2018_4q_omron_e

2/45 VG2020: 7th Year Achievements

The left-hand column shows our results for FY2011. On the right, we show the same figures for FY2017, the fiscal year ended in March 2018. As you can see, OMRON has significantly improved earnings and enhanced corporate value over this period. Sales increased 1.4-fold, and operating income has more than doubled. ROIC has improved by approximately 8%-points, rising to 12.7%. As a result, EPS has quadrupled. The dividend and share price have increased 2.7x and 3.5x respectively. For your information, during this 7-year period, we bought back 8.6 million shares worth ￥44.3 billion. I would particularly like to highlight the gross profit margin (GP margin). This is the most important management metric for OMRON. We believe it demonstrates our profit-generating ability. Over the last 7 years, we were able to boost our GP margin by a very significant 4.8%-points. We started our revitalization initiatives by focusing on improving our ability to generate profits. Organizationally, we enhanced the level of collaboration between the production, sales, R&D and planning functions. At the same time, we also focused on raising the quality of the solutions we provide to our customers. We have consistently focused on building a framework that ensured that our GP margin improved every year. This will continue to be a key initiative going forward. In FY2018, we aim to raise our GP margin further to 42.5%. Next slide please.