OMRON Corporation Reports Fiscal 2012 Consolidated Performance

  OMRON Corporation Reports Fiscal 2012 Consolidated Performance

Business Wire

TOKYO -- April 25, 2013

OMRON Corporation (TOKYO: 6645) (ADR: OMRNY) today reported consolidated
performance for fiscal 2012, ended March 31, 2013.

Consolidated net sales for the year ended March 31, 2013 increased 5.0 percent
compared with the previous fiscal year to JPY 650,461 million. Operating
income increased 13.0% percent compared with the previous fiscal year to JPY
45,343 million. Income before income taxes was JPY 41,237 million, an increase
of 22.9 percent year on year, and net income attributable to shareholders was
JPY 30,203 million, up 84.3 percent year on year.

Note: All amounts are rounded to the nearest million yen.

1. Overview of Conditions

Conditions in the global economy during the year ended March 31, 2013 (fiscal
2012) remained uncertain overall, with factors such as continuing financial
instability in Europe. However, signs of a recovery were seen in some regions,
mainly in emerging markets. In Japan, events impacting the economy, including
the effects of disasters that have occurred since 2011, are being resolved,
but overall business conditions were flat due to a slump in the semiconductor
industry and other factors.

                               
Conditions in Omron Group's Primary Related Markets
                                 
                                 Capital investment and component demand were
Automotive-related:              firm everywhere except in Europe. However,
                                 demand decreased in Japan in the second half.
                                 Capital investment and component demand were
Semiconductor-related:           weak, other than for smartphone-related
                                 projects.
Machine tool-related:            Demand was weak due to a drop in capital
                                 investment demand in some regions.
Home appliance and electronic    Capital investment and component demand were
component-related:               firm as a result of the higher functionality
                                 of large home appliances.
                                 Demand was firm due to an expanding range of
Healthcare equipment-related:    purchasers in connection with economic growth
                                 in emerging markets.
                                 

The average exchange rates for the year ended March 31, 2013 were USD 1 = JPY
83.2 and EUR 1 = JPY 107.6 (3.9 yen more and 2.7 yen less respectively than
the previous fiscal year).

                                                              
Consolidated Sales and Income
                                                            
                                      Year ended    Year ended
                                                                 Year-on-year
                                      March 31,     March 31,     change
                                      2012          2013
Net sales                             619,461       650,461       +5.0%
Operating income                      40,136        45,343        +13.0%

[% of net sales]                      [6.5%]        [7.0%]        [+0.5P]
Income before income taxes            33,547        41,237        +22.9%

[% of net sales]                      [5.4%]        [6.3%]        [+0.9P]
Net income attributable to            16,389        30,203        +84.3%
shareholders
Net income per share attributable    74.46        137.20       +62.74
to shareholders (basic) (JPY)

Notes:  1. The number of consolidated subsidiaries is 153, and the number of
         companies accounted for by the equity method is 12.
         2. "Net income attributable to shareholders" for the year ended March
         31, 2012 includes reversal of deferred income tax assets (JPY 5,346
         million) in connection with the enactment of the Law Concerning
         Reduction of the Corporate Income Tax Rate.
         

Results by Business Segment

Industrial Automation Business (IAB)
IAB segment sales to outside customers for the fiscal year totalled JPY
262,983 million, a decrease of 2.9 percent compared with the previous fiscal
year.

In Japan, although capital investment demand in automotive-related industries
was flat compared with the previous fiscal year, it was weak in electronic
component-related industries and particularly in semiconductor-related
industries. Consequently, sales were sluggish. Sales in Japan for the year
ended March 31, 2013 decreased compared with the previous fiscal year due in
part to the absence of the temporary rise in sales in the previous fiscal year
from the impact of the Great East Japan Earthquake and floods in Thailand.

