OMRON : Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 (U.S. GAAP)

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 (U.S. GAAP)

	July 29, 2021
OMRON Corporation (6645)
Exchanges Listed:	Tokyo (first section)
URL:	https://www.omron.com/global/en/
Representative:	Yoshihito Yamada, President and CEO
Contact:	Takayoshi Oue, Executive Officer, Senior General Manager,
	Global Finance and Accounting HQ

Telephone:

Filing of Quarterly Securities Report (Shihanki hokokusho) (scheduled):

Start of Distribution of Dividends (scheduled):

Preparation of Supplementary Materials for the Quarterly Financial Results:

Holding of Presentation of Quarterly Financial Results:

[phone]

August 6, 2021

-

Yes

Yes (Financial results presentation held via online streaming and teleconference for investors on July 29)

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, 2022 (April 1, 2021 - June 30, 2021)

(1) Sales and Income (cumulative)				(Percentages represent changes compared with the same period of the previous fiscal year.)
			Net sales				Operating income	Income before income taxes		Net income attributable
								to shareholders
Three months		Million yen	%		Million yen	%	Million yen	%		Million yen	%
ended
June 30, 2021		188,193	28.5		25,837	107.3	26,601	100.3		20,178	108.2
June 30, 2020		146,465	(8.5)		12,463	24.2	13,279	21.2		9,690	13.5
Note:	Comprehensive income:			Three months ended June 30, 2021: JPY25,739 million (169.7% change);
						Three months ended June 30, 2020: JPY9,543 million (-43.3% change)
			Net income per share				Net income per share
			attributable to				attributable to
			shareholders, basic				shareholders, diluted
Three months		Yen				Yen
ended
June 30, 2021		100.04				－
June 30, 2020		48.03				－
(2) Consolidated Financial Position
			Total assets				Net assets	Shareholders' equity		Shareholders'
							equity ratio
			Million yen			Million yen			Million yen		%
June 30, 2021	834,534			635,616			633,271		75.9
March 31, 2021	820,379			609,358			606,858		74.0

2. Dividends

				Dividends per share
	First quarter-end	First half-end		Third quarter-end	Fiscal year-end	Total
	Yen	Yen		Yen	Yen	Yen
Fiscal year ended	－	42.00			－	42.00		84.00
March 31, 2021
Fiscal year ending	－
March 31, 2022
Fiscal year ending
March 31, 2022		－		－	－	86.00
(projected)

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

3. Projected Results for the Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(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	attributable to
		income taxes
					shareholders	shareholders, basic
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full-year	700,000	6.8	70,000	12.0	67,000	2.9	48,000	10.8	238.01

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)

1. Application of simplified accounting methods and/or special accounting methods: No
2. Changes in accounting policy

1. Changes in accounting policy accompanying revision of accounting standards, etc.: Yes
2. Changes in accounting policy other than (a) above: No

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 (common stock)
[1] Number of shares outstanding at period-	June 30, 2021	206,244,872	Year ended	206,244,872
end (including treasury stock)	March 31, 2021
[2] Treasury stock at period-end	June 30, 2021	4,411,442	Year ended	4,574,294
March 31, 2021
[3] Average number of shares during the	Three months ended	201,711,158	Three months ended	201,739,429
period (quarterly cumulative)	June 30, 2021	June 30, 2020

Note: As of the end of the consolidated first three months of the fiscal year ending March 31, 2022, 597,334 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 summaries of consolidated financial results are not subject to review by certified public accountants or audit corporations.

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

1. Projections of results and future developments are based on information available to the Company at the time of writing, as well as certain assumptions judged by the Company to be reasonable. Various risks, uncertainties and other factors could cause actual results to differ materially from these projections.
   For the assumptions that form the basis of the projected results and appropriate use, see 1. Qualitative Information on Quarterly Financial Results (2) Description of Information on Outlook, Including Consolidated Performance Forecast on P.5.
2. The Company applies the single step method for presentation of its Consolidated Financial Statements based on U.S. GAAP. However, to facilitate comparison with other companies, operating income on the Consolidated Statements of Operations is presented by subtracting selling, general and administrative expenses and research and development expenses from gross profit.
3. The Company plans to hold a presentation for investors and information session via online streaming and teleconference on Thursday, July 29, 2021.

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

IAB:	Industrial Automation Business
EMC:	Electronic and Mechanical Components Business
SSB:	Social Systems, Solutions and Service Business
HCB:	Healthcare Business

Table of Contents

1. Qualitative Information on Quarterly Financial Results……………………………………………………………………	P.2
(1) Description of Results of Operations……………………………………………………………………………………	P.2
(2) Description of Information on Outlook, Including Consolidated Performance Forecast…………………………………	P.5
2. Quarterly Consolidated Financial Statements and Notes ……………………………………………………………………	P.6
(1) Quarterly Consolidated Balance Sheets…………………………………………………………………………………	P.6
(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive Income	P.8
(3) Consolidated Statements of Cash Flows…………………………………………………………………………………	P.10
(4) Notes Regarding Consolidated Financial Statements……………………………………………………………………	P.11
(Notes Regarding Assumptions of Going Concern)……………………………………………………………………	P.11
(Notes in the Event of Significant Changes in Shareholders' Equity)…………………………………………………	P.11
(Changes in Accounting Policies)………………………………………………………………………………………	P.11
(Segment Information)…………………………………………………………………………………………………	P.12

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1. Qualitative Information on Quarterly Financial Results

1. Description of Results of Operations

General Overview

The business environment surrounding the OMRON Group during the first quarter of the current fiscal year (April through June 2021) continued to recover on a global scale. In the manufacturing industry, which is our main customer base, China was the country to emerge most quickly from the COVID-19 pandemic and achieve an accelerated economic recovery. The Americas and Europe continue to see an advancement in economic normalization driven by the adoption of vaccinations, etc., driving demand for capital investment and demand for electronic components globally. In addition to a recovery from the COVID-19 pandemic, demand for electric vehicles and plastic-free products expanded, driven by societal demands for protecting the global environment.

Amid this business environment, the Industrial Automation Business accurately captured demand for capital investment in the semiconductor, secondary battery, food, and daily goods industries by continuing to leverage the business's capabilities in offering solutions. Our Healthcare Business leveraged global retail and online channels, accurately capturing demand for blood pressure monitors, which continued to expand due to rising health consciousness.

As a result, sales for the first quarter increased significantly year on year. Our ongoing efforts resulted in improved gross profit margin compared to the same period in the prior fiscal year, despite soaring prices for components and raw materials, as well as an increase in logistics costs stemming from the rapid market recovery. Operating income doubled year on year due to the synergistic effects of increased earning capacity and sales growth, areas in which we have focused our efforts. We recorded first-quarter historic highs in gross profit margin, operating income, income before income taxes, and net income attributable to OMRON shareholders.

Consolidated results for the first quarter were as follows.

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

	Three months ended	Three months ended	Change
	June 30, 2020	June 30, 2021
Net sales	146.5	188.2	＋28.5%
Gross profit	66.4	87.4	＋31.6%
[% of net sales]	[45.3%]	[46.4%]	[＋1.1%pt]
Operating income	12.5	25.8	＋107.3%
[% of net sales]	[8.5%]	[13.7%]	[＋5.2%pt]
Income before income taxes	13.3	26.6	＋100.3%
Net income attributable to OMRON	9.7	20.2	＋108.2%
shareholders
Average USD exchange rate (JPY)	107.9	109.8	＋1.9
Average EUR exchange rate (JPY)	118.3	131.7	＋13.4
Average RMB exchange rate (JPY)	15.1	17.0	＋1.8

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