As a result, segment sales to outside customers for the fiscal year totaled JPY 75,163 million, a decrease of 8.5 percent compared with the previous fiscal year.
SSB
In the public transportation systems business, demand for Omron's products decreased sharply as railway companies came to the end of a phase of new railway line openings and investment in IC card equipment, and cut back capital investment due to the effects of the continuing weak economy and reduced expressway tolls on weekends and holidays. The social sensor solutions business saw expansion of new solutions in the traffic and road management systems business, but demand decreased significantly with the effect of cutbacks in investment by the manufacturing, distribution and credit industries. In the related maintenance business, demand decreased due to the effect of cutbacks in capital investment by manufacturers and a decrease in public transportation-related construction. In the software business, demand decreased substantially due to a decline in the number of mobile phones sold in the Japanese market and cutbacks in capital investment by distributors.
As a result, segment sales to outside customers for the fiscal year totaled JPY 57,981 million, a decrease of 19.8 percent compared with the previous fiscal year.
HCB
In Japan, demand expanded substantially for digital thermometers due in part to the effect of a new type of influenza. However, demand for devices for medical institutions dropped below that of the previous fiscal year due to the ongoing curtailment or postponement of investment by hospitals and physicians.
Overseas, demand in Asia remained strong, reflecting rising awareness of health management in provincial cities in China. On the other hand, demand in North America and Europe was weak due to the continuing sluggish economy.
As a result, segment sales to outside customers for the fiscal year totaled JPY 63,359 million, a decrease of 0.4 percent compared with the previous fiscal year.
Other
The Other segment is primarily responsible for exploring and nurturing new businesses and nurturing/reinforcing businesses not handled by other internal companies. In the third quarter of fiscal 2009, two businesses that had operated under the Electronic Components Business (ECB) — the Micro Devices HQ and the backlight business of OMRON PRECISION TECHNOLOGY Co., Ltd. — were transferred to a new organization under the direct supervision of Omron's president and CEO.
In the Environmental Solutions Business HQ, demand was strong for energy services using visualization systems for energy consumption amid expansion of initiatives to maintain and improve the environment.
In the Electronic Systems & Equipments Division HQ, contract production and development of electronic devices benefited from improving market conditions, and a moderate recovery trend emerged in the third quarter.
In the Micro Devices HQ, sales have been in a recovery trend since the second quarter as demand for custom integrated circuits and consumer and industrial demand rebounded, while contract chip manufacturing for LCD-related projects also increased.
In the backlight business, sales were weak due to a decrease in demand for music players.
As a result, segment sales to outside customers for fiscal year totaled JPY 41,312 million, a decrease of 17.8 percent compared with the previous fiscal year.
2) Outlook for the Fiscal Year Ending March 31, 2011
General Outlook
In fiscal 2010, ending March 31, 2011, economic conditions are projected to be solid in China and other newly industrialized countries, but the outlook in major developed countries is expected to remain uncertain, with causes for concern including the diminishing effects of economic stimulus measures and weak employment conditions.
In Japan, rising exports are seen as a factor supporting the economy against the backdrop of the gradual recovery of overseas economies, but a clear pickup in corporate capital investment and employment is expected to take time. Overseas, growth is expected to continue in China and other newly industrialized countries with fast-growing economies in Asia, with exports continuing to increase. In the United States and Europe, however, the recovery is forecast to be limited due to ongoing adjustments in employment and capital investment as the effects of economic stimulus measures decrease.
In markets related to the Omron Group, we project that demand for factory automation control systems will recover due to the gradual rebound in capital investment, centered on the semiconductor, electronic component and automotive industries. We also forecast a gradual recovery in demand for electronic component and automotive electronic equipment.
In this environment, the Omron Group's policies for fiscal 2010 — the year in which we will complete the "Revival Stage" that we started in February 2009 — will be "Changing Gears to 'Creating a Robust Earnings Structure' and 'High Growth' without a Rebound" and "Promoting Thorough 'Selection and Focus' and 'Standardization, Sharing and Creation of Platform-Based Organizations.'" Under these policies, we will work to create a corporate structure that is resilient to changes in the environment.
As for the performance outlook for the fiscal year ending March 31, 2011, we project net sales of JPY 580.0 billion, operating income of JPY 33.0 billion, income before income taxes of JPY 33.0 billion and net income attributable to shareholders of JPY 20.0 billion.
The assumed exchange rates are USD1 = JPY 90 and 1 Euro = JPY 125.
Outlook by Business Segment
IAB
While we are assuming that the generally moderate recovery will continue in the next fiscal year, a major rebound in capital investment by manufacturers will take time because of unstable economic and financial conditions. In response to changes in the environment, Omron will carry out structural reforms and work to expand sales by making investments in new products and enhancing sales capabilities.
In response to the rapid growth of the BRICs markets and the related acceleration of the shift to overseas production by our customers, we will strive to enhance cross-border services to customers by bolstering our sales capabilities in newly industrialized countries and strengthening cooperation in our global marketing network. In addition, we will expand production and development in China and accelerate introduction of new products geared to needs in newly industrialized countries, where growth is expected. We will also work to resolve increasing customer needs related to quality, safety and the environment by further improving the selection and compatibility of our high-speed, high-precision machine control products.
As a result, segment sales to outside customers for the fiscal year are projected to be JPY 246.0 billion, a year-on-year increase of 19.3 percent.
EMC
In the environment of the consumer and commerce and automotive components industries, despite improvement primarily in newly industrialized countries, conditions in each country will depend on government policies as economic stimulus measures run their course, and are thus difficult to predict.
In this operating environment, we aim to expand business overseas by accurately meeting growing demand in newly industrialized countries and focusing on markets for environment-related businesses with good growth potential, such as solar power generation, primarily in developed countries. In Japan, we will accelerate the integration of product planning, development and design, and production with the merger of OMRON RELAY & DEVICES Corporation and OMRON Takeo Co., Ltd. and the establishment of OMRON SWITCH & DEVICES Corporation. Moreover, we aim to expand business by building a framework that enables us to create new products that anticipate market changes and respond more quickly to customer needs.
As a result, segment sales to outside customers for the fiscal year are projected to be JPY 76.0 billion, a year-on-year increase of 7.5 percent.
AEC
Programs in various countries to support purchases of new automobiles are ending, and without the demand-boosting effect of those programs on Omron's products, we expect that demand for the next fiscal year will reflect the real economy. Overseas, we see a continuing gradual recovery in demand in the markets of developed countries. In newly industrialized countries, with the continued contribution from measures to stimulate internal demand, we expect an increase in demand for Omron's products, centered on small cars. In Japan, meanwhile, the percentage of environment-friendly vehicles is rising substantially, aided by reduced taxes on eco-friendly cars and measures to promote automobile purchases. In this changing environment, Omron will work to minimize the impact of market downturns by concentrating on fields where growth can be expected. Specifically, we will focus on components for security entry systems, which we expect to be installed in a growing proportion of automobiles, including small cars, and green vehicles such as hybrid and electric cars, where further growth can be expected in the future.
As a result, segment sales to outside customers for the fiscal year are projected to be JPY 78.0 billion, a year-on-year increase of 3.8 percent.
SSB
In the public transportation systems business, Omron will work to expand sales by introducing new models of ticket vending machines and automated ticket gate systems and focusing on generating new business with railway companies for security and safety. In addition, we will work to expand sales in the sensing business to areas such as the transportation business, manufacturing industries and commercial facilities, with a core focus on "social sensors" using image processing technology, a strength of Omron. In the related maintenance business, we will aim to grow businesses related to engineering and information technology amid the gradual recovery of the Japanese economy. In the software business, we aim to expand sales in new businesses by leveraging our strengths in signal and imaging technologies.
As a result, segment sales to outside customers for the fiscal year are projected to be JPY 64.0 billion, a year-on-year increase of 10.4 percent.
HCB
In Japan and other major countries, stagnant personal consumption, price consciousness among consumers and restrained capital investment by medical institutions are expected to continue. However, we believe that awareness of prevention — personal responsibility for protecting one's own health — will increase, and expect a gradual increase in demand for Omron's products. In newly industrialized countries, demand for healthcare equipment is likely to continue expanding as individual health consciousness rises with the increase in lifestyle diseases due to economic growth and changing lifestyles.
A decline from the sharp increase in demand for digital thermometers in fiscal 2009 is expected, but Omron will work to expand business by introducing products for newly industrialized countries and bolstering lifestyle disease prevention using information technology and proposal-based sales to medical institutions.
As a result, segment sales to outside customers for the fiscal year are projected to be JPY 64.5 billion, a year-on-year increase of 1.8 percent.
Other
In the Environmental Solutions Business HQ, we aim to establish the foundations of a new growth business by providing sustainable CO2 reduction solutions, mainly in the industrial sector.
In the Electronic Systems & Equipments Division HQ, Omron will work to increase sales of CPU boards and other devices as well as uninterruptible power supply units, and expand the industrial-use personal computer business.
In the Micro Devices HQ, we will steadily expand sales of custom integrated circuits for consumers and industrial users, an area where demand is recovering, and foundry projects for LCD-related integrated circuits.
In the backlight business, we will promote expansion of sales of medium and small-sized LEDs to overseas customers and entry into low-cost markets in response to growing market demand in newly industrialized countries, particularly China.
