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

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

Business Wire

KYOTO, Japan -- October 29, 2013

OMRON Corporation (TOKYO:6645):

Exchanges Listed:                   Tokyo (first section)
Homepage:                            http://www.omron.com
Representative:                      Yoshihito Yamada, President and CEO
                                     Takayoshi Oue, Executive Officer, Senior
Contact:                             General Manager, Accounting and Finance
                                     Center
Telephone:                           +81-75-344-7070
Filing of Quarterly Securities
Report (Shihanki hokokusho)          November 13, 2013
(scheduled):
Start of Distribution of Dividends   December 2, 2013
(scheduled):
Preparation of Supplementary
Materials for the Quarterly          Yes
Financial Results:
Holding of Presentation of           Yes (for investors)
Quarterly Financial Results:


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 management’s 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 Second Quarter of the Fiscal Year
Ending March 31, 2014
(April 1, 2013 – September 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
                             Six months ended         Six months ended
                              September 30, 2013        September 30, 2012
                                       Change (%)              Change (%)
Net sales                     359,726     18.2          304,216     0.3
Operating income              30,786      71.1          17,991      (20.8)
Income before income taxes    30,033      74.4          17,220      (18.3)
Net income attributable to    21,174      72.6          12,271      (5.6)
shareholders
Net income attributable to
shareholders per share,       96.19                     55.74
basic (JPY)
Net income attributable to
shareholders per share,      —                        55.74
diluted (JPY)

Note: Comprehensive income (loss):  Six months ended September 30, 2013: JPY
                                     34,628 million (—% change);
                                     Six months ended September 30, 2012: JPY
                                     194 million (—% change)

(2) Consolidated Financial Position
                             Millions of yen - except per share data and
                              percentages
                             As of September 30,          As of March 31,
                              2013                          2013
Total assets                  601,474                       573,637
Net assets                    397,871                       368,763
Shareholders’ equity          395,885                       366,962
Shareholders’ equity ratio   65.8                         64.0
(%)


2. Dividends
                                       Year ended   Year        Year ending
                                     March 31,   ending     March 31, 2014
                                       2013         March 31,   (projected)
                                                    2014
               1st quarter dividend   —            —           
                (JPY)
                2nd quarter dividend   14.00        25.00       
                (JPY)
Dividends per   3rd quarter dividend   —                       —
share           (JPY)
                Year-end dividend      23.00                   25.00
                (JPY)
               Total dividends for   37.00                 50.00
                the year (JPY)

Notes:  1.  Revisions since the most recently announced dividend forecast:
              Yes
              Breakdown of the year-end dividend for the year ended March 31,
         2.   2013: Regular dividend: JPY 18.00 Commemorative dividend: JPY
              5.00
              For details, see “OMRON Announces Fiscal 2013 Interim Dividend
         3.   (Dividends from Retained Earnings) and Year-End Dividend
              Forecast,” released today (October 29, 2013).


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.)
                                                Millions of yen
                                                Year ending          Change
                                                 March 31, 2014        (%)
Net sales                                        750,000               15.3
Operating income                                 65,000                43.4
Income before income taxes                       62,000                50.4
Net income attributable to shareholders          43,000                42.4
Net income per share attributable to            195.34
shareholders (JPY)

Note:  Revisions since the most recently announced performance forecast: Yes
        See “OMRON Announces Difference between Consolidated Business
        Performance Forecast for First 2 Quarters of Fiscal 2013 and Actual
        Performance and Revision of Consolidated Business Performance Forecast
        for Fiscal 2013,” released today (October 29, 2013), regarding the
        revision of the consolidated performance forecast.


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)
             Number of shares at end of period (including treasury stock):
      (a)    September 30, 2013: 227,121,372 shares; March 31, 2013:
             227,121,372 shares
      (b)    Treasury stock at end of period: September 30, 2013: 6,998,634
             shares; March 31, 2013: 6,992,907 shares
             Average number of shares during the period (cumulative quarterly
      (c)    period): Six months ended September 30, 2013: 220,125,401 shares;
             Six months ended September 30, 2012: 220,129,657 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 Appropriate Use of Projections of Results and Other Matters
     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
1.  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.

     The Company applies the single step method for presentation of its
     Consolidated Financial Statements based on U.S. GAAP. However, to
2.   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 Company plans to hold a presentation for investors on Wednesday,
     October 29, 2013.
     The Company also plans to post an overview and the (voice) content of its
   explanations, together with financial materials used at the presentation,
     promptly on its website.


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
         Environmental Solutions Business HQ, Electronic Systems and
Other:  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 six months of fiscal 2013 (April – September 2013), earnings and
profits of the Omron Group both increased substantially compared with the same
period of the previous fiscal year, with growth in earnings and profits in
every business segment.

