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

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Kyoto (pta023/26.10.2022/17:49 UTC+2)

Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023 (U.S. GAAP)

October 26, 2022

OMRON Corporation (6645)

Exchanges Listed: Tokyo

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

Representative: Yoshihito Yamada, 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): November 11, 2022

Start of Distribution of Dividends (scheduled): December 2, 2022

Preparation of Supplementary Materials for the Quarterly Financial Results: Yes

Holding of Presentation of Quarterly Financial Results: Yes (Financial results presentation held via online streaming and teleconference for investors on October 26)

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 Second Quarter of the Fiscal Year Ending March 31, 2023

(April 1, 2022 – September 30, 2022)

(1) Sales and Income (cumulative)(Percentages represent changes compared with the same period of the previous fiscal year.)
Net salesOperating incomeIncome before income taxes Net income attributable
to shareholders
Six months endedMillion yen%Million yen%Million yen%Million yen%
September 30, 2022404,4189.541,613(9.0)38,919(15.8)27,875(14.3)
September 30, 2021369,35122.645,72785.046,21775.732,53169.5

Note: Comprehensive income: Six months ended September 30, 2022: 67,880 million yen (62.8% change); Six months ended September 30, 2021: 41,691 million yen (89.7% change)

Net income per share attributable to
shareholders, basic
Net income per share attributable to
shareholders, diluted
Six months endedYenYen
September 30, 2022139.81
September 30, 2021161.22

(2) Consolidated Financial Position

Total assetsNet assetsShareholders' equityShareholders'
equity ratio
Million yenMillion yenMillion yen%
September 30, 2022969,489721,059718,63974.1
March 31, 2022930,629667,971665,22771.5

2. Dividends

Dividends per share
First quarter-endFirst half-endThird quarter-endFiscal year-endTotal
YenYenYenYenYen
Fiscal year ended
March 31, 2022
46.0046.0092.00
Fiscal year ending
March 31, 2023
49.00
Fiscal year ending
March 31, 2023
(projected)
49.00 98.00

Note: Revisions since the most recently announced dividend forecast: Yes

The Company has decided to pay an interim dividend of 49.00 yen per share for the fiscal year ending March 31, 2023. The amount had been undetermined previously. In addition, the Company has not changed the annual dividend forecast, including the year-end dividend. For more, see 1. Qualitative Information on Quarterly Financial Results (3) Determination of Dividends (Interim Dividend) and Revision of Year-End Dividend Forecaston P.8-9 in the attached materials.

3. Projected Results for the Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)

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

Net salesOperating incomeIncome before income taxesNet income attributable to shareholdersNet income per share attributable to shareholders, basic
Million yen%Million yen%Million yen%Million yen%Yen
Full-year880,00015.395,0006.490,0003.864,5005.0323.83

Note: Revisions since the most recently announced performance forecast: Yes

For more, see 1. Qualitative Information on Quarterly Financial Results (2) Description of Information on Outlook, Including Consolidated Performance Forecast on P.5-7 of the attached materials.

*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: No

(4) Number of shares issued and outstanding

[1] Number of shares outstanding at period-end (including treasury stock)September 30, 2022206,244,872Year ended
March 31, 2022
206,244,872
[2] Treasury stock at period-endSeptember 30, 20227,290,957Year ended
March 31, 2022
7,053,647
[3] Average number of shares during the period (quarterly cumulative)Six months ended September 30, 2022199,374,241Six months ended September 30, 2021201,780,168

Note: As of the end of the consolidated first six months of the fiscal year ending March 31, 2023, 600,208 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 Wednesday, October 26, 2022.

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

*In connection with the start of our long-term vision beginning April 2022, the name of EMC: Electronic and Mechanical Components Business changed to DMB: Devices & Module Solutions Business beginning with the fiscal year ending March 31, 2023. The new segments are used in these financial statements for consistency.

