OMRON Corporation: Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024 (U.S. GAAP)

Kyoto (pta025/27.07.2023/15:06 UTC+2)

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024 (U.S. GAAP)

July 27, 2023

OMRON Corporation (6645)

Exchanges Listed: Tokyo

URL: https://www.omron.com/global/en/

Representative: Junta Tsujinaga, President and CEO

Contact:Toyoharu Tamoi, Executive Officer, Senior General Manager, Global Finance and Accounting HQ

Telephone: +81-75-344-7070

Filing of Quarterly Securities Report (Shihanki hokokusho) (scheduled): August 9, 2023

Start of Distribution of Dividends (scheduled): －

Preparation of Supplementary Materials for the Quarterly Financial Results: Yes

Holding of Presentation of Quarterly Financial Results: Yes (for investors)

Note: Figures are rounded to the nearest million yen.

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024

(April 1, 2023 – June 30, 2023)

Note: Comprehensive income: Three months ended June 30, 2023: JPY38,983 million (-2.3% change);
Three months ended June 30, 2022: JPY39,885 million (55.0% change)

(2) Consolidated Financial Position

2. Dividends

Note: Revisions since the most recently announced dividend forecast: No

3. Projected Results for the Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)

(Percentages represent changes compared with the same period of the previous fiscal year.)

Note: Revisions since the most recently announced performance forecast: No

*Notes

(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries due to changes in the scope of consolidation): No

New: - company (company name) Excluded: - company (company name)

(2) Application of simplified accounting methods and/or special accounting methods: No

(3) Changes in accounting policy

(a) Changes in accounting policy accompanying revision of accounting standards, etc.: No

(b) Changes in accounting policy other than (a) above: Yes

Note: For more, see 2. Quarterly Consolidated Financial Statements and Notes (4) Notes Regarding Consolidated Financial Statements (Changes in Accounting Policies) on P.11 in the attached materials.

(4) Number of shares issued and outstanding

Note: As of the end of the consolidated first three months of the fiscal year ending March 31, 2024, 580,782 shares of OMRON stock held for Board Incentive Plan and Employee Stock Ownership Plan are included in period-end treasury stock. The average number of shares during the period includes treasury stock deducted in the calculation of net income per share attributable to OMRON shareholders.

Table of Contents

1. Qualitative Information on Quarterly Financial Results

(1) Description of Results of Operations

General Overview

For the first quarter of the current fiscal year (April through June 2023), OMRON Group net sales increased year on year due to strong sales in the Healthcare Business, where demand for mainstay blood pressure monitors recovered in Europe and elsewhere. Net sales also benefited from performance in the Social Systems, Solutions and Service Business, which captured growing demand for renewable energy, and the Industrial Automation Business, where we accelerated solutions proposals to growing industries and increased product supply to eliminate order backlogs, despite weak demand for capital investment in the manufacturing industry.

Gross profit margin improved 0.9 points year on year in response to companywide efforts to optimize prices and reduce costs.

As a result, first quarter operating income rose year on year.

Consolidated results for the first quarter were as follows.

(Billions of yen, except exchange rate data and percentages)

Results by Business Segment

IAB (Industrial Automation Business)

(Billions of yen, %)

Sales

Capital investment in the manufacturing industry remained weak globally due to the uncertain business environment. Even across the industries in which we focus, demand was sluggish due to investment cutbacks and delays, although there were some differences among industries and customers. Under these circumstances, the OMRON Group accelerated solution proposals, particularly in growth industries. In addition, we increased product supply steadily to eliminate order backlogs.

As a result, sales increased year on year, due in part to the depreciation of the yen.

Operating Income

Operating income increased year on year due to the increase in sales and optimized prices.

HCB (Healthcare Business)

(Billions of yen, %)

Sales

While consumer confidence remained weak globally, demand in our mainstay blood pressure monitor market began to recover in Europe and certain other regions. In China, demand for oxygen concentrators, nebulizers, and other quarantine-related products increased significantly due to a reemergence of COVID-19 infections. As a result, sales increased year on year, due in part to the depreciation of the yen.

