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FY2025 H1 Financial Results November 7, 2025 OMRON Corporation
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2 Copyright: 2025 OMRON Corporation. All Rights Reserved. ● FY2025 H1 Results ● FY2025 Full-year Forecasts • Consolidated revenue increased YoY, while profits declined due to lower gross profit margins and growth investments • IAB achieved higher revenue and profit, driven by steady recovery in the customer base and strong demand from the semiconductor and secondary batteries industries • HCB recorded lower revenue and profit for H1, but turned to revenue and profit growth in Q2 after a weak Q1 • Full-year forecasts revised after reviewing tariff impacts and business outlook for H2; expecting higher revenue and profit • Overall, business environment remains in line with the initial outlook, and SSB, DMB and DSB are expected to perform steadily • IAB saw sales growth supported by the effects of structural reforms implemented since last fiscal year, and initiatives for this fiscal year are in line with the plan • Interim dividend fixed at ¥52. Initial full-year dividend guidance of ¥104 maintained ● Review of Structural Reform Program “NEXT2025” Summary
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3 Copyright: 2025 OMRON Corporation. All Rights Reserved. １．H1 FY2025 results ２．FY2025 Full-year Forecasts ３．Review of Structural Reform Program “NEXT 2025” ・・・・ P .4 ～ 7 ・・・・ P .8 ～ 18 ・・・・ P .19 ～ 20 Contents
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4Copyright: 2025 OMRON Corporation. All Rights Reserved. １．H1 FY2025 Results
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5 Copyright: 2025 OMRON Corporation. All Rights Reserved. H1 Consolidated Results Achieved Y/Y growth in revenue, while profits down due to a lower gross profit margin and the execution of growth investments （¥bn）
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6 Copyright: 2025 OMRON Corporation. All Rights Reserved. *2 *1 H1 Results by Segment Sales and profits up Y/Y at IAB, SSB, DMB and DSB, down Y/Y at HCB （¥bn） *1. Figures shown in brackets under OP are OPMs. *2. DSB includes the financial results of JMDC, consolidation adjustments (the amortization of intangible assets other than goodwill associated with the consolidation, etc.) and other financial figures related to data business. OPSales
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7 Copyright: 2025 OMRON Corporation. All Rights Reserved. Mix -0.4 Selling price initiatives -0.2 Tariff costs impact -1.2 Production added value -0.7 Inventory valuation loss -3.2 Variable costs down -0.1 Production cost ratio +2.0 Others -1.8 While GP increased significantly, mainly driven by higher sales in IAB, OP declined due to a lower gross profit margin and increased development investments -1.6 -4.3 -5.5+12.2 19.2 17.7Labor costs -0.2 Expenses -2.2 Labor costs -0.4 Expenses -3.9 -6.7 （Labor costs-0.6 / Expenses-6.1） IAB +18.9 HCB -3.9 SSB +0.8 DMB +7.2 DSB +3.8 * -2.3 H1 FY2025 Actual H1 FY2024 Actual Y/Y -1.5 H1 Results: Analysis of Change in Operating Income (Y/Y) Forex impact ②Lower GP margin ①GP increase on higher sales ③Increased fixed costs Ref: Sales by BC Higer R&DHigher SG&A (¥ bn) *excl. Tariff impact
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8Copyright: 2025 OMRON Corporation. All Rights Reserved. ２．FY2025 Full-year Forecasts
