2019_2q_omron_e

32/42 Growth Cycle

This completes my presentation but I would like to take this opportunity to highlight OMRON’s growth cycle strategy. We aim to improve our ability to generate profits. The resulting increase in profits will fund our growth investments. These investments, in turn, drive further sales growth. Our aim is to rigorously adhere to this cycle and to do so at speed. The three key areas for investment are: IAB, HCB, and enhancing our technological expertise in Sensing & Control + Think. As covered in my presentation today, we expect the H2 operating environment will continue to be challenging for OMRON. As such, we have factored in a number of potential risks, and have chosen to revise down our full-year forecasts. That said, we continue to make solid progress in enhancing the competitiveness of IAB and HCB; we continue to enjoy sales growth. We believe we are on the right track with the strategies we are currently implementing. I believe our ability to drive the growth cycle is steadily improving. If we look to the markets, growth prospects for social needs over the longer-term remain unchanged. We will continue to focus on enhancing the growth cycle in order to achieve the targets set out in VG2.0, our medium-term business plan, and achieve sustainable growth.