EXCITING NEW ERA

INDUSTRIAL AUTOMATION MANUFACTURE ROM RON APPOINTED HENRY ZHOU AS ITS NEW MANAGING DIRECTOR FOR OPERATIONS IN THE OCEANIA REGION, EFFECTIVE APRIL 1. Z HO U SUCCEED S OM RON OCEANIA MANAGING DIRECTOR GREG FIELD WHO RETIRED AFTER 17 YEARS IN THE ROLE. CONGRATULATIONS ON YOUR NEW APPOINTMENT – ARE YOU EXPECTING A SMOOTH LEADERSHIP TRANSITION?

It’s a great privilege to take up this appointment with Omron – a company with such a rich and proud history.

During the past 10 years I have been involved in all the major decisions as the general manager and the head of strategic planning. Moving forward our direction will remain consistent. We will further enhance our execution capabilities to realise our full potential. I’m confident of a smooth leadership transition as the company enters an exciting new era.

HOW HAS THE CURRENT COVID-19 CRISIS IMPACTED YOUR BUSINESS?

Covid-19 is a once-in-a- century crisis. There is no doubt that the global pandemic is having an enormous impact on communities and businesses around the world. At Omron our top three priorities are health and safety, sustainability and social responsibility.

We are monitoring the COVID-19 situation very closely and we are prioritising the safety and well-being of our employees and customers. All our offices remain open and deliveries will continue, albeit most of our team are working remotely and access to the office is for limited staff and couriers only.

In emergency situations like these, our latest financial report shows Omron Group has about USD2 billion in cash on the balance sheet. Our local operations also have a very strong cash flow. That means we can sustainably maintain our commitments to our customers, our people and our society.

For example, as the global supply chain is now very fragile, we have decided to increase our LOCAL stock holdings. This decision has been made to support thousands of our customers who provide essential services to the community. They include medical equipment manufacturers, pharmaceutical companies, food processors, logistic distribution centres, water plants, power plants, airports, railways and many more.

Despite a risk of over stocking in an uncertain market, we firmly believe it is our social responsibility to ensure the delivery of equipment and services at such a critical time.

Also, Omron maintains its commitment to our staff, and we will continue to invest in our people. We started a daily training program to strengthen our people’s knowledge and skills. Our employees are the company’s greatest asset. We are facilitating their growth despite this tough business environment so they can continue to make a valuable contribution to society and acquire more skills to improve their lives.

By doing the right thing by our people and our society, we can maintain trust and loyalty. This will further enhance our sustainability and profitability in the long term.

The challenges we face with Covid-19 are significant, but temporary. If we all stand together, we can get the job done.

WHAT ARE THE MAIN OPPORTUNITIES FOR INDUSTRY IN THE DECADE AHEAD?

There are two outstanding historical opportunities at present for companies in our industry.

Firstly, the Fourth Industrial Revolution. History shows clearly that technology revolutions are the fundamental drivers for a better society.

From ancient Roman times to early 18th Century, the leading nation’s GDP per capita has stayed around USD2000 per year, due to a lack of technology breakthroughs.

However, from 1784 to 2016, the world had three industrial revolutions, including adoption of the steam engine, electrical power and industrial automation.

As a result, GDP per capita grew 25 times in the industrialised countries within 300 years. It has delivered the greatest advancements and technological change in more than two centuries. People’s lives improved dramatically.

From 2016, there has been new waves of significant breakthroughs in technologies such as Robotics, Artificial Intelligence (AI) and Industrial Internet of Things (IIoT). The Fourth Industrial Revolution is here now. It will have an even more profound impact on our society.

There is no doubt that the coming decades will be very exciting, especially for the automation industry. Fortunately, Omron is a world leader in this field.

Currently, Omron has over 40 percent market share in Japan and strong positions in over 200 locations, including the Oceania region. We are looking forward to contributing more to Oceania society throughout Industry 4.0 technologies.

The second great opportunity for companies based in this region is the upcoming Asia Century, which has brought with it remarkable societal changes and a burgeoning middle class. In 1950, Asia had less than 20 percent of global GDP. In 2020 that figure has almost doubled and by 2050 it is projected to grow to almost 60 percent. The 4.6 billion Asian consumers are creating enormous demand for premier quality food and commodity products.

Australia and New Zealand are well-positioned to take advantage of these opportunities. We are on their doorstep,

with an abundance of natural resources and high-quality agricultural produce. Our nations boast highly skilled, talented people with a reputation for innovation and reliability. And our labour productivity has improved significantly through robotics and automation.

Omron can help local companies take advantage of opportunities that the new Asian Century delivers. The food and commodity industry is one of our four global focused industries. Each year we invest over USD500 million in R&D to ensure we remain a global leader in those growing domains.