As a result, segment sales to outside customers for the fiscal year are projected to be JPY 46.0 billion, a year-on-year increase of 11.3 percent.
(2) Analysis of Financial Condition
Analysis of Assets, Liabilities, Net Assets and Cash Flow
1) Financial Condition as of March 31, 2010
| Total assets: | JPY 532,254 million (a decrease of JPY 6,026 million from the end of the previous fiscal year) | |||
| Total shareholders' equity: | JPY 306,327 million (an increase of JPY 7,916 million from the end of the previous fiscal year) | |||
| Net worth ratio: | 57.5% (an increase of 2.1 percentage points from the end of the previous fiscal year) | |||
While the value of investment securities increased following a recovery in stock prices from the end of the previous fiscal year and notes and accounts receivable increased due to the upturn in sales, reduction of new investment in equipment and efforts to reduce inventories resulted in total assets of JPY 532,254 million. In liabilities, notes and accounts payable increased, but termination and retirement benefits decreased, reflecting the increased value of pension assets, and long-term debt decreased due to reduction of assets. As a result, total liabilities decreased JPY 13,180 million to JPY 225,119 million. Total net assets increased JPY 7,154 million compared with the end of the previous fiscal year to JPY 307,135 million, and the net worth ratio increased 2.1 percentage points to 57.5 percent from 55.4 percent.
2) Summary of Cash Flows for the Fiscal Year Ended March 31, 2010
Net cash provided by operating activities was JPY 42,759 million (an increase of JPY 11,351 million compared with the previous fiscal year) due in part to net income and the reduction of working capital, including a decrease in inventories.
Net cash used in investing activities was JPY 18,584 million (a decrease of JPY 22,044 million compared with the previous fiscal year) as a result of conducting highly selective capital investment.
Net cash used in financing activities was JPY 20,358 million (an increase of JPY 42,225 million compared with the previous fiscal year) because the Company paid dividends and reduced short-term bank loans.
As a result, the balance of cash and cash equivalents at March 31, 2010 was JPY 51,726 million.
3) Qualitative Information on Consolidated Performance Forecast
In the fiscal year ending March 31, 2011, Omron expects a decrease in free cash flow, calculated as the total of net cash provided by operating activities and net cash used in investing activities, due to an increase in capital expenditures, investments and loans for new growth. In financing activities, Omron will flexibly manage sources and uses of capital, taking financial conditions into consideration while efficiently deploying capital and maintaining appropriate capital levels throughout the Group.
Considering the above cash flow projections, Omron believes that the balance of cash and cash equivalents of JPY 51,726 million as of March 31, 2010 is more than sufficient for business operations in the present economic conditions.
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Cash Flow Indicators and Trends |
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Consolidated cash flow indicators and trends for the five most recent fiscal years are as follows. |
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Year ended
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Year ended
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Year ended
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Year ended
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Year ended
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| Net worth ratio (%) | 61.6 | 60.7 | 59.7 | 55.4 | 57.5 | |||||
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Net worth ratio on
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134.5 | 115.9 | 73.4 | 47.3 | 89.8 | |||||
| Debt coverage ratio | 0.1 | 0.5 | 0.3 | 1.7 | 0.9 | |||||
| Interest coverage ratio | 57.6 | 35.9 | 44.9 | 25.0 | 65.6 | |||||
Notes: Net worth ratio: Net worth/Total assets
Net worth ratio on market value basis: Total market value of stock/Total assets
Debt coverage ratio: Interest-bearing liabilities/Net cash provided by operations
Interest coverage ratio: Net cash provided by operations/Interest expense
1. All indicators are calculated on a consolidated basis.
2. Total market value of stock is calculated by multiplying the total number of shares outstanding at the end of the period (excluding treasury stock) by the closing share price at the end of the period.
3. Net cash provided by operations is as reported in the consolidated statement of cash flows. Interest-bearing liabilities are liabilities stated on the consolidated balance sheets on which interest is paid. Interest expense is as stated in the notes to the consolidated statements of cash flows.
(3) Basic Policy for Distribution of Profits and Dividends for Fiscal 2009 and Fiscal 2010
Omron views its dividend policy as one of its most important management issues, and applies the following basic policy in regard to distribution of profits to shareholders.
1) In order to maximize corporate value over the long term, internal capital resources will be secured for measures that will increase corporate value. These measures include investments in R&D and capital investments, which are vital to future business expansion.
2) After taking into consideration the required investments for future growth and the level of free cash flow, surplus will be distributed to the shareholders to the maximum extent possible.
3) For dividends in each fiscal year, Omron's policy is to enhance stable, uninterrupted profit distributions by taking into account consolidated results as well as indicators including dividends on equity (DOE), which is return on equity (ROE) multiplied by the payout ratio, although this is subject to the level of internal capital resources necessary. Specifically, Omron will aim to maintain the payout ratio at a minimum of 20% and make profit distributions with a near-term DOE target of 2%.
4) Utilizing retained earnings that have been accumulated over a long period of time, Omron intends to systematically repurchase and retire the Company's stock to benefit shareholders.
In accordance with the policy stated above, Omron plans to pay an ordinary year-end dividend of JPY 10 per share for fiscal 2009 (ended March 31, 2010). For the full fiscal year, including the interim dividend of JPY 7 per share paid on December 3, 2009, Omron plans to pay total dividends of JPY 17 per share.
For fiscal 2010 (ending March 31, 2011), Omron plans to pay an interim dividend of JPY 10 per share, but the year-end dividend has not been determined.
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Projections of 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 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) the economic conditions affecting the Omron Group's businesses in Japan and overseas, (ii) demand trends for the Omron Group's products and services, (iii) the ability of the Omron Group to develop new technologies and new products, (iv) major changes in the fund-raising environment, (v) tie-ups or cooperative relationships with other companies, and (vi) movements in currency exchange rates and stock markets. |
2. The Omron Group
As described in "1. Results of Operations, (1) Analysis of Results of Operations, 1) Results of Operations in Fiscal 2009 (Ended March 31, 2010)," in the third quarter, the Omron Group reorganized the Electronic Components Business (ECB) into the Electronic and Mechanical Components Business (EMC) to strengthen mechanical components, and transferred ECB's backlight and micro device businesses into a new organization under the direct supervision of Omron's president and CEO.
Accordingly, business segments heretofore classified as IAB, ECB, AEC, SSB, and HCB have been reclassified as IAB, EMC, AEC, SSB, HCB and Other from the third quarter.
3. Management Policies
(1) Omron's Basic Management Policies
In fiscal 2001 (ended March 31, 2002), Omron introduced "Grand Design 2010" (GD2010), a vision that sets the basic policies for management of the Omron Group for the 10 years through fiscal 2010 based on Omron's philosophy of "working for the benefit of society." In accordance with this vision, Omron aims to become a 21st century company with the management objective of "maximizing corporate value over the long term." Omron's aim as a company is to be "small but global."
(2) Targets for Management Indicators
Since launching GD2010 in April 2001, Omron has gone through the first stage (fiscal 2001-2003) and second stage (fiscal 2004-2007), and fiscal 2009 was the middle year of the third stage (fiscal 2008-2010).
The first and second stages advanced essentially in line with the plan, with rising sales and income. Omron achieved return on equity (ROE) of 10%, the target for the end of fiscal 2004, a year ahead of schedule at the end of fiscal 2003 (the final year of the first stage), and also achieved its second-stage goal of "doubling total business value*."
Omron had set "raising business value by an annual average of at least 10%" as its goal in the management plan for the third stage, starting from fiscal 2008. However, Omron dropped this goal due to the drastic changes in its operating environment, and decided to make sweeping structural reforms and to reorganize operations as part of a "revival stage" from February 2009 through March 2011.
* Business value is the total current value of future free cash flow generated by each business.
(3) Mid- to Long-Term Management Strategies
In the revival stage from February 2009 to March 2011, Omron is strengthening its operations through business domain strategy and operational strategy.
The business domain strategy is based on business selection and focus. We will concentrate management resources on strengthening the general-purpose components business in IAB and EMC, capturing business in growth markets in newly industrialized countries, and strengthening core businesses. In addition, in cultivating new businesses, we will focus on the environmental solutions business in the areas of industry and society with a long-term perspective, and work to anticipate social needs.
The operational strategy is aimed at selection and focus of functions and organizations/operating bases. From the standpoint of standardization, sharing and creation of platform-based organizations, we will move to strengthen our operations by implementing group-wide structural reform consisting of variable cost reforms, manufacturing fixed cost reform, and IT structural reform.
(4) Issues Facing the Company
Due to the drastic changes that swept the global economy in fiscal 2008, Omron assumed that its operating environment in fiscal 2009 would be severe. Therefore, the Omron Group undertook sweeping structural reforms and reorganization of operations as the top priorities in the "Revival Stage," which began in February 2009. Specifically, the head office, centered on the Emergency Measures and Structural Reform HQ headed by President and CEO Hisao Sakuta, has led implementation of these emergency measures and structural reforms.
In terms of emergency measures, Omron achieved major cost reductions as a result of thorough cost-cutting in every area, a freeze on large-scale capital investment and consolidation of unprofitable businesses. This contributed to improved earnings in fiscal 2009. Structural reforms included the restructuring of the three core business segments — IAB, ECB and AEC.
