OMRON : Presentation Materials of Financial Results w/o Script

May 22, 2024 at 02:50 pm IST

FY2023 Earnings

Results Briefing

May 8, 2024

OMRON Corporation

Summary

FY2023 results
Significant decrease in total sales and profits; mainly due to decrease of sales and profits in IAB and DMB
HCB and SSB achieved significant increases in sales and profits capturing expanding business opportunities
FY2024 full-year forecasts
Gradual recovery in demand is expected from H2 in IAB and DMB. Business environments remain strong in HCB, SSB and DSB
Targeting Y/Y growth in sales and profits. One-time expenses of approximately ¥28.0 bn for workforce/labor costs structural reform is factored in as non-operating expenses
Full-yeardividend guidance unchanged YoY at ¥104
Structural Reform Program "NEXT 2025"

Contents

１．FY2023 Results

・・・・ P.4 - 7

２．FY2024 Forecasts

・・・・ P.8 - 17

３. Structural Reform Program "NEXT 2025" ・・・・ P.18 - 23

１．FY2023 Results

FY2023: Consolidated Results

Sales and profits decreased. Profits fell sharply, mainly due to decrease in sales and drop in gross profit margin

(¥bn)

FY2022	FY2023	Y/Y

Actual	Actual

Net Sales	876.1	818.8	-6.5%
Gross Profit	393.9	346.5	-12.0%

(%)	(45.0%)	(42.3%)	(-2.7%pt)
Operating Income	100.7	34.3	-65.9%
(%)	(11.5%)	(4.2%)	(-7.3%pt)
Net income attributable to	73.9	*	-89.0%
OMRON shareholders	8.1

ROE	10.6%	1.1%	(-9.5%pt)
ROIC	10.4%	1.0%	(-9.4%pt)

EPS(JPY)	372	41	-331

Average USD rate (JPY)	135.2	143.9	+8.7

Average EUR rate (JPY)	140.9	156.3	+15.4
Average CNY rate (JPY)	19.7	20.1	+0.4

FY2023		Change from
	Previous FCST
Previous FCST
810.0		+1.1%
339.0		+2.2%
(41.9%)	(+0.5%pt)
24.0		+42.9%
(3.0%)	(+1.2%pt)
1.5	*	+440.3%
Approx. 1％		ー
Approx. 1%		ー
8		+33


143.4		+0.5
155.0		+1.3
20.0		+0.1

*Net income includes loss on revaluation of JMDC shares associated with its additional acquisition (¥12.0 billion)

FY2023: Results by Segment

Decreased sales and profits in IAB and DMB.

Increased sales and profits in HCB and SSB

Sales

(¥bn)

FY2022	FY2023	Y/Y
Actual	Actual

IAB	485.7	393.6	-19.0%
Industrial Automation

HCB	142.1	149.7	+5.3%

Healthcare


SSB	107.3	141.6	+32.0%
Social Systems, Solutions
and Service
DMB	138.9	114.4	-17.6%

Device & Module Solutions


DSB *2	ー	17.4	ー
Data Solutions

	2.1	2.1	+2.4%
Eliminations & Corporate
Total	876.1	818.8	-6.5%

FY2022	FY2023	Y/Y
Actual	Actual

85.8	21.5	-75.0%
(17.7%)*1
(5.5%)	(-12.2%pt)
16.0	18.5	+15.3%

(11.3%)	(12.3%)	(+1.1%pt)

7.5	14.0	+87.2%
(7.0%)	(9.9%)	(+2.9%pt)
15.5	3.1	-79.7%

(11.2%)	(2.8%)	(-8.4%pt)

ー	2.2	ー
ー	(12.6%)	ー
-24.2	-24.9	ー
100.7	34.3	-65.9%
(11.5%)	(4.2%)	(-7.3%pt)

*1.	Figures shown in brackets under OP are segment OPMs
*2.	Includes JMDC results and related expenses (amortization of intangible assets and acquisition-related
	expenses) associated with the consolidation	6

FY2023: Analysis of Change in Operating Income (Y/Y)

Impacted by decline in sales and GP margin in IAB and DMB.

