OMRON: Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending Mar

OMRON: Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2014 (U.S. GAAP)

KYOTO, Japan--(BUSINESS WIRE)-- OMRON Corporation (TOKYO:6645):

Exchanges Listed:

Tokyo (first section)

URL:

http://www.omron.com

Representative:

Yoshihito Yamada, President and CEO

Contact:

Takayoshi Oue, Executive Officer, Global Finance and Accounting Headquarters, Senior General Manager

Telephone:

+81-75-344-7070

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

August 9, 2013

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: All amounts are rounded to the nearest million yen.


1.Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 - June 30, 2013)

(1) Sales and Income (cumulative)

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

Millions of yen - except per share data and percentages

Three months ended
June 30, 2013

Three months ended
June 30, 2012

Change (%)

Change (%)

Net sales

174,584

16.5

149,884

(1.0)

Operating income

13,014

59.1

8,179

(32.7)

Income before income taxes

12,702

86.1

6,826

(40.5)

Net income attributable to shareholders

9,247

95.9

4,720

(31.8)

Net income attributable to shareholders per share, basic (JPY)

42.01

21.44

Net income attributable to shareholders per share, diluted (JPY)

21.44

Note: Comprehensive income (loss):

Three months ended June 30, 2013: JPY19,578 million (—% change);

Three months ended June 30, 2012: JPY (5,536 million) (—% change)

(2) Consolidated Financial Position

Millions of yen - except per share data
and percentages

As of June 30,
2013

As of March 31,
2013

Total assets

591,153

573,637

Net assets

388,332

368,763

Shareholders' equity

386,394

366,962

Shareholders' equity ratio (%)

65.4

64.0

2. Dividends

Year ended
March 31, 2013

Year ending
March 31, 2014

Year ending
March 31, 2014
(projected)

Dividends per share

1st quarter dividend (JPY)

2nd quarter dividend (JPY)

14.00

18.00

3rd quarter dividend (JPY)

Year-end dividend (JPY)

23.00

Total dividends for the year (JPY)

37.00

Notes:

1.

Revisions to projected dividends during the three months ended June 30, 2013: No

2.

Breakdown of the year-end dividend for the year ended March 31, 2013: Regular dividend: JPY 18.00 Commemorative dividend: JPY 5.00

3.

The year-end dividend for the year ending March 31, 2014 is undetermined. For details, see "Notes Regarding Use of Projections of Results and Other Matters."

3. Projected Results for the Fiscal Year Ending March 31, 2014 (April 1, 2013 - March 31, 2014)

(Percentages represent changes compared with the previous fiscal year or the previous second quarter, as applicable.)

Millions of yen

Second quarter
ending
September 30, 2013

Change
(%)

Full year ending
March 31, 2014

Change
(%)

Net sales

336,000

10.4

710,000

9.2

Operating income

22,500

25.1

58,000

27.9

Income before income taxes

22,000

27.8

56,500

37.0

Net income attributable to shareholders

15,500

26.3

40,000

32.4

Net income per share attributable to shareholders (JPY)

70.41

181.71

Note: Revisions to projected results during the three months ended June 30, 2013: No

4. Other

(1)

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

New: - companies ( - ) Excluded: - companies ( - )

(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 (common stock)

(a)

Number of shares at end of period (including treasury stock): June 30, 2013: 227,121,372 shares; March 31, 2013: 227,121,372 shares

(b)

Treasury stock at end of period: June 30, 2013: 6,995,884 shares; March 31, 2013: 6,992,907 shares

(c)

Average number of shares during the period (cumulative quarterly period): Three months ended June 30, 2013: 220,126,832 shares; Three months ended June 30, 2012: 220,129,543 shares

Items Regarding the Implementation of Quarterly Review Procedures

This summary of quarterly consolidated results is exempt from the quarterly review procedures based on the Financial Instruments and Exchange Act. Review procedures for the quarterly financial statements based on the Financial Instruments and Exchange Act had not been completed at the time of disclosure of this summary of quarterly consolidated results.

Notes Regarding 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 factors could cause actual results to differ materially from these projections. Major factors influencing Omron's actual results include, but are not limited to, (i) the economic conditions affecting the Omron Group's businesses in Japan and overseas, (ii) demand trends for the Omron Group's products and services, (iii) the ability of the Omron Group to develop new technologies and new products, (iv) major changes in the fund-raising environment, (v) tie-ups or cooperative relationships with other companies, (vi) movements in currency exchange rates and stock markets, and (vii) accidents, earthquakes, etc.