The Omron Group’s perception of the economic environment in the first six
months of fiscal 2013 is as follows.

Economic and Market Conditions by Region

Japan:   There was a gradual recovery trend due to government economic
          policies and other factors.
          Despite lingering concern about the debt ceiling problem, there was
U.S.:     a recovery trend due to factors including the bottoming out of the
          residential housing market.
Europe:   Business and consumer confidence improved and there were signs of
          recovery.
          With improvement in the Purchasing Managers’ Index and other
China:    factors, signs of a recovery were apparent in some sectors, but it
          was not a full-scale recovery.
          Although there was also a sense of uncertainty due to a slower
Asia:     growth rate and other factors, consumer spending remained firm in
          emerging markets.

Conditions in the Omron Group’s Primary Related Markets

                                Capital investment demand in Japan was on a
Automotive-related:            recovery track; demand for components was
                                strong in emerging markets and elsewhere.
                                A recovery trend was apparent in some sectors
Semiconductor-related:          due to demand for smartphones and other
                                products.
Machine tool-related:           Signs of a recovery in capital investment
                                demand were apparent outside Japan.
Home appliance and electronic   Capital investment demand was on a recovery
component-related:              track; demand for components was strong
                                outside Japan
                                Demand was firm due to factors including
Healthcare equipment-related:   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 six months 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 period of the previous fiscal year, including an increase in net
sales in emerging markets.

Consequently, consolidated results for the first six months of fiscal 2013
were as follows.


Millions of yen, except exchange rate data and percentages
                            Six months ended    Six months ended    Change
                              September 30, 2012   September 30, 2013
Net sales                     304,216              359,726              +18.2%
Operating income              17,991               30,786               +71.1%
Income before income taxes    17,220               30,033               +74.4%
Net income attributable to    12,271               21,174               +72.6%
shareholders
Average USD exchange rate     79.4                 98.2                 +18.8
(JPY)
Average EUR exchange rate    101.1               128.9               +27.8
(JPY)


Results by Business Segment

IAB (Industrial Automation Business)
Millions of yen, except percentages
                                  Six months ended   Six months ended
                                September 30,     September 30,     Change
                                  2012               2013
Sales to external     Japan      58,677             55,944             -4.7%
customers              Overseas   71,216             82,074             +15.2%
                       Total      129,893            138,018            +6.3%
Segment profit                   15,572            17,834            +14.5%

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
Although capital investment demand was on a recovery track in electronic
component- and semiconductor-related industries and some sectors of the
automotive- and machine tool-related industries, it did not amount to a
full-scale recovery, and sales in Japan for the six months ended September 30,
2013 decreased compared with the same period of the previous fiscal year.

Overseas Sales
In Europe, there were signs of an upturn in the economy but demand was
unchanged from the same period a year earlier. In China, demand was sluggish
due to factors including export-related weakness. In the Americas, demand from
oil businesses fell. In Asia, demand was weak in ASEAN countries due to a
decline in investment, mainly in automotive- and electronic component-related
industries, but capital investment demand was firm in emerging markets and
South Korea. As a result, overseas sales for the six months ended September
30, 2013 increased compared with the same period of the previous fiscal year,
due in part to the depreciation of the yen.

Segment Profit
Despite an increase in fixed expenses as a result of investments for future
growth, segment profit increased compared with the same period of the previous
fiscal year due to the increase in sales and the impact of the depreciation of
the yen.


EMC (Electronic and Mechanical Components Business)
Millions of yen, except percentages
                                  Six months ended   Six months ended
                                September 30,     September 30,     Change
                                  2012               2013
Sales to external     Japan      13,375             14,276             +6.7%
customers              Overseas   29,230             34,506             +18.0%
                       Total      42,605             48,782             +14.5%
Segment profit                   2,346             3,935             +67.7%

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 due to the impact of the hot
summer, in addition to the rebound of the domestic economy. As a result, sales
in Japan for the six months ended September 30, 2013 increased compared with
the same period 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 and commerce industries were strong. In
Europe, consumer and commerce industry demand grew with the impact of market
recovery. As a result, overseas sales for the six months ended September 30,
2013 increased substantially compared with the same period of the previous
fiscal year, due in part to the depreciation of the yen.

Segment Profit
Segment profit increased substantially compared with the same period of the
previous fiscal year due to the effects of cost reduction activities in
addition to the increase in sales and the impact of the depreciation of the
yen.