Overseas, performance in the Americas was firm, supported by robust
automotive-related industries. In Europe, demand was weak with the continuing
impact of the economic downturn. In China, sales were firm, supported by solid
demand, even with the absence of the temporary rise in sales in the previous
fiscal year. Elsewhere in Asia, despite solid demand in ASEAN countries and
emerging markets, sales were weak due to factors including restrained capital
investment in semiconductor-related industries in South Korea. As a result,
overseas sales for the year ended March 31, 2013 were basically unchanged from
the previous fiscal year.

Electronic and Mechanical Components (EMC)
EMC segment sales to outside customers for the fiscal year totalled JPY 84,107
million, an increase of 1.3 percent compared with the previous fiscal year.

In Japan, in the first half, there was a recovery in demand in the automotive
and other industries, which had dropped due to impact of the Great East Japan
Earthquake in the previous fiscal year. In the second half, demand was firm in
infrastructure-related industries and grew in the office equipment, mobile
telephone and other industries. As a result, sales in Japan for the year ended
March 31, 2013 increased compared with the previous fiscal year.

Overseas, in the Americas, demand was firm in the automotive industry but
decreased in consumer industries. In China, exports were slack due to the weak
economy in Europe, but new environment-related and other businesses were firm.
In Europe, financial instability prolonged the economic downturn. As a result,
overseas sales for the year ended March 31, 2013 were essentially unchanged
from the previous fiscal year.

Automotive Electronic Components Business (AEC)
AEC segment sales to outside customers for the fiscal year totalled JPY 97,643
million, an increase of 14.8 percent compared with the previous fiscal year.

In Japan, automotive demand was robust due to government support measures for
the purchase of eco cars (extension of tax breaks, reintroduction of
subsidies), strong sales of light motor vehicles and other factors. Sales in
Japan for the year ended March 31, 2013 increased compared with the previous
fiscal year.

Overseas, demand for certain components was weak due to the impact of
austerity policies and the deteriorating labor environment in European
economies as a result of financial instability and a sharp drop in sales for
Japanese automobile manufacturers in China. Overall, however, demand was
strong among overseas automobile manufacturers and in emerging markets. As a
result, overseas sales for the year ended March 31, 2013 increased
substantially compared with the previous fiscal year, due in part to the
rebound from the temporary decrease in sales caused by the impact of floods in
Thailand.

Social Systems Business (SSB)
SSB segment sales to outside customers for the fiscal year totalled JPY 68,754
million, an increase of 20.2 percent compared with the previous fiscal year.

Rail Transportation Systems Business Sales
Passenger revenues of railway companies recovered due to factors including a
rebound from the impact of the Great East Japan Earthquake, and firm demand
for public transportation equipment renewal. In addition, the security and
safety solutions business, centered on remote monitoring systems, was firm. As
a result, sales for the year ended March 31, 2013 increased substantially
compared with the previous fiscal year.

Traffic and Road Management Systems Business and Other Sales
Sales were strong in the traffic and road management systems business due to
factors such as growth in the security and safety fields and other factors,
despite a strong trend toward restraint in investment by customers due to the
economic downturn in Japan. In the environmental solutions business, sales
were strong in the growth fields of services related to solar power generation
systems, storage battery systems, and visualization and control. Sales were
also strong in the related maintenance business as a significant increase in
demand for solar power generation products led to growth in related
installations.

Healthcare Business (HCB)
HCB segment sales to outside customers for the fiscal year totalled JPY 71,520
million, an increase of 14.5 percent compared with the previous fiscal year.

In Japan, healthcare equipment for household use, sales of digital blood
pressure monitors and digital thermometers, which are core products, were
strong as the impact of the Great East Japan Earthquake and other factors
decreased. In addition, with new demand stimulated by the launch of new
products (wrist blood pressure monitors, body composition monitors with
communication functions, portable electric toothbrushes, massagers, sleep time
monitors, and sleep monitors), overall sales were strong. Sales of equipment
for use in medical institutions were firm, as a slight recovery trend became
apparent in the investment stance of flagship hospitals. As a result, sales in
Japan for the year ended March 31, 2013 increased compared with the previous
fiscal year.

