2019_2q_omron_e

9/42 IAB Sales by Region

I will talk about the IAB business in more detail. Please turn to slide 8. This chart shows the sales growth for IAB broken out into geographic areas. OMRON has been executing on the innovative-automation strategy on a global basis. As you can see, the resulting sales growth is well-balanced across the regions. The only region reporting declines was SE Asia/Other, which includes South Korea. I would like to provide more color on the situation. If we exclude South Korea, SE Asia sales remained strong, growing 11% YoY. However, sales in South Korea dropped off dramatically. Sales to manufacturing facilities related to the digital industries of semiconductors, smartphones and flat panel displays fell substantially. As a result, this dragged down SE Asia/Other sales by 17% Y/Y. However, the weakness in South Korea was offset by strength in Japan, the Americas, Europe and Greater China, resulting in 4% Y/Y growth for IAB as a whole.