AEC (Automotive Electronic Components Business)
Millions of yen, except percentages
                                  Six months ended   Six months ended
                                September 30,     September 30,     Change
                                  2012               2013
Sales to external     Japan      15,873             13,198             -16.9%
customers              Overseas   31,384             46,270             +47.4%
                       Total      47,257             59,468             +25.8%
Segment profit                   2,780             4,348             +56.4%

Sales in Japan
Despite the effect of government economic measures and the continuation of tax
breaks for eco cars, automotive demand fell below the level of the previous
year due to the impact of the end of subsidies in September 2012. As a result,
sales in Japan for the six months ended September 30, 2013 decreased compared
with the same period of the previous fiscal year.

Overseas Sales
The European automotive market slowed due to fiscal austerity and the
deteriorating labor environment resulting from financial instability, but
markets in North America, China and Asia were strong. As a result, overseas
sales for the six months ended September 30, 2013 increased substantially
compared with the same period of the previous fiscal year, due in part to the
depreciation of the yen.

Segment Profit
Segment profit increased substantially compared with the same period 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
                            Six months ended    Six months ended    Change
                              September 30, 2012   September 30, 2013
Sales to external customers   23,471               29,112               +24.0%
Segment profit (loss)        (1,881)             (1,762)             –

Public Transportation Systems Business Sales
Capital investment demand from railway companies for renewal of station
equipment remained firm, and sales for the six months ended September 30, 2013
increased compared with the same period of the previous fiscal year.

Traffic and Road Management Systems Business and Other Sales
In the traffic and road management systems business, although there was demand
for measures to deal with aging equipment as a result of a revised national
budget for traffic safety measures, sales for the six months ended September
30, 2013 decreased compared with the same period of the previous fiscal year
with the impact of factors such as a temporary change in the sales period from
the first six months of the previous fiscal year. In the environmental
solutions business, sales for the six months ended September 30, 2013
increased substantially compared with the same period of the previous fiscal
year due to strong demand for solar power generation-related products for
residential and non-residential use.

Segment Profit
Due to the increase in sales, segment loss decreased compared with the same
period of the previous fiscal year.


HCB (Healthcare Business)
Millions of yen, except percentages
                                 Six months ended   Six months ended
                               September 30,     September 30,     Change
                                 2012               2013
Sales to external    Japan      14,014             14,610             +4.3%
customers             Overseas   18,543             28,228             +52.2%
                      Total      32,557             42,838             +31.6%
Segment profit                  1,917             4,392             +129.1%

Sales in Japan
Despite a weaker market for healthcare equipment for household use compared
with the same period a year earlier, sales of new products (body composition
monitors, sleep monitors) were strong and sales of digital blood pressure
monitors, which are a core product, were extremely strong. Sales of equipment
for use in medical institutions were basically unchanged from the same period
of the previous fiscal year. As a result, sales in Japan for the six months
ended September 30, 2013 increased substantially compared with the same period
of the previous fiscal year.

Overseas Sales
Overseas sales were strong overall as demand for healthcare equipment and
products continued to rise in emerging markets such as Russia, China, Central
and South America and India. As a result, overseas sales for the six months
ended September 30, 2013 increased substantially compared with the same period
of the previous fiscal year, due in part to the depreciation of the yen.

Segment Profit
Segment profit increased substantially compared with the same period of the
previous fiscal year due to the increase in overseas sales, the impact of the
depreciation of the yen and other factors.


Other
Millions of yen, except percentages
                            Six months ended    Six months ended    Change
                              September 30, 2012   September 30, 2013
Sales to external customers   25,457               38,460               +51.1%
Segment profit (loss)        (648)               5,778               –

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

Environmental Solutions Business Sales
Demand for solar power conditioners grew in the Japanese market along with the
spread of photovoltaic power generation due to rising interest in use of
renewable energy, and sales for the six months ended September 30, 2013
increased substantially compared with the same period of the previous fiscal
year.

Electronic Systems and Equipments Division Sales
Although demand for uninterruptible power supplies was firm, sales for the six
months ended September 30, 2013 decreased compared with the same period of the
previous fiscal year due to a drop in demand for the electronics manufacturing
service (EMS) and other factors.

Micro Devices Business Sales
Demand for MEMS microphone chips grew, and sales for the six months ended
September 30, 2013 increased substantially compared with the same period of
the previous fiscal year.

Backlight Business Sales
Due to strong performance in the smartphone market and entry into the tablet
device field, sales for the six months ended September 30, 2013 increased
substantially compared with the same period of the previous fiscal year.

Segment Profit
Segment profit increased substantially compared with the same period of the
previous fiscal year because of higher sales in each business.