Overseas, although demand in the markets of Southern and Eastern Europe
remained weak, overseas sales were strong overall as demand for healthcare
equipment continued to rise in emerging markets such as Russia, China and
Southeast Asia. In addition, with a business alliance for sales of electric
toothbrushes in Europe and the depreciation of the yen in the second half,
overseas sales for the year ended March 31, 2013 increased substantially
compared with the previous fiscal year.

Other
Businesses in the "Other" segment are primarily responsible for exploring and
nurturing new business fields and nurturing/reinforcing business not handled
by other internal companies.

Segment sales to outside customers for the fiscal year totalled JPY 59,240
million, an increase of 10.7 percent compared with the previous fiscal year.

Environmental Solutions Business Sales
Sales volume of solar power condensers and other products increased
substantially, driven by growing interest in the use of renewable energy with
the start of a feed-in tariff system.

Electronic Systems & Equipments Division Sales
Although demand for uninterruptible power supplies was firm due to concerns
about the electrical supply, sales were weak due to a decrease in demand from
major customers for electronic device development and contract manufacturing
services and industrial embedded computers.

Micro Devices Business Sales
Sales were strong due to an increase in demand for microphones and custom
integrated circuits for industrial use.

Backlight Business Sales
Sales were firm due to an increase in demand in the smartphone market.

2. Consolidated Financial Position and Cash Flows

Total assets increased by JPY 36,314 million compared with the end of the
previous fiscal year. The main changes in assets were increases of JPY 15,607
million in notes and accounts receivable – trade and JPY 10,451 million in
cash and cash equivalents, offset by a decrease of JPY 4,268 million in
deferred income taxes. The main changes in liabilities were decreases of JPY
13,204 million in short-term debt and JPY 3,488 million in termination and
retirement benefits.

Shareholders' equity increased by JPY 46,122 million from the end of the
previous fiscal year to JPY 366,962 million. The shareholders' equity ratio
increased by 4.3 percentage points to 64.0% from 59.7%.

Net cash provided by operating activities was JPY 53,058 million (an increase
of JPY 21,112 million compared with the previous fiscal year) due to JPY
30,117 million in net income as well as a decrease in inventories and other
factors.

Net cash used in investing activities was JPY 28,471 million (an increase in
cash outflow of JPY 1,985 million compared with the previous fiscal year)
because of investments for production facilities and other purposes.

Net cash used in financing activities totaled JPY 18,550 million (a decrease
in cash outflow of JPY 14,942 million compared with the previous fiscal year)
because of repayment of loans and payment of dividends.

As a result, the balance of cash and cash equivalents at March 31, 2013 was
JPY 55,708 million.

                                 
Consolidated Financial Position
                                   Millions of yen –

                                   except per share data and percentages
                                 As of March 31, 2013  As of March 31, 2012
Total assets                       573,637               537,323
Net assets                         368,763                321,680
Shareholders' equity               366,962                320,840
Shareholders' equity ratio (%)     64.0                   59.7
Shareholders' equity per share    1,667.04              1,457.51
(JPY)

                                           
Consolidated Cash Flows
                                             Millions of yen
                                             Year ended       Year ended
                                                          
                                             March 31, 2013   March 31, 2012
Net cash provided by operating activities    53,058          31,946
Net cash used in investing activities        (28,471)         (26,486)
Net cash used in financing activities        (18,550)         (33,492)
Cash and cash equivalents at end of period  55,708          45,257
                                                              

3. Dividends

In accordance with the policy stated above, Omron plans to pay an ordinary
year-end dividend of JPY 18 per share for the year ended March 31, 2013 as
well as a commemorative dividend of JPY 5 to show its appreciation for its
stockholders on the eightieth anniversary of the founding of Omron on May 10,
2013, for a total of JPY 23 per share. For the full fiscal year, including the
interim dividend of JPY 14 per share paid on December 3, 2012, Omron plans to
pay total dividends of JPY 37 per share.

