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CORPORATE PLANNING

KEY STRATEGY AND KPIS

M r. Yukumoto explained about an EM C we have set up sales leaders that did Bookings significantly affected in this
new strategy at the kickoff of OCB- AM . not exist before, and are working to short term due to high channel
strengthen our relationship as a sales inventory. Since lead- times have
While the basic strategy has not changed, department. reduced at Omron and other
major changes have been made to the manufacturers, distributors are not
structure that drives the strategy. I would Even this is a new concept of EM C, having to schedule out orders as far.
like to share the key points again with the ASM - AM has already implemented
differences from the previous ones. almost same idea through Focus Further, cancellations are increasing
customer activities and AC- AM due to customer demand change and
When viewed from OCB- AM , here are activities.We just need to accelerate distributors being more conservative
two main differences. these activities. due to changed capacity/ product
1. Change from application focus to Indirect as the mainstay of the EM C availability as well as uncertainty of
industry focus. strategy short term demand requirements.
2. Indirect (Distributor business) has been Indirect business is one of the most We continue to ship our backlog.
incorporated into the core of the EM C important segments for OCB- AM , Total was reduced by over $1M .
strategy. but in EM C overall, it has a high M ajority of reduction was in
Application focus to Industry focus level of attention to the strategies of Distribution
quality enhancement, production
In the past, we were requested to focus consolidation, and new product Since the beginning of June, our open
on creating new products by focusing on creation. For this reason, in the past, po's with the factory has decreased
specific applications, but EM C expanded it just appeared in the strategy as from $22.1M to $20.6M . Our
that expression to industry level. ASM . inventory value has increased from
$13.3m to $14M as of June 10, 2019.
The background of this is that the Since EM C accomplished the major
application strategy is biased toward part of improvement at production We have received about $2.6M in
specific applications and specific product side, we focus more to growth. product, consisting of about 500
specs, and there is a sense that we cannot different items.
make full use of the strength of the Among these, the indirect business is
organization as a whole of EM C. The expected not only a large
intention is to accelerate the efficiency of contribution in terms of profit, but
customer capture and the strengthening also as an important approach pass
of relationships by selling other products directly to engineers.
at the same time as speck- in of new Now our Distribution team and
products for specific applications, and to M arcom team are working very
lead to sales growth. For this reason, closely with EM C/ ASM team.