(2) Description of Financial Condition
Total assets as of September 30, 2013 increased JPY 27,837 million compared
with the end of the previous fiscal year to JPY 601,474 million due to an
increase in cash and cash equivalents and other factors. Total liabilities
decreased JPY 1,271 million compared with the end of the previous fiscal year
to JPY 203,603 million due to a decrease in short-term debt and other factors.
Net assets increased JPY 29,108 million from the end of the previous fiscal
year to JPY 397,871 million due to changes in foreign currency translation
adjustments and other items. The shareholders’ equity ratio was 65.8 percent,
compared with 64.0 percent at the end of the previous fiscal year.

Net cash provided by operating activities in the six months ended September
30, 2013 was JPY 33,761 million (an increase of JPY 6,761 million compared
with the same period of the previous fiscal year) due to collection of notes
and accounts receivable — trade, in addition to net income. Net cash used in
investing activities was JPY 12,925 million (a decrease in cash used of JPY
975 million compared with the same period of the previous fiscal year) due to
capital investment in production and other facilities. Net cash used in
financing activities was JPY 10,764 million (an increase in cash used of JPY
3,395 million compared with the same period of the previous fiscal year) due
to repayment of borrowings and dividends paid. As a result, the balance of
cash and cash equivalents at September 30, 2013 was JPY 66,942 million, an
increase of JPY 11,234 million from the end of the previous fiscal year.

(3) Description of Consolidated Performance Forecast
Consolidated performance for the six months ended September 30, 2013 was
strong in every business. In addition, in the third quarter and thereafter,
the recovery in business conditions, the depreciation of the yen and other
factors are expected to continue, and both net sales and income are forecast
to be strong. Consequently, the consolidated performance forecast for the
fiscal year is revised from the figures announced on April 25, 2013 as
follows. The assumed exchange rates for the third quarter onward in the
performance forecast for the fiscal year are USD 1 = JPY 95 and EUR 1 = JPY
130.

The performance forecast and other forward-looking statements are based on
information available to the Company at the present time, and on certain
assumptions judged by the Company to be reasonable. Due to a variety of
factors, actual results may differ materially from the forecast.


Revised Full-Year Performance Forecast   (Millions of yen, except per share
                                         data)
                                         Income    Net income     Net income
                  Net        Operating   before    attributable   per share
                sales     income      income   to            attributable
                                         taxes     shareholders   to
                                                                  shareholders
Previous          710,000    58,000      56,500    40,000         181.71
forecast (A)
New forecast      750,000    65,000      62,000    43,000         195.34
(B)
Change (B-A)      +40,000    +7,000      +5,500    +3,000         -
Change (%)        +5.6%      +12.1%      +9.7%     +7.5%          -
(Reference)
Actual results
for the
previous fiscal  650,461   45,343     41,237   30,203        137.20
year
(Ended March
31, 2013)


2. Summary Information (Other)
(1)  Changes in significant subsidiaries during the period
      None applicable

(2)   Application of simplified accounting methods and/or specific accounting
      methods
      None applicable

(3)   Changes in accounting policy
      None applicable


3. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets

                                                          (Millions of yen)
                                     As of               As of
                                       March 31, 2013       September 30, 2013
ASSETS                                                               
Current assets:                        333,694     58.2%    355,115     59.0%
Cash and cash equivalents              55,708               66,942
Notes and accounts receivable —        158,911              150,230
trade
Allowance for doubtful receivables     (1,988)              (2,068)
Inventories                            91,013               106,229
Deferred income taxes                  17,611              19,770      
Other current assets                   12,439               14,012
Property, plant and equipment:         126,835     22.1     130,076     21.6
Land                                   26,591               26,495
Buildings                              137,821              139,398
Machinery and equipment                156,186              159,901
Construction in progress               6,729                8,701
Accumulated depreciation               (200,492)           (204,419)   
Investments and other assets:          113,108     19.7     116,283     19.4
Investments in and advances to         17,939               18,573
associates
Investment securities                  38,193               44,544
Leasehold deposits                     6,914                7,017
Deferred income taxes                  30,612               26,308
Other                                  19,450              19,841      
Total assets                          573,637    100.0%  601,474    100.0%


                                                          (Millions of yen)
                                      As of              As of
                                        March 31, 2013      September 30, 2013
LIABILITIES                                                          
Current liabilities:                    145,701    25.4%    147,137     24.5%
Short-term debt                         5,570               183
Notes and accounts payable — trade      75,592              79,226
Accrued expenses                        32,818              33,780
Income taxes payable                    3,907               5,783
Other current liabilities               27,814              28,165
Deferred income taxes                   595        0.1      695         0.1
Termination and retirement benefits     56,944     9.9      53,835      9.0
Other long-term liabilities             1,634      0.3      1,936       0.3
Total liabilities                       204,874    35.7     203,603     33.9
                                                                        
