OMRON Corporation: Summary of Consolidated Financial Results for the Year Ended March 31, 2023 (U.S. GAAP)

Kyoto (pta022/26.04.2023/17:10 UTC+2)

Summary of Consolidated Financial Results for the Year Ended March 31, 2023 (U.S. GAAP)

April 26, 2023

OMRON Corporation (6645)

Exchanges Listed: Tokyo

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

Representative: Yoshihito Yamada, Representative Director

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

Telephone: +81-75-344-7070

Annual General Shareholders' Meeting (Scheduled): June 22, 2023

Start of Distribution of Dividends (scheduled): June 23, 2023

Filing of Securities Report (Yuka shoken hokokusho) (Scheduled): June 23, 2023

Preparation of Supplementary Materials for the Financial Results: Yes

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

Note: Figures are rounded to the nearest million yen.

1. Consolidated Financial Results for the Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)

Note: Comprehensive income: Year ended March 31, 2023: JPY101,546 million (-6.1% change);

Year ended March 31, 2022: JPY108,105 million (14.2% change)

(2) Consolidated Financial Position

(3) Consolidated Cash Flows

2. Dividends

Notes: 1 Interim and year-end dividends for the fiscal year ending March 31, 2024 have not been determined yet.

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.)

*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) 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

(3) Number of shares issued and outstanding (common stock)

Note: As of the end of the fiscal year ended March 31, 2023, 600,208 shares of OMRON stock held for the 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, basic.

(Reference) Summary of Non-consolidated Results

1. Non-consolidated Financial Results for the Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)

(1) Non-consolidated Sales and Income

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

(2) Non-consolidated Financial Position

(Reference) Net worth: Year ended March 31, 2023: JPY333,265 million; Year ended March 31, 2022: JPY277,159 million

Table of Contents

1. Analysis of Results of Operations and Financial Condition

(1) Analysis of Results of Operations

1) General Overview

The current fiscal year (ended March 31, 2023) is the first year of our medium-term management plan, SF 1st Stage. The business environment changed significantly over the course of the year, including the Shanghai lockdowns, globally expanding inflation, the tight supply of parts and materials, etc.

Under these conditions, sales in the first quarter (April through June) were impacted significantly by the Shanghai lockdowns, mainly in the Industrial Automation Business. However, sales increased significantly year on year due to a recovery in production and the rapid ramp-up of supply capacity in the second quarter and later to respond to heavy order backlogs. While performance was affected by factors including soaring materials prices, as well as a decline in capacity utilization at the main plant of our Industrial Automation Business in the first quarter, gross profit margin was 45.0% (-0.5 points year on year). This result was the outcome of ongoing company-wide efforts to improve value-added ratios through price optimization and other measures. We continued with active investing to achieve the goals of SF 1st Stage. As a result of the preceding, operating income, income before income taxes, and net income attributable to OMRON shareholders rose significantly compared with the previous fiscal year. In addition, return on invested capital (ROIC) and return on equity (ROE) both exceeded 10%.

Further, net sales, operating income, and income before income taxes rose for a second consecutive year, marking new record highs.

Consolidated results for fiscal 2022 were as follows.

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

2) Results by Business Segment

IAB (Industrial Automation Business)

(Billions of yen, %)

Note: Due to a revision of business management classifications, certain businesses of the IAB have been transferred to the DMB beginning with the fiscal year ended March 2023. Accordingly, the Company reclassified results for the fiscal year ended March 2022 under this new categorization for presentation herein.

Sales

Capital investment demand trends in the manufacturing industry showed an increasing risk of slowdown in the near term. However, demand for semiconductor production equipment, electric vehicles (EVs), rechargeable batteries, etc., on which we focus, remained steady.

Under these circumstances, first quarter performance was impacted significantly by a decline in capacity utilization at our main plant due to the Shanghai lockdowns. However, we began efforts in the second quarter to strengthen supply capacity to alleviate the heavy order backlog. At the same time, our solutions business experienced accelerated growth, particularly in our focus industries. As a result, sales increased significantly year on year, marking a new record high.

Operating Income

Operating income increased significantly year on year, reaching a record high, mainly due to the large increase in sales.

HCB (Healthcare Business)

(Billions of yen, %)

Sales

Demand, mainly for blood pressure monitors, remained sluggish, affected by declining consumer confidence in response to global inflation. Demand was also impacted by dealer closures and stagnation in our distribution networks due to the Zero-COVID policy in China.

