Financial statements review January-December 2020

Prior to the outbreak of the COVID-19 pandemic, industry experts estimated that the global medical X-ray imaging equipment market would grow at an average rate of about 5% per annum, the security segment by 6% and the industrial sector by about 5%. In Detection Technology’s view, the medical and industrial markets will grow according to the estimates by the experts, but the market disruption caused by the pandemic will continue in the security market, and the said market will decline in H1 of 2021. The latest estimates in market research indicate that post-pandemic growth will compensate the lower demand during the pandemic and, as a result, the security segment will grow more strongly after the temporary market disruption, and will reach the pre-pandemic market estimate around 2025.

Business outlook

Detection Technology expects growth in IBU sales and double-digit growth in MBU sales in H1 of 2021. Demand in the security market is expected to head for growth in Q2 of 2021 at the earliest. SBU sales will decrease in Q1 year-on-year, but will start to grow in Q2, although demand is still subject to uncertainty. Total net sales is expected to decrease in Q1 and grow in H1 of 2021.

The COVID-19 pandemic creates extraordinary uncertainty for the global economy and the company’s business, and the predictability of the company’s target markets is still lower than usual. Detection Technology aims to increase sales by at least 10% per annum and to achieve an operating margin at or above 15% in the medium term.