January 28, 2022

Company name

:

OMRON Corporation

Representative

: Yoshihito Yamada, President & CEO

Stock code

:

6645

Stock exchange

:

Tokyo (First Section)

Contact

: Koji Nitto, Senior General Manager

Global Strategy Headquarters

Phone

: +81-75-344-7175

Notice Regarding Non-Consolidated Loss on Valuation of Stocks of Affiliates

KYOTO, Japan - OMRON Corporation (TOKYO: 6645; ADR: OMRNY) expects to record a loss on valuation of stocks of affiliates for its non-consolidated financial results for the fiscal year ending March 31, 2022 as described below.

1. Details of loss on valuation of stocks of affiliates

In the consolidated financial results for the third quarter of the fiscal year ending March 31, 2022, OMRON Corporation remeasured the fair value of goodwill recognized in the acquisition of NS Indústria de Aparelhos Médicos LTDA. (currently Omron Healthcare Brasil Indústria e Comércio de Produtos Médicos LTDA.; "OHB"), a Brazilian nebulizer manufacturer included in the OMRON Healthcare Business. This remeasurement was based on the business environment in light of rapid inflation in Brazil and the impact of the depreciation of the Brazilian real. As a result of revised future business plans as of the end of the third quarter and the remeasurement of the fair value of the reporting unit in question, OMRON Corporation has recognized an impairment loss (JPY3.4 billion). Based on this remeasurement, OMRON Corporation expects to record a loss on valuation of stocks of affiliates of JPY17.4 billion (preliminary calculation) related to shares owned in OHB parent company OMRON Eletronica do Brasil LTDA. The amount will be reflected as an extraordinary loss in the OMRON Corporation non-consolidated financial results for the fiscal year ending March 31, 2022, and includes the impact of foreign exchange rates (approximately JPY9.1 billion) from the time of the investment.

The amount above is an approximation at this point in time. OMRON Corporation will make an announcement promptly in the event of any significant changes.

2. Impact of the loss on valuation of stocks of affiliates on consolidated results

The loss on valuation of stocks of affiliates noted herein will only be recorded in the OMRON Corporate non-consolidated financial results, and will be eliminated in consolidation. Accordingly, there will be no impact on the consolidated financial results.

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Omron Corporation published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 06:15:05 UTC.