13/33 H2 Business Environment by Segment


Our overall view of the H2 operating environment is that the situation will remain tough. However, conditions in some regions and industries have been improving, so the overall picture is mixed. Against this backdrop, I will explain the outlook for each of our segments. For IAB, we expect a prolonged impact from customers limiting capex spending. On the back of falling auto sales, the auto industry expects capex spending, particularly for gasoline engine vehicles, to remain weak. In Digital, there will be a pause in investments, primarily in China and South Korea, but we expect the underlying trend to remain firm. In China in particular, we are seeing increased signs of an overall recovery, reflecting increasing investments to support the development of a home-grown semiconductor industry, and government support for infrastructure investments. For EMC, we assume a gradual recovery for Consumer but expect Automotive to remain weak. For SSB, we expect railway-related capex will remain limited. For HCB, we expect to see demand on the back of a rising global awareness of health management triggered by COVID-19, and a gradual recovery in domestic and overseas store sales. We revised our forecasts based on these assumptions.