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
(3) Determination of Dividends (Interim Dividend) and Revision of Year-End Dividend Forecast………………………P.8
2. Quarterly Consolidated Financial Statements and Notes ……………………………………………………………………P.10
(1) Quarterly Consolidated Balance Sheets…………………………………………………………………………………P.10
(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive Income…P.12
(3) Consolidated Statements of Cash Flows…………………………………………………………………………………P.14
(4) Notes Regarding Consolidated Financial Statements……………………………………………………………………P.15
(Notes Regarding Assumptions of Going Concern)……………………………………………………………………P.15
(Notes in the Event of Significant Changes in Shareholders' Equity)…………………………………………………P.15
(Segment Information)…………………………………………………………………………………………………P.16

1. Qualitative Information on Quarterly Financial Results

(1) Description of Results of Operations

General Overview

OMRON Group sales increased year on year for the cumulative consolidated second quarter (April through September). Sales in the first quarter (April through June) were impacted significantly by the Shanghai lockdowns, mainly in the Industrial Automation Business. However, sales increased year on year for the second quarter (July through September) due to a recovery in production and the rapid ramp-up of supply capacity to respond to heavy order backlogs.

While we continued to optimize prices and otherwise improve added value ratios across the company, gross profit margin declined year on year due to the impact of lower capacity utilization rates at our main plant in the Industrial Automation Business and higher material prices in the first quarter. At the same time, we continued to be active in investing for future growth to achieve the goals of our medium-term management plan (SF 1st Stage).

As a result of the preceding, operating income decreased year on year; however, the scale of decrease narrowed from -54% in the first quarter to -9%.

Consolidated results for the cumulative consolidated second quarter of fiscal 2022 were as follows.

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

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Change
Net sales369.4404.4+9.5%

Gross profit

[% of net sales]

170.6

[46.2%]

181.4

[44.9%]

+6.4%

[-1.3%pt]

Operating income

[% of net sales]

45.7

[12.4%]

41.6

[10.3%]

-9.0%

[-2.1%pt]

Income before income taxes46.238.9-15.8%
Net income attributable to OMRON shareholders32.527.9-14.3%
Average USD exchange rate (Yen)109.9131.6+21.7
Average EUR exchange rate (Yen)131.1138.2+7.1
Average CNY exchange rate (Yen)17.019.7+2.7


Results by Business Segment

IAB (Industrial Automation Business)

(Billions of yen, %)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Change
Sales to external customers206.5230.1+11.4%
Operating income40.139.1-2.4%

Note: Due to a revision of business management classifications, certain businesses of the IAB are included in the DMB business segment for disclosure beginning with the fiscal year ending March 31, 2023. Accordingly, the Company reclassified results for the fiscal year ended March 31, 2022, under this new categorization for presentation herein.

Sales

Although we saw signs of a slowdown in capital investment trends related to the manufacturing industry, demand for semiconductor production equipment, electric vehicles (EVs), and rechargeable batteries, which are our focus areas, 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, in the second quarter, in addition to a recovery in production, we accelerated efforts to strengthen supply capacity against the backdrop of a heavy order backlog. As a result, sales for the cumulative consolidated second quarter rose significantly year on year.

Operating Income

Although sales remained steady, operating income declined year on year due to the impact of lower factory utilization in the first quarter, as well as soaring material costs, logistics costs, and continued investments in growth.

HCB (Healthcare Business)

(Billions of yen, %)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Change
Sales to external customers67.768.1+0.6%
Operating income12.18.3-31.5%

Sales

Health consciousness continues to grow globally, however, demand for blood pressure monitors and other healthcare equipment slowed due to declining consumer confidence mainly in North America and Europe due to the impact of inflation. Activity among Chinese consumers declined in connection with the impact of closed sales outlets and stagnant distribution networks caused by restrictions on activities in various cities under the zero-Covid policy.

As a result, sales remained flat year on year, despite the positive factor of increased foreign exchange impact.

Operating Income

While sales was level year on year, operating income decreased significantly due to the impact of soaring parts costs and other factors.

SSB (Social Systems, Solutions and Service Business)

(Billions of yen, %)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Change
Sales to external customers35.036.6+4.5%
Operating income (loss)(1.4)(1.4)

Sales

The Energy Solutions Business continued to experience firm demand for renewable energy-related solutions, mainly products for captive consumption. In connection with a recovery in the number of railway users, the Public Transportation System Business saw major customers resuming certain upgrade investments which they had been delaying.

As a result, sales increased year on year.

Operating Income

In addition to the increase in sales, we continued efforts to optimize prices; however, operating income was flat year on year, due in part to certain foreign currency-denominated purchases.