Despite these circumstances, we steadily captured needs associated with growing health consciousness globally, improved logistics, etc. rapidly, and enjoyed the positive impact of foreign exchange rates. As a result, sales rose year on year.

Operating Income

Despite efforts to curb fixed costs and optimize prices, operating income declined significantly year on year due to soaring materials prices and continued investments in future growth.

SSB (Social Systems, Solutions and Service Business)

(Billions of yen, %)

Sales

The Energy Solutions Business continued to experience firm demand for renewable energy-related solutions, mainly for captive consumption, due to factors including soaring energy costs. With the recovery in the number of railway users, the Public Transportation System Business saw the beginnings of a recovery in customer investment demand in the second quarter and beyond. As a result, sales increased significantly year on year.

Operating Income

Despite the foreign exchange impact of foreign currency-denominated purchases, operating income rose significantly higher year on year due to higher sales and continued efforts to optimize prices.

DMB (Devices & Module Solutions Business)

(Billions of yen, %)

Note: Due to a revision of business management classifications, certain businesses of the IAB have been transferred to the DMB beginning with the fiscal year ended March 2023. Accordingly, the Company reclassified results for the fiscal year ended March 2022 under this new categorization for presentation herein.

Sales

Although there was a global slowdown in demand for parts for the consumer industry due to global inflation, demand remained strong for products in which the business focuses, including solar batteries, storage batteries, and other energy-related products. Demand remained strong for semiconductor inspection equipment-related products as well.

As a result of focus on flexible and timely production, distribution, and sales to meet these demands, net sales increased significantly year on year, marking a new record high.

Operating Income

Despite the impact of soaring raw material prices and other factors, operating income increased significantly year on year, marking a new record high. This result was mainly due to a significant increase in sales and price optimizations, as well as restructuring efforts we began in the past.

(2) Analysis of Financial Condition

Total assets as of the end of the fiscal year amounted to JPY998.2 billion, a JPY67.5 billion increase compared to the end of the previous fiscal year. This increase was mainly due to an increase in notes and accounts receivable-trade stemming from an increase in sales and inventories, as we secured components in response to the tight supply of parts and the impact of rapid changes in demand. Total liabilities amounted to JPY266.9 billion, up JPY4.3 billion compared to the end of the previous fiscal year. This result was mainly due to an increase in accounts payable, offset in part by a decrease in short-term debt. Net assets increased JPY63.3 billion compared to the end of the previous fiscal year to JPY731.2 billion, mainly due to the recording of net income attributable to OMRON shareholders and an increase in foreign currency translation adjustments. These results were offset in part by the acquisition of treasury stock. OMRON Group shareholders' equity ratio was 73.0%, indicating a strong financial footing.

In terms of liquidity, cash on hand as of the end of the fiscal year amounted to JPY105.3 billion. Further, OMRON has signed commitment line agreements with financial institutions in the amount of JPY30.0 billion, ensuring a high level of funds available. To secure funds for future growth and investment, we intend to maintain high ratings from ratings agencies as a long-term issuer, while encouraging good relationships with financial institutions on a global basis. In this way, we believe we will ensure our ability to raise funds.

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

(3) Summary of Cash Flows for the Year Ended March 31, 2023

Despite an increase in net income, net cash provided by operating activities fell JPY14.0 billion year on year to JPY53.5 billion. This result was mainly due to increases in notes and accounts receivable-trade, inventories, and other working capital.

Net cash used in investing activities amounted to JPY55.5 billion, JPY94.6 billion lower compared to the previous fiscal year. This result was partly due to ongoing and active investments in future growth. The main difference compared with the previous fiscal year was the JPY112.2 billion investment in JMDC.

Free cash flow, which is the sum of net cash provided by operating activities and net cash used in investing activities, resulted in a net cash outflow of JPY2.1 billion, compared with a net cash outflow of JPY82.7 billion in the previous fiscal year.

Net cash used in financing activities amounted to JPY58.8 billion, an increase of JPY29.2 billion compared to the previous fiscal year, mainly due to dividend payments and the purchase of treasury stock.

As a result, cash and cash equivalents at the end of the fiscal year amounted to JPY105.3 billion, down JPY50.2 billion yen compared with the end of the previous fiscal year.