SG&A expenses increased due to the impact of inflation on labor costs

Forex

impact

100.7 ＋4.5

Decreased GP on lower sales

-36.6

(¥bn)

Ref: Sales by BC

(Increase Y/Y) ・HCB +0.9 ・SSB ＋34.3 ・DSB +17.4

(Decrease Y/Y) ・IAB -105.3・DMB -28.7

Lower

GP Margin ③Increased fixed costs

-24.2			-10.1 (Labor costs -8.3/Expenses-1.8)
				Higher SG&A

					▲10.9	Lower R&D
						＋0.8
・Variable costs
down	+14.7

・Business/product	・Labor costs -7.2	・Labor costs	-1.1
mix	-21.8
・Expenses -3.7	・Expenses	＋1.9
・Production added

value		-5.0
・Inventory
provision	-6.7
・Others		-5.4

34.3

FY2022		FY2023
-66.4 Y/Y
Actual	Actual

２．FY2024 Forecasts

Operating Environment Outlook

Overall improvement from FY2023.

Expect gradual recovery in IAB and DMB from H2

IAB

Industrial

Automation

HCB

Healthcare

Business environment remains sluggish in H1, with differences among markets.

In H2, expect gradual recovery in demand, mainly in digital market *Details on later pages

BPM market to grow gradually on a global basis

Cardiovascular: Expect gradual growth on a global basis, centered on China and Asia

Respiratory: Demand for nebulizers continues to expand globally, although affected by the backlash from China's special demand for respiratory diseases

SSB	Overall favorable business environment continues
Social Systems,	Energy: Renewable energy-related investments in the residential area will continue. In the industrial field, the need for PV
Solutions &	installation is expected to increase
Service	Railway: Investment demand from railway companies is steady due to recovery in ridership and fare revisions

	Demand remained sluggish in general in H1; gradual improvement from H2
DMB
DC Equipment/Microwave Devices: Driven by increased demand for advanced semiconductors, expect full-scale growth
Device & Module	from H2
Solutions	Commodity Devices: Despite some differences among markets, expect gradual recovery from H2 as the market continues
	to deplete inventory

		Strong business environment continues, centered on health big data business
DSB
	JMDC：Expect expansion of medical data utilization movements, mainly among pharmaceutical and Life and non-life insurance
Data Solutions		industries. In response to growing social awareness of health and prevention, expect demand for services for insurers and
		consumers to increase

	9

(¥bn)

Forecasts: Consolidated Earnings

Increased sales and profits. Plan to significantly increase OP by improving GPM and fixed cost productivity

Net Sales

Gross Profit

(%)

Operating Income

(%)

Net income attributable to OMRON shareholders

ROE

ROIC

EPS(JPY)

FY2023 FY2024

ActualForecast

818.8825.0

346.5368.5

(42.3%)(44.7%)

34.349.0

(4.2%)(5.9%)

8.18.5*

1.1% Approx. 1%

1.0% Approx. 1%

4143

Y/Y

+0.8%

+6.4%

(+2.4%pt)

+42.7%

(+1.7%pt)

＋4.9%

ー

Average USD rate (JPY) Average EUR rate (JPY) Average CNY rate (JPY)

143.9	145.0	+1.1
156.3	155.0	-1.3
20.1	20.0	-0.1

*Reflects non-operating expenses of approximately 28.0 billion yen as expenses such as special lump-sum	10
payments associated with "optimizing the number of personnel and capabilities" in structural reforms

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Disclaimer

Omron Corporation published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 09:19:11 UTC.

