OMRON : Presentation Materials of Financial Results w/ Script (20260205 presentation script e)

Published February 13, 2026 at 5:47 a.m. UTC

Source: MarketScreener

FY2025 Q3

Financial Results

February 5, 2026 OMRON Corporation

Hello, everyone. I am Takeda, CFO and Senior General Manager of Global Strategy HQ. Thank you very much for taking time out of your busy schedules today to participate in our financial results briefing for Q3 of the fiscal year ending March 31, 2026. Today, as in previous briefings, we will begin with an explanation of the financial results, followed by a Q&A session. We would like to receive as many questions as time permits. Thank you.

I will now explain according to the presentation materials. See the next page.

Summary

FY2025 Q3 Results
- Consolidated revenue increased, while profits declined due to a decrease in gross profit margin and continued growth investments
- IAB achieved a significant increase in revenue, capturing AI-related demand in addition to the recovery of customer base
- On the other hand, operating profit fell below the previous year's level due to continued growth investments,
  while the gross profit margin only showed a modest recovery
FY2025 Full-year Forecasts
- Revenue forecasts revised upward from the previous outlook after incorporating foreign exchange impacts and business environment for Q4
- While continuing growth investments with a medium to long-term perspective, profitability is steadily improving, and earnings are expected to increase in Q4
- IAB is continuing revenue growth exceeding previous expectations due to globally capturing FA and
  AI-related demand
- DPS guidance for fiscal year-end of ¥52 reiterated. Initial full-year dividend guidance of ¥104

Today's presentation will cover two points.

The first point is Q3 results. Companywide results showed an increase in sales, but a decrease in profit due to a decline in gross margin and continued investment in growth.

IAB achieved a significant increase in revenue due to a recovery of the customer base and by capturing AI-related demand. Operating profit was below the previous year's level due to continued investment in growth while gross margin recovered only moderately.

The second point is the outlook for full-year results. Sales were revised upward from the previous forecast, taking into account the impact of foreign exchange impacts and the business environment during Q4 period. Even as we continue to invest in growth with an eye on the medium to long term, profitability is steadily improving and is expected to turn profitable in Q4 period.

In IAB, sales growth is expected to continue to exceed the previous forecast in Q4 period due to global FA and AI-related demand.

The year-end dividend is planned to be JPY52, as previously forecasted, and the annual dividend forecast remains unchanged at JPY104.

Now, let's get to the main part. See page five.

Contents

１．FY2025 Q3 Results

・・・・ P.4 ～ P.8

２．FY2025 Full-year Forecasts

・・・・ P.9 ～ P.20

１．FY2025 Q3 Results

FY2024 Q1-Q3 Act.	FY2025 Q1-Q3 Act.	Y/Y
579.7	614.3	+6.0%
261.7 (45.1%)	269.5 (43.9%)	+3.0% (-1.3%pt)
35.9 (6.2%)	33.9 (5.5%)	-5.7% (-0.7%pt)
7.2	14.3	+99.6%
152.1	148.6	-3.5
164.8	170.6	+5.8
21.1	20.7	-0.4

Q3 Cumulative Consolidated Results

Revenue increased YoY, while profit declined

(¥bn)

Net Sales

Gross Profit

(%)

Operating Income

(%)

Net Income attributable to OMRON shareholders

Average USD rate (JPY) Average EUR rate (JPY) Average CNY rate (JPY)

Before reporting the results for Q3 period, we will first explain the cumulative results for the period from April to December. See shaded area.

Net sales were JPY614.3 billion, up 6% from the previous year. Operating income declined 5.7% to JPY33.9 billion due to a decline in gross margin and continued investment in growth. Net income increased significantly due to the elimination of one-time expenses related to structural reform in the previous year.

I will now explain the results for Q3 period.

FY2024 Q3 Actual	FY2025 Q3 Actual	Y/Y
205.1	220.8	+7.7%
91.7 (44.7%)	97.0 (43.9%)	+5.7% (-0.8%pt)
16.7 (8.1%)	16.1 (7.3%)	-3.2% (-0.8%pt)
10.5	5.3	-49.6%
149.0	153.2	+4.2
161.8	178.1	+16.3
20.9	21.6	+0.6

Q3 Consolidated Results

Revenue increased, while operating profit declined due to a decrease in the gross profit margin and continued growth investments

(¥bn)

Net Sales

Gross Profit

(%)

Operating Income

(%)

Net Income attributable to OMRON shareholders

Average USD rate (JPY) Average EUR rate (JPY) Average CNY rate (JPY)

See the shaded area at the center of the table.

