2021_1q_omron_e

13/37 - FY2020 Plan: Operating Income Analysis (Y/Y)

We compare the FY2020 operating income plan to the FY2019 results. On the far left, we have FY2019 operating income of ￥54.8 billion. The negative forex impact to added value is ￥12.5 billion. The decline in added value, excluding forex impact, is ￥33.9 billion. We are committed to executing our plan to reduce fixed costs by approximately ￥20 billion. As shown on the slide, we specifically aim to reduce fixed costs by a total of ￥21.6 billion yen, including the forex impact. The reductions will be focused on manufacturing fixed costs and SG&A. However, we will increase critical investments essential for future growth, primarily IT investments, by ￥1.6 billion Y/Y to ￥5 billion. The combination of these factors adds up to our guidance of ￥30 billion in operating income. Next, I will talk about the sales forecasts by business segment. Please turn to slide 14.