In fiscal 2010, the Emergency Measures and Structural Reform HQ, formed in February 2009, will wind down its activities after having achieved its specified results, and will be reorganized as the Structural Reform Acceleration HQ headed by President and CEO Hisao Sakuta. Omron will continue to undertake qualitative reforms of business operations, including expenses, investments and inventories.
With these operational and business domain strategies, Omron will build a robust earnings structure that is resilient to changes in the environment and strengthen its operations.
4. Consolidated Financial Statements
|
(1) Consolidated Balance Sheets |
|||||||||||||||
|
(Millions of yen) |
|||||||||||||||
|
As of
March 31, 2009 |
As of
March 31, 2010 |
Increase
(decrease) |
|||||||||||||
| ASSETS | |||||||||||||||
| Current assets: | 275,991 | 51.3 | % | 285,758 | 53.7 | % | 9,767 | ||||||||
| Cash and cash equivalents | 46,631 | 51,726 | 5,095 | ||||||||||||
| Notes and accounts receivable — | |||||||||||||||
| trade | 113,551 | 126,250 | 12,699 | ||||||||||||
| Allowance for doubtful receivables | (2,562 | ) | (2,531 | ) | 31 | ||||||||||
| Inventories | 84,708 | 77,655 | (7,053 | ) | |||||||||||
| Deferred income taxes | 16,522 | 19,988 | 3,466 | ||||||||||||
| Other current assets | 17,141 | 12,670 | (4,471 | ) | |||||||||||
| Property, plant and equipment: | 132,535 | 24.6 | 122,994 | 23.1 | (9,541 | ) | |||||||||
| Land | 26,753 | 26,376 | (377 | ) | |||||||||||
| Buildings | 120,244 | 127,344 | 7,100 | ||||||||||||
| Machinery and equipment | 143,801 | 140,200 | (3,601 | ) | |||||||||||
| Construction in progress | 9,061 | 2,733 | (6,328 | ) | |||||||||||
| Accumulated depreciation | (167,324 | ) | (173,659 | ) | (6,335 | ) | |||||||||
| Investments and other assets: | 129,754 | 24.1 | 123,502 | 23.2 | (6,252 | ) | |||||||||
| Investments in and advances to | |||||||||||||||
| associates | 15,638 | 13,637 | (2,001 | ) | |||||||||||
| Investment securities | 31,682 | 38,556 | 6,874 | ||||||||||||
| Leasehold deposits | 7,784 | 7,452 | (332 | ) | |||||||||||
| Deferred income taxes | 53,783 | 45,737 | (8,046 | ) | |||||||||||
| Other | 20,867 | 18,120 | (2,747 | ) | |||||||||||
| Total assets | 538,280 | 100.0 | % | 532,254 | 100.0 | % | (6,026 | ) | |||||||
|
(Millions of yen) |
|||||||||||||||
|
As of
March 31, 2009 |
As of
March 31, 2010 |
Increase
(decrease) |
|||||||||||||
| LIABILITIES | |||||||||||||||
| Current liabilities: | 135,038 | 25.1 | % | 155,562 | 29.2 | % | 20,524 | ||||||||
| Short-term debt | 32,970 | 16,612 | (16,358 | ) | |||||||||||
| Notes and accounts payable －trade |
58,179 |
68,874 | 10,695 | ||||||||||||
| Accrued expenses | 24,791 | 25,891 | 1,100 | ||||||||||||
| Income taxes payable | 711 | 2,710 | 1,999 | ||||||||||||
| Deferred income taxes | 156 | 11 | (145 | ) | |||||||||||
| Other current liabilities | 17,743 | 21,149 | 3,406 | ||||||||||||
| Current portion of long-term debt | 488 | 20,315 | 19,827 | ||||||||||||
| Long-term debt | 21,401 | 4.0 | 1,290 | 0.2 | (20,111 | ) | |||||||||
| Deferred income taxes | 941 | 0.2 | 886 | 0.2 | (55 | ) | |||||||||
| Termination and retirement benefits | 80,443 | 14.9 | 66,964 | 12.6 | (13,479 | ) | |||||||||
| Other long-term liabilities | 476 | 0.1 | 417 | 0.1 | (59 | ) | |||||||||
| Total liabilities | 238,299 | 44.3 | 225,119 | 42.3 | (13,180 | ) | |||||||||
| NET ASSETS | |||||||||||||||
| Shareholders' equity | 298,411 | 55.4 | 306,327 | 57.5 | 7,916 | ||||||||||
| Common stock | 64,100 | 11.9 | 64,100 | 12.0 | — | ||||||||||
| Capital surplus | 99,059 | 18.4 | 99,081 | 18.6 | 22 | ||||||||||
| Legal reserve | 9,059 | 1.7 | 9,363 | 1.8 | 304 | ||||||||||
| Retained earnings | 231,388 | 43.0 | 230,859 | 43.4 | (529 | ) | |||||||||
| Accumulated other comprehensive | |||||||||||||||
| income (loss) | (60,744 | ) | (11.3 | ) | (52,614 | ) | (9.9 | ) | 8,130 | ||||||
| Foreign currency translation | |||||||||||||||
| adjustments | (22,319 | ) | (23,678 | ) | (1,359 | ) | |||||||||
| Minimum pension liability | |||||||||||||||
| adjustments | (40,570 | ) | (36,553 | ) | 4,017 | ||||||||||
| Net unrealized gains on | |||||||||||||||
| available-for-sale securities | 2,763 | 7,684 | 4,921 | ||||||||||||
| Net gains (losses) on derivative | |||||||||||||||
| instruments | (618 | ) | (67 | ) | 551 | ||||||||||
| Treasury stock | (44,451 | ) | (8.3 | ) | (44,462 | ) | (8.4 | ) | (11 | ) | |||||
| Noncontrolling interests | 1,570 | 0.3 | 808 | 0.2 | (762 | ) | |||||||||
| Total net assets | 299,981 | 55.7 | 307,135 | 57.7 | 7,154 | ||||||||||
|
Total liabilities and shareholders' equity |
538,280 |
100.0 |
% |
532,254 |
100.0 |
% |
(6,026 |
) |
|||||||
|
(2) Consolidated Statements of Operations |
|||||||||||||||
|
(Millions of yen) |
|||||||||||||||
|
|
Year ended
March 31, 2009 |
Year ended
March 31, 2010 |
Increase
(decrease) |
||||||||||||
| Net sales | 627,190 | 100.0 | % | 524,694 | 100.0 | % | (102,496 | ) | |||||||
| Cost of sales | 408,668 | 65.2 | 340,352 | 64.9 | (68,316 | ) | |||||||||
| Gross profit | 218,522 | 34.8 | 184,342 | 35.1 | (34,180 | ) | |||||||||
| Selling, general and administrative expenses | 164,284 | 26.2 | 133,426 | 25.4 | (30,858 | ) | |||||||||
| Research and development expenses | 48,899 | 7.7 | 37,842 | 7.2 | (11,057 | ) | |||||||||
| Operating income | 5,339 | 0.9 | 13,074 | 2.5 | 7,735 | ||||||||||
| Other expenses, net | 44,472 | 7.1 | 2,879 | 0.6 | (41,593 | ) | |||||||||
| Income (loss) before income taxes | (39,133 | ) | (6.2 | ) | 10,195 | 1.9 | 49,328 | ||||||||
| Income taxes | (10,495 | ) | (1.6 | ) | 3,782 | 0.7 | 14,277 | ||||||||
| Current | 3,400 | 4,812 | 1,412 | ||||||||||||
| Deferred | (13,895 | ) | (1,030 | ) | 12,865 | ||||||||||
| Equity in net losses (gains) of affiliates | 811 | 0.1 | 2,792 | 0.5 | 1,981 | ||||||||||
| Net income (loss) | (29,449 | ) | (4.7 | ) | 3,621 | 0.7 | 33,070 | ||||||||
|
Net loss (income) attributable to noncontrolling
|
(277 | ) | (0.0 | ) | 103 | 0.0 | 380 | ||||||||
| Net income (loss) attributable to shareholders | (29,172 | ) | (4.7 | ) | 3,518 | 0.7 | 32,690 | ||||||||
|
(3) Consolidated Statements of Changes in Shareholders' Equity |
|||||||||||||||||||||||||
|
(Millions of yen) |
|||||||||||||||||||||||||
|
Common
|
Capital
|
Legal
|
Retained
|
Accumulated
|
Treasury
|
Total
|
Non-
|
Total net
|
|||||||||||||||||
| Balance, March 31, 2008 | 64,100 | 98,961 | 8,673 | 266,451 | (28,217 | ) | (41,466 | ) | 368,502 | 2,018 | 370,520 | ||||||||||||||
| Net income | (29,172 | ) | (29,172 | ) | (277 | ) | (29,449 | ) | |||||||||||||||||
| Cash dividends | (5,505 | ) | (5,505 | ) | (5,505 | ) | |||||||||||||||||||
| Transfer to legal reserve | 386 | (386 | ) | - | - | ||||||||||||||||||||
| Foreign currency | |||||||||||||||||||||||||
| translation adjustments | (16,537 | ) | (16,537 | ) | (171 | ) | (16,708 | ) | |||||||||||||||||
| Minimum pension liability | |||||||||||||||||||||||||
| adjustments | (11,325 | ) | (11,325 | ) | (11,325 | ) | |||||||||||||||||||
| Unrealized losses on | |||||||||||||||||||||||||
| available-for-sale | |||||||||||||||||||||||||
| securities | (3,738 | ) | (3,738 | ) | (3,738 | ) | |||||||||||||||||||
| Net losses on derivative | |||||||||||||||||||||||||
| instruments | (927 | ) | (927 | ) | (927 | ) | |||||||||||||||||||
| Acquisition of treasury | |||||||||||||||||||||||||
| stock | (2,995 | ) | (2,995 | ) | (2,995 | ) | |||||||||||||||||||
| Sale of treasury stock | (3 | ) | 10 | 7 | 7 | ||||||||||||||||||||
| Grant of stock options | 101 | 101 | 101 | ||||||||||||||||||||||
