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- 00:43:38.0 Answering the second part of your question first, in fact almost all of the other regions apart from China are also up YoY. As you know, we did sell the Oil & Gas business which was included in the US business, so this business is down YoY, but otherwise, all of the other regions are up YoY.
I will now hand over to Mr. Tomita.
(Tomita) For the first part of your question, there is nothing in terms of either our customers or markets that point to a downturn with regard to our strategic themes. Having said that, there were several large-scale projects, particularly in Digital, which were completed in Q3 and we expect will drop out in Q4.
Also, to follow up on CFO Suzuki’s comments, our overall expectation is for strong performances for all four of the focus industries in geographies other than China. Although there are differences in the scale of growth, for all four focus industries in these geographies, we do expect positive YoY growth.
- 00:44:47.8 Thank you. Of the other three focus industries apart from Digital, are you seeing more strength in a particular industry?
- 00:46:17.6 (Tomita) It is a little difficult to comment specifically, given the strong regional associations to particular industries. What I can say is that the Food & Beverage industry is relatively strong across the board and we expect revenues to be up YoY for almost all geographies.
- 00:46:26.2 Understood.
For my second question, you are expecting operating losses in Q4 for the Other segment. Can you briefly talk about the background to the operating losses?
- 00:46:49.0 As you know, the Other segment includes the backlight business (OPT) and the Environmental Solutions business. Roughly speaking, these two account for 50% and 30% of revenue respectively. With regard to the expected losses in Q4, there is seasonality to the OPT business, where revenues are typically strong in Q3. We have factored in our expectation that revenue will decline in Q4. The operating losses we expect are a function of the expected drop in revenue.
That said, as noted previously, we remain committed to optimizing this business. Our objective is to structure the business so that it is profitable even if revenues are halved. We continue to execute on achieving this but it is a work in progress. I will say we are making good progress in reorganizing this business.
- 00:47:10.0 Thank you.
- 00:48:23.2 If there is nothing more, we will close the Q&A session. We would be grateful if you could take the time to complete our feedback sheet.
This concludes the Q3 FY2016 results briefing for Omron. Thank you for your participation today.
- 00:48:27.4 (Suzuki) I was surprised to be asked about my change in role. Please allow me to thank you all for your support over the years. Thank you.
- 00:48:49.0