2019_4q_omron_e

22/39 IAB: FY2018 Sales Growth by Area

Before talking about the benefits we have already enjoyed as a result of innovative-automation, I would like to revisit the FY2018 results for IAB by region. As we show on the slide, while total IAB segment revenue was down Y/Y, the only country where revenue fell was South Korea. Although the operating environment in FY2018 was very challenging, all regions with the exception of South Korea were able to grow sales Y/Y. The reasons for the decline in South Korea was the significant deterioration in the semiconductor industry. Please look at the center of the slide. OMRON’s sales in Europe, where competition is fierce, actually rose 6% Y/Y. Germany, home to major auto OEMs and auto parts players, was the driver of sales growth. By providing new innovative-automation solutions, primarily related to ADAS and EVs, OMRON has been able to significantly expand the business it does in Europe and, in particular, with German automakers and auto parts makers. Earlier this month, the world’s largest industrial machinery trade fair, Hannover Messe, was held in Germany. On the next slide, I will talk about some of the key highlights of the trade show.