OMRON : Summary of Consolidated Financial Results for the Year Ended March 31, 2022 (U.S. GAAP)

Summary of Consolidated Financial Results for the Year Ended March 31, 2022 (U.S. GAAP)

April 26, 2022

OMRON Corporation (6645)

Exchanges Listed:

URL: Representative: Contact:

Telephone:

Annual General Shareholders' Meeting (Scheduled): Start of Distribution of Dividends (scheduled):Tokyohttps://www.omron.com/global/en/ Yoshihito Yamada, President and CEO

Toyoharu Tamoi, Executive Officer, Senior General Manager, Global Finance and Accounting HQ +81-75-344-7070

June 23, 2022 June 24, 2022

Filing of Securities Report (Yuka shoken hokokusho) (Scheduled): June 24, 2022 Preparation of Supplementary Materials for the Financial Results: Yes

Holding of Presentation of Financial Results:

Yes (Financial results presentation held via online streaming and teleconference for investors on April 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 Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Sales and Income (cumulative)

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

Year ended March 31, 2022:

Year ended March 31, 2021:JPY108,105 million (14.2% change); JPY94,695 million (53.1% change)

(2) Consolidated Financial Position

2. Dividends

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.)

*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.: Yes

  • (b) Changes in accounting policy other than (a) above: No

    Note: For details, refer to 5. Consolidated Financial Statements and Notes(5) Notes Regarding Consolidated Financial

  Statements on P.19.

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

  • [1] Number of shares outstanding at period-end (including treasury stock)

  • [2] Treasury stock at period-end

  • [3] Average number of shares during the period

  Year ended March 31, 2022	206,244,872	Year ended March 31, 2021	206,244,872
  Year ended March 31, 2022	7,053,647	Year ended March 31, 2021	4,574,294
  Year ended March 31, 2022	200,882,669	Year ended March 31, 2021	201,692,643

  Note: As of the end of the fiscal year ended March 31, 2022, 606,434 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, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated Sales and Income

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

Net salesYear ended

March 31, 2022

March 31, 2021

Million yen 310,989 258,494

% 20.3

(12.6)

20,612 6,266

(55.9)

42,084 23,562

% 78.6 (16.2)

18,503

% 25.7 (76.7)

Notes: 1 We adopted Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) as of the beginning of the fiscal year under review. Each figure related to the fiscal year ended March 31, 2022 reflects the adoption of this accounting standard.

2 As disclosed in Notice Regarding Non-Consolidated Loss on Valuation of Stocks of Affiliates, published January 28, 2022, the

Company recorded JPY16.8 billion (including JPY5.7 billion in foreign exchange impact) in non-consolidated loss on valuation of stocks of affiliates in connection with the valuation of shares of consolidated subsidiary OMRON Electronica do Brasil LTDA. The amount recorded is reflected in extraordinary loss in the OMRON Corporation non-consolidated financial results.

*Summaries of consolidated financial results are not subject to audit 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.

  See 1. Analysis of Results of Operations and Financial Condition (5) Outlook for the Year Ending March 31, 2023 on P.7 for more regarding assumptions used in earnings forecasts.

• 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. As we become able to provide earnings forecasts with greater reliability, we will determine and announce interim and year-end dividends for the fiscal year ending March 2023. We plan to disclose interim dividends for the next fiscal year in October 2022, at the latest, and year-end dividends in April 2023.

• 4. The Company plans to hold a presentation for investors and information session via online streaming and teleconference on Tuesday, April 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 will change to DMB: Device & 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. Analysis of Results of Operations and Financial Condition …………………………………………………………………

P.2

• (1) Analysis of Results of Operations …………………………………………………………………………………………

  P.2

• (2) Analysis of Financial Condition ……………………………………………………………………………………………

  P.5

• (3) Summary of Cash Flows for the Year Ended March 31, 2022 ……………………………………………………………

  P.5

• (4) Basic Policy for Distribution of Profits, and Dividends for the Year Ended March 31, 2022 and the Year Ending March 31, 2023 ……………………………………………………………………………………………………………

  P.6

• (5) Outlook for the Year Ending March 31, 2023 ………………………………………………………………………………

P.7

2. The OMRON Group ………………………………………………………………………………………………………… P.10

3. Management Policies ………………………………………………………………………………………………………… P.10

(1) OMRON's Basic Management Policies …………………………………………………………………………………… P.10

(2) Medium-to-Long-Term Corporate Management Strategy ………………………………………………………………… P.10

(3) Management Plan for the Next Fiscal Year ………………………………………………………………………………… P.11

4. Basic Stance on the Selection of Accounting Standards …………………………………………………………………… P.12

5. Consolidated Financial Statements and Notes ……………………………………………………………………………… P.13

(1) Consolidated Balance Sheets ……………………………………………………………………………………………… P.13

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ……………………… P.15

(3) Consolidated Statements of Changes in Shareholders' Equity …………………………………………………………… P.17

(4) Consolidated Statements of Cash Flows ………………………………………………………………………………… P.18

(5) Notes Regarding Consolidated Financial Statements ……………………………………………………………………… P.19

(Notes Regarding Assumptions of Going Concern) …………………………………………………………………………… P.19

(Basis of Presentation for Consolidated Financial Statements) ………………………………………………………………… P.19

(Notes in the Event of Significant Changes in Shareholders' Equity) ………………………………………………………… P.19

(Changes in Accounting Policies) ……………………………………………………………………………………………… P.19

(Per-Share Information) ………………………………………………………………………………………………………… P.19

(Details of Other Expenses (Income), Net) …………………………………………………………………………………… P.20

(Segment Information) ………………………………………………………………………………………………………… P.21

6. Supplementary Information ………………………………………………………………………………………………… P.23

(1) Projected Consolidated Performance by Business Segment ………………………………………………………………… P.23

(2) Projected Consolidated Net Sales by Business Segment …………………………………………………………………… P.24

1. Analysis of Results of Operations and Financial Condition

(1) Analysis of Results of Operations

1) General Overview

The business environment surrounding the OMRON Group during the consolidated fiscal year (ended March 31, 2022) experienced ongoing strong demand overall from the digital industry, mainly in Greater China, Asia and the Americas. At the same time, investments related to carbon-neutral and plastic-free products expanded against the backdrop of social demands to protect the global environment. Further, the COVID-19 pandemic led to increased demand for home medical equipment as consumers gained a new appreciation of the importance of preventing serious chronic diseases. On the other hand, the fiscal year ended March 31, 2022 was one of continued uncertainty due to a variety of factors such as the emergence of extended supply chain disruptions beginning in the second quarter, the deteriorating situation in Russia and Ukraine, and the Shanghai lockdowns in the fourth quarter.

Amid this business environment, the Industrial Automation Business continued to build on the ability to propose solutions, securing parts and responding to increased production to meet strong demand in response to capital investment in semiconductors, electric vehicles, secondary batteries, and food packaging machinery. As global demand for blood pressure monitors increased, our Healthcare Business responded by strengthening promotions through our retail pharmacy and online channels, securing components, and improving logistics.

As a result, sales increased significantly year on year. Gross profit margin remained almost unchanged from the previous year, despite the impact of soaring material and logistics costs, due to efforts to reduce variable costs and improve production efficiency, as well as the results of profit structure reforms implemented to date. Our strong earnings structure generated a multiplicative effect on net sales, leading not only to a significant increase in operating income year on year, but also to a record high.

Consolidated results for fiscal 2021 were as follows.

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

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