2019_2q_omron_e

31/42 IAB: Initiating i-BELT Business Model

The i-BELT service is a business model predicated on continued direct collaboration, which allows both OMRON and our customers to evolve over time. We start from a diagnosis of the manufacturing challenges of our customers. We then implement revolutionary applications to address the issues. By following through with maintenance work, OMRON is able to identify new, emerging challenges for our customers which we then seek to resolve. Through this process, we charge a fee for the visualization of issues and analysis. By creating an iterative cycle to address our customers’ issues on an ongoing basis, we can continuously evolve our solutions as well. This cycle of constant evolution is the core concept of the i-BELT model. The i-BELT model allows OMRON to develop a deep knowledge of our customers’ issues and accumulate significant expertise. We aim to package the new revolutionary applications we develop as a result of i-BELT into solutions that can then be sold to other customers. We believe it will also contribute to improved sales of our broad product lineup of ILOR+S. We have already received orders for the i-BELT model from more than 10 companies, all leading companies in their respective industries. We hope you will hold high expectations for the new i-BELT business model going forward. Next slide please.