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9Copyright: 2025 OMRON Corporation. All Rights Reserved. Overall, business environment has remained in line with the initial expectations H2 Operating Environment IAB Industrial Automation HCB Healthcare SSB Social Systems, Solutions & Service DMB Device & Module Solutions DSB Data Solutions Flat compared to the previous year. The semiconductors industry is performing well, while EV industry is expected to perform below the initial outlook *Details on later BPM market continues to grow globally, while demand in China is expected to remain flat Y/Y Cardiovascular: Although moderate growth is expected globally, uncertainty persists in North America due to the impact of tariffs. China will remain sluggish due to stagnant consumer spending Respiratory: Nebulizers continue to show weak performance in China due to prolonged stagnation in consumer spending The overall business environment remains stable Energy: Renewable energy demand in the residential sector remains solid Railway industry: Capital investment demand from railway companies remains solid, driven by stable domestic demand and strong inbound tourism The overall business environment remains stable DC Equipment/Microwave Devices: Demand remains stable, supported by semiconductor market growth Commodity Devices: The global market remains stable The overall business environment is expected to remain stable, led by the health big data business JMDC: Use of healthcare data continues to grow steadily, particularly in the pharmaceutical and insurance sectors. Demand for services targeting insurers and consumers is increasing, driven by rising public awareness of health and prevention
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10 Copyright: 2025 OMRON Corporation. All Rights Reserved. Update on the impact of U.S. Tariff Policy (Impact on Internal Costs) Amount of tariff burden ✓ IAB ✓ HCB ✓ DMB as of Q1 FY25 current outlook ¥-2.0bn ¥-2.0bn ¥-2.0bn ¥-6.0bn 【Assumptions on Tariff Impact (as of 30, October)】 ・ China: +10％ ・ Japan: +10% until 8/1, then +15％ ・ Vietnam: +10% until 7/2, then +20％ ・ Indonesia: +10% until 8/1, then +19％ ・ Malaysia: +10% until 8/1, then ＋25％ ¥-11.5bn ¥-3.5bn ¥-3.0bn ¥-5.0bn Profit impact risk ¥0～¥-4.0bn ¥-1.3bn The full-year tariff burden reduced to ¥6.0 billion. In the second half, the impact is expected to be largely absorbed through price adjustments etc. Ref: Amount of Tariff Impact (H1) ¥-1.2bn 【FY25 Q1 Assumptions on Tariff Impact (as of 23, July)】 ・ China: +10％ until 8/12, then +125％ ・ Japan: +10% until 8/1, then +15％ ・ Vietnam: +10% until 7/2, then +20％ ・ Indonesia: +10% until 8/1, then +19％ ・ Malaysia: +10% until 8/1, then ＋25％
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11Copyright: 2025 OMRON Corporation. All Rights Reserved. ** Full-year forecasts revised, with revenue and profit expected to increase Y/Y Forecasts: Consolidated Earnings *High end: Assumes no demand fluctuations Low end: Reflects risks of demand fluctuations and limited absorption of internal cost increases （¥ bn）
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12Copyright: 2025 OMRON Corporation. All Rights Reserved. OPSales *2 *1 *3 Revenue and profit expected to increase Y/Y, excluding HCB Forecasts: by Segments （¥ bn） *1. Figures shown in brackets under OP are OPMs. *2. DSB includes the financial results of JMDC, consolidation adjustments (the amortization of intangible assets other than goodwill associated with the consolidation, etc.) and other financial figures related to data business. *3. From Q3 FY2025, OMRON DIGITAL Co., Ltd.’s results are recorded under “Eliminations & Corporate”. The forecast is based on the initial plan and the previous year’s results, both recalculated for this segment.