                                                        
                                      Year ended   Year ended   Year ending
                                                         
                                      March 31,    March 31,    March 31, 2014
                                      2012         2013         (projected)
               1st quarter           —            —            —
                dividend (JPY)
                Interim dividend      14.00        14.00        18.00
                (JPY)
Dividends per   3rd quarter           —            —            —
share           dividend (JPY)
                Year-end dividend     14.00        23.00        —
                (JPY)
               Total dividends for   28.00        37.00        —
                the year (JPY)
Total cash dividends paid (JPY        6,164        8,145        
million)
Payout ratio (%)                      37.6         27.0         —
Dividends / Shareholders' equity     1.9         2.4         
ratio (%)

Notes:  1. Breakdown of year-end dividend for the year ended March 31, 2013:
         Regular dividend JPY 18.00; commemorative dividend JPY 5.00
         2. Year-end dividend for the year ending March 31, 2014 is
         undetermined.
         

4. Fiscal 2013 Consolidated Performance Forecast

Although there are expectations for a global recovery, due to factors
including the continuing uncertain economic conditions in Europe, a gradual
recovery is forecast from the second quarter.

In Japan, although there is expectation regarding the new economic policies
and weakening of the yen, economic uncertainty continues, so gradual recovery
is forecast from the second quarter.

Overseas, despite persistent financial instability in Europe, gradual economic
expansion is forecast as a result of a pickup in the U.S. and Chinese
economies and continued growth in emerging markets, particularly in ASEAN
countries.

In this environment, Omron Group has set its policy for the year ending March
31, 2014, the third year of VG2020, which started in July 2011, as "Complete
the GLOBE Stage! Complete the transformation to a stronger Omron with greater
growth, profitability, and adaptability to change." As its action plan, Omron
Group will prioritize efforts including maximization of the strength of the
industrial automation business, growth in emerging markets, expansion of new
business fields, conclusion of profit structure reform and strengthening of
global human resources.

With the impact of the depreciation of the yen on currency translation in
addition to the above premises, Omron Group forecasts substantial increases in
sales and profits for the year ending March 31, 2014. Omron Group forecasts
net sales of JPY 710.0 billion, operating income of JPY 58.0 billion, income
before income taxes of JPY 56.5 billion, and net income attributable to
shareholders of JPY 40.0 billion. The assumed exchange rates are USD1 = JPY 90
and EUR1 = JPY 120.

                               
Projected Results for Fiscal 2012 (Ending March 31, 2013)
                               
                               Millions of yen, except exchange rate data
                                 Year ended March   Year ending
                                31,                               Change
                                 2013 (results)     March 31, 2014
Net sales                        650,461            710,000          +9.2%
Operating income                 45,343             58,000           +27.9%
Income before income taxes       41,237             56,500           +37.0%
Net income attributable to       30,203             40,000           +32.4%
shareholders
Average JPY to USD exchange      83.2 JPY           90.0 JPY         +6.8 JPY
rate
Average JPY to EUR exchange     107.6 JPY         120.0 JPY       +12.4 JPY
rate
                                                                     

About OMRON

Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the
field of automation. Established in 1933, Omron has more than 35,000 employees
in over 35 countries working to provide products and services to customers in
a variety of fields including industrial automation, electronic components,
social systems, healthcare, and the environment. The company has regional head
offices in Singapore (Asia Pacific), Beijing (Greater China), Amsterdam
(Europe, Africa, and the Middle East), Chicago (the Americas), Gurgaon
(India), and Sao Paulo (Brazil).
For more information, visit OMRON's website at http://www.omron.com/

Contact:

Omron Corporation
Takayoshi Oue, +81-75-344-7070
General Manager,
Accounting and Finance Center