2019_1q_omron_e

36/36 Questioner(8)

I only have one question. With regard to IAB margins, while the GP margin for the company as a whole has improved, this has been offset to a certain extent by the increase in SG&A in Q1. From Q2 onward, although visibility has deteriorated, the implication is that margin improvements should accelerate. Is it correct to assume the driver for the acceleration in margin improvements is the combination of higher Y/Y sales and the absence of further significant Y/Y increases in SG&A? Basically, we expect the balance between investing and sales growth to shift gradually over time. We have been consistently investing in IAB from last fiscal year and are committed to executing on investments through 1H FY2018. When you look at IAB over the course of the four years of VG2.0, the first 2 years of FY2017 and FY2018 have been positioned as investment years, while we aim to fully reap the benefits of these investments in the final 2 years of FY2019 and FY2020. Therefore, we would expect to see a gradual shift over time. Given these initiatives started last fiscal year, effectively, is it correct that the rates of growth for profits are already improving over time? Yes, we believe we are seeing gradual improvements. Understood. Thank you. Thank you. We will close the Q&A session. We would be grateful if you can take the time to complete our feedback sheet. This concludes the Q1 FY2018 results briefing for Omron. Thank you for your participation today.