Net sales increased 7.7% to JPY220.8 billion, led by IAB

companywide.

Operating income declined 3.2% to JPY16.1 billion due to a decline in gross margin and continued investment in growth. Although sales increased and profits declined, they are progressing according to internal plans.

Net income decreased significantly due to write-downs of equity securities. The impact of this stock valuation was a JPY1 billion valuation gain on a cumulative Q3 basis, due in part to the significant valuation gain recorded in Q2.

Next are the results by business segment.

		FY2024 Q3 Actual	FY2025 Q3 Actual	Y/Y
IAB Industrial Automation		91.5	101.1	+10.4%
HCB Healthcare		38.7	41.3	+6.7%
SSB Social Systems, Solutions & Service		35.4	33.6	-5.1%
DMB Device & Module Solutions		27.1	30.3	+11.9%
DSB Data Solutions *2		11.3	13.8	+21.8%
	Include JMDC	11.4	13.4	+17.5%
Eliminations & Corporate		1.0	0.8	-25.3%
Total 205.1			220.8	+7.7%

FY2024

Q3 Actual

FY2025

Q3 Actual

Y/Y

11.2 (12.3%)*1

9.7

(9.6%)

-13.7% (-2.7%pt)

5.5

(14.1%)

5.5

(13.3%)

+0.3% (-0.8%pt)

4.0

(11.2%)

3.7

(10.9%)

-7.4% (-0.3%pt)

0.1

(0.3%)

0.8

(2.6%)

+936.8% (+2.3%pt)

1.3

(11.8%)

1.9

(13.7%)

+41.3% (+1.9%pt)

2.5

(22.0%)

3.3

(24.9%)

+33.1%

(+2.9%pt)

-5.4

16.7

(8.1%)

16.1

(7.3%)

-3.2% (-0.8%pt)

Q3 Results by Segment

Revenue up and profits down Y/Y at IAB.

Revenue and profits up Y/Y at HCB and DMB, down Y/Y at SSB

Revenue OP

(¥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.

First, IAB. In addition to the recovery of the customer base, we steadily captured semiconductor investments backed by AI demand and secondary battery investments for data centers, resulting in net sales of JPY101.1 billion, up 10.4% from the previous year.

Operating profit declined 13.7% to JPY9.7 billion due to a decline in gross margin and continued investment in growth.

Next, HCB. Although the blood pressure monitor market in China remained stagnant, the introduction of new products and strengthened sales promotion were successful, resulting in sales of JPY41.3 billion, up 6.7% from the previous year. Operating profit was JPY5.5 billion, flat from the previous year, mainly due to the impact of the US tariff policy.

Next, SSB. Demand for storage batteries for residential use temporarily stagnated due to the earlier-than-expected termination of government subsidies in the current fiscal year. As a result, net sales decreased by 5.1% to JPY33.6 billion and operating profit decreased by 7.4% to JPY3.7 billion.

Next, DMB. The market remained solid globally, with net sales up 11.9% to JPY30.3 billion and operating profit at JPY800 million.

Finally, DSB. JMDC's health big data business performed well. Overall, the DSB posted sales of JPY13.8 billion and operating profit of JPY1.9 billion due to investments and amortization of intangible assets associated with consolidation.

I will now explain the results for Q3 operating profit.

Y/Y -0.5

FY2025 Q3

Actual

FY2024 Q3

Actual

*1. excl. Tariff impact

*2. incl. Material prices-1.1

Labor costs -0.2

Expenses -1.6

16.1

Labor costs -0.9

Expenses -1.2

-0.6

+0.1

+0.0

-0.2

-2.0

-0.5*2

+1.1

-1.0

Mix

Selling price initiatives*1 Tariff costs impact Production added value Inventory valuation loss Variable costs down Production cost ratio Others

-1.9

Forex impact

+1.8

16.7

Higher R&D

Higher SG&A

-2.1

+4.6 -2.9

③Increased fixed cost

-4.0

(Labor costs-1.1 / Expenses-2.8)

①GP increase ②Lower GP on higher sales margin

Q3 Results: Analysis of Change in Operating Income (Y/Y)

Gross profit increased due to revenue growth in IAB, while operating profit remained the same Y/Y due to a decline in gross profit margin and growth investments

(¥bn)

Ref: Sales by BCIAB +6.4

HCB +1.0

SSB -1.9

DMB +2.4

DSB +2.5

Here is a step chart comparing operating profit with the previous year. Let me start from the left.

