2019_1q_omron_e

35/36 Questioner(7)

I would like ask about slide 7. In Q1, IAB sales in Japan increased a solid ￥3.4 billion. However, I have a concern. Industry data shows that PLC trends are not very strong. Previously, I had been told by the IR team that last fiscal year, more than 50% of Japan sales were in Logic, with PLCs accounting for a substantial portion and making a major contribution to growth. Can you tell me how much of current Japan sales is from PLCs and whether PLC sales are growing or shrinking now? Given that industry sales of PLCs are falling and you have a high share, please talk about current conditions. (Okumura) We have looked into this in response to previous questions from you on this point. I can tell you that OMRON’s PLC sales are not falling. In addition, as discussed earlier, our approach to sales now is to focus on total solutions rather than selling individual devices on a standalone basis. This has made us less vulnerable to sales volatility for individual products. In other words, your share of PLCs has gone up, is that correct? Based on what you have said, the implication is that you are gaining share. There have been a lot of changes, such as your shift to a solutions-based marketing approach, but you are saying you believe that your peers have lost market share, is that correct? (Okumura) It is difficult for me to comment on the market shares of our peers, but if you were to calculate market share, I believe that our share has increased. Given that we are running out of time, I will leave it here. Thank you.