DMB (Devices & Module Solutions Business)

(Billions of yen, %)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Change
Sales to external customers58.568.6+17.3%
Operating income4.88.1+68.0%

Note: Due to a revision of business management classifications, certain businesses of the IAB are included in the DMB business segment for disclosure beginning with the fiscal year ending March 31, 2023. Accordingly, the Company reclassified results for the fiscal year ended March 31, 2022 under this new categorization for presentation herein.

Sales

Demand for consumer industry components remained firm on a global basis overall. In particular, sales were strong for solar power, storage battery-related products, and semiconductor inspection equipment, focus areas for our company.

We continue to strengthen our supply capacity in response to this rising demand, which resulted in a significant increase in sales year on year.

Operating Income

Despite the impact of soaring raw material prices and other factors, operating income increased significantly year on year, mainly due to a significant increase in sales, as well as efforts to optimize prices and improve productivity.

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

We expect the business environment surrounding the OMRON Group to increase uncertainty in the third quarter and beyond against the backdrop of a global economic slowdown. Given this business environment, the OMRON Group expects both net sales and operating income for the year to increase over our prior forecasts in response to our efforts to improve gross profit margin by strengthening supply capacity to meet heavy order backlog in the Industrial Automation Business and Devices & Module Solutions Business, in addition to company-wide price optimization. Foreign exchange impact will also have a positive effect on performance.

In light of these circumstances, we revised our full-year consolidated performance forecast upward from the forecast announced previously (April 26, 2022). We have set exchange rate assumptions for the third quarter and beyond to USD1 = JPY140.0, EUR1 = JPY140.0, and CNY1 = JPY20.0.

The following describes our main expectations for the business environment in connection with each business segment for the third quarter and beyond.

・Industrial Automation Business: While overall demand for capital investment is slowing, demand for semiconductors, EVs, rechargeable batteries, etc., will remain strong

・Healthcare Business: Demand for blood pressure monitors and other healthcare equipment will experience stagnation temporarily

・Social Systems, Solutions and Service Business: Energy management-related demand will be steady, as demand for public transportation recovers

・Devices & Module Solutions Business: Demand in the consumer industry will decelerate; demand will be firm in connection with EVs, semiconductor inspection equipment, etc.

Projected Consolidated Performance

(Billions of yen, except percentages)

Previous
forecast
Revised
forecast

Change in
forecast

[%]

(Reference)

Actual results for the prior fiscal year ended March 31, 2022

(Reference)

Year-on-year change

Net sales850.0880.0

+30.0

[+3.5%]

762.9+15.3%
Gross profit %45.6%45.1%-0.5%pt45.5%[-0.4%pt]
Operating income93.095.0

+2.0

[+2.2%]

89.3+6.4%
Income before income taxes89.090.0

+1.0

[+1.1%]

86.7+3.8%
Net income attributable to OMRON shareholders63.064.5

+1.5

[+2.4%]

61.4+5.0%
Net income per share attributable to OMRON shareholders (Yen)316.28323.83+7.55305.65[+18.17]
Average USD exchange rate (Yen)121.0135.8+14.8112.1+23.7
Average EUR exchange rate (Yen)133.0139.1+6.1130.5+8.6
Average CNY exchange rate (Yen)19.019.9+0.917.4+2.4

Note: Full-year average rate based on historical rates for the first half and assumed exchange rates for the third quarter and later.

Forecasts by Business Segment

(Billions of yen, except percentages)

Previous
forecast
Revised
forecast

Change in
forecast

[%]

(Reference)

Actual results for the prior fiscal year ended March 31, 2022

(Reference)

Year-on-year change

IABSales to external customers483.0503.0

+20.0

[+4.1%]

418.1+20.3%
Operating income (loss)90.093.0

+3.0

[+3.3%]

76.3+22.0%
HCBSales to external customers154.0143.0

(11.0)

[-7.1%]

132.9+7.6%
Operating income (loss)20.015.0

(5.0)

[-25.0%]

18.5-19.1%
SSBSales to external customers92.096.0

+4.0

[+4.3%]

87.7+9.5%
Operating income (loss)6.55.0

(1.5)

[-23.1%]