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

Note: Capital expenditures represent the amount from the consolidated statement of cash flows

(4) Basic Policy for Distribution of Profits and Dividends for the Year Ended March 31, 2023 and the Year Ending March 31, 2024

OMRON consults with our general meeting of Shareholders regarding decisions on dividends from retained earnings, with the exception of interim dividends, which are decided by resolution of the Board of Directors based on the provisions of the Articles of Incorporation. In addition, the Company will apply the following basic policy regarding the distribution of profits to shareholders, including shareholder returns.

Cash Allocation Policy

1) We prioritize investments that create new value from a medium- to long-term perspective, aiming to maximize corporate value by achieving our Long-Term Vision. Under our Medium-Term Management Plan (SF 1st Stage) covering the fiscal years 2022 to 2024, we intend to invest in human resources and R&D to solve social issues and innovate driven by social needs. We also intend to invest in production capacity increases and digital transformation (DX), M&A&A (mergers and acquisitions and alliances), and other growth investments. We will also give priority to investments in sustainability initiatives, including decarbonization, environmental impact reduction, and respect for human rights in the value chain. On this basis, we will return profits to shareholders in a stable and sustainable manner.

2) In principle, we will source the funds for these value-creating investments and shareholder returns through retained earnings and the sustained creation of operating cash flows. We will allocate funds as needed, maintaining a degree of financial soundness to facilitate capital-raising regardless of financial market conditions.

Shareholder Return Policy

1) We will prioritize investments necessary for value creation from a medium- to long-term perspective, establishing a dividend on equity (DOE) target of approximately 3% as a standard for annual dividends. Taking past dividend payments also into account, we intend to ensure stable and continuing shareholder returns.

2) Having engaged in the investments and allocation of profits described above, we will distribute retained earnings accumulated over the long term to shareholders through opportunistic share buybacks and other measures.

For the current fiscal year (ended March 31, 2023), we plan to pay a year-end dividend of JPY49 per share for the purpose of stable, ongoing dividends in light of company earnings, DOE standards, and past dividend levels. Combined with an interim dividend of JPY49 per share implemented on December 2, 2022, our full-year dividend will amount to JPY98 per share. For the next fiscal year (ending March 31, 2024), we plan to pay an annual dividend of JPY104 per share in line with the policy above. The interim dividend (end of the second quarter) and year-end dividend for the next fiscal year have not been determined yet.

(5) Outlook for the Year Ending March 31, 2024

1) General Outlook

We expect the business environment for the OMRON Group over the next fiscal year (ending March 31, 2024) to remain uncertain, mainly in the first half, due to factors that include expanding inflation and rising geopolitical risks. We do believe, however, that conditions related to the domains in which our group operates will begin to recover in the second half of the year. At the same time, we expect many business opportunities to emerge for the OMRON Group as social and industrial structures continue to change, as identified in our Long-Term Vision, SF2030. These changes include social issues (achieving carbon neutrality, digitalization of society, extension of health life expectancies) and emerging movements in the restructuring of global supply chains affected by geopolitical risks.

Given this business environment of mixed opportunities and risks, the OMRON Group intends to implement the strategies we described in our SF 1st Stage medium-term management plan. In this way, we will aim to strengthen our earnings structure further and achieve steady growth. In addition, we will engage actively in growth investments, particularly in our Industrial Automation Business and Healthcare Business, seeking to create new value in line with our Long-Term Vision.

By pursuing the initiatives described above, we expect to increase sales and profits for a third consecutive fiscal year.

Our outlook for the next fiscal year is as follows.

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

2) Outlook by Segment

IAB (Industrial Automation Business)

(Billions of yen, %)

Sales

Although demand for capital investment in the manufacturing industry as a whole remains uncertain due to inflation and other factors, we expect capital investment demand in our focus industries of semiconductor production equipment, electric vehicles (EVs), and rechargeable batteries to remain firm.

Under these circumstances, we intend to normalize order backlogs and continue to accelerate the expansion of our solutions business, particularly in our focus industries.

Through these initiatives will lead to higher year-on-year net sales for the next fiscal year.

Operating Income

We expect operating income for the next fiscal year to increase over the current fiscal year through efforts to increase sales and raise productivity.

