2020_2q_omron_e

12/37 - IAB Operating Environment: H2 Outlook

On this slide, we show our outlook for the IAB business, broken out into the focus domains. As you can see, we expect investment activity to remain lackluster, primarily for the Automotive and Digital domains. In particular, for the Automotive domain, the impact of weak auto sales continues to limit capex at auto OEMs and auto component manufacturers. While we expect this situation to continue in the near-term, over the longer term, the shortage of experienced workers, rising labor costs and the migration to higher density mounting will impact assembly and inspection processes. Given such social issues, the trend of rising demand for automation remains intact. As such, we will continue to make investments for further growth. Next slide please.