| Balance, March 31, 2009 | 64,100 | 99,059 | 9,059 | 231,388 | (60,744 | ) | (44,451 | ) | 298,411 | 1,570 | 299,981 | ||||||||||||||
| Net income | 3,518 | 3,518 | 103 | 3,621 | |||||||||||||||||||||
| Cash dividends | (3,743 | ) | (3,743 | ) | (3,743 | ) | |||||||||||||||||||
| Dividends to | |||||||||||||||||||||||||
| noncontrolling interests | (762 | ) | (762 | ) | |||||||||||||||||||||
| Capital and other | |||||||||||||||||||||||||
| transactions with | |||||||||||||||||||||||||
| noncontrolling interests | (62 | ) | (62 | ) | |||||||||||||||||||||
| Transfer to legal reserve | 304 | (304 | ) | - | - | ||||||||||||||||||||
| Foreign currency | |||||||||||||||||||||||||
| translation adjustments | (1,359 | ) | (1,359 | ) | (41 | ) | (1,400 | ) | |||||||||||||||||
| Minimum pension liability | |||||||||||||||||||||||||
| adjustments | 4,017 | 4,017 | 4,017 | ||||||||||||||||||||||
| Unrealized gains on | |||||||||||||||||||||||||
| available-for-sale | |||||||||||||||||||||||||
| securities | 4,921 | 4,921 | 4,921 | ||||||||||||||||||||||
| Net gains on derivative | |||||||||||||||||||||||||
| instruments | 551 | 551 | 551 | ||||||||||||||||||||||
| Acquisition of treasury | |||||||||||||||||||||||||
| stock | (13 | ) | (13 | ) | (13 | ) | |||||||||||||||||||
| Sale of treasury stock | (0 | ) | 2 | 2 | 2 | ||||||||||||||||||||
| Grant of stock options | 22 | 22 | 22 | ||||||||||||||||||||||
| Balance, March 31, 2010 | 64,100 | 99,081 | 9,363 | 230,859 | (52,614 | ) | (44,462 | ) | 306,327 | 808 | 307,135 | ||||||||||||||
|
(4) Consolidated Statements of Cash Flows |
|||||||||
|
(Millions of yen) |
|||||||||
|
Year ended
March 31, 2009 |
Year ended
March 31, 2010 |
Increase
(decrease) |
|||||||
| I Operating Activities: | |||||||||
|
1. Net income (loss) |
(29,449 | ) | 3,621 | 33,070 | |||||
|
2. Adjustments to reconcile net income to net cash provided by |
|||||||||
|
operating activities: |
|||||||||
|
(1) Depreciation and amortization |
33,496 | 27,014 | |||||||
|
(2) Net loss on sales and disposals of property, plant and |
|||||||||
|
equipment |
1,983 | 558 | |||||||
|
(3) Loss on impairment of property, plant and equipment |
21,203 | 217 | |||||||
|
(4) Net gain on sales of investment securities |
(64 | ) | (636 | ) | |||||
|
(5) Loss on impairment of investment securities and other |
|||||||||
|
assets |
5,401 | 632 | |||||||
|
(6) Loss on impairment of goodwill |
16,813 | — | |||||||
|
(7) Termination and retirement benefits |
(1,390 | ) | (5,110 | ) | |||||
|
(8) Deferred income taxes |
(13,895 | ) | (1,031 | ) | |||||
|
(9) Equity in loss of affiliates |
811 | 2,792 | |||||||
|
(10) Changes in assets and liabilities: |
|||||||||
|
(i) Decrease (increase) in notes and accounts receivable — |
|||||||||
|
trade, net |
47,526 | (14,440 | ) | ||||||
|
(ii) Decrease in inventories |
5,776 | 4,977 | |||||||
|
(iii) Decrease (increase) in other assets |
(7,689 | ) | 4,457 | ||||||
|
(iv) Increase (decrease) in notes and accounts payable |
|||||||||
|
— trade |
(34,046 | ) | 13,298 | ||||||
|
(v) Decrease (increase) in income taxes payable |
(8,044 | ) | 1,995 | ||||||
|
(vi) Increase (decrease) in accrued expenses and other |
|||||||||
|
current liabilities |
(8,290 | ) | 4,554 | ||||||
|
(11) Other, net |
1,266 | (139 | ) | ||||||
|
Total adjustments |
60,857 | 39,138 | (21,719 | ) | |||||
| Net cash provided by operating activities | 31,408 | 42,759 | 11,351 | ||||||
| II Investing Activities: | |||||||||
|
1. Proceeds from sales or maturities of investment securities |
1,742 | 1,004 | (738 | ) | |||||
|
2. Purchase of investment securities |
(6,151 | ) | (15 | ) | 6,136 | ||||
|
3. Capital expenditures |
(37,477 | ) | (20,792 | ) | 16,685 | ||||
|
4. Decrease in leasehold deposits, net |
228 | 335 | 107 | ||||||
|
5. Proceeds from sales of property, plant and equipment |
1,046 | 1,490 | 444 | ||||||
|
6. Purchase of noncontrolling interests |
— | (106 | ) | (106 | ) | ||||
|
7. Increase in investment in and loans to affiliates |
(16 | ) | (931 | ) | (915 | ) | |||
|
8. Payment for acquisition of business entities, net |
— | 431 | 431 | ||||||
| Net cash used in investing activities | (40,628 | ) | (18,584 | ) | 22,044 | ||||
| III Financing Activities: | |||||||||
|
1. Net proceeds (repayments) of short-term debt |
15,291 | (16,282 | ) | (31,573 | ) | ||||
|
2. Proceeds from issuance of long-term debt |
20,000 | 305 | (19,695 | ) | |||||
|
3. Repayments of long-term debt |
(916 | ) | (524 | ) | 392 | ||||
|
4. Dividends paid by the Company |
(9,507 | ) | (3,083 | ) | 6,424 | ||||
|
5. Dividends paid to noncontrolling interests |
(13 | ) | (762 | ) | (749 | ) | |||
|
6. Acquisition of treasury stock |
(2,995 | ) | (13 | ) | 2,982 | ||||
|
7. Sale of treasury stock |
7 | 1 | (6 | ) | |||||
| Net cash provided by (used in) financing activities | 21,867 | (20,358 | ) | (42,225 | ) | ||||
| IV Effect of Exchange Rate Changes on Cash and Cash Equivalents |
(6,640 |
) |
1,278 |
7,918 |
|||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 6,007 | 5,095 | (912 | ) | |||||
| Cash and Cash Equivalents at Beginning of the Period | 40,624 | 46,631 | 6,007 | ||||||
| Cash and Cash Equivalents at End of the Period | 46,631 | 51,726 | 5,095 | ||||||
| Notes to cash flows from operating activities: | |||||||||
| 1. Interest paid | 1,257 | 652 | (605 | ) | |||||
| 2. Taxes paid | 18,776 | 2,813 | (15,963 | ) | |||||
| Notes to investing and financing activities not involving cash flow: | |||||||||
| Debt related to capital expenditures | 1,567 | 299 | (1,268 | ) | |||||
(5) Events or Conditions Raising Significant Questions Regarding Assumption of Going Concern
None applicable
(6) Preparation of the Consolidated Financial Statements
1. Accounting Principles
Omron has adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) No. 105, "Generally Accepted Accounting Principles" (previously FASB Statement No. 168, "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles"), as of the fiscal year ending March 31, 2010. This statement establishes the FASB ASC as the sole source of authoritative US Generally Accepted Accounting Principles (U.S. GAAP) recognized by the FASB. Provisions will be changed from the previous FASB standard to conform to the FASB ASC.
2. Noncontrolling Interests
Omron has adopted FASB ASC No. 810, "Consolidation" (previously FASB Statement No. 160, "Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51"), as of the fiscal year ending March 31, 2010. This standard requires the parent company's interest and noncontrolling interests to be clearly identified, labeled and disclosed. Minority interests, which were formerly classified between liabilities and shareholders' equity in the consolidated balance sheets, are now accounted for in net assets as noncontrolling interests. This statement also changes the presentation and line items of the consolidated statements of income.
Prior year amounts in the consolidated financial statements have been reclassified or adjusted following adoption of the standard.
3. Segment Information
Omron has adopted FASB ASC No. 280, "Segment Reporting" (previously FASB Statement No. 131, "Disclosures about Segments of an Enterprise and Related Information"), as of the fiscal year ending March 31, 2010. This standard regulates reporting information about a company's operating segments. Operating segments are regularly used by a company's top decision-makers in distributing management resources and assessing performance, and defined as structural units of financial information available concerning a company.
