2019_1q_omron_e

20/36 Improving Ability to Generate Profits (GP Margin)

We have focused on improving our ability to generate profits, or, in other words, consistently raising our GP margin, in order to enhance the growth cycle. Our GP margin has risen from 36.8% in FY2011 to 41.6% in FY2017, the first year of the VG2.0 medium-term management plan, a substantial 4.8%-point improvement. We aim to achieve a new record high of 42.5% in FY2018, a further increase of 0.9%-point. We have already achieved our VG2.0 target of exceeding 41% but we are not satisfied with maintaining the status quo. We will continue to focus on further improving our ability to generate profits.