2019_4q_omron_e

6/39 Operating Income by Business Segment

Next is the segment breakdown for operating income. As shown here, profits fell at IAB. The fall at the operating profit level was larger than the sales decline because we continued to make investments to enhance the competitiveness of the IAB business, as well as investing in the necessary infrastructure for future growth and strengthening R&D. I will talk about the benefits we have reaped from these investments in more detail later. EMC profits also fell on lower sales and as a consequence of ongoing restructuring investments. Specifically, we are investing to transfer production and consolidate our manufacturing footprint. This covers the major items on the P&L for FY2018. I will talk about the balance sheet next. Given the absence of major changes to the structure of the balance sheet, I will touch only on trends in inventory. Please turn to slide 7.