Prior year amounts in segment information have been reclassified or adjusted following adoption of the standard.
Other matters not listed here have not changed significantly since the most recent Securities Report (Yuka shoken hokokusho), submitted on June 24, 2009.
(7) Notes to Consolidated Financial Statements
1. Per Share Data
The Company calculates net income per share in accordance with FASB Statement No. 260, "Earnings per Share." The number of shares used to compute basic and diluted net income per share available to shareholders is as follows:
| (Number of shares) | Year ended March 31, 2009 | Year ended March 31, 2010 | ||
| Basic | 220,747,962 | 220,158,389 | ||
| Diluted | 220,747,962 | 220,158,389 |
Omron considers the dilution effect due to stock options. No such dilution effect occurred for the fiscal years ended March 31, 2009 and 2010.
2. Comprehensive Income (Loss)
Comprehensive income (loss) in addition to other comprehensive income included in net income attributable to shareholders is as follows:
| Year ended March 31, 2009: | JPY (61,699) million | |
| Year ended March 31, 2010: | JPY 11,648 million |
Other comprehensive income includes changes in foreign currency translation adjustments, minimum pension liability adjustments, unrealized gains or losses on available-for-sale securities and net gains or losses on derivative instruments.
3. Major Components of Other Expenses, Net
The major components of "Other expenses, net" are as follows:
| Year ended March 31, 2009 | |||
| Loss on impairment of property, plant and equipment | JPY 21,203 million | ||
| Loss on impairment of goodwill | JPY 16,813 million | ||
| Loss on impairment of investment securities and other assets | JPY 5,401 million | ||
| Year ended March 31, 2010 | |||
| Foreign exchange loss (net) | JPY 723 million | ||
| Interest paid | JPY 650 million | ||
| Loss on impairment of investment securities and other assets | JPY 632 million | ||
4. Subsequent Events
None applicable.
Notes concerning asset retirement obligations such as lease transactions, related party transactions, tax effect accounting, financial products, securities, derivative transactions, retirement benefits, stock options and corporate consolidation have not been included in this summary of consolidated financial results, as the Company considers their disclosure here to be of marginal importance.
(8) Segment Information
1. Business Segment Information
|
Year ended March 31, 2009 (April 1, 2008 – March 31, 2009) |
(Millions of yen) |
||||||||||||||||||||
| IAB | EMC | AEC | SSB | HCB | Other | Total |
Eliminations
& Corporate |
Consolidated | |||||||||||||
| Net sales: | |||||||||||||||||||||
| (1) Sales to outside | |||||||||||||||||||||
| customers | 271,951 | 76,494 | 82,109 | 72,336 | 63,592 | 50,242 | 616,724 | 10,466 | 627,190 | ||||||||||||
|
(2) Intersegment sales |
|||||||||||||||||||||
|
and transfers |
10,483 | 47,562 | 3,515 | 5,753 | 240 | 5,263 | 72,816 | (72,816 | ) | — | |||||||||||
| Total | 282,434 | 124,056 | 85,624 | 78,089 | 63,832 | 55,505 | 689,540 | (62,350 | ) | 627,190 | |||||||||||
| Operating expenses | 264,259 | 119,833 | 92,739 | 72,895 | 59,065 | 62,823 | 671,614 | (49,763 | ) | 621,851 | |||||||||||
| Operating income (loss) | 18,175 | 4,223 | (7,115 | ) | 5,194 | 4,767 | (7,318 | ) | 17,926 | (12,587 | ) | 5,339 | |||||||||
|
Year ended March 31, 2010 (April 1, 2009 – March 31, 2010) |
(Millions of yen) |
|||||||||||||||||||
| IAB | EMC | AEC | SSB | HCB | Other | Total |
Eliminations
& Corporate |
Consolidated | ||||||||||||
| Net sales: | ||||||||||||||||||||
| (1) Sales to outside | ||||||||||||||||||||
| customers | 206,197 | 70,717 | 75,163 | 57,981 | 63,359 | 41,312 | 514,729 | 9,965 | 524,694 | |||||||||||
| (2) Intersegment sales | ||||||||||||||||||||
| and transfers | 5,324 | 43,961 | 691 | 3,898 | 86 | 8,318 | 62,278 | (62,278 | ) | — | ||||||||||
| Total | 211,521 | 114,678 | 75,854 | 61,879 | 63,445 | 49,630 | 577,007 | (52,313 | ) | 524,694 | ||||||||||
| Operating expenses | 197,621 | 107,939 | 74,123 | 59,225 | 56,390 | 56,658 | 551,956 | (40,336 | ) | 511,620 | ||||||||||
| Operating income (loss) | 13,900 | 6,739 | 1,731 | 2,654 | 7,055 | (7,028 | ) | 25,051 | (11,977 | ) | 13,074 | |||||||||
Notes: 1. The Company has adopted FASB ASC No. 280, "Segment Reporting" (previously FASB Statement No. 131, "Disclosures about Segments of an Enterprise and Related Information"), from the year ended March 31, 2010. Segment information for the year ended March 31, 2009 has been restated to reflect the change.
2. From the nine months ended December 31, 2009, business segments have been changed to IAB, EMC, AEC, SSB, HCB and Other to reflect a change in organization. Figures in segment information for the year ended March 31, 2009 have been restated to reflect the new classifications.
2. Geographical Segment Information
|
Year ended March 31, 2009 (April 1, 2008 – March 31, 2009) |
(Millions of yen) |
|||||||||||||||||
| Japan |
North
|
Europe |
Greater
|
South-
|
Total |
Eliminations
& Corporate |
Consolidated | |||||||||||
| Net sales: | ||||||||||||||||||
| (1) Sales to outside | ||||||||||||||||||
| customers | 328,063 | 80,397 | 103,128 | 75,242 | 40,360 | 627,190 | — | 627,190 | ||||||||||
| (2) Intersegment sales | ||||||||||||||||||
| and transfers | 109,410 | 832 | 1,095 | 51,791 | 8,323 | 171,451 | (171,451 | ) | — | |||||||||
| Total | 437,473 | 81,229 | 104,223 | 127,033 | 48,683 | 798,641 | (171,451 | ) | 627,190 | |||||||||
| Operating expenses | 429,077 | 81,945 | 97,752 | 123,908 | 47,211 | 779,893 | (158,042 | ) | 621,851 | |||||||||
| Operating income (loss) | 8,396 | (716 | ) | 6,471 | 3,125 | 1,472 | 18,748 | (13,409 | ) | 5,339 | ||||||||
|
Year ended March 31, 2010 (April 1, 2009 – March 31, 2010) |
(Millions of yen) |
|||||||||||||||||
| Japan |
North
|
Europe |
Greater
|
South-
|
Total |
Eliminations
& Corporate |
Consolidated | |||||||||||
| Net sales: | ||||||||||||||||||
| (1) Sales to outside | ||||||||||||||||||
| customers | 269,143 | 61,154 | 77,607 | 77,136 | 39,654 | 524,694 | — | 524,694 | ||||||||||
| (2) Intersegment sales | ||||||||||||||||||
| and transfers | 101,311 | 1,014 | 759 | 51,953 | 7,519 | 162,556 | (162,556 | ) | — | |||||||||
| Total | 370,454 | 62,168 | 78,366 | 129,089 | 47,173 | 687,250 | (162,556 | ) | 524,694 | |||||||||
| Operating expenses | 358,928 | 62,664 | 76,428 | 120,098 | 43,636 | 661,754 | (150,134 | ) | 511,620 | |||||||||
| Operating income (loss) | 11,526 | (496 | ) | 1,938 | 8,991 | 3,537 | 25,496 | (12,422 | ) | 13,074 | ||||||||
3. Overseas Sales
|
Year ended March 31, 2009 (April 1, 2008 – March 31, 2009) |
(Millions of yen) |
|||||||||
| North America | Europe | Greater China |
Southeast Asia
|
Total | ||||||
| Overseas sales | 80,954 | 105,717 | 78,544 | 46,379 | 311,594 | |||||
| Consolidated net sales | 627,190 | |||||||||
|
Overseas sales as a percentage of
|
12.9 |
16.9 |
12.5 |
7.4 |
49.7 |
|||||
|
Year ended March 31, 2010 (April 1, 2009 – March 31, 2010) |
(Millions of yen) |
|||||||||
| North America | Europe | Greater China |
Southeast Asia
|
Total | ||||||
| Overseas sales | 61,592 | 83,524 | 78,297 | 42,868 | 266,281 | |||||
| Consolidated net sales | 524,694 | |||||||||
|
Overseas sales as a percentage of
|
11.7 |
15.9 |
14.9 |
8.2 |
50.7 |
|||||
(Attachment)
|
5. Non-consolidated Financial Statements |
|||||||||||||
|
(1) Non-consolidated Balance Sheets |
|||||||||||||
|
(Millions of yen) |
|||||||||||||
|
As of
March 31, 2009 |
As of