HCB (Healthcare Business)

(Billions of yen, %)

Sales

As the global growth in patients suffering from chronic diseases is likely to continue over the medium to long term, we expect demand for blood pressure monitors and other products to increase worldwide. This increase will be fueled in part by a recovery in personal consumption in China. By boosting sales through growing online channels in every region and capturing expanding demand in emerging countries accurately, we expect to increase year-on-year sales over the next fiscal year.

Operating Income

Despite the continued impact of soaring materials costs, we expect increased sales and ongoing price optimization will lead to operating income growth in the next fiscal year.

SSB (Social Systems, Solutions and Service Business)

(Billions of yen, %)

Sales

We expect demand for renewable energy-related products in the residential and industrial domains in our Energy Solutions Business to remain firm given soaring energy prices and ongoing subsidies. Our Public Transportation System Business should see capital investment among customers remain strong as the number of rail passengers recovers.

By responding quickly to these demands and providing solutions that combine products and services, we expect year-on-year sales growth over the next fiscal year.

Operating Income

We expect operating income for the next fiscal year to increase significantly over the current fiscal year through efforts to increase sales and raise productivity.

DMB (Devices & Module Solutions Business)

(Billions of yen, %)

Sales

We expect consumer-industry demand to be sluggish, particularly over the first half of the fiscal year. At the same time, sales for the next fiscal year are likely to remain flat, as we accelerate solutions proposals and other efforts to capture demand in solar power generation, storage batteries, and other energy-related industries, which are focuses of our business. We also expect flat sales in the semiconductor inspection equipment-related industries.

Operating Income

Despite the continuing impact of soaring raw materials prices and other factors, we expect operating income for the next fiscal year to remain flat, owing to continued efforts to optimize prices and improve productivity.

2. Management Policies

(1) OMRON's Basic Management Policies

Since our founding, the mission of the OMRON Group has been to improve lives and contribute to a better society by solving social issues through our businesses. Through the practice of the OMRON Principles, we strive for sustainable improvement in corporate value and engage in management based on these principles.

* We recognize the universal nature of our management foundation, upon which we practice the OMRON Principles and endeavor toward societal development and improved corporate value. To clarify this point, we included the practice of the OMRON Principles in our Articles of Incorporation in FY2022. (Resolved at the 85th Ordinary General Meeting of Shareholders held June 23, 2022.)

(2) Medium- to Long-Term Corporate Management Strategy

Overview of Long-Term Vision Shaping the Future 2030

The OMRON Group engages in business management based on our Long-Term Vision, Shaping the Future 2030 (SF2030), which covers fiscal years 2022 to 2030. As society enters a period of change, we have written a story of our own transformation and the creation of new value to fulfill our purpose, to solve more social issues, and to contribute to our stakeholders, including investors and society. Under this Long-Term Vision, we intend to shape sustainable societies through our business and enhance corporate value through an evolution in integrated business growth and sustainability. Our vision statement says that we will continue to create innovation driven by social needs through automation to empower people. This statement reflects the desire of all OMRON Group employees to embody the OMRON Principles and to work in harmony with stakeholders for sustainable societies through Sensing & Control + Think technologies. Many new social issues will arise over the next decade. Working from the perspective of leveraging OMRON Group strengths in automation, our customer assets, and business assets, we identified three social issues that will have an outsized social impact in the future: (1) Achieving Carbon Neutrality; (2) Realizing a Digital Society; and (3) Extending Healthy Life Expectancy. To maximize the social impact of these solutions, we revised the OMRON Group business domains under SF2030, establishing four domains and defining social value within these domains. Through Industrial Automation, we contribute to the advancement of manufacturing in support of sustainable societies. Through Healthcare Solutions, we contribute to the achievement of Zero Events of cardiovascular diseases. Through Social Solutions, we contribute to the adoption and efficient use of renewable energy and a sustainable infrastructure to support digital societies. In addition, through Device & Module Solutions, we contribute to the take-up of new energy and high-speed communications.

Overview of the SF 1st Stage Medium-Term Management Plan

Our medium-term management plan for fiscal years 2022 through 2024 ("SF 1st Stage") describes these three years as a period to accelerate the transformation of our capabilities toward value creation and sustainable growth in response to social challenges. We will seize growth opportunities arising from changes in the social structure, bringing to bear the competitive strengths we have cultivated over the years for achieving dynamic growth. At the same time, we will promote the transformation of our organizational capabilities to adapt to a changing society and enhance the sustainability of our growth.

