2019_2q_omron_e

42/42 Questioner(8)

I only have one question. I am sorry that this is to be the final question, but in the data book on page 9, where you show HQ expenses, the revised figure is ￥23 billion in expenses, which is not significantly lower than the initial figure of ￥24.5 billion. Also, H2 HQ expense is now forecast to be ￥15 billion, up Y/Y from H2 FY2017. If you cut more here, I think you could still achieve a new record high for operating income on a full-year basis. Can you talk about your commitment to short-term financial results as well as how you view tapping into HQ spend, which I view as a potential buffer, which is under your direct control. First of all we don’t have a buffer. But to your point about short-term results, I certainly am committed to delivering on short-term results. Notwithstanding having revised down, I would certainly hope to achieve positive Y/Y profit growth and even now would like to at least get close to matching last year’s profits, or if possible exceeding last year’s profits. I am not the only one; all of OMRON’s senior managers feel the same way. There are two major reasons why HQ expenses are up. The first is the R&D investments that are being done at the HQ level, focused on enhancing our technological expertise in Sensing & Control + Think. This is in line with our VG2.0 strategy. The other area of investment is in IT systems. OMRON still has some challenges in terms of IT system development. This is a long-term project where we have an ongoing investment program. These two factors are what is pushing up HQ expenses. Obviously, there are areas where we are focused on improving efficiency but the reason why optically it doesn’t appear as if we are improving much is because of these two areas of investment. 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 results briefing for Omron. Thank you for your participation today. (Yamada) Thank you for your participation. We apologize that we were not able to take all of your questions. Our IR team will be more than happy to follow up with you. We ask for your continued support. Thank you. (Itagaki) Thank you, everyone.