March 31, 2010 |
Increase
(decrease) |
|||||||||||
| Amount | % | Amount | % | ||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash and time deposits | 15,276 | 7,409 | (7,867 | ) | |||||||||
| Accounts receivable | 1,751 | 1,121 | (630 | ) | |||||||||
| Accounts receivable - trade | 38,591 | 53,688 | 15,097 | ||||||||||
| Merchandise | 8,995 | 7,215 | (1,780 | ) | |||||||||
| Materials | 3,701 | 3,671 | (30 | ) | |||||||||
| Work-in-process | 6,345 | 5,339 | (1,006 | ) | |||||||||
| Supplies | 399 | 362 | (37 | ) | |||||||||
| Short-term loans receivable | 13,779 | 8,372 | (5,407 | ) | |||||||||
| Accounts receivable - purchasing | 4,849 | 10,791 | 5,942 | ||||||||||
| Other accounts receivable | 4,074 | 5,351 | 1,277 | ||||||||||
| Deferred income taxes | 7,756 | 5,205 | (2,551 | ) | |||||||||
| Other current assets | 7,183 | 4,903 | (2,280 | ) | |||||||||
| Allowance for doubtful receivables | (207 | ) | (198 | ) | 9 | ||||||||
| Total current assets | 112,492 | 31.2 | 113,229 | 30.5 | 737 | ||||||||
| Fixed assets | |||||||||||||
| Property and equipment | |||||||||||||
| Buildings | 21,682 | 26,148 | 4,466 | ||||||||||
| Structures | 1,725 | 1,841 | 116 | ||||||||||
| Machinery and equipment | 1,529 | 1,513 | (16 | ) | |||||||||
| Vehicles and delivery equipment | 1 | 1 | 0 | ||||||||||
| Tools, furniture and fixtures | 1,849 | 1,948 | 99 | ||||||||||
| Land | 14,665 | 14,665 | — | ||||||||||
| Lease assets | 3,819 | 2,903 | (916 | ) | |||||||||
| Construction in progress | 6,110 | 473 | (5,637 | ) | |||||||||
| Total property and equipment | 51,380 | 14.3 | 49,492 | 13.3 | (1,888 | ) | |||||||
| Intangible fixed assets | |||||||||||||
| Software | 9,850 | 2.7 | 8,858 | 2.4 | (992 | ) | |||||||
| Investments and other assets | |||||||||||||
| Investment securities | 27,623 | 33,204 | 5,581 | ||||||||||
| Investments in affiliated companies | 111,433 | 112,297 | 864 | ||||||||||
| Investments in capital | 14,082 | 20,932 | 6,850 | ||||||||||
| Long-term advances | 50 | 50 | — | ||||||||||
| Long-term advances to affiliates | 5,654 | 5,765 | 111 | ||||||||||
| Leasehold deposits | 5,327 | 5,124 | (203 | ) | |||||||||
| Deferred income taxes | 26,558 | 27,251 | 693 | ||||||||||
| Other | 1,983 | 1,217 | (766 | ) | |||||||||
| Allowance for doubtful receivables | (5,700 | ) | (5,676 | ) | 24 | ||||||||
| Total investments and other assets |
187,010 |
51.8 |
200,164 |
53.8 |
13,154 |
||||||||
| Total fixed assets | 248,240 | 68.8 | 258,514 | 69.5 | 10,274 | ||||||||
| Total assets | 360,732 | 100.0 | 371,743 | 100.0 | 11,011 | ||||||||
|
As of
March 31, 2009 |
As of
March 31, 2010 |
Increase
(decrease) |
|||||||||||||
| Amount | % | Amount | % | ||||||||||||
| LIABILITIES | |||||||||||||||
| Current liabilities | |||||||||||||||
| Accounts payable | 1,152 | 1,551 | 399 | ||||||||||||
| Accounts payable - trade | 23,079 | 32,942 | 9,863 | ||||||||||||
| Short-term borrowings from affiliated companies | 38,705 | 34,266 | (4,439 | ) | |||||||||||
| Commercial paper | 31,000 | 16,000 | (15,000 | ) | |||||||||||
| Current portion of long-term debt | — | 20,000 | 20,000 | ||||||||||||
| Lease liabilities | 2,460 | 1,868 | (592 | ) | |||||||||||
| Other payables | 6,004 | 5,792 | (212 | ) | |||||||||||
| Accrued expenses | 6,843 | 7,367 | 524 | ||||||||||||
| Income taxes payable | 73 | 327 | 254 | ||||||||||||
| Advances received | 597 | 429 | (168 | ) | |||||||||||
| Deposits received | 903 | 2,076 | 1,173 | ||||||||||||
| Bonuses for officers | - | 61 | 61 | ||||||||||||
| Other | 3,177 | 788 | (2,389 | ) | |||||||||||
| Total current liabilities | 113,993 | 31.6 | 123,467 | 33.2 | 9,474 | ||||||||||
| Long-term liabilities | |||||||||||||||
| Long-term debt | 20,000 | — | (20,000 | ) | |||||||||||
| Lease liabilities | 3,941 | 2,574 | (1,367 | ) | |||||||||||
| Termination and retirement benefits | 22,916 | 21,926 | (990 | ) | |||||||||||
| Deferred tax liabilities related to revaluation | 1,800 | 1,800 | — | ||||||||||||
| Other | 669 | 613 | (56 | ) | |||||||||||
| Total long-term liabilities | 49,326 | 13.7 | 26,913 | 7.3 | (22,413 | ) | |||||||||
| Total liabilities | 163,319 | 45.3 | 150,380 | 40.5 | (12,939 | ) | |||||||||
| NET ASSETS | |||||||||||||||
|
Shareholders' equity |
|||||||||||||||
| Common stock | 64,100 | 17.8 | 64,100 | 17.2 | — | ||||||||||
| Capital surplus | |||||||||||||||
| Additional paid-in capital | 88,771 | 88,771 | — | ||||||||||||
| Total capital surplus | 88,771 | 24.6 | 88,771 | 23.9 | — | ||||||||||
| Retained earnings | |||||||||||||||
| Legal reserve | 6,774 | 6,774 | — | ||||||||||||
| Reserve for dividends | 3,400 | 3,400 | — | ||||||||||||
| Reserve for reduction of land assets | 1,511 | — | (1,511 | ) | |||||||||||
| Reserve for replacement of property | 189 | — | (189 | ) | |||||||||||
| Nonrestrictive reserve | 98,500 | 73,500 | (25,000 | ) | |||||||||||
| Retained earnings carried forward | (15,354 | ) | 31,051 | 46,405 | |||||||||||
| Total retained earnings | 95,020 | 26.3 | 114,725 | 30.9 | 19,705 | ||||||||||
|
Treasury stock |
(44,434 | ) | (12.3 | ) | (44,445 | ) | (12.0 | ) | (11 | ) | |||||
|
Total shareholders' equity |
203,457 | 56.4 | 223,151 | 60.0 | 19,694 | ||||||||||
|
|
|
|
|||||||||||||
|
Valuation and translation adjustments |
|||||||||||||||
| Net unrealized holding gains (losses) on securities | (458 | ) | 3,191 | 3,649 | |||||||||||
| Deferred hedge loss | (593 | ) | (8 | ) | 585 | ||||||||||
| Revaluation of land | (5,264 | ) | (5,264 | ) | — | ||||||||||
| Total valuation and translation adjustments | (6,315 | ) | (1.8 | ) | (2,081 | ) | (0.6 | ) | 4,234 | ||||||
| New stock acquisition rights | 271 | 0.1 | 293 | 0.1 | 22 | ||||||||||
| Total net assets | 197,413 | 54.7 | 221,363 | 59.5 | 23,950 | ||||||||||
| Total liabilities and net assets | 360,732 | 100.0 | 371,743 | 100.0 | 11,011 | ||||||||||
|
(2) Non-consolidated Statements of Operations |
|||||||||||||||
|
(Millions of yen) |
|||||||||||||||
|
As of
March 31, 2009 |
As of
March 31, 2010 |
Increase
(decrease) |
|||||||||||||
| Net sales | 267,092 | 100.0 | % | 221,367 | 100.0 | % | (45,725 | ) | |||||||
| Cost of sales | 176,587 | 66.1 | 152,848 | 69.0 | (23,739 | ) | |||||||||
| Gross profit | 90,505 | 33.9 | 68,519 | 31.0 | (21,986 | ) | |||||||||
| Selling, general and administrative expenses | 107,803 | 40.4 | 85,959 | 38.8 | (21,844 | ) | |||||||||
| Operating income (loss) | (17,298 | ) | (6.5 | ) | (17,440 | ) | (7.8 | ) | (142 | ) | |||||
| Non-operating income: | |||||||||||||||
| Interest and dividend income | 9,404 | 3.5 | 34,776 | 15.7 | 25,372 | ||||||||||
| Other non-operating income | 6,333 | 2.4 | 1,549 | 0.7 | (4,784 | ) | |||||||||
| Total non-operating income | 15,737 | 5.9 | 36,325 | 16.4 | 20,588 | ||||||||||
| Non-operating expenses: | |||||||||||||||
| Interest paid | 1,428 | 0.6 | 810 | 0.4 | (618 | ) | |||||||||
| Discount on sales | 850 | 0.3 | 538 | 0.2 | (312 | ) | |||||||||
| Other non-operating expenses | 3,556 | 1.3 | 1,464 | 0.7 | (2,092 | ) | |||||||||
| Total non-operating expenses | 5,834 | 2.2 | 2,812 | 1.3 | (3,022 | ) | |||||||||
| Ordinary income (loss) | (7,395 | ) | (2.8 | ) | 16,073 | 7.3 | 23,468 | ||||||||
| Extraordinary gains: | |||||||||||||||
| Gain on sales of property, plant and | |||||||||||||||
| equipment | 2 | 0.0 | 4 | 0.0 | 2 | ||||||||||
| Gain on sales of investment securities | 70 | 0.0 | 627 | 0.3 | 557 | ||||||||||
| Transfer pricing taxation adjustment | — | — | 3,838 | 1.7 | 3,838 | ||||||||||
