OMRON Corporation (Head Office: Kyoto, Japan; President and CEO: Yoshihito Yamada; hereinafter, "OMRON") and Advantech Co., Ltd. (Headquarters: Taipei, Taiwan; Chairman & CEO: Ke Cheng Liu; hereinafter, "Advantech"), the world's leading manufacturer of IPCs (industrial personal computers), today signed an agreement where OMRON would transfer 80% of the stock of OMRON Nohgata Co., Ltd. (hereinafter, "OMRON Nohgata") owned by OMRON to Advantech. The stock transfer will be completed by early-January 2019.
OMRON will retain the remaining 20% of OMRON Nohgata's stock for the time being.

OMRON Nohgata is a wholly owned consolidated subsidiary of OMRON, and it is responsible for original design manufacturing (ODM) services for industrial electronic equipment. Tapping into its strength in the development design and fabrication technology for high-speed, high-density printed circuit boards (PCBs), OMRON Nohgata has expanded its business outside OMRON group by focusing on its core business of ODM, where it undertakes the process of development to manufacturing of industrial electronic equipment in its entirety, a service which requires a high level of reliability and a stable supply over a long term, thus helping its customers to improve their added value.

As part of its long-term vision "Value Generation 2020 (VG2020)," which was launched in 2011, OMRON has been strengthening its business portfolio management with a view toward maximizing value of each of its businesses. This stock transfer is the latest of these strengthening efforts. By combining Advantech's various IoT products and advanced knowhow in production control with OMRON Nohgata's ability to customize and modify its products in accordance with the needs of its ODM customers, great synergistic opportunities are expected in the form of business expansion and new business creation in Japan.

The impact of this stock transfer on OMRON's consolidated and non-consolidated earnings for the fiscal year ending on March 31, 2019 is expected to be minor.

About OMRON Nohgata Co., Ltd.

Company name: OMRON Nohgata Co., Ltd.
Business line: ODM of industrial electronic equipment
Establishment: May 30, 1966
Representative: Takahiro Ishida, President
Location: Nohgata City, Fukuoka Prefecture, Japan

About Advantech Co., Ltd.

Advantech develops/manufactures IPCs (industrial personal computers), as well as offers ODM services. It is the leading player in the global IPC market with a 29% share.

Company name: Advantech Co., Ltd.
Establishment: 1981
Representative: Ke Cheng Liu (Chairman and CEO)
Employees: 7,972
Consolidated Sales: TWD44,375 million (approx. JPY160.0 billion [1TWD = JPY3.6])
Location: Taipei, Taiwan

About OMRON Corporation

OMRON Corporation is a global leader in the field of automation based on its core technology of "Sensing & Control + Think." Established in 1933, OMRON has about 36,000 employees worldwide, working to provide products and services in 117 countries. The company's business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronics, social infrastructure systems, healthcare, and environmental solutions. For more information, visit OMRON's website: https://www.omron.com/.

Contact (media):: Brand Communications Department
OMRON Corporation
Tel: +81-75-344-7175

Notice Regarding the Transfer of OMRON Nohgata's Stock