OMRON : Financial Statements

Published: 2024-08-02 09:29:11 ET 6645.T

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 (U.S. GAAP)

August 2, 2024

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

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: This document has been translated from the Japanese original as a guide to non-Japanese investors and contains forward- looking statements that are based on managements' estimates, assumptions and projections at the time of publication. A number of factors could cause actual results to differ materially from expectations.

Note: Figures are rounded to the nearest million yen.

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 (April 1, 2024 - June 30, 2024)

(1) Sales and Income (cumulative)

Net sales

Operating income

Income (loss) before

Net income (loss)

income taxes

attributable to shareholders

Three months ended

Million yen

June 30, 2024

183,713

(9.7)

6,267

(56.2)

(12,502)

－

(9,626)

－

June 30, 2023

203,351

10.3

14,304

19.9

18,561

58.7

13,396

68.0

Notes: 1. Comprehensive income: Three months ended June 30,

2024:

JPY16,895 million (-56.7% change);

Three months ended June 30,

2023:

JPY38,983 million (-2.3% change)

Notes: 2. Income (loss) before income taxes for the first quarter of the fiscal year ending March 31, 2025, includes one-time expenses

(JPY19.6 billion) related to Structural Reform Program NEXT2025.

Net income (loss) per

Net income per share

share attributable to

attributable to OMRON

OMRON shareholders,

shareholders, diluted

basic

Three months ended

Yen

June 30, 2024

(48.89)

－

June 30, 2023

68.05

－

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity

Shareholders'

equity ratio

Million yen

June 30, 2024

1,383,713

966,820

803,312

58.1

March 31, 2024

1,354,729

950,993

786,686

58.1

2. Dividends

Dividends per share

First quarter-end

First half-end

Third quarter-end

Fiscal year-end

Total

Yen

Fiscal year ended

－

52.00

－

52.00

104.00

March 31, 2024

Fiscal year ending

－

March 31, 2025

Fiscal year ending

March 31, 2025

－

104.00

(projected)

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

3. Projected Results for the Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)

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

Income before

Net income

Net income per share

Net sales

Operating income

attributable to

income taxes

shareholders

shareholders, basic

Million yen

Yen

Full-year

825,000

0.8

49,000

42.7

21,000

(39.9)

8,500

4.9

43.17

Notes: 1. Revisions since the most recently announced performance forecast: No

Notes: 2. The consolidated earnings forecast for the fiscal year ending March 31, 2025, includes one-time expenses (JPY28 billion) related to the Structural Reform Program NEXT2025.

*Notes

(1) Significant changes in the scope of consolidation during the period: 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: No

(4) Number of shares issued and outstanding

[1]

Number of shares outstanding at period-

June 30, 2024

206,244,872

March 31, 2024

206,244,872

end (including treasury stock)

[2]

Treasury stock at period-end

June 30, 2024

9,332,579

March 31, 2024

9,329,283

[3]

Average number of shares during the

Three months ended

196,913,513

Three months ended

196,838,795

period (quarterly cumulative)

June 30, 2024

June 30, 2023

Note: As of the end of the consolidated first three months of the fiscal year ending March 31, 2025, 520,413 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.

*Quarterly Consolidated Financial Statements reviewed by certified public accountant or audit firm: No

*Commentary Regarding Appropriate Use of Projections of Results and Other Matters

The following abbreviations of business segment names are used in the attached materials.

IAB: Industrial Automation Business

HCB: Healthcare Business

SSB: Social Systems, Solutions and Service Business

DMB: Devices & Module Solutions Business

DSB: Data Solution Business

Table of Contents

1. Analysis of Results of Operations and Financial Condition……………………………………………………………………

P.2

(1) Analysis of Results of Operations …………………………………………………………………………………………

P.2

(2) Recognition of one-time expenses related to Structural Reform Program NEXT2025……………………………………

P.6

(3) Analysis of Financial Condition……………………………………………………………………………………………

P.6

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

P.6

2. Quarterly Consolidated Financial Statements and Notes ……………………………………………………………………… P.7

(3) Consolidated Statements of Cash Flows …………………………………………………………………………………

P.11

(4) Notes Regarding Consolidated Financial Statements ……………………………………………………………………

P.12

(Notes Regarding Assumptions of Going Concern) ……………………………………………………………………

P.12

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

P.12

(Segment Information) …………………………………………………………………………………………………

P.13

- 1 -

1. Qualitative Information on Quarterly Financial Results

General Overview

OMRON Group performance during the first quarter of the current fiscal year (April through June 2024) was generally in line with initial expectations, although net sales and operating income were lower year on year.