The corporate policy we pursue under SF 1st Stage is "taking on the challenge of value creation by accelerating transformation." To achieve this policy, we established three group strategies. The first is the transformation of our business. Specifically, we will pursue the evolution of four core businesses (Industrial Automation Business, Healthcare Business, Social Systems, Solutions and Service Business, and Devices & Module Solutions Business), expand customer asset-type service businesses, and create new businesses sparked by social issues. In evolving our four core businesses, we define the growth areas within each, establishing focus domains to create new value and drive sales growth. Second, we will transform corporate management and organizational capabilities. To continue creating value while adapting to change in the business environment, we will accelerate Diversity & Inclusion, engage in data-driven enterprise operations through DX, and improve the resilience of our supply chain. And third, we will strengthen our sustainability initiatives. Here, we will strive to reduce GHG emissions toward decarbonization and a smaller environmental burden, as well as address human rights issues comprehensively throughout our value chain. Under SF 1st Stage, we aim to maximize corporate value by maximizing social value and economic value in SF2030. SF 1st Stage includes both financial and non-financial management targets by which we will create value through business growth and sustainability initiatives integrated at higher levels than ever before. For financial targets, we aim to achieve sales of JPY930 billion, operating income of JPY120 billion, operating cash flow (three-year cumulative total) of JPY250 billion, ROIC of at least 10%, ROE of at least 10%, and EPS of JPY400 or more by fiscal 2024. In terms of non-financial targets, we have set 10+1 goals that indicate the social value to be created by the OMRON Group and secure our ability to compete in the future. Specifically, we set targets that include raising the ratio of women in management roles to at least 18% on a global basis. We also set a target to achieve carbon zero at all 76 locations in Japan. These targets reflect the transformation of corporate operations and organizational capabilities, as well as stronger engagement with environmental and human rights initiatives. In addition, we will establish three of our non-financial targets by global employee vote. As all employees strive to achieve these targets, their efforts will become an engine for the strong acceleration of group value creation. Last, we have set a "+1" target for top management of each region to declare their commitment to contribute to local communities in alignment with the OMRON Sustainability Policy.

*Further details can be found in the Long-Term Vision and Medium-Term Management Plan presentation materials.

https://www.omron.com/global/en/ir/irlib/sf_info/

(3) Management Plan for the Next Fiscal Year

We expect the business environment for the OMRON Group during fiscal 2023 to remain uncertain, mainly in the first half, due to factors that include expanding inflation and rising geopolitical risks. We do believe, however, that the business sectors in which our group operates will begin to recover in the second half of the year. At the same time, we expect many business opportunities to emerge for the OMRON Group as social and industrial structures continue to change, as identified in SF2030. These changes include social issues (achieving carbon neutrality, digitalization of society, extension of health life expectancies) and emerging movements in the restructuring of global supply chains in connection with geopolitical risks.

Given this business environment, we defined our management policy for fiscal year 2023 as a phase of hyper-acceleration toward transformation. OMRON pursues transformation of our businesses, corporate management, and organizational capabilities to adapt to drastically changing social and business environments, as well as to achieve sustainable growth. Fiscal 2023 is the second year of our SF 1st Stage medium-term management plan. During the year, OMRON will continue efforts to strengthen self-driven growth. Even in this uncertain business environment, we will seize on opportunities arising from changes in industrial structures, leveraging these opportunities into sales. Among the three group strategies in SF 1st Stage, we intend to accelerate the transformation of our businesses, corporate management, and organizational capabilities in particular, pursuing five key initiatives to this end.

Five Key Initiatives

1) Emphasize social value and economic value to customers and accelerate solutions

The emergence of many social issues and the movement toward global supply chain reorganization create more opportunities to propose OMRON-style co-creation solutions. We will strengthen sales and marketing capabilities in each of our businesses, accelerating investments and taking action as required. In this way, we will increase the quality and quantity of our customer contact points dramatically, leading to sales growth.

2) Improve human resources management to magnify employee skills

Employees are key in creating value and delivering strategies. And to provide solutions for increasingly sophisticated social issues, we must enhance our own competitiveness by increasing the degree to which every employee can demonstrate his or her abilities. We will provide employees with growth opportunities in each business and function. At the same time, employees will be able to take advantage of job-based systems and career support to reach higher levels of human creativity.

