As you probably know, the outlook for the global economy is becoming increasingly uncertain. In view of the ongoing change in our business environment, we have closely examined the second-half forecast. As a result, we decided to revise
our full-year forecast downward. Our revised forecasts for fiscal 2015 are: 860 billion yen in net sales, 70 billion yen in operating income, and 53.5 billion yen in net income. These figures represent decreases of 40 billion yen in sales,
20 billion yen in operating income, and 13 billion yen in net income from our original targets set at the start of the current
fiscal year. Our full-year sales forecast is still higher than the previous year’s figure, once again representing the highest-ever number. However, our full-year operating income and net income will post decreases from the previous fiscal year for
the first time in four years.
I regret that I could not thoroughly adapt to the rapid change surrounding us, which led to downward revisions to our
original forecasts. This let us realize that our responsiveness to change has still not reached a sufficient level. But we
shouldn’t be too pessimistic about it. We should have confidence in ourselves. Why? Because Omron is apparently growing
into a stronger company equipped with an “engine for self-driven growth” or a company that can realize sustained growth
no matter how difficult its business conditions are. The BC that most vividly shows this development is IAB. In fact, IAB is
the only one that revised its full-year sales forecast upward among all our BCs. The new business strategies that they have been implementing since fiscal 2014 have been steadily producing an improvement in their performance. IAB also
succeeded in closing two M&A deals aimed at long-term growth this year. I’m really looking forward to the synergies these M&A projects will create to realize new automation that is unique to Omron.
As represented by IAB’s M&A projects, we will continue making investments in order to support our medium- to long-term growth. As for the PV inverter and backlight businesses as well, we have already taken steps to correctly capture business opportunities from the next fiscal year onward without fail. We also feel positive about already earning concrete results from these efforts in the next fiscal year if all goes smoothly.
We will not take the flag down for the EARTH-1 goals of 900 billion yen sales and 90 billion yen operation income. To attain these goals, it is important that we build an “engine for self-driven growth” by thoroughly implementing all actions planned
for the current fiscal year. At this time of dynamic change, let’s strengthen taté-yoko linkages from the gemba/customer-centric perspectives in order to turn change into opportunity. To make this happen, the hard work of members of taté (business divisions) is of course essential. At the same time, I ask those of yoko (HQ functional divisions) to work with focus on ensuring successful results in taté divisions. I’m looking forward to everyone rising up again and taking enthusiastic action toward a successful turnaround!
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