| Other extraordinary gains | 128 | 0.1 | 196 | 0.1 | 68 | ||||||||||
| Total extraordinary gains | 200 | 0.1 | 4,665 | 2.1 | 4,465 | ||||||||||
| Extraordinary losses | |||||||||||||||
| Loss on sales and disposal of property, | |||||||||||||||
| plant and equipment | 1,217 | 0.5 | 445 | 0.2 | (772 | ) | |||||||||
| Loss on evaluation of investment | |||||||||||||||
| securities | 1,276 | 0.5 | 131 | 0.1 | (1,145 | ) | |||||||||
| Loss on evaluation of stocks of | |||||||||||||||
| affiliated companies | 8,795 | 3.3 | — | ― | (8,795 | ) | |||||||||
| Loss on evaluation of investment in | |||||||||||||||
| affiliated companies | 1,385 | 0.5 | 875 | 0.4 | (510 | ) | |||||||||
| Impairment loss | 7,758 | 2.9 | — | ― | (7,758 | ) | |||||||||
| Other extraordinary losses | 2,184 | 0.8 | 280 | 0.1 | (1,904 | ) | |||||||||
| Total extraordinary losses | 22,615 | 8.5 | 1,731 | 0.8 | (20,884 | ) | |||||||||
| Income (loss) before income taxes | (29,810 | ) | (11.2 | ) | 19,007 | 8.6 | 48,817 | ||||||||
| Income, residential and enterprise taxes | (4,097 | ) | (1.6 | ) | (2,697 | ) | (1.2 | ) | 1,400 | ||||||
| Adjustment for income taxes | (6,187 | ) | (2.3 | ) | (1,084 | ) | (0.5 | ) | 5,103 | ||||||
| Net income (loss) | (19,526 | ) | (7.3 | ) | 22,788 | 10.3 | 42,314 | ||||||||
|
(3) Non-consolidated Statements of Changes in Shareholders’ Equity |
||||||||||||||||||||
|
|
|
|||||||||||||||||||
|
Fiscal 2009 (April 1, 2008 to March 31, 2009) |
(Millions of yen) |
|||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
|
Common
|
Capital surplus | Retained earnings | ||||||||||||||||||
|
Legal
|
Other retained earnings |
Total
|
||||||||||||||||||
|
Additional
|
Total
|
Reserve
|
Reserve
|
Reserve for
|
Nonrestrictive
|
Retained
|
||||||||||||||
|
Balance at
|
64,100 |
88,771 |
88,771 |
6,774 |
3,400 |
1,511 |
203 |
98,500 |
13,669 |
124,057 |
||||||||||
|
Changes
|
||||||||||||||||||||
|
Dividends
|
— |
(9,507) |
(9,507) |
|||||||||||||||||
|
Net loss |
— |
(19,526) |
(19,526) |
|||||||||||||||||
|
Drawdown
|
— |
(14) |
14 |
— |
||||||||||||||||
|
Acquisition
|
— |
(4) |
(4) |
|||||||||||||||||
|
Net change
|
— |
— |
||||||||||||||||||
|
Total
|
— |
— |
|
— |
— |
— |
— |
(14) |
— |
(29,023) |
(29,037) |
|||||||||
|
Balance at
|
64,100 |
88,771 |
88,771 |
6,774 |
3,400 |
1,511 |
189 |
98,500 |
(15,354) |
95,020 |
||||||||||
|
(Millions of yen) |
|||||||||||||||||||||||
|
Shareholders’ equity |
Valuation and translation adjustment |
New stock
|
Total net
|
||||||||||||||||||||
|
Treasury
|
Total
|
Net
|
Deferred
|
Revalua-
|
Total
|
||||||||||||||||||
| Balance at March 31, 2008 | (41,449 | ) | 235,479 | 5,314 | 318 | (5,264 | ) | 368 | 169 | 236,016 | |||||||||||||
|
Changes during the year ended March
|
|||||||||||||||||||||||
| Dividends paid | (9,507 | ) | — | (9,507 | ) | ||||||||||||||||||
| Net loss |
(19,526 |
) |
— | (19,526 | ) | ||||||||||||||||||
|
Drawdown of reserve for replacement
|
— |
— |
— |
||||||||||||||||||||
|
Acquisition and disposal of treasury
|
(2,985 |
) |
(2,989 |
) |
— |
(2,989 |
) |
||||||||||||||||
|
Net change of items other than
|
— |
(5,772 |
) |
(911 |
) |
|
(6,683 |
) |
102 |
(6,581 |
) |
||||||||||||
| Total changes during the year | (2,985 | ) | (32,022 | ) | (5,772 | ) | (911 | ) | — | (6,683 | ) | 102 | (38,603 | ) | |||||||||
| Balance at March 31, 2009 | (44,434 | ) | 203,457 | (458 | ) | (593 | ) | (5,264 | ) | (6,315 | ) | 271 | 197,413 | ||||||||||
|
Fiscal 2010 (April 1, 2009 to March 31, 2010) |
(Millions of yen) |
|||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
|
Common
|
Capital surplus |
Retained earnings | ||||||||||||||||||
|
Legal
|
Other retained earnings |
Total
|
||||||||||||||||||
|
Additional
|
Total
|
Reserve
|
Reserve
|
Reserve for
|
Nonrestrictive
|
Retained
|
||||||||||||||
|
Balance at
|
64,100 |
88,771 |
88,771 |
6,774 |
3,400 |
1,511 |
189 |
98,500 |
(15,354) |
95,020 |
||||||||||
|
Changes
|
||||||||||||||||||||
|
Dividends
|
— |
(3,083) |
(3,083) |
|||||||||||||||||
| Net income |
― |
22,788 |
22,788 |
|||||||||||||||||
|
Drawdown of
|
― |
(1,511) |
1,511 |
— |
||||||||||||||||
|
Drawdown of
|
— |
(189) |
189 |
— |
||||||||||||||||
|
Drawdown of
|
― |
(25,000) |
25,000 |
— |
||||||||||||||||
|
Acquisition
|
— |
|
(0) |
(0) |
||||||||||||||||
|
Net change
|
— |
|
— |
|||||||||||||||||
|
Total
|
— |
— |
— |
— |
— |
(1,511) |
(189) |
(25,000) |
46,405 |
19,705 |
||||||||||
|
Balance at
|
64,100 |
88,771 |
88,771 |
6,774 |
3,400 |
— |
— |
73,500 |
31,051 |
114,725 |
||||||||||
|
(Millions of yen) |
|||||||||||||||||||||||
|
Shareholders’ equity |
Valuation and translation adjustment |
New stock
|
Totl net
|
||||||||||||||||||||
|
Treasury
|
Total
|
Net
|
Deferred
|
Revalua-
|
Total
|
||||||||||||||||||
|
Balance at March 31, 2009 |
(44,434 | ) | 203,457 | (458 | ) | (593 | ) | (5,264 | ) | (6,315 | ) | 271 | 197,413 | ||||||||||
|
Changes during the year ended March
|
|||||||||||||||||||||||
| Dividends paid | (3,083 | ) | — | (3,083 | ) | ||||||||||||||||||
| Net income | 22,788 | — | 22,788 | ||||||||||||||||||||
|
Drawdown of reserve for reduction of
|
— |
|
|
|
— |
|
— |
||||||||||||||||
|
Drawdown of reserve for replacement of
|
— | — | — | ||||||||||||||||||||
| Drawdown of nonrestrictive reserve | — | — | — | ||||||||||||||||||||
|
Acquisition and disposal of treasury
|
(11 | ) | (11 | ) | — | (11 | ) | ||||||||||||||||
|
Net change of items other than
|
— | 3,649 | 585 | 4,234 | 22 | 4,256 | |||||||||||||||||
| Total changes during the year | (11 | ) | 19,694 | 3,649 | 585 | — | 4,234 | 22 | 23,950 | ||||||||||||||
| Balance at March 31, 2010 | (44,445 | ) | 223,151 | 3,191 | (8 | ) | (5,264 | ) | (2,081 | ) | 293 | 221,363 | |||||||||||
(4) Events or Conditions Raising Significant Questions Regarding Assumption of Going Concern
None applicable
|
(Attachment) |
||||||||||
|
|
||||||||||
|
Summary of Results for the Fiscal Year Ended March 31, 2010 |
||||||||||
|
1. Consolidated Results (U.S. GAAP) |
||||||||||
|
(Millions of yen, %) |
||||||||||
|
Year ended
|
Year ended
|
Year-on-year
|
Year ending
|
Year-on-year
|
||||||
| Net sales | 627,190 | 524,694 | (16.3%) | 580,000 | 10.5% | |||||
| Operating income | 5,339 | 13,074 | 144.9% | 33,000 | 152.4 | |||||
| [% of net sales] | [0.9%] | [2.5%] | [+1.6P] | [5.7%] | [+3.2P] | |||||
| Income (loss) before income taxes | (39,133) | 10,195 | — | 33,000 | 223.7 | |||||
| [% of net sales] | [(6.2%)] | [1.9%] | [+8.1P] | [5.7%] | [+3.8P] | |||||
|
Net income (loss) attributable to
|
(29,172) | 3,518 | — | 20,000 | 468.5% | |||||
|
Net income (loss) per share attributable to
|
(132.15) |
15.98 |
+148.13 |
90.85 |
+74.87 |
|||||
|
Net income per share attributable to
|
— |
15.98 |
— | |||||||
| Return on equity (%) | (8.7%) | 1.2% | [+9.9P] | 6.4% | [+5.2P] | |||||
| Total assets | 538,280 | 532,254 | (1.1%) | |||||||
| Shareholders’ equity | 298,411 | 306,327 | 2.7% | |||||||
| [Shareholders’ equity ratio (%)] | [55.4%] | [57.5%] | [+2.1P] | |||||||
|
Shareholders’ equity per share
|
1,355.41 | 1,391.41 | +36.00 | |||||||
|
Net cash provided by operating
|
31,408 |
42,759 |
+11,351 |
|||||||
|
Net cash used in investing activities |
(40,628) |
(18,584) |
+22,044 |
|||||||
|
Net cash provided by (used in)
|
21,867 |
(20,358) |
-42,225 |
|||||||
|
Cash and cash equivalents at end of
|
46,631 |
51,726 |
+5,095 |
|||||||
| Cash dividends per share (JPY) | 25.00 | 17.00 | -8.00 | Undetermined | — | |||||
Notes: 1. The number of consolidated subsidiaries is 154, and the number of companies accounted for by the equity method is 16.
