2021_1q_omron_e

11/37 - Business Outlook by Segment: Q2 and beyond

Reflecting the prolonged impact of a weaker macro environment on a global basis from Q2 onward, we expect operating conditions will be very tough. For IAB, we expect our customers will continue to curtail capex spending. As noted earlier, we expect the strength in Digital in Q1, as reflected in strong sales growth for China and South Korea, will be followed by a weaker Q2, with a gradual recovery to kick in from Q4 or beyond. For the Automotive industry, while there is demand related to EV/ADAS, overall capex demand is likely to remain lackluster. For EMC, similar to IAB, automotive is likely to be very challenging. In addition, the pace of recovery in consumer electronics will continue to vary by region. For SSB, we expect railway companies to significantly rethink their investment plans, given declines in passenger revenue. For HCB, we expect demand will continue to be supported by the elevated health consciousness sparked by the outbreak, and rising online demand. I will now explain OMRON's FY2020 plan, based on these views of the operating environment.