2019_2q_omron_e

16/42 Sales by Business Segment

We show here the breakdown of our sales forecast by segment. We have also revised our segment forecasts. Relative to our previous plan, we now expect IAB sales to decline by 4%. This is due to a negative forex impact of ￥6 billion. In addition, by region, we have factored in weakness in the Digital industry for Greater China and South Korea, relative to our initial plan. We have largely maintained our IAB forecasts for Japan, the America and SE Asia. While IAB sales will decline relative to the initial plan, we expect growth of 4% on a Y/Y basis. By region, with the exception of South Korea which should remain weaker because of the downturn in digital investments, we expect IAB sales in all regions to improve Y/Y. We also expect HCB sales to rise Y/Y. We expect to hit new record highs for both IAB and HCB. Next, for the Other segment, we expect sales to decline on the restructuring of the backlight business. In addition, as a part of restructuring initiatives, the UPS business included heretofore in the Other segment has been transferred to SSB. We believe integrating the UPS business into SSB will allow us to capture the significant opportunity related to IoT and aim to grow this business further. Next slide please.