NET ASSETS
Shareholders’ equity                    366,962    64.0     395,885     65.8
Common stock                            64,100     11.2     64,100      10.7
Capital surplus                         99,066     17.3     99,066      16.5
Legal reserve                           10,876     1.9      11,103      1.8
Retained earnings                       253,654    44.2     269,099     44.7
Accumulated other comprehensive         (44,349)   (7.7)    (31,080)    (5.2)
income (loss)
Foreign currency translation            (14,224)            (5,069)
adjustments
Minimum pension liability adjustments   (39,730)            (39,040)
Net unrealized gains on                 9,580               13,118
available-for-sale securities
Net gains (losses) on derivative        25                  (89)
instruments
Treasury stock                          (16,385)   (2.9)    (16,403)    (2.7)
Noncontrolling interests                1,801      0.3      1,986       0.3
Total net assets                        368,763    64.3     397,871     66.1
Total liabilities and net assets       573,637   100.0%  601,474    100.0%


(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated
Statements of Comprehensive Income
(Quarterly Consolidated Statements of Operations)
(Six months ended September 30, 2013)

                                                          (Millions of yen)
                                     Six months ended    Six months ended
                                       September 30, 2012   September 30, 2013
Net sales                              304,216    100.0%   359,726    100.0%
Cost of sales                          192,494     63.3     221,914     61.7
Gross profit                           111,722     36.7     137,812     38.3
Selling, general and administrative    72,105      23.7     84,961      23.6
expenses
Research and development expenses      21,626      7.1      22,065      6.1
Operating income                       17,991      5.9      30,786      8.6
Other expenses, net                    771         0.2      753         0.3
Income before income taxes             17,220      5.7      30,033      8.3
Income taxes                           5,579       1.8      10,041      2.8
Equity in net losses (gains) of        (472)       (0.1)    (1,285)     (0.4)
affiliates
Net income                             12,113      4.0      21,277      5.9
Net loss (income) attributable to      (158)       (0.0)    103         0.0
noncontrolling interests
Net income attributable to            12,271     4.0     21,174     5.9
shareholders
                                                            

(Quarterly Consolidated Statements of Comprehensive Income (Loss))
(Six months ended September 30, 2013)

                                                          (Millions of yen)
                                         Six months ended   Six months ended
                                       September 30,     September 30, 2013
                                         2012
Net income                               12,113             21,277
Other comprehensive income (loss), net
of tax
Foreign currency translation             (9,259)            9,237
adjustments
Pension liability adjustments            503                690
Net unrealized gains (losses) on         (3,269)            3,538
available-for-sale securities
Net gains (losses) on derivative         106                (114)
instruments
Other comprehensive income (loss)        (11,919)           13,351
Comprehensive income (loss)              194                34,628
(Breakdown)
Comprehensive income (loss)
attributable to noncontrolling           (171)              185
interests
Comprehensive income (loss)             365               34,443
attributable to shareholders


(3) Consolidated Statements of Cash Flows
                                                          (Millions of yen)
                                     Six months ended    Six months ended
                                       September 30, 2012   September 30, 2013
I. Operating Activities:
1. Net income                          12,113               21,277
2. Adjustments to reconcile net
income to net cash provided by
operating activities:
(1) Depreciation and amortization      10,659               11,854
(2) Net loss on sales and disposals    14                   194
of property, plant and equipment
(3) Net gain on sales of investment    (334)                (1,394)
securities
(4) Loss on investment securities      579                  0
(5) Termination and retirement         (1,992)              (2,334)
benefits
(6) Deferred income taxes              1,712                472
(7) Equity in loss (earnings) of       (473)                (1,285)
affiliates
(8) Changes in assets and
liabilities:
(i) Decrease in notes and accounts     15,840               13,238
receivable — trade, net
(ii) Increase in inventories           (3,651)              (12,018)
(iii) Decrease (increase) in other     1,416                (734)
assets
(iv) Increase (decrease) in notes      (5,684)              2,168
and accounts payable — trade
(v) Increase in income taxes payable   402                  1,890
(vi) Increase (decrease) in accrued
expenses and other current             (1,890)              151
liabilities
(9) Other, net                         (1,711)              282
Total adjustments                      14,887               12,484
Net cash provided by operating         27,000               33,761
activities
II. Investing Activities:
1. Proceeds from sales or maturities   781                  2,260
of investment securities
2. Purchase of investments             —                    (2,039)
securities
3. Capital expenditures                (14,068)             (13,575)
4. Decrease (increase) in leasehold    159                  (44)
deposits, net
5. Proceeds from sales of property,    685                  354
plant and equipment
6. Proceeds from sale of business      90                   —
entities, net
7. Equity transaction with             (10)                 —
noncontrolling interests
8. Decrease (increase) in investment   (1,884)              119
in and loans to affiliates
9. Other, net                          347                  —
Net cash used in investing             (13,900)             (12,925)
activities
III. Financing Activities:
1. Net repayments of short-term debt   (4,985)              (5,421)
2. Dividends paid by the Company       (3,082)              (5,063)
3. Dividends paid to noncontrolling    (2)                  —
interests
4. Proceeds from capital transaction   596                  —
with noncontrolling interests
5. Other, net                          104                  (280)
Net cash used in financing             (7,369)              (10,764)
activities
IV. Effect of Exchange Rate Changes    (1,489)              1,162
on Cash and Cash Equivalents
Net Increase in Cash and Cash          4,242                11,234
Equivalents
Cash and Cash Equivalents at           45,257               55,708
Beginning of the Period
Cash and Cash Equivalents at End of    49,499               66,942
the Period
Notes to cash flows from operating
activities:
1. Interest paid                       123                  130
2. Taxes paid                          3,470                7,082
Notes to investing and financing
activities not involving cash flow:
Debt related to capital expenditures  625                 482


