2020_1q_omron_e

12/38 IAB Products Capable of Self-sustaining Growth

Despite the challenging operating environment, we have seen strong sales with some products, which I would like to highlight. In IAB, we have seen strong sales performances from products capable of self-sustaining growth which embody the concept of innovative-automation. These are the leading-edge X-ray substrate inspection machine, mobility robots and co-bots or collaborative robots. We are seeing strong adoptions of AXI by European automakers and auto components makers, on the back of rising needs for high-density substrate mounting for ADAS applications. AXI has also been effective as a door-opener with new clients. Adoption of mobile robots and co-bots has been rising at food and beverage manufacturers struggling with labor shortages. As a result, AXI sales growth exceeded 10% Y/Y, while combined sales growth of mobile robots and co-bots was up more than 80% Y/Y. In spite of the tough operating environment, these products have shown themselves to be competitive, driving solid self-sustaining growth. Although revenue scale at this time is small and the contribution to overall IAB sales is limited, we hold high expectations for these products going forward given the strong growth rates.