FY2012 3 rd Quarter Earnings Statements Current Status and Strengths of AEC Business OMRON Automotive Electronics Co. Ltd. President Yoshinori Suzuki
2 Mission of AEC Business Searching for the best match between human and car, best partner with society Creating new values for automobile society, based on OMRON Group management philosophy. The next fiscal year will mark the 30 th year since we fully entered into this industry in 1983.
Characteristics of AEC Business 3 Customers Partnership taking advantages of an independent company Business Operations Global business deployment Technology /Products Specialized automotive components manufacturer
Partnership as an Independent Company 4 We are doing business with various car and automotive components manufacturers, riding on our strength as an independent company.
5 Global Business Deployment Expansion of overseas operations sustains business growth. Production, sales and development in 10 countries. 1980s 1990s 2000s 2010s '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 00 01 02 03 04 05 06 07 08 09 10 11 12 JAPAN sales Sales by geographic area (expected) ASIA 19% CHINA 11% Overseas sales EU 3% Direct 8% NA 25% JAPAN 34% 95 bill JPY
6 Focus on Car Electronics We continue to provide customers with various car electronics technologies and products, evolving sensing and control which is OMRON core technology. Comfort Convenience Security Environmentally- Friendly System business Switch business Motor control business Components business Environmental application business
Improved Profit Structure 7 As a result of the profit structural reform, we improved our profits to the average level of the automotive components industry. 10.0% Change in operating profit rate of AEC business Reviewed focused business Reformed production structure Strengthened operations 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Balanced Management between Growth & Profit 8 Global Management Global One Team Competitiveness Strengthen cost competitiveness Growth Activities for growing field
9 Global One Team Management We are promoting autonomous management by geographic area by domestic each function taking their responsibilities/roles and organically connecting each other. Area Management Market Customer Market Customer Market Customer Market Customer Market Customer IA & EU JAPAN CHINA KOREA ASIA Autonomous management by geographic area Mother function Platform Platform Platform Platform Build business infrastructure necessary for global management and take initiative in bonding global areas effectively Corporate identity / vision / action guidelines Learn and perform one by one
Strengthen Cost Competitiveness 10 To enhance cost competitiveness, we are promoting company-wide activities in the planning and proposal stages. Inquiry Quotation Business Awarded Design Validation Product Validation Approval Mass Production Planning Order Order Activity Activity Technology development Proposal Planting new seeds for growth Design Design & & Development Development for for Mass Mass Production Production Production Production Preparation Preparation Collecting profits Mass Mass Production Production Business Creation Management Program Management <2 to 3 years> <1.5 to 2 years> Cost management 原 価 マネジメント (Purchasing, VA/VE) Quality Management <4 years~>
11 Growing Field-Environmental Car Business We are developing technologies and products of growing fields such as energy-saving and environmental cars. ECU for idling stop DC-DC converter Battery Control Power Conversion Cell Monitoring Unit On Board Charger Battery Voltage 12V Upt to 12V using DC-DC converter Leakage Detection Sensor Normal Charger Quick Charger DCDC Converter 6V ~ 0V Starter life time (1 to 3 seconds) (c) Omron Corporation Time BMU (BMS) Current sensor *Electric car: HEV/PHEV/EV/FCEV Charger with DC/DC
Growing Field-Strengthen Local Business 12 We are executing business strategies which meet the needs of the automotive electronic industry by potential area and building infrastructures to support the execution. NA/SA Expand production in Mexico factory Moved to new Brazil factory China Asia NA SA Mexico Factory New Brazil Factory China Asia Components for the 2-wheel car market Strengthen production of Electronic Power System. Approach to China mart/automotive components manufacturers.
AEC Business VG2020 13 OAE Vision for FY2020 VG2020 Vision Declaration of New Entrepreneurship Facing the challenges in a motorized society, we create a value of safety and joy by providing unique solutions with collective strength of Team AEC. VG2020 (till FY20) Human and the organization grow through challenges, and keep to enhance competitive advantages Globe Stage (till FY13) Actions to improve the level of Quality and grow more Future prioritized FY12 Management Policy of OAE Group Now Make platform and apply it globally to improve the level of global operations.
Thank you for your attention. ~Best Matching of Humans and Automobiles~ 14