2021_1q_omron_e

17/37 - Operating Income by Business Segment

Here we show operating income forecasts by segment. Reflecting the tough sales outlook for each segment, we expect profits to decline, with the exception of HCB, as highlighted in red. As discussed on the previous page, while many countries imposed lockdowns in response to the COVID-19 outbreak, overall sales benefited from increased online sales. We expect demand for our mainstay BPMs to increase this fiscal year. This completes the discussion of segment OP. I recognize that there may appear to be a disconnect between our Q1 operating income of ￥12.5 billion and the full-year forecast of ￥30 billion. The forecast is a reflection of just how tough we think conditions will be from Q2 onward. Our forecasts assume that the bottom for earnings will be either Q2 or Q3, after which profits will gradually recover. Of course, we are not just simply sitting back. As in Q1, if opportunities to grow revenue emerge, we will be proactive. Currently OMRON generates a high GP margin. As such, topline growth has a significant impact on operating income. We aim to grow the bottom line by growing sales and maintaining our high GP margin. The final page for the section on FY2020 plan covers our full-year DPS guidance. Please turn to slide 18.