(4) Notes Regarding Consolidated Financial Statements

(Notes Regarding Assumptions of Continuing Operations)
None applicable

(Notes in the Event of Significant Changes in Shareholders’ Equity)
None applicable


(Segment Information)
Business Segment Information

Six months ended September 30, 2012 (April 1, 2012 – September 30, 2012)        (Millions of yen)
                                                                                 Eliminations

             IAB      EMC     AEC     SSB      HCB     Other   Total    &             Consolidated

                                                                                 Corporate
Net sales:
(1) Sales to
external       129,893   42,605   47,257   23,471    32,557   25,457   301,240   2,976          304,216
customers
(2)
Intersegment   2,864     21,932   110      1,824     39       8,559    35,328    (35,328)       —
sales
Total          132,757   64,537   47,367   25,295    32,596   34,016   336,568   (32,352)       304,216
Operating      117,185   62,191   44,587   27,176    30,679   34,664   316,482   (30,257)       286,225
expenses
Segment
profit        15,572   2,346   2,780   (1,881)  1,917   (648)   20,086   (2,095)       17,991
(loss)


Six months ended September 30, 2013 (April 1, 2013 – September 30, 2013)        (Millions of yen)
                                                                                 Eliminations

             IAB      EMC     AEC     SSB      HCB     Other   Total    &             Consolidated

                                                                                 Corporate
Net sales:
(1) Sales to
external       138,018   48,782   59,468   29,112    42,838   38,460   356,678   3,048          359,726
customers
(2)
Intersegment   3,721     23,920   58       2,162     25       16,191   46,077    (46,077)       —
sales
Total          141,739   72,702   59,526   31,274    42,863   54,651   402,755   (43,029)       359,726
Operating      123,905   68,767   55,178   33,036    38,471   48,873   368,230   (39,290)       328,940
expenses
Segment
profit        17,834   3,935   4,348   (1,762)  4,392   5,778   34,525   (3,739)       30,786
(loss)

        Due to a revision of management classifications, some businesses under
        EMC are included in the IAB business segment from the year ending
Note:  March 31, 2014. Accordingly, figures for the six months ended
        September 30, 2013 are restated under the new management
        classification.



Geographical Segment Information
Six months ended September 30, 2012 (April 1, 2012 – September 30, 2012)    (Millions of yen)
                                             Greater   Southeast             Eliminations
             Japan    Americas  Europe  China    Asia and   Total    &             Consolidated
                                                       Others                Corporate
Net sales:
(1) Sales to
external       149,670   39,568     36,320   52,990    25,668      304,216   —              304,216
customers
(2)
Intersegment   61,902    972        509      33,075    8,153       104,611   (104,611)      —
sales
Total          211,572   40,540     36,829   86,065    33,821      408,827   (104,611)      304,216
Operating      201,577   39,199     36,350   80,354    31,502      388,982   (102,757)      286,225
expenses
Segment
profit        9,995    1,341     479     5,711    2,319      19,845   (1,854)       17,991
(loss)


