2021_1q_omron_e

15/37 - IAB: Expected Quarterly Sales Trend by Region

This chart shows sales trends by region for IAB. We compare the change in quarterly sales results and forecasts relative to Q4 FY2019. Let me discuss the changes by region from Q4 FY2019. I will explain what is behind the distinctive patterns for Greater China and South Korea. Please look at the red line for Greater China. Q4 FY2019 was very tough given the impact of COVID-19. However, in Q1 FY2020, sales recovered sharply on the back of demand related to increased production capacity for surgical masks, combined with smart phone investments initially slated for Q4 that were pushed into Q1. That said, we expect to see a slowdown from Q2 onward reflecting global macro weakness. We expect the slowdown to continue to the end of Q4, although we expect the overall trend to be up on a Y/Y basis. Next, the orange line for South Korea. As you can see, sales increased significantly in Q1 on the back of a pickup in demand, including some frontloading of semiconductor investments. However, we expect sales to normalize from Q2 onward. We expect overall IAB sales to bottom in Q2 or Q3 but subsequently recover. Next, I will discuss the strong HCB online sales, which supported segment results. Please turn to slide 16.