Net sales in the Social Systems, Solutions and Service Business were significantly higher year on year; however, net sales overall decreased due in part to the comparative high level of backlog orders in the Industrial Automation Business in the previous fiscal year, but mainly due to declines in the Industrial Automation Business and the Devices & Module Solutions Business stemming from weak capital investment demand globally.

Operating income decreased year on year due to the impact of lower net sales, although gross profit margin improved.

We also optimized the number and capacity of our workforce, one of the measures under our Structural Reform Program NEXT2025, announced on February 26, 2024. In conjunction with these measures, we posted one-time expenses of JPY19.6 billion as restructuring expenses in the first quarter of the current fiscal year. (See (2) Recognition of one-time expenses related to Structural Reform Program NEXT2025)

Consolidated results for the first quarter were as follows.

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

Three months ended

Change

June 30, 2023

June 30, 2024

Net sales

203.4

183.7

-9.7%

Gross profit

90.5

83.5

-7.8%

[% of net sales]

[44.5%]

[45.4%]

[+0.9%pt]

Operating income

14.3

6.3

-56.2%

[% of net sales]

[7.0%]

[3.4%]

[-3.6%pt]

Income (loss) before income taxes

18.6

(12.5)

－%

Net income (loss) attributable to

13.4

(9.6)

－%

OMRON shareholders

Average USD exchange rate (Yen)

135.8

154.6

+18.8

Average EUR exchange rate (Yen)

147.9

166.7

+18.8

Average CNY exchange rate (Yen)

19.5

21.3

+1.8

- 2 -

Results by Business Segment

IAB (Industrial Automation Business)

(Billions of yen, %)

Three months ended

Change

June 30, 2023

June 30, 2024

Sales to external customers

110.6

85.6

-22.6%

Operating income

12.2

7.2

-41.5%

Sales

Demand for capital investment in the manufacturing sector remained weak globally, although there were signs of a recovery in the semiconductor market in China. Demand for semiconductor-related investment in Japan and solar power generation-related investment in China remained stagnant.

Inventory at distributors continued to reflect the impact of inventory adjustments, despite a trend toward drawdowns. As a result, sales for the first quarter were significantly lower year on year, due in part to sales in the year-ago quarter benefiting from order backlogs.

Operating Income

Despite improvements in gross profit margin and efforts to reduce fixed costs, operating income declined significantly year on year due to the major impact of the decrease in sales.

HCB (Healthcare Business)

(Billions of yen, %)

Three months ended

Change

June 30, 2023

June 30, 2024

Sales to external customers

37.7

38.0

+1.0%

Operating income

4.8

-1.2%

Sales

Although sales of nebulizers and oxygen concentrators decreased in the Chinese market due to a negative rebound from special demand related to respiratory diseases in the previous year, sales remained flat year-on-year. This performance was supported by strong demand for blood pressure monitors, a mainstay product in Europe and other regions, and the foreign exchange effects of a weaker yen.

Operating Income

Operating income remained unchanged year on year, mainly due to continued investment in growth, even as we engaged in efforts to improve the gross profit margin.

- 3 -

SSB (Social Systems, Solutions and Service Business)

(Billions of yen, %)

Three months ended

Change

June 30, 2023

June 30, 2024

Sales to external customers

23.5

26.1

+11.1%

Operating loss

(0.0)

(0.1)

－

Sales

The Energy Solutions Business posted results level year on year. The business saw ongoing sluggish demand for captive consumption of renewable energy in the housing domain due to the government's decision to resume drastic easing measures for electricity prices. In contrast, investment demand for carbon neutrality in the industrial and commercial industries remained strong. In addition, the Public Transportation System Business posted ongoing strong performance in response to continued demand for capital investment. As a result, segment sales increased significantly year on year.

Operating Loss

Despite the increase in net sales, operating loss remained unchanged year on year, mainly due to an increase in foreign currency-denominated purchase costs stemming from the weak yen and continued growth investments.

DMB (Devices & Module Solutions Business)

(Billions of yen, %)

Three months ended

Change

June 30, 2023

June 30, 2024

Sales to external customers

31.2

25.2

-19.3%

Operating income

2.5

0.1

-98.0%

Sales

Demand from the consumer industry remained sluggish due to investment restraint and stagnant production activities among customers, even as certain regions and the advanced semiconductor-related sector showed signs of recovery. Global demand for automobile industry components remained flat generally year on year. As a result, sales were significantly lower year on year.