	1st Jan change	Capi.
OMRON CORPORATION	-22.13%	6.45B
SIEMENS AG	-1.55%	139B
SCHNEIDER ELECTRIC SE	+22.48%	132B
EATON CORPORATION PLC	+32.47%	128B
EMERSON ELECTRIC CO.	+9.38%	60.9B
AMETEK, INC.	+1.29%	38.66B
VERTIV HOLDINGS CO	+90.46%	34.25B
WEG S.A.	+5.04%	30.36B
ROCKWELL AUTOMATION, INC.	-18.07%	29B
DELTA ELECTRONICS, INC.	+12.76%	28.34B

1st Jan change

Capi.

OMRON CORPORATION

-22.13%

6.45B

SIEMENS AG

-1.55%

139B

SCHNEIDER ELECTRIC SE

+22.48%

132B

EATON CORPORATION PLC

+32.47%

128B

EMERSON ELECTRIC CO.

+9.38%

60.9B

AMETEK, INC.

+1.29%

38.66B

VERTIV HOLDINGS CO

+90.46%

34.25B

WEG S.A.

+5.04%

30.36B

ROCKWELL AUTOMATION, INC.

-18.07%

29B

DELTA ELECTRONICS, INC.

+12.76%

28.34B

Delayed Japan Exchange Other stock markets 11:30:00 17/06/2024 am IST			5-day change	1st Jan Change
5,126 ^JPY	-0.87%		+0.08%	-22.13%

16/05	Newly privatised Toshiba to cut 4,000 jobs in restructuring drive	RE
09/05	Japanese shares rises on value stocks' appeal as rate hike looms	RE

Newly privatised Toshiba to cut 4,000 jobs in restructuring drive	16/05	RE
Japanese shares rises on value stocks' appeal as rate hike looms	09/05	RE
Omron's Full-Year Attributable Profit Slumps 89%	08/05	MT
OMRON Corporation Announces Year-End Dividend for the Fiscal Year Ending March 31, 2024, Payable on June 21, 2024	08/05	CI
OMRON Corporation Provides Earnings Guidance for the Fiscal Year Ending March 31, 2025	08/05	CI
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Jefferies Adjusts Omron’s Price Target to 7,000 Yen From 8,000 Yen, Keeps at Buy	27/02	MT
Transcript : OMRON Corporation - Special Call	26/02
Omron Shares on Frankfurt Stock Exchange Delisted	16/02	MT
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Japan's Nikkei edges down on caution before earnings, profit-taking	06/02	RE
Omron Shares Slump After Guidance Cut on Weaker Chip, EV Investments	06/02	DJ
Omron Corp.'s Attributable Profit Declines 84.5% in Fiscal Nine Months	05/02	MT
OMRON Corporation Revised Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2024	05/02	CI
Omron to Launch Formal Consultation for Plan to Delist from Frankfurt Bourse	30/01	MT
SALTYSTER Inc. announced that it has received funding from OMRON Corporation	01/11	CI
Jefferies Adjusts Omron's Price Target to 8,000 Yen From 9,000 Yen, Keeps at Buy	30/23/30	MT
Japan's Nikkei ends lower ahead of US, local central bank meetings	30/23/30	RE
Omron Corp.’s Attributable Profit down 78.2% in Fiscal H1 due to Higher Expenses, Losses on Reevaluation of Affiliate	30/23/30	MT
Japan's Nikkei falls over 1% ahead of central bank meetings in Japan, US	30/23/30	RE
Omron Corporation Provides Earnings Guidance for the Full Year Ending March 31, 2024	27/23/27	CI
OMRON Corporation Approves Interim Dividend and Revises the Year-End Dividend Forecast for the Fiscal Year Ending March 31, 2024	27/23/27	CI
SALTYSTER Inc. announced that it expects to receive funding from OMRON Corporation	16/23/16	CI
OMRON Corporation completed the acquisition of 23.09% stake in JMDC Inc. for approximately ¥85.5 billion.	10/23/10	CI

OMRON Corporation

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JP3197800000

Electrical Components & Equipment

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