2. Net income has been changed to net income attributable to shareholders
|
2. Non-consolidated Results |
||||||
|
(Millions of yen, %) |
||||||
|
Year ended
|
Year ended
|
Year-on-year
|
||||
| Net sales | 267,092 | 221,367 | (17.1%) | |||
| Operating income (loss) | (17,298) | (17,440) | — | |||
| [% of net sales] | [(6.5%)] | [(7.8%)] | [-1.3P] | |||
| Ordinary income (loss) | (7,395) | 16,073 | — | |||
| [% of net sales] | [(2.8%)] | [7.3%] | [+10.1P] | |||
| Income (loss) before income taxes | (29,810) | 19,007 | — | |||
| [% of net sales] | [(11.2%)] | [8.6%] | [+19.8P] | |||
| Net income (loss) | (19,526) | 22,788 | — | |||
| Net income (loss) per share (basic) (JPY) | (88.43) | 103.49 | +191.92 | |||
| Net income per share (diluted) (JPY) | — | 103.49 | — | |||
| Common stock | 64,100 | 64,100 | 0.0% | |||
| Total assets | 360,732 | 371,743 | 3.1% | |||
| Net assets | 197,413 | 221,363 | 12.1% | |||
| Net worth ratio (%) | 54.7% | 59.5% | +4.8P | |||
| Net assets per share (JPY) | 895.24 | 1,003.93 | +108.69 | |||
|
(Attachment) |
|||||||||||
|
3. Consolidated Net Sales by Business Segment |
(Billions of yen) |
||||||||||
|
Year ended
|
Year ended
|
Period-on-period
|
|||||||||
| IAB | Domestic | 125.5 | 93.5 | (25.5 | ) | ||||||
| Overseas | 146.5 | 112.7 | (23.0 | ) | |||||||
| Total | 272.0 | 206.2 | (24.2 | ) | |||||||
| EMC | Domestic | 25.6 | 22.3 | (12.7 | ) | ||||||
| Overseas | 50.9 | 48.4 | (5.0 | ) | |||||||
| Total | 76.5 | 70.7 | (7.6 | ) | |||||||
| AEC | Domestic | 25.0 | 23.9 | (4.4 | ) | ||||||
| Overseas | 57.1 | 51.3 | (10.2 | ) | |||||||
| Total | 82.1 | 75.2 | (8.5 | ) | |||||||
| SSB | Domestic | 70.7 | 57.5 | (18.7 | ) | ||||||
| Overseas | 1.6 | 0.5 | (70.7 | ) | |||||||
| Total | 72.3 | 58.0 | (19.8 | ) | |||||||
| HCB | Domestic | 28.1 | 29.6 | 5.2 | |||||||
| Overseas | 35.5 | 33.8 | (4.8 | ) | |||||||
| Total | 63.6 | 63.4 | (0.4 | ) | |||||||
| Other | Domestic | 30.5 | 22.4 | (26.5 | ) | ||||||
| Overseas | 19.7 | 18.9 | (4.3 | ) | |||||||
| Total | 50.2 | 41.3 | (17.8 | ) | |||||||
| Eliminations, etc. | Domestic | 10.2 | 9.3 | (8.8 | ) | ||||||
| Overseas | 0.3 | 0.6 | 116.3 | ||||||||
| Total | 10.5 | 9.9 | (4.8 | ) | |||||||
| Total | Domestic | 315.6 | 258.5 | (18.1 | ) | ||||||
| Overseas | 311.6 | 266.2 | (14.6 | ) | |||||||
| [% of total] |
[49.7% |
] |
[50.7% |
] |
[+1.0 |
P] |
|||||
| Total | 627.2 | 524.7 | (16.3 | ) | |||||||
Notes: 1. The Company has adopted FASB ASC No. 280, "Segment Reporting" (previously FASB Statement No. 131, "Disclosures about Segments of an Enterprise and Related Information"), from the year ended March 31, 2010. Segment information for the year ended March 31, 2009 has been restated to reflect the change.
2. From the nine months ended December 31, 2009, business segments have been changed to IAB, EMC, AEC, SSB, HCB and Other to reflect a change in organization. Figures in segment information for the year ended March 31, 2009 have been restated to reflect the new classifications.
|
Average Currency Exchange Rate |
(One unit of currency, in yen) |
||||||
|
Year ended
|
Year ended
|
Year-on-year
|
|||||
| USD | 100.7 | 92.9 | -7.8 | ||||
| EUR | 144.5 | 130.3 | -14.2 | ||||
|
(Attachment) |
|||||||||||
|
4. Projected Consolidated Net Sales by Business Segment |
(Billions of yen) |
||||||||||
|
Year ended
March 31, 2010 |
Year ended
March 31, 2011 |
Period-on-period
|
|||||||||
| IAB | Domestic | 93.5 | 115.5 | 23.6 | |||||||
| Overseas | 112.7 | 130.5 | 15.7 | ||||||||
| Total | 206.2 | 246.0 | 19.3 | ||||||||
| EMC | Domestic | 22.3 | 24.0 | 7.4 | |||||||
| Overseas | 48.4 | 52.0 | 7.5 | ||||||||
| Total | 70.7 | 76.0 | 7.5 | ||||||||
| AEC | Domestic | 23.9 | 26.0 | 8.8 | |||||||
| Overseas | 51.3 | 52.0 | 1.4 | ||||||||
| Total | 75.2 | 78.0 | 3.8 | ||||||||
| SSB | Domestic | 57.5 | 63.0 | 9.5 | |||||||
| Overseas | 0.5 | 1.0 | 112.8 | ||||||||
| Total | 58.0 | 64.0 | 10.4 | ||||||||
| HCB | Domestic | 29.6 | 29.5 | (0.3 | ) | ||||||
| Overseas | 33.8 | 35.0 | 3.6 | ||||||||
| Total | 63.4 | 64.5 | 1.8 | ||||||||
| Other | Domestic | 22.4 | 23.0 | 2.5 | |||||||
| Overseas | 18.9 | 23.0 | 21.8 | ||||||||
| Total | 41.3 | 46.0 | 11.3 | ||||||||
| Eliminations, etc. | Domestic | 9.3 | 5.5 | (40.4 | ) | ||||||
| Overseas | 0.6 | 0.0 | 0.0 | ||||||||
| Total | 9.9 | 5.5 | (44.8 | ) | |||||||
| Total | Domestic | 258.5 | 286.5 | 10.8 | |||||||
| Overseas | 266.2 | 293.5 | 10.2 | ||||||||
| [% of total] |
[50.7% |
] |
[50.6% |
] |
[-0.1 |
P] |
|||||
| Total | 524.7 | 580.0 | 10.5 | ||||||||
Notes: 1. The Company has adopted FASB ASC No. 280, "Segment Reporting" (previously FASB Statement No. 131, "Disclosures about Segments of an Enterprise and Related Information"), from the year ended March 31, 2010. Segment information for the year ended March 31, 2009 has been restated to reflect the change.
2. From the nine months ended December 31, 2009, business segments have been changed to IAB, EMC, AEC, SSB, HCB and Other to reflect a change in organization. Figures in segment information for the year ended March 31, 2009 have been restated to reflect the new classifications.
|
Average Currency Exchange Rate |
(One unit of currency, in yen) |
||||||
|
Year ended
|
Year ending
|
Year-on-year
|
|||||
| USD | 92.9 | 90.0 | -2.9 | ||||
| EUR | 130.3 | 125.0 | -5.3 | ||||
Contact:
OMRON Corporation
Media Inquires
Yasushi
KAWAMOTO, +81-75-344-7175
Corporate Communications Department
Email Contact