First is the increase in gross profit due to higher sales. The increase in sales, mainly in IAB, led to a JPY4.6 billion increase in profits for the entire company.

Next is the decline in gross profit margin. Although inventory write-downs shrank from the previous quarter, the YoY impact of lower profits and higher material prices led to an overall decrease in profits of JPY2.9 billion.

Finally, there is an increase in fixed costs. The investment in growth, mainly in IAB led to a JPY40 billion decrease in profits for the entire company. That's all for the report on performance.

I will now explain the full-year forecast.

２． FY2025 Full-year Forecasts

IAB

Industrial Automation

Overall, a gradual Y/Y recovery is underway. The semiconductor industry remains stable, and the secondary battery industry is expected to outperform prior assumptions

*Details are provided in this presentation

HCB

Healthcare

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

SSB

Social Systems, Solutions & Service

A temporary demand stagnation in Renewable energy and Railway industry

Energy: Residential demand to temporarily stagnate due to early subsidy termination; industrial demand impacted by construction delays Railway: Temporary demand softening expected due to postponed capital investments

DMB

Device & Module Solutions

The overall business environment remains stable

DC Equipment/Microwave Devices: Despite demand stagnation in EVs and new energy, it remains steady backed by expansion in the semiconductor market

Commodity Devices: The global market remains stable.

DSB

Data Solutions

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

Q4 Operating Environment

Overall, business environment has remained in line with the initial expectations,

while the impact varies by industry. Gradual recovery in IAB

First, operating environment for the Q4 period.

See IAB. In general, we expect a moderate recovery from the

previous year. We will explain the details later.

Next, HCB. The blood pressure monitor market is expected to see solid demand globally, while China is expected to remain sluggish. Next, SSB. In the renewable energy business, we expect a temporary stagnation in demand due to the end of subsidies for residential customers this fiscal year, as well as delays in construction schedules for industrial customers. Demand is also expected to weaken in the railway industry, as some railway companies have postponed investments.

Other segments are expected to remain solid.

Forecasts: Consolidated Earnings

Revenue revised upward.

Operating income and Net income remain in line with the previous forecast

(¥bn)

I will now explain the company-wide full-year forecast. See the shaded area at the center of the table.

Net sales are projected to be JPY855 billion, gross profit JPY375.5

billion, gross margin 43.9%, operating profit JPY60 billion, and net income JPY29 billion.

We revise net sales upward, while operating profit and net income remain unchanged. Based on our recognition of the business environment in Q4, we carefully reviewed our sales and investment plans and reflected the impact of foreign exchange impacts.

Moving onto the forecast by segment.

		FY2025 Prev. Forecast	FY2025 Forecast	Chg. vs. Prev. FCST	Y/Y
IAB Industrial Automation		386.0	396.0	+2.6%	+9.8%
HCB Healthcare		140.0	145.0	+3.6%	-0.6%
SSB *2 Social Systems, Solutions & Service		150.0	145.0	-3.3%	+1.1%
DMB Device & Module Solutions		115.0	115.0	-	+9.1%
DSB*3 Data Solutions		51.0	51.0	-	+19.3%
	Include JMDC	50.5	50.5	-	+17.7%
Eliminations & Corporate		3.0	3.0	-	-14.5%
Total		845.0	855.0	+1.2%	+6.6%

FY2024 Prev. Forecast	FY2025 Forecast	Chg. vs. Prev. FCST	Y/Y
40.0	41.5	+3.8%	+14.4%
(10.4%)*1	(10.5%)	(+0.1%pt)	(+0.4%pt)
14.5	15.0	+3.4%	-14.2%
(10.4%)	(10.3%)	(-0.0%pt)	(-1.6%pt)
20.0	19.5	-2.5%	+27.1%
(13.3%)	(13.4%)	(+0.1%pt)	(+2.7%pt)
4.0	2.5	-37.5%	+717.0%
(3.5%)	(2.2%)	(-1.3%pt)	(+1.9%pt)
5.0	5.0	-	+76.7%
(9.8%)	(9.8%)	-	(+3.2%pt)
11.5	11.5	-	+36.8%
(22.8%)	(22.8%)	-	(+3.2%pt)
-23.5	-23.5	-	-
60.0	60.0	-	+11.0%
(7.1%)	(7.0%)	(-0.1%pt)	(+0.3%pt)

Forecasts: by Segments

Revenue and profits revised upward at IAB and HCB, and downward at SSB. Profits revised downward at DMB.