6.5-23.1%
DMBSales to external customers128.0135.0

+7.0

[+5.5%]

121.0+11.6%
Operating income (loss)10.512.0

+1.5

[+14.3%]

10.1+19.0%
Eliminations
& Corporate
Sales to external customers3.03.03.3-9.1%
Operating income (loss)(30.0)(30.0)(22.1)
Risk of fluctuations in group-wide performanceSales to external customers(10.0)+10.0
Operating income (loss)(4.0)+4.0
ConsolidatedSales to external customers850.0880.0

+30.0

[+3.5%]

762.9+15.3%
Operating income (loss)93.095.0

+2.0

[+2.2%]

89.3+6.4%

Note: Due to a revision of business management classifications, certain businesses of the IAB are included in the DMB business segment for disclosure beginning with the fiscal year ending March 31, 2023. Accordingly, the Company reclassified results for the fiscal year ended March 31, 2022 under this new categorization for presentation herein.

(3) Determination of Dividends (Interim Dividend) and Revision of Year-End Dividend Forecast

At a meeting held today (October 26, 2022) the OMRON Corporation board of directors resolved to approve a dividend from surplus (interim dividend) with a record date of September 30, 2022. The board also resolved to revise the year-end dividend forecast for the fiscal year ending March 31, 2023.

Determination of Dividends (Interim Dividend)

AmountPrevious forecast (announced April 26, 2022)Actual results for the prior fiscal year ended March 31, 2022
Dividend record dateSeptember 30, 2022September 30, 2022September 30, 2021
Dividends per share49.00 yen46.00 yen
Total dividends9,778 million yen9,312 million yen
Effective dateDecember 2, 2022December 2, 2021
Source of dividendsRetained earningsRetained earnings

Revision of Year-End Dividend Forecast

Dividends per share
Dividend record dateInterimYear-endFull-year

Previous forecast

(announced April 26, 2022)

98.00 yen
Revised forecast49.00 yen98.00 yen

Fiscal 2022 actual

(ending March 31, 2023)

49.00 yen

Fiscal 2021 actual

(ended March 31, 2022)

46.00 yen46.00 yen92.00 yen

Reasons for Revision

In line with our cash allocation policy and shareholder return policy, the annual dividend forecast will remain unchanged from the initial forecast of 98.00 yen. Our forecasts of interim dividends and year-end dividends are 49.00 yen per share, respectively, each representing half of our full-year dividend forecast. These amounts are a 3.00 yen per share increase year on year.

Cash Allocation Policy

(1) Aiming to maximize corporate value through the realization of the long-term vision, OMRON prioritizes the necessary investment to create new value from a medium- and long-term perspective. During SF 1st Stage, priority will be placed on investments in human resources and R&D to solve social issues and innovate driven by social needs; capital investments in production capacity increases and digital transformation (DX); investment in growth initiatives such as M&A&A (merger, acquisition, and alliance); and investment in sustainability initiatives such as decarbonization, reduction of environmental impacts, and respect for human rights in the value chain. On this basis, OMRON will return profits to shareholders in a stable and sustainable manner.

(2) Such investment for value creation and shareholder returns will be, in principle, sourced from internal reserves and operating cash flows that are generated continually, with appropriate financing facilities used as necessary. We will maintain a degree of financial soundness that allows us to seek financing regardless of the current financial situation.

Shareholder Return Policy

(1) With priority being placed on the investment necessary for value creation over the medium and long term, annual dividends will be based on "dividends on equity (DOE) of around 3%." Taking past dividend payments also into account, we intend to ensure stable and sustainable shareholder returns.

(2) After making the above investments and distributing profit to shareholders, OMRON will distribute retained earnings accumulated over the long term to its shareholders through strategic share buybacks and other measures.

2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheets

(Millions of yen)

As of
March 31, 2022
As of
September 30, 2022
% %
ASSETS
Current assets: 482,90551.9 490,61850.6
Cash and cash equivalents 155,484 123,917
Notes and accounts receivable-trade 151,820 146,063
Allowance for doubtful receivables (798) (934)
Inventories 141,935 183,180
Assets held for sale 363 4
Other current assets 34,101 38,388
Property, plant and equipment, net: 122,09813.1 124,05312.8
Investments and other assets: 325,62635.0 354,81836.6
Right-of-use assets under operating leases 39,746 39,641
Goodwill 39,718 46,435
Investments in and advances to affiliates 124,691 135,129
Investment securities 43,757 42,450
Leasehold deposits 7,815 8,019
Prepaid benefit cost 14,391 14,453
Deferred income taxes 18,116 23,788
Other assets 37,392 44,903
Total assets 930,629100.0 969,489100.0


(Millions of yen)

As of
March 31, 2022
As of
September 30, 2022
% %
LIABILITIES
Current liabilities 211,67222.7 201,72220.8
Notes and accounts payable-trade 86,827 98,649
Short-term debt 20,000
Accrued expenses 48,365 48,533
Income taxes payable 5,657 5,186
Short-term operating lease liabilities 11,549 11,254
Other current liabilities 39,274 38,100
Deferred income taxes 2,1770.2 2,2290.2
Termination and retirement benefits 8,1940.9 3,6470.4
Long-term operating lease liabilities 28,5673.1 28,5122.9
Other long-term liabilities 12,0481.3 12,3201.3
Total liabilities 262,65828.2 248,43025.6
NET ASSETS
Shareholders' equity 665,22771.5 718,63974.1
Common stock 64,1006.9 64,1006.6
Capital surplus 100,65210.8 97,81810.1
Legal reserve 24,5032.6 28,2492.9
Retained earnings 517,56655.6 531,94654.9
Accumulated other comprehensive income (loss) 13,0131.4 52,6185.4
Foreign currency translation adjustments 33,908 69,361
Pension liability adjustments (19,930) (16,688)
Net gains (losses) on derivative instruments (965) (55)
Treasury stock (54,607)(5.8) (56,092)(5.8)
Noncontrolling interests 2,7440.3 2,4200.3
Total net assets 667,97171.8 721,05974.4
Total liabilities and net assets 930,629100.0 969,489100.0

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

(Quarterly Consolidated Statements of Operations)

(Six months ended September 30, 2022)

(Millions of yen)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
% %
Net sales 369,351 100.0 404,418 100.0
Cost of sales 198,755 53.8 222,986 55.1
Gross profit 170,596 46.2 181,432 44.9
Selling, general and administrative expenses 102,846 27.8 115,995 28.7
Research and development expenses 22,023 6.0 23,824 5.9
Operating income 45,727 12.4 41,613 10.3
Other expenses (income), net (490) (0.1) 2,694 0.7
Income before income taxes 46,217 12.5 38,919 9.6
Income taxes 12,500 3.4 10,346 2.5
Equity in loss of affiliates 862 0.2 417 0.1
Net income 32,855 8.9 28,156 7.0
Net income attributable to noncontrolling interests 324 0.1 281 0.1
Net income attributable to OMRON shareholders 32,531 8.8 27,875 6.9

(Quarterly Consolidated Statements of Comprehensive Income)

(Six months ended September 30, 2022)

(Millions of yen)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Net income 32,855 28,156
Other comprehensive income, net of tax
Foreign currency translation adjustments 7,178 35,572
Pension liability adjustments 1,364 3,242
Net gains (losses) on derivative instruments 294 910
Other comprehensive income 8,836 39,724
Comprehensive income 41,691 67,880
(Breakdown)
Comprehensive income attributable to
noncontrolling interests
330 400
Comprehensive income attributable to
OMRON shareholders
41,361 67,480

(3) Consolidated Statements of Cash Flows

(Millions of yen)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Operating Activities:
1.Net income 32,855 28,156

2.

Adjustments to reconcile net income to net cash provided by operating activities:
(1)Depreciation and amortization 11,529 13,012
(2)Decrease in notes and accounts receivable-trade 9,678 13,057
(3)Increase in inventories (11,631) (32,049)
(4)Increase in notes and accounts payable-trade 1,582 9,513
(5)Others, net (4,763) 6,395 (12,635) (9,102)
Net cash provided by operating activities 39,250 19,054
Investing Activities:
1.Purchases of investment securities (872) (1,092)
2.Capital expenditures (11,803) (17,746)
3.Proceeds from sale of property, plant and equipment 412 1,330
4.Increase in investments in and loans to affiliates, net (226) (9,981)
5.Other, net 51 (204)
Net cash used in investing activities (12,438) (27,693)
(Reference) Free cash flows 26,812 (8,639)
Financing Activities:
1.Net decrease in net borrowings of short-term debt (20,000)
2.Dividends paid by the Company (8,470) (9,163)
3.Acquisition of treasury stock (1,413) (5,488)
4.Other, net (479) 14
Net cash used in financing activities (10,362) (34,637)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 8,160 11,709
Cash and cash equivalents included in assets held for sale (1,371)
Net increase (decrease) in cash and cash equivalents 23,239 (31,567)
Cash and cash equivalents at beginning of the period 250,755 155,484
Cash and cash equivalents at end of the period 273,994 123,917

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

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

None applicable

(Segment Information)

Business Segment Information

(Millions of yen)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Year-on-year
change
IABSales to external customers206,513230,146111.4%
Intersegment sales3,0493,400111.5%
Total net sales209,562233,546111.4%
Operating expenses169,469194,401114.7%
Operating income (loss)40,09339,14597.6%
HCBSales to external customers67,68268,080100.6%
Intersegment sales62118190.3%
Total net sales67,74468,198100.7%
Operating expenses55,65559,916107.7%
Operating income (loss)12,0898,28268.5%
SSBSales to external customers34,99936,585104.5%
Intersegment sales4,6645,774123.8%
Total net sales39,66342,359106.8%
Operating expenses41,11143,763106.5%
Operating income (loss)(1,448)(1,404)
DMBSales to external customers58,51268,630117.3%
Intersegment sales20,48625,066122.4%
Total net sales78,99893,696118.6%
Operating expenses74,20085,635115.4%
Operating income (loss)4,7988,061168.0%
Eliminations
& Corporate
Sales to external customers1,64597759.4%
Intersegment sales(28,261)(34,358)
Total net sales(26,616)(33,381)
Operating expenses(16,811)(20,910)
Operating income (loss)(9,805)(12,471)
ConsolidatedSales to external customers369,351404,418109.5%
Intersegment sales
Total net sales369,351404,418109.5%
Operating expenses323,624362,805112.1%
Operating income (loss)45,72741,61391.0%

Note: Due to a revision of business management classifications, certain businesses of the IAB are included in the DMB business segment for disclosure beginning with the fiscal year ending March 31, 2023.Accordingly, the Company reclassified results for the fiscal year ended March 31, 2022 under this new categorization for presentation herein.

Sales by Geographical Region

(Millions of yen)

Six months ended
September 30, 2021
Six months ended
September 30, 2022
Year-on-year
change
IABJapan64,86167,743104.4%
Americas17,39225,631147.4%
Europe40,50241,448102.3%
Greater China60,70868,936113.6%
Southeast Asia and Others23,03526,377114.5%
Direct Exports151173.3%
Total206,513230,146111.4%
HCBJapan14,35812,62487.9%
Americas12,39613,750110.9%
Europe10,97810,13092.3%
Greater China22,06522,291101.0%
Southeast Asia and Others7,6448,955117.2%
Direct Exports241330136.9%
Total67,68268,080100.6%
SSBJapan34,92736,572104.7%
Americas
Europe
Greater China6023.3%
Southeast Asia and Others
Direct Exports121191.7%
Total34,99936,585104.5%
DMBJapan17,28819,692113.9%
Americas8,05811,507142.8%
Europe7,7238,923115.5%
Greater China18,16119,922109.7%
Southeast Asia and Others7,2058,529118.4%
Direct Exports775774.0%
Total58,51268,630117.3%
Eliminations
& Corporate
Japan1,64597759.4%
Americas
Europe
Greater China
Southeast Asia and Others
Direct Exports00
Total1,64597759.4%
ConsolidatedJapan133,079137,608103.4%
Americas37,84650,888134.5%
Europe59,20360,501102.2%
Greater China100,994111,151110.1%
Southeast Asia and Others37,88443,861115.8%
Direct Exports345409118.6%
Total369,351404,418109.5%

Note 1: Due to a revision of business management classifications, certain businesses of the IAB is included in the DMB business segment for disclosure beginning with the fiscal year ending March 31, 2023. Accordingly, the Company reclassified results for the fiscal year ended March 2022 31, 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

(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
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