Six months ended September 30, 2013 (April 1, 2013 – September 30, 2013)    (Millions of yen)
                                             Greater   Southeast             Eliminations
             Japan    Americas  Europe  China    Asia and   Total    &             Consolidated
                                                       Others                Corporate
Net sales:
(1) Sales to
external       160,715   46,190     47,446   69,666    35,709      359,726   —              359,726
customers
(2)
Intersegment   82,853    1,334      797      45,426    10,610      141,020   (141,020)      —
sales
Total          243,568   47,524     48,243   115,092   46,319      500,746   (141,020)      359,726
Operating      223,896   47,967     47,274   105,597   42,332      467,066   (138,126)      328,940
expenses
Segment
profit        19,672   (443)     969     9,495    3,987      33,680   (2,894)       30,786
(loss)

Note.  Major countries or regions belonging to segments other than Japan are
        as follows:
        (1) Americas                 United States of America, Canada, Brazil
        (2) Europe                    Netherlands, Great Britain, Germany,
                                      France, Italy, Spain
        (3) Greater China             China, Hong Kong, Taiwan
        (4) Southeast Asia and        Singapore, Republic of Korea, India,
        Others                        Australia


Overseas Sales
Six months ended September 30, 2012 (April 1, 2012 –     (Millions of yen)
September 30, 2012)
                                                Greater   Southeast
                          Americas  Europe  China    Asia        Total
                                                          and Others
I    Overseas sales        40,173     39,150   53,665    26,844       159,832
II   Consolidated net                                             304,216
      sales
      Overseas sales as a
III  percentage           13.2      12.9    17.6     8.8         52.5
      of consolidated net
      sales (%)


Six months ended September 30, 2013 (April 1, 2013 –     (Millions of yen)
September 30, 2013)
                                                Greater   Southeast
                          Americas  Europe  China    Asia        Total
                                                          and Others
I    Overseas sales        47,248     49,920   69,890    37,390       204,448
II   Consolidated net                                             359,726
      sales
      Overseas sales as a
III  percentage           13.1      13.9    19.4     10.4        56.8
      of consolidated net
      sales (%)

Note:  Major countries or regions belonging to segments other than Japan are
        as follows:
        (1) Americas                 United States of America, Canada, Brazil
        (2) Europe                    Netherlands, Great Britain, Germany,
                                      France, Italy, Spain
        (3) Greater China             China, Hong Kong, Taiwan
        (4) Southeast Asia and        Singapore, Republic of Korea, India,
        Others                        Australia


4. Supplementary Information
(1) Summary of Consolidated Financial Results for the Second Quarter of the Fiscal
Year Ending March 31, 2014
(Millions of yen, %)
                 Six         Six                    Year
                 months      months      Year-on-   ended      Year ending   Year-on-
               ended      ended      year      March     March 31,    year
                 September   September   change     31,        2014          change
                 30,         30,                    2013       (projected)
                 2012        2013
Net sales        304,216     359,726     +18.2%     650,461    750,000       +15.3%
Operating        17,991      30,786      +71.1%     45,343     65,000        +43.4%
income
[% of net        [5.9%]      [8.6%]      [+2.7P]    [7.0%]     [8.7%]        [+1.7P]
sales]
Income before    17,220      30,033      +74.4%     41,237     62,000        +50.4%
income taxes
[% of net        [5.7%]      [8.3%]      [+2.6P]    [6.3%]     [8.3%]        [+2.0P]
sales]
Net income
attributable     12,271      21,174      +72.6%     30,203     43,000        +42.4%
to
shareholders
Net income per
share
attributable     55.74       96.19       +40.45     137.20     195.34        +58.14
to
shareholders
(basic) (JPY)
Net income per
share
attributable
to               55.74       —           —          137.20     —             —
shareholders
(diluted)
(JPY)
Total assets     514,715     601,474     +16.9%     573,637                 
Shareholders’    318,114     395,885     +24.4%     366,962
equity
[Shareholders’
equity ratio    [61.8%]     [65.8%]     [+4.0P]    [64.0%]                 
(%)]
Shareholders’
equity per       1,445.11    1,798.48    +353.37    1,667.04                
share (JPY)
Net cash
provided by      27,000      33,761      +6,761     53,058                  
operating
activities
Net cash used
in investing     (13,900)    (12,925)    +975       (28,471)                
activities
Net cash
provided by
(used in)        (7,369)     (10,764)    (3,395)    (18,550)                
financing
activities
Cash and cash
equivalents at  49,499     66,942     +17,443   55,708                
end of period

Note:  The number of consolidated subsidiaries is 154, and the number of
        companies accounted for by the equity method is 10.