Revenue OP (¥bn)

*1. Figures shown in brackets under OP are OPMs.

*2. 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.

*3. 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.

First, IAB. Both sales and operating profit have been revised upward, and we expect a significant increase in both sales and income from the previous year. I will explain it more in detail later.

Next, HCB. Both sales and operating profit have been revised upward from previous forecast reflecting the impact of foreign exchange. Compared to the previous year, the gap effect, especially in the Q1 period, is expected to be significant, resulting in lower sales and profits.

Next, SSB. We have lowered our forecast for net sales and operating profit in light of temporary weakness in demand in the energy solutions and railway businesses. On the other hand, compared to the previous year, net sales are expected to increase, and operating profit is also expected to increase significantly, as the effects of cost reductions and price optimization steadily manifest themselves.

Next, DMB. While the sales forecast remains unchanged from previous forecast, we reflected the impact of increasing material price to operating profit. However, improvements in the profit structure are progressing as planned, and we expect a significant increase in profit over the previous year.

Finally, DSB. Both net sales and operating income remain unchanged from the previous forecast. See the next page.

11.3

6.4

GP increase on higher sales Revenue up 8％ QoQ

Gross margin improvement Improved by 0.1%Pt

Fixed cost ratio improvement Improved by 3.4%Pt

＋¥8.7bn

＋¥0.3bn

＋¥1.0bn

(Forecast)

16.1

3.4%

OPM

26.1

5.6%

7.3%

10.9%

204.0

Revenue 189.5

Profit Impact (QoQ)

Profit growth drivers (Q4)

Quarterly performance trends (Consolidated)

(¥bn)

240.7

220.8

Forecasts: Quarterly performance trends and Profit growth drivers

Operating margin has improved progressively from Q1, and is expected to rise significantly in Q4, resulting in a return to profit growth

1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q

Let me provide additional details on the forecast for Q4 on this slide. See the chart at the left.

Operating profit margin in Q1 started from a low level of 3.4% due to tariff effects. Since then, however, we have made steady improvements while continuing to invest in growth.

In the Q4 period, operating income is expected to be JPY26.1 billion, with an operating margin of 10.9%, well above the previous year's level, and is expected to turn profitable for the full year.

As shown on the right side of the slide, the drivers of Q4 profit growth are (1) Gross profit increase on higher sales.

In the next slide, I will explain the detail of Q4 forecast.

Ref: Sales by BC

FY2025

Q4 Forecast

Y/Y +8.0

FY2024

Q4 Actual

Mix +2.7

Selling price initiatives*1 +0.9 Tariff costs impact +0.0 Production added value +0.7 Inventory valuation loss -2.0 Variable costs down -2.0*2

Production cost ratio +3.1 *1. excl. Tariff impact

Others -0.7 *2. incl. Material prices -2.7

+9.1

+1.4

+2.7

+0.6

+2.0

・IAB

・HCB

・SSB

・DMB

・DSB

26.1

Higher R&D

-1.1

Labor costs -1.4

Expenses +0.2

Forex impact

+0.8

18.1

③Increased fixed costs

-1.6（Labor costs-2.7/ Expenses+1.0）

Higher SG&A

-0.5

Labor costs -1.3

Expenses +0.8

②Gross margin

①GP increase improvement on higher sales +2.8

+6.1

(¥bn)

Q4 Forecasts: Analysis of Change in Operating Income (Y/Y)

Revenue growth and margin improvement led by IAB to offset growth investments; significant profit increase expected.

Here is a step chart comparing operating profit for Q4 with the previous year.

First is the increase in gross profit due to higher sales. Sales are expected to increase in all businesses. In particular, IAB is expected to drive the entire company, resulting in an increase in profit of JPY6.1 billion.

Moving onto the improvement in gross profit margin. Despite the continued impact of inventory write-downs and higher material prices, we expect an overall profit increase of JPY2.8 billion due to an improvement in the ratio of manufacturing fixed costs and the mix effect of an