2018_4q_omron_e

42/45 Questioner(1)

I realize the information may be somewhere in the materials but I think the assumption for IAB sales growth for FY2018 is +7.2% for the Japanese business and +8.5% for the overseas business. If possible, could you tell me the local currency growth rates for IAB’s overseas sales for FY2018 and FY2017? I am asking because I have the impression that your forecasts are slightly cautious. We show the growth rates for each segment, with a regional breakdown in the Data Book, although the growth rates are in yen terms. I am guessing what you want to know is how we are looking at the macro backdrop. It is probably fair to say that we are taking a slightly cautious view. Last fiscal year, we were able to grow IAB sales by 20%. Fundamentally, appetite for automation to address labor shortages and quality control issues remains unchanged. That said, we still do not have clarity on what impact there might be from potential trade wars, or the possible disruption as a result of a shift to OLED technology. We will monitor these developments closely. Last fiscal year, we were able to enjoy strong sales growth. For IAB in FY2018, we are aiming to achieve 8% growth on a significantly higher base. What I was trying to get at was the level of real growth in IAB overseas, excluding the impact of forex but my read of your response is that the underlying momentum or growth rate is largely unchanged. Is that a fair read? We are taking a slightly more cautious view for our forecasts. Thank you. My second question is about the IAB forecast for FY2018. You are guiding for sales growth of around ￥30 billion Y/Y. You have indicated in the past that capacity utilization is running at very close to full. Does your FY2018 forecast assume capacity increases during the year? Yes. We are planning to make investments this fiscal year. Our forecasts assume we will execute on the capex plans set out up to the end of FY2020. How should we understand the potential for an overshoot of the sales plan? From the perspective of capacity, is there room for an overshoot? Yes, the plan does incorporate some flexibility. I am sorry, I have one more question. My last question is about hiring. Last year you indicated that you devoted significant effort to hiring. SG&A growth is largely unchanged from last fiscal year’s level. How should we think about this? In terms of hiring, have you largely managed to achieve your objectives? Or, do you still have more hiring to do? More color on this would be very helpful. (Takeda) Just to confirm that you are asking about our hiring plans for FY2018? Yes. In FY2017, our plan was to hire slightly more than 400 people for the group as a whole; actual hires were in line with plan. For FY2018, the plan is to hire slightly more than 400 people for the group, primarily for IAB. We are focused on proactively enhancing front office capabilities for IAB. The SG&A plan for this fiscal year fully factors in the planned hires. Thank you. Next, the person in the middle section, please.