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13Copyright: 2025 OMRON Corporation. All Rights Reserved. Mix +2.5 Selling price initiatives +0.6 Tariff costs impact -1.3 Production added value -1.8 Inventory valuation loss -7.0 Variable costs down +0.0 Production cost ratio +6.7 Others -2.6 FY2025 Forecast FY2024 Actual Y/Y ＋6.0 -6.8 -2.0 -7.7 Labor costs -4.9 Expenses -1.9 Labor costs -3.2 Expenses -4.5 -14.5 (Labor costs -8.1/ Expenses -6.4） -2.9+25.4 54.0 ・IAB ・HCB ・SSB ・DMB ・DSB 60.0 +32.2 -2.3 +6.6 +12.7 +8.3 Gross profit increased significantly on higher IAB and DMB sales. Fixed costs are expected to rise, reflecting growth investments from the next fiscal year onward * Full-year Forecasts: Analysis of Change in Operating Income (Y/Y) Ref: Sales by BC *excl. Tariff impact Forex impact ②Lower GP margin ①GP increase on higher sales ③Increased fixed costs Higer R&D Higher SG&A (¥ bn)
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14Copyright: 2025 OMRON Corporation. All Rights Reserved. ・ In Semiconductors, investment is continuing to expand in response to growing demand for generative AI, and the market remains strong In China, investments aimed at domestic production are expanding to advanced fields, resulting in a market environment stronger than expected ・ EV investments in Japan are expected to decline versus the initial forecast due to the impact of tariffs ・ In secondary batteries, Chinese manufacturers’ investments have peaked and are slowing, with demand slightly below the initial forecast * IAB : H2 Operating Environment Outlook Although there are variations depending on area and industry, overall in line with the initial forecast globally. Semiconductors continue to perform steadily, while demand for EVs is decelerating Digital NEV Food/ Household goods Medicine/ Logistics Others ・ In line with the initial forecasts, There is no significant change in capital investment demand, and it is generally expected to remain flat Y/Y ・ In line with the initial forecasts, There is no significant change in capital investment demand, and it is generally expected to remain flat Y/Y ・ Although there will be some variation depending on the area, the economic outlook is expected to be at the same level as last year * All domains excluding Focus domains Domains Outlook for H2
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15Copyright: 2025 OMRON Corporation. All Rights Reserved. IAB: Trend of Order Levels 1.00 0.95 0.87 0.91 0.89 0.94 0.94 1.05 1.03 1.04 1.00 FY22 FY23 FY24 FY25 1.00 In Q2, order levels declined due to stagnation in automotive-related investments and the completion of secondary battery investments Automotive-related investments stagnated in Japan Investments in China’s secondary batteries have peaked １ ２ Amid uncertainty over tariff policies, Japanese automakers with high U.S. exposure scaled back new capital investments Chinese manufacturers, aiming to expand global market share, are slowing capital expenditures in response to the recent stagnation in EV demand Background of order trendsOrder levels (FY24 FX FCST rate base) Q3Q2 Q4Q1Q4 Q1 Q3Q2 Q4 Q2Q1 Q3 &beyond （Based on FY22 Q4）
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16 Copyright: 2025 OMRON Corporation. All Rights Reserved. IAB：Advancement in Growth Initiatives IAB Sales Trend Progress in Growth Initiatives / H1 Results …FY24 …FY25 (¥bn) H1 H2 174.5 188.8 186.3 197.2 ＋8.2％ Solution Expansion Semiconductor Industry / AXI Sales Y/Y ＋17％/+42％ New Product Release Sales of New products Vs. internal target ＋9％ Customer Base Recovery Sales in “Other” Industries* Y/Y ＋10％ - Steady progress in strengthening distributor relationships ‐ Component sales to a broad range of customers are progressing, with “Other” Industries sales continuing to recover across all regions - 11 new products released in H1 ‐ Sales of new products released last year have exceeded internal targets - Ongoing investment gains driven by generative AI demand - Automated X-ray Inspection system (AXI) adoption expanding in advanced segments with competitive advantages ＋5.8％ 1 2 3 Ongoing internal initiatives are showing results, supporting expectations for sustained sales growth * All industries excluding Focus industries
