2018_1q_omron_e
11/30 - IAB Background of Growth (1) High Growth in Focus Industries
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00:11:20.7
I would now like to talk in more detail about the background to the strong growth enjoyed by IAB in Q1. It has been and should continue to be OMRON’s key growth driver. There are several reasons for IAB’s strength in Q1. The first is that we have been able to achieve high levels of growth for the four focus industries we have identified: Auto, Digital, Food & Beverage and Infrastructure. In FY2016, we talked about our success in capturing growth in the focus industries in China. We have expanded our Global Industry Strategy to regions beyond China and have been able to grow our business significantly as a result. Specifically, global revenues for these four industries grew 38％ YoY. Greater China revenues for the focus industries increased 54％ YoY, while the aggregate growth of Japan, Americas, Europe and Asia combined was a very healthy 33％ YoY. Many of our peers in factory automation (FA) are also reporting similarly firm growth, so there was a contribution from a solid underlying market. Having said this, according to our internal analysis, we have been able to capture growth above and beyond underlying market growth. We believe this confirms that our strategies are correct. We have also been able to grow revenues for industries outside of the four focus industries. We attribute this to our success in increasing the number of customers, and believe this is a strong reflection of how highly the value we provide is rated by our customers. This was the first reason for the robust performance.
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