2019_4q_omron_e

14/39 FY2019 Plan

Here are our FY2019 forecasts. Please look at slide 14. The numbers are as stated. We expect both sales and profits to fall Y/Y, on the assumption that we will see a continuation of the tough operating environment. We expect the yen will appreciate. Please note that we disclose our RMB assumptions from this fiscal year. Based on our best estimates for each of the businesses, we project aggregate segment sales of ￥840 bn and aggregate operating income of ￥70 bn. However, in light of the overall global macro risk factors discussed earlier, at the corporate level we have also taken into account the risk of earnings fluctuations: ￥10 bn at the sales level and ￥5 bn at the OP level. As a result, our consolidated forecasts are for net sales of ￥830 bn and OP of ￥65 bn. We expect our GP margin to improve by 0.8% pts Y/Y to 42%. We expect the margin to improve on the contribution of sales of high-margin products in IAB and the impact of restructuring at EMC. We note that the expected closing for the sale of AEC is the end of October, so this year’s forecasts include a contribution from AEC. From the July Q1 results announcements, we will modify disclosure to reclassify AEC as a discontinued business. Next slide please.