(2) Consolidated Net Sales by Business Segment
(Billions of yen)
                                    Six months   Six months
                                ended       ended       Period-on-period
                                    September    September    change (%)
                                    30, 2012     30, 2013
                        Domestic    58.7         55.9         -4.7
IAB                     Overseas    71.2         82.1         +15.2
                        Total       129.9        138.0        +6.3
                        Domestic    13.4         14.3         +6.7
EMC                     Overseas    29.2         34.5         +18.0
                        Total       42.6         48.8         +14.5
                        Domestic    15.9         13.2         -16.9
AEC                     Overseas    31.4         46.3         +47.4
                        Total       47.3         59.5         +25.8
                        Domestic    23.4         29.0         +24.2
SSB                     Overseas    0.1          0.1          -17.2
                        Total       23.5         29.1         +24.0
                        Domestic    14.1         14.6         +4.3
HCB                     Overseas    18.5         28.2         +52.2
                        Total       32.6         42.8         +31.6
                        Domestic    16.6         25.9         +55.9
Other                   Overseas    8.9          12.6         +42.2
                        Total       25.5         38.5         +51.1
Eliminations and        Domestic    2.3          2.4          +4.3
others                  Overseas    0.5          0.6          +36.6
                        Total       2.8          3.0          +7.1
                        Domestic    144.4        155.3        +7.5
                        Overseas    159.8        204.4        +27.9
Total                   [% of       [52.5%]      [56.8%]      [+4.3P]
                        total]
                       Total      304.2       359.7       +18.2


(3) Consolidated Operating Income (Loss) by Business Segment
(Billions of yen)
                        Six months ended   Six months ended   Period-on-period
                      September 30,     September 30,     change (%)
                        2012               2013
IAB                     15.6               17.8               +14.5
EMC                     2.3                3.9                +67.7
AEC                     2.8                4.3                +56.4
SSB                     (1.9)              (1.8)              —
HCB                     1.9                4.4                +129.1
Other                   (0.6)              5.8                —
Eliminations and        (2.1)              (3.6)              —
others
Total                  18.0              30.8              +71.1

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


(4) Average Currency Exchange Rate
(One unit of currency, in yen)
         Six months ended    Six months ended    Period-on-
                September 30, 2013   September 30, 2014   period change
   USD     79.4                 98.2                 +18.8
   EUR    101.1               128.9               +27.8


(5) Projected Consolidated Net Sales by Business Segment
(Billions of yen)
                                       Year ended   Year ending   Year-on-year
                                   March 31,   March 31,    change (%)
                                       2013         2014 (est.)
                        Domestic       116.3        114.5         -1.5
IAB                     Overseas       146.7        168.5         +14.9
                        Total          263.0        283.0         +7.6
                        Domestic       26.7         28.5          +6.9
EMC                     Overseas       57.4         69.5          +21.0
                        Total          84.1         98.0          +16.5
                        Domestic       30.2         28.0          -7.5
AEC                     Overseas       67.4         93.0          +38.0
                        Total          97.6         121.0         +23.9
                        Domestic       68.5         82.0          +19.8
SSB                     Overseas       0.3          1.0           +227.9
                        Total          68.8         83.0          +20.7
                        Domestic       29.5         31.0          +5.1
HCB                     Overseas       42.0         57.0          +35.6
                        Total          71.5         88.0          +23.0
                        Domestic       41.4         44.0          +6.2
Other                   Overseas       17.8         28.0          +57.1
                        Total          59.2         72.0          +21.5
Eliminations and        Domestic       5.4          4.0           -25.2
others                  Overseas       0.9          1.0           +15.5
                        Total          6.3          5.0           -20.6
                        Domestic       318.0        332.0         +4.4
Total                   Overseas       332.5        418.0         +25.7
                        [% of total]   [51.1%]      [55.7%]       [+4.6P]
                       Total         650.5       750.0        +15.3


(6) Projected Consolidated Operating Income (Loss) by Business Segment
(Billions of yen)
                          Year ended       Year ending            Year-on-year
                        March 31, 2013  March 31, 2014        change (%)
                                           (est.)
IAB                       31.3             37.0                   +18.0
EMC                       4.4              8.5                    +95.4
AEC                       5.0              8.5                    +69.7
SSB                       2.9              5.5                    +88.7
HCB                       4.4              7.5                    +70.2
Other                     2.5              7.0                    +177.1
Eliminations and others   (5.2)            (9.0)                  —
Total                    45.3            65.0                  +43.4

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


(7) Projected Average Currency Exchange Rate
(One unit of currency, in yen)
         Year ended      Year ending            Year-on-year
                March 31, 2013   March 31, 2014 (est.)   change
   USD     83.2             96.7                    +13.5
   EUR    107.6           129.4                  +21.8

Contact:

OMRON Corporation
Takayoshi Oue, +81-75-344-7070
Executive Officer
Senior General Manager
Accounting and Finance Center
 
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