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17 Copyright: 2025 OMRON Corporation. All Rights Reserved. GP Margin Trend *1. FY25 FX FCST rate base *1 excluding Inventory valuation loss IAB：GP Margin Trend and key factors behind the change in Q2 The fluctuation in GP margin has narrowed, indicating a bottoming out. Q2 operating margin was affected by inventory valuation loss and temporary factors. Outlook for H2 and Beyond GP Margin Change in Q2 and Key Factors(Y/Y) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY23 FY24 H2Q2Q1 FY25 (Forecast) ① Inventory valuation loss Continuing Gradual reduction from FY26 onward ② Demand and customer trends Resolved - Increase in sales of high-value-added products ‐ Effects of the previous year’s strong improvement, etc. ‐ Received a large order from key customers ‐ Changes in product mix ③ New Products Expansion of profit contribution Continuing Profit impact ‐ Rising freight costs [Temporary factors] [Continuing factor] GP Margin Y/Y -3.6pt *2 *2. excl. foreign exchange impact
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Copyright: 2024 OMRON Corporation. All Rights Reserved. 18 Shareholder Returns Interim dividend fixed at ¥52. Initial full-year dividend guidance of ¥104 maintained ¥52 Interim Dividend (Fixed) Full-year (Forecast) ¥104
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19Copyright: 2025 OMRON Corporation. All Rights Reserved. ３． Review of Structural Reform Program “NEXT 2025”
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20 Copyright: 2025 OMRON Corporation. All Rights Reserved. Review of Structural Reform Program “NEXT 2025” （¥bn） 876.1 818.8 801.8 845.0 11.5% 4.2% 6.7% 7.1% 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 0.2 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 SF 1st Stage NEXT2025 Sales OPM While progress has been made in rebuilding the earnings and growth foundation, full recovery remains a work in progress. Initiatives will be carried over into the next roadmap, with a focus on expanding results. (Forecast) FY22 FY23 FY24 FY25 FY22 Actual FY23 Actual FY24 Actual FY25 Forecast Sales 876.1 818.8 801.8 845.0 GPM 45.0% 42.3% 44.5% 44.2% OP 100.7 34.3 54.0 60.0 OPM 11.5% 4.2% 6.7% 7.1% ROIC 10.4% 1.0% 1.8% Approx. 3% ROE 10.6% 1.1% 2.1% Approx. 3% EPS ¥372.2 ¥41.2 ¥82.6 ¥147.4
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22Copyright: 2025 OMRON Corporation. All Rights Reserved. Reference
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23 Copyright: 2025 OMRON Corporation. All Rights Reserved. Consolidated Balance Sheet (¥ bn)
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24 Copyright: 2025 OMRON Corporation. All Rights Reserved. Consolidated Cash Flow Statement (¥ bn) * From the first quarter of fiscal year 2025, capital expenditures have been revised to reflect figures based on capital spending. In line with this change, historical data prior to fiscal year 2024 has also been retroactively adjusted. *
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25Copyright: 2025 OMRON Corporation. All Rights Reserved. 2023年度の為替感応度・為替前提FY2025 Forex Sensitivities and Assumptions Impact of 1 yen move (full year) CNY impact of 0.1 yen move * If emerging market currency trends diverge from trends in major currencies contrary to our expectations, it will impact sensitivities Sales OP USD Approx. ¥1.2 bn Approx. ¥0.1 bn EUR Approx. ¥0.7 bn Approx. ¥0.3 bn CNY Approx. ¥0.7 bn Approx. ¥0.1 bn Sensitivities Assumptions FY2025 H2 Assumptions ¥145.0 ¥165.0 ¥20.0
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26 Copyright: 2025 OMRON Corporation. All Rights Reserved. ROIC ＝ Net income attributable to OMRON shareholders Invested capital ROIC Definition *Invested capital = Borrowings + Shareholders’ equity Invested capital: The average of previous fiscal year-end result and quarterly results (or forecasts) of current fiscal year ＊
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27Copyright: 2025 OMRON Corporation. All Rights Reserved. ROIC計算式 グローバル戦略本部 IR部 Ｅ-mail ： omron-ir@omron.com Webサイト： www.omron.com/jp/ja/ オムロン株式会社 ＜IRに関するお問い合わせ＞ Notes 1.The consolidated statements of OMRON Corporation (the Company) are prepared in accordance with U.S. GAAP . 2.Projected results 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 and uncertain factors could cause actual results to differ materially from these projections. Contact: Investor Relations Department Global Strategy Headquarters OMRON Corporation Email: omron-ir@omron.com Website: www.omron.com/global/en/