Omron 1999 Annual Report Download - page 24

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22
competition caused by price equilibrium or leveling as well as the extinction of foreign exchange risks
among old local currencies in the countries using the euro when currency unification is achieved.
However, we feel it difficult to evaluate fairly and adequately how much profits will be affected by the
commercial transactions of these Group subsidiaries.
We expect that fiscal 1999 expenses related to euro currency introduction measures and other such
necessary expenses after fiscal 1999 will not be large. Up to now, and since the introduction of the
euro in January 1999, no crises have occured.
YEAR 2000 COMPLIANCE MEASURES
1. Outline
Recognizing the importance of responding to the year 2000 problem, with respect to internal computer
systems, OMRON has been implementing Companywide countermeasures since November 1996, with
each division participating in finding its own most effective solution. In addition, OMRON has launched
year 2000 countermeasures for its infrastructure and facilities.
In November 1998, OMRON established the Year 2000 Readiness Project Team (headed by
OMRON’s head of Corporate Research and Development Headquarters) to further integrate the
Company’s efforts with regard to both the products it markets and OMRON’s in-house information
infrastructure. The main responsibilities of the Year 2000 Readiness Project Team are to make sure the
necessary actions are carried out properly and in a well-balanced manner from a global perspective.
These actions are: (1) checking and inspecting concerned systems and equipment; (2) compiling and
storing the records of completed tasks; (3) communicating the necessary information to OMRON cus-
tomers and associates; and (4) handling customer and associate inquiries.
In February 1999, OMRON’s Year 2000 Readiness Project Team released to all domestic and over-
seas Group companies the Year 2000 Guidebook. This guidebook outlines plans for identifying, reno-
vating, testing, and implementing year 2000 countermeasures. The guidebook itself is divided into two
sections, one that outlines the basic rules to follow in dealing with year 2000 problems and one that
gives guidelines for preparing OMRON’s infrastructure, products, and supply chain to ensure a stable
supply of products to customers after the start of the year 2000.
2. Current Situation
The implementation of countermeasures in each field is proceeding as per the completion deadlines set
out in OMRON’s Year 2000 Guidebook. In some cases, the implementation of countermeasures may
not meet these OMRON deadlines, however, they will be in place before such a time as they could
cause serious problems.