Operating Income

Operating income declined significantly year on year as a result of the decrease in sales and other factors.

- 4 -

DSB (Data Solution Business)

(Billions of yen, %)

Three months ended

Change

June 30, 2023

June 30, 2024

Sales to external customers

－

8.4

－

Operating loss

－

(0.3)

－

Note: The Data Solution Business includes the financial figures related to the OMRON Data Solution Business and financial results of JMDC, Inc. (JMDC), as well as the amortization of intangible assets other than goodwill identified when making JMDC a consolidated subsidiary.

Sales

Sales continued to be firm with ongoing growth in the number of health insurance association contracts at JMDC, increasing transaction volume with pharmaceutical companies and insurance companies for whom we provide data, and growing numbers of medical institutions utilizing remote image interpretation services.

Operating Loss

JMDC operating income, included in this segment, remained steady. On the other hand, this segment includes investments related to the creation of the Data Solution Business and the amortization of intangible assets other than goodwill identified when making JMDC a consolidated subsidiary, resulting in an operating loss.

- 5 -

(2) Recognition of one-time expenses related to Structural Reform Program NEXT2025

We optimized the number and capacity of our workforce during the first quarter (April-June 2024), one of the measures described under Structural Reform Program NEXT2025.

As a result, we ended solicitations for voluntary retirement in Japan on May 31, 2024, confirming a total 1,206 employees who opted for retirement. Overseas, a total of 1,055 employees had agreed to the retirement offer as of June 30, 2024.

In conjunction with these retirements, we posted one-time expenses of JPY19.6 billion as restructuring expenses in the consolidated statements of operations for the first quarter of the current fiscal year.

(3) Analysis of Financial Condition

Total assets as of the end of the first quarter amounted to JPY1,383.7 billion, an increase of JPY29.0 billion compared to the end of the previous fiscal year. This result was mainly due to an increase in cash and cash equivalents from short-term borrowings. Total liabilities amounted to JPY416.9 billion, an increase of JPY13.2 billion compared to the end of the previous fiscal year. This result was mainly due to an increase in short-term borrowings. Total net assets amounted to JPY966.8 billion, an increase of JPY15.8 billion compared to the end of the previous consolidated fiscal year. This increase was mainly due to an increase in foreign currency translation adjustments. Shareholders' equity ratio was 58.1%, demonstrating an ongoing strong financial foundation.

In terms of liquidity, cash on hand amounted to JPY163.8 billion. Further, we have signed commitment line agreements with financial institutions in the amount of JPY30.0 billion. We intend to maintain high credit ratings from ratings agencies as a long-term issuer, and we secure liquidity and funding capacity while maintaining our ability to raise funds and good relationships with financial institutions on a global basis.

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

The full-year performance forecast announced on May 8, 2024 ("initial forecast") remains unchanged, as first quarter results were generally in line with expectations and the business environment is not expected to change significantly from the assumptions made at the beginning of the fiscal year.

We recorded one-time expenses in the first quarter in Japan for workforce and capacity optimization. We expect to incur one-time expenses related to overseas headcount in the second quarter or later, as the recognition of expenses related to this measure will occur after the second quarter. At present, we expect onetime expenses of JPY28.0 billion for the full year, in line with our assumptions at the beginning of the fiscal year. The actual charge may vary depending on the final number of retirements and other factors.

If necessary, we will revise our performance forecast when the figure is finalized, and we will disclose any revised forecast as promptly as possible.

- 6 -

2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheets

(Millions of yen)

As of

March 31, 2024

June 30, 2024

ASSETS

Current assets:

547,603

40.4

560,337

40.5

Cash and cash equivalents

143,086

163,838

Notes and accounts receivable-trade

172,268

144,824

Allowance for doubtful receivables

(1,058)

(1,070)

Inventories

174,034

187,012

Other current assets

59,273

65,733

Property, plant and equipment, net:

136,775

10.1

138,413

10.0

Investments and other assets:

670,351

49.5

684,963

49.5

Right-of-use assets under operating leases

54,383

54,084

Goodwill

361,783

367,461

Other intangible assets

108,881

112,965

Investments in and advances to affiliates

13,931

13,303

Investment securities

33,897

34,114

Leasehold deposits

7,883

8,090

Prepaid pension costs

65,267

65,680

Deferred income taxes

19,382

23,333

Other assets

4,944

5,933

Total assets

1,354,729

100.0

1,383,713

100.0

- 7 -

Disclaimer

Omron Corporation published this content on 02 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2024 13:28:13 UTC.