For the past 25 years, Omron has built a strong presence in the Oceania Region, assisting companies to innovate and boost production. Our expert team works closely with clients to develop revolutionary Industry 4.0 solutions, with a strong focus on the food and commodity industry.

WHAT SETS OMRON APART FROM ITS COMPETITORS? WHAT IS THE COMPANY’S MAIN POINT OF DIFFERENCE?

We have two points of difference – technology and sustainability.

The most obvious one is our Future Proof Technology. We call it ‘ iAutomation’.

With iAutomation, we provide a total solution. That’s what sets us apart from our competitors.

• Integrated – This combines one control platform (Sysmac) and 200,000 products including control, motion, machine vision, safety and industrial components. Omron offers the widest range in the world – from R (Relay) to R (Robotics) and everything in between – all easily integrated together.

• Intelligent – Omron is a global leader in Internet of Things (IoT) and Artificial Intelligence (AI) systems. We now offer 50,000 IoT enabled devices and plan to double that amount within the next decade.

• Interactive – Omron offers a suite of robotics solutions to increase productivity in manufacturing and logistics operations. This includes:

– Mobile Robots – we have the largest installation base globally and are pioneers in the development of Autonomous Intelligent Vehicles (AIVs)

– Collaborative Robots – Our new range of TM cobots have been well received by industry and we are now partnering with some of world’s leading Food and Commodity companies to streamline operations.

– Fixed Robots – Omron has developed the world’s first fixed robot with built-in machine vision delivering greater accuracy and boosting productivity.

• Besides taking advantage of these leading-edge technologies, many clients are also interested in developing long-term partnerships. For Omron, we are here for the long haul. Sustainability is the fundamental point of difference we focus on.

Omron is 87 years young this year. In today’s world, the average life span of a publicly listed company has decreased significantly to an average of just 30 years. Omron has stood the test of time and continues to be recognized as Top 100 global innovators.

The reason for the sustainable success is our DNA – our corporate philosophy.

Omron’s mission is to improve lives and contribute to a better society. To achieve those goals, we focus on innovation driven by social needs. We pursue new challenges with passion and courage. And at the same time, we show respect for all, acting with integrity. We encourage everyone to reach their full potential.

Every decision we make is based on these principles, including investment, people selection and development and dealing with customers. It makes us unique, keeps us vibrant and gives us longevity.

WHEN IT COMES TO LEADERSHIP, WHAT IS YOUR PHILOSOPHY?

When it comes to leadership, I believe you need three key ingredients:

• A warm heart.

• A cool head .

• A hot mind .

Firstly, we must have a warm heart to encourage human potential. I firmly believe that everyone has unique talents. As a leader, the biggest task is to bring out the best in people. You must give employees an opportunity to challenge themselves. You must also support, mentor and coach them, celebrating their successes every step of the way.

Secondly, a strong leader needs a cool head to challenge commercial success. Today’s business world is highly competitive. Success is not an accident. It’s hard work. It’s all about learning, planning, networking, discipline, perseverance and sacrifice. And most importantly, you must love what you do!

Finally, a hot mind is needed to pioneer social advancement. Curiosity is the best part of human nature and it is essential for innovation. We must never accept the status quo and always pursue new challenges with passion and courage.

I have adopted this philosophy in leading self, leading others and leading business. It keeps me motivated every day!

FINALLY, WHAT ARE YOUR MAIN GOALS AND AMBITIONS FOR OMRON?

Where do you see the company in 10 years’ time?

Let me share a story. Not long ago, on my birthday, I climbed the Sydney Harbour Bridge. At the top of the bridge, my wife asked me to make a wish for the next 10 years.

For my career, I made three wishes:

1. To double company revenue.

2. To take care of our team and our clients.

3. To leave a lasting company legacy.

Doubling the revenue means to improve our contribution to customers and society significantly.

In the next 10 years, there are golden opportunities for our economy created by the technology revolution and surging demand from Asia’s vast and affluent new middle class.

My aim is to position Omron Oceania as a leader in innovative solutions and technologies for those opportunities. Together we can build a better society.

Taking care of our people means to encourage them to reach their full potential and to not only improve their lives, but also our clients. I will encourage them to pursue new growth opportunities and challenges, and recognise and reward them for their achievements. Working as a team I am confident we can achieve both business success and personal satisfaction.

Finally, the legacy I would like to leave is to create a business foundation upon which the next generation can build. I want to promote young talent by establishing a graduate and intern programme to support our expert team. And I would like our company to produce next-generation leaders that will maintain the highest standards and deliver the best results for our clients.

Hopefully, in 10 years’ time on my birthday I will climb the Harbour Bridge again and declare that I have achieved three goals that have improved lives and helped contribute to a better society.