The SE5 transmission does as everyone says below, however, some have reported that in hard braking, the downshifting does not return to 1st. I have experienced this firsthand. On one occurence, when braking hard to avoid collison with a car ahead, I found myself at a stop showing 2nd gear. After about 5-10 seconds it automatically corrected itself and went to 1st. On another occurence, I was braking hard and found myself stuck in 5th gear. I tried to manually downshift, no avail, then tried to upshift (I don't know why!), still no adjustment, then I released the brake, and moved the vehicle a few feet and it adjusted to 1st.
These were more panic than worry that it was failing. I noticed that on some occaisions, when braking, I have allowed my throttle to be slightly held "on". This has contributed to the downshifting being confused. So now, when I am in a controlled situation, approaching a stop, I take my grip off of the throttle. This assures that I don't get caught trying to keep the rpm's up that was confusing the downshifting.
Many people on motorcycles, would never let the right hand relax, because the brake lever is there, but being new to riding, I can find this technique normal to assure that the SE5 will automatically downshift properly.