2020_2q_omron_e

2/37 ■Summary

The three key points for today’s presentation are as follows. The first is the H1 FY2019 results. Both sales and profits fell Y/Y, with sales down 6.4% Y/Y. The operating environment remained challenging for IAB and EMC. Despite this, OMRON was able to improve our GP margin by 0.5% pts. excluding the impact of foreign exchange. OMRON continues to make solid progress in improving its profit-generating capability. As a result, operating income was in line with our internal plan. The second is our full-year forecasts. We revise down our full-year guidance. We assume that tough operating conditions for IAB and EMC will persist in H2. We have also factored in the impact of a stronger yen. However, we are committed to following through with rigorously selected investments we consider necessary for future growth. In terms of capital efficiency measures, we will cancel treasury stock and establish a new share buyback program. Finally, I will share my thoughts on our ongoing initiatives to enhance corporate value.