3) Strengthen our ability to generate cash on a sustainable basis

In a business environment fraught with economic risks, including normalized inflation, unstable supply chains, and financial instability, we must establish an ability to generate cash for investment in future growth. We enhance our ability to generate profits through sales growth, price optimization, and other measures. At the same time, we improve asset turnover through detailed inventory management. In this way, we enhance our ability to generate cash in a sustainable manner.

4) Optimize the global business value chain

The supply chain disruption triggered by U.S.-China antagonism remains a risk, and we intend to accelerate actions to optimize supply chains in each business to achieve stable production and supply. Our basic stance is local production for local consumption. In this context, we pursue the transfer and decentralization of production, as well as the localization and multi-track procurement, of parts and materials for critical products.

5) Build a DX platform

To accelerate data-driven corporate management, we plan to install and effectively use a core management systems. In fiscal 2022, we completed a build of the initial concept in Europe. In fiscal 2023, we will complete design, development, and trial implementation to verify the system. In collaboration with Europe, which is leading in this area, we are making steady advancements to adopt the initial concept in Japan as well.

Progress toward the financial and non-financial targets of the medium-term management plan is shown on the next page.

SF 1st Stage Medium-Term Management Plan Financial Targets and Progress

(Billions of yen, %)

SF 1st Stage Medium-Term Management Plan Non-Financial Targets and Progress

(*1) Sales in focus domains that lead to achieving carbon neutrality, realizing a digital society, and extending healthy life expectancy.

(*2) Figures for FY2022 GHG emissions include the temporary impact of the Shanghai lockdowns, etc.

(*3) Estimates as of April 25, 2023.

(*4) Non-financial targets (8) through (10) were determined by employee vote.

3. Basic Stance on the Selection of Accounting Standards

The OMRON Group has adopted U.S. GAAP, an international accounting standard, to secure the trust of stakeholders worldwide.

4. Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheets

(Millions of yen)

(Millions of yen)

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

(Consolidated Statements of Operations)

(Millions of yen)

Note: Other expenses, net for the previous consolidated fiscal year includes impairment loss of JPY3,384 million on goodwill related to NS Industria de Aparelhos Medicos LTDA. in Brazil, which was acquired under our Healthcare Business

(Consolidated Statements of Comprehensive Income)

(Millions of yen)

(3) Consolidated Statements of Changes in Shareholders' Equity

(Millions of yen)

(4) Consolidated Statements of Cash Flows

(Millions of yen)

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

(5) Notes Regarding Consolidated Financial Statements

(Notes Regarding Assumptions of Going Concern)

None applicable

(Changes in Accounting Policies)

None applicable

(Per-Share Information)

In calculating earnings per share, the Company applies FASB ASC 260, Earnings per Share.

The number of shares used to calculate net income and diluted income per share attributable to OMRON shareholders are as follows.

Note: The number of diluted shares for the fiscal years ended March 31, 2022 and 2023 are not presented as there are no dilutive shares.

(Main components of other expenses, net)

The following table presents the main components of other expenses, net.

(Notes Regarding Significant Subsequent Events)

None applicable

We have omitted notes on lease transactions, transactions with related parties, tax effect accounting, financial instruments, securities, derivative transactions, retirement benefits, business combinations, etc., and asset retirement obligations, as the necessity for disclosure in the summary of financial results is not considered significant.

(Segment Information)

Business Segment Information

(Millions of yen)

Note: Due to a revision of business management classifications, certain businesses of the IAB have been transferred to the DMB beginning with the fiscal year ended March 2023.
Accordingly, the Company reclassified results for the fiscal year ended March 2022 under this new categorization for presentation herein.

Sales by Geographical Region

(Millions of yen)

Note1: Due to a revision of business management classifications, certain businesses of the IAB have been transferred to the DMB beginning with the fiscal year ended March 2023. Accordingly, the Company reclassified results for the fiscal year ended March 2022 under this new categorization for presentation herein.

Note 2: 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

5. Supplementary Information

(1) Projected Consolidated Performance by Business Segment

(Billions of yen)

(2) Projected Consolidated Net Sales by Business Segment

(Billions of yen)

(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