For the assumptions that form the basis of the projected results, see "1. Qualitative Information on Quarterly Financial Results, (3) Description of Consolidated Performance Forecast" on page 6.

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 Income Statement is presented by subtracting selling, general and administrative expenses and research and development expenses from gross profit.

3.

The year-end dividend for the year ending March 31, 2014 will be set and disclosed in accordance with the Company's Basic Policy for Distribution of Profits at a point when there is a high level of certainty of achieving the Company's performance forecast. The Company plans to announce its year-end dividend by April 2014 at the latest.

4.

The Company plans to hold a presentation for investors on Tuesday, July 30, 2013.

The Company also plans to post an overview and the (voice) content of its explanations promptly on its website, together with financial materials used at the presentation.

Note:

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

IAB:

Industrial Automation Business

EMC:

Electronic and Mechanical Components Business

AEC:

Automotive Electronic Components Business

SSB:

Social Systems, Solutions and Service Business

HCB:

Healthcare Business

Other:

Environmental Solutions Business HQ, Electronic Systems & Equipments Division HQ, Micro Devices HQ, OMRON PRECISION TECHNOLOGY Co., Ltd. and others

1. Qualitative Information on Quarterly Financial Results
(1) Description of Results of Operations

General Overview

In the first quarter of fiscal 2013 (April - June 2013), sales increased in all business segments of the Omron Group, with particularly strong sales in AEC (Automotive Electronic Components Business), SSB (Social Systems, Solutions and Service Business), HCB (Healthcare Business) and the Other segment. In addition, operating income was strong in AEC, HCB and Other, and the Omron Group's net sales and profits increased substantially compared with the same quarter of the previous fiscal year.

The Omron Group's perception of the economic environment in the first quarter of fiscal 2013 is as follows.

Economic and Market Conditions by Region

Japan:

Despite a sense of uncertainty, there was a gradual recovery trend due to government economic policies and other factors.

U.S.:

There was a recovery trend due to factors including the bottoming out of the residential housing market and firm consumer spending.

Europe:

The economic slowdown persisted due to continuing financial instability in some countries.

China:

Although a drop in the Purchasing Managers' Index (PMI) and other factors became apparent, solid growth continued.

Asia:

Consumer spending was solid in emerging markets, but there was also a sense of uncertainty due to a slower growth rate and other factors.

Conditions in the Omron Group's Primary Related Markets

Automotive-related:

Capital investment demand remained weak in Japan; demand for components was strong in emerging markets and elsewhere.

Semiconductor-related:

Weakness continued, but there was a gradual recovery trend.

Machine tool-related:

Capital investment demand remained weak.

Home appliance and electronic component-related:

Capital investment demand remained weak; demand for components was strong outside Japan

Healthcare equipment-related:

Demand was firm due to factors including rising health consciousness in emerging markets

In addition, the Omron Group has set its policy for fiscal 2013 (the year ending March 31, 2014) as "Complete the GLOBE Stage! Complete the transformation to a stronger Omron with greater growth, profitability, and adaptability to change." As its action plan, the Group is prioritizing efforts including maximization of the strength of the industrial automation business, growth in emerging markets, expansion of new businesses that meet the needs of the "Optimization Society," conclusion of profit structure reform and strengthening of global human resources. In the first quarter of fiscal 2013, the Group carried out measures to increase net sales and profits over the medium-to-long term, and has been steadily generating results compared with the same quarter of the previous fiscal year, including an increase in net sales in emerging markets.

Consequently, consolidated results for the first quarter were as follows.

Millions of yen, except exchange rate data and percentages

Three months ended
June 30, 2012

Three months ended
June 30, 2013

Change

Net sales

149,884

174,584

+16.5%

Operating income

8,179

13,014

+59.1%

Income before income taxes

6,826

12,702

+86.1%

Net income attributable to shareholders

4,720

9,247

+95.9%

Average USD exchange rate (JPY)

80.4

98.3

+17.9

Average EUR exchange rate (JPY)

103.4

127.6

+24.2

Results by Business Segment

IAB (Industrial Automation Business)

Millions of yen, except percentages

Three months ended
June 30, 2012

Three months ended
June 30, 2013

Change

Sales to external customers

Japan

28,942

26,225

-9.4%

Overseas

37,009

40,543

+9.5%

Total

65,951

66,768

+1.2%

Segment profit

8,201

7,655

-6.7%

Note:

Due to a revision of management classifications, some businesses under EMC are included in the IAB business segment from the year ending March 31, 2014. Accordingly, segment profit for the year ended March 31, 2013 is restated under the new management classification

Sales in Japan

Despite a recovery trend in capital investment demand in some sectors of the semiconductor- and machine tool-related industries, and the automotive- and electronic component-related industries, overall demand was weaker than in the same period a year earlier. As a result, sales in Japan for the first quarter decreased compared with the same quarter of the previous fiscal year.