Operating Income

Operating income increased significantly year on year due to the increase in sales, optimized prices, and cost reductions related to logistics expenses.

SSB (Social Systems, Solutions and Service Business)

(Billions of yen, %)

Sales

Renewable energy-related demand in the residential and industrial domains in our Energy Solutions Business expanded in response to soaring energy prices, expanded subsidies, and other factors. Our Public Transportation System Business saw firm capital investment among customers as the number of rail passengers recovered.

As a result, sales increased significantly year on year.

Operating Income

Despite an increase in costs due to the foreign exchange impact of foreign currency-denominated purchases, operating loss narrowed significantly year on year due to higher sales.

DMB (Devices & Module Solutions Business)

(Billions of yen, %)

Sales

Demand for automobile components recovered moderately in Europe and other regions compared with the previous fiscal year, which was affected by the global shortage of semiconductors. At the same time, demand for components in the consumer industry remained sluggish, particularly in the Americas and China, caused by the continuing impact of global inflation. As a result, sales were lower year on year.

Operating Income

Despite progress in efforts to optimize prices, operating income declined significantly due to the decrease in sales.

(2) Description of Information on Outlook, Including Consolidated Performance Forecast

We have not revised our full-year performance forecast, announced on April 26, 2023.

(The assumed exchange rates used in the forecast announced on April 26, 2023, were USD1 = JPY130.0, EUR1 = JPY140.0)

We expect the business environment surrounding the OMRON Group to remain uncertain in the second quarter and beyond due to factors that include rising inflation and geopolitical risks. In the face of the current business environment, the OMRON Group intends to implement the strategies we described in our SF 1st Stage medium-term management plan in a steady manner, aiming to achieve further growth and strengthen our earnings structure.

2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheets

(Millions of yen)

(Millions of yen)

(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated
Statements of Comprehensive Income

(Quarterly Consolidated Statements of Operations)

(Three months ended June 30, 2023)

(Millions of yen)

(Quarterly Consolidated Statements of Comprehensive Income)

(Three months ended June 30, 2023)

(Millions of yen)

(3) Consolidated Statements of Cash Flows

(Millions of yen)

Note: Free cash flow is cash flow from operating activities plus cash flow from investing activities.

(4) Notes Regarding Consolidated Financial Statements

(Notes Regarding Assumptions of Going Concern)

None applicable

(Changes in Accounting Policies)

(Change in inventory valuation method)

Effective as of the first quarter of the current consolidated fiscal year, the Company and consolidated subsidies in Japan have changed to the lower of cost or net realizable value based on the average method. To date, the entities mentioned used the lower of cost or net realizable value based on first in, first out method for inventory valuation. This change is based on our Long-Term Vision, Shaping The Future 2030, launched in fiscal 2022, and our medium-term management plan, SF 1st Stage. This vision and plan presented an opportunity to review our systems related to sales, production, inventory retention policies, and inventory management systems amid increasing uncertainties in recent years, as well as changes in the social and business environments. Based on this review, we determined that valuing inventory using the average method offered a more appropriate means of calculating period profit or loss. The impact of this change on the consolidated financial statements is immaterial.

(Notes in the Event of Significant Changes in Shareholders' Equity)

None applicable

(Segment Information)

Business Segment Information

(Millions of yen)

Sales by Geographical Region

(Millions of yen)

Note: Major countries or regions belonging to segments other than Japan are as follows:

(1) Americas: United States of America, Canada, Brazil

(2) Europe: Netherlands, Great Britain, Germany, France, Italy, Spain

(3) Greater China: China, Hong Kong, Taiwan

(4) Southeast Asia and Others: Singapore, Republic of Korea, India, Australia

(5) Direct Exports: Direct export transactions

(end)

Emitter:	OMRON Corporation Shiokoji Horikawa, Shimogyo-ku 600-8530 Kyoto Japan
Contact Person:	Jan Hutterer
Phone:	+49 172 3462831
E-Mail:	jan.hutterer@kirchhoff.de
Website:	www.omron.com
ISIN(s):	DE0008647488 (Share) JP3197800000 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Hannover, Stuttgart
Other Stock Exchanges:	NASDAQ, Tokio