Overseas Sales

In the Americas, demand from oil businesses fell, but North America and emerging markets were solid. In Europe, demand was unchanged from the same quarter a year earlier although unstable market conditions are continuing. In China and Asia, factors including softening domestic demand in China caused a slump in demand, but capital investment demand was firm in emerging markets overall, and performance was strong in South Korea. As a result, overseas sales for the first quarter increased compared with the same quarter of the previous fiscal year, due in part to the depreciation of the yen.

Segment Profit

Segment profit decreased compared with the same quarter of the previous fiscal year because of ongoing strengthening of industrial automation business.

EMC (Electronic and Mechanical Components Business)

Millions of yen, except percentages

Three months ended
June 30, 2012

Three months ended
June 30, 2013

Change

Sales to external customers

Japan

6,632

7,019

+5.8%

Overseas

14,684

16,674

+13.6%

Total

21,316

23,693

+11.2%

Segment profit

1,604

1,540

-4.0%

Note:

Due to a revision of management classifications, some businesses under EMC are presented in the IAB business segment from the year ending March 31, 2014. Accordingly, segment profit for the year ended March 31, 2013 is restated under the new management classification

Sales in Japan

Although demand decreased in consumer- and automotive-related industries, sales to the home appliance industry were strong with the rebound of the domestic economy. As a result, first quarter sales in Japan increased compared with the same quarter of the previous fiscal year.

Overseas Sales

In China and South Korea, sales to the mobile devices industry were firm, and in the Americas, sales to consumer-related industries for building automation and other purposes increased. In Europe, sales to consumer-related and automotive-related industries were flat. As a result, first quarter overseas sales increased substantially compared with the same quarter of the previous fiscal year, due in part to the depreciation of the yen.

Segment Profit

Segment profit decreased compared with the same quarter of the previous fiscal year due to an increase in fixed and other costs, particularly related to overseas production.

AEC (Automotive Electronic Components Business)

Millions of yen, except percentages

Three months ended
June 30, 2012

Three months ended
June 30, 2013

Change

Sales to external customers

Japan

8,183

6,086

-25.6%

Overseas

15,918

23,204

+45.8%

Total

24,101

29,290

+21.5%

Segment profit

1,517

2,210

+45.7%

Sales in Japan

Despite the effect of government economic measures and the continuation of tax breaks for eco cars, automotive demand decreased compared with the same period a year earlier due to the impact of the end of subsidies in September 2012. As a result, first quarter sales in Japan decreased compared with the same quarter of the previous fiscal year.

Overseas Sales

The European market slowed due to fiscal austerity and the deteriorating labor environment as a result of financial instability, but markets in North America, China and Asia were strong. As a result, first quarter overseas sales increased substantially compared with the same quarter of the previous fiscal year, due in part to the depreciation of the yen.

Segment Profit

Segment profit increased substantially compared with the same quarter of the previous fiscal year due to factors including the increase in sales and the impact of the depreciation of the yen.

SSB (Social Systems, Solutions and Service Business)

Millions of yen, except percentages

Three months ended
June 30, 2012

Three months ended
June 30, 2013

Change

Sales to external customers

10,016

12,774

+27.5

%

Segment profit (loss)

(1,652

)

(1,834

)

-

Public Transportation Systems Business Sales

Capital investment demand from railway companies for renewal of station equipment remained firm, and first quarter sales increased substantially compared with the same quarter of the previous fiscal year.

Traffic and Road Management Systems Business and Other Sales

The performance of the traffic and road management systems business was strong compared with the same quarter of the previous fiscal year, due in part to demand for renewal of traffic control systems and other products with the appropriation of a revised national budget for traffic safety measures, and first quarter sales increased compared with the same quarter of the previous fiscal year. In the environmental solutions business, first quarter sales increased substantially compared with the same quarter of the previous fiscal year, due in part to increased demand for solar power generation-related products for residential and non-residential use, in addition to products for industrial use.

Segment Profit

Although sales increased substantially, segment loss increased compared with the same quarter of the previous fiscal year due to a one-time increase in fixed expenses.

HCB (Healthcare Business)

Millions of yen, except percentages

Three months ended

June 30, 2012

Three months ended

June 30, 2013

Change

Sales to external customers

Japan

6,832

6,806

-0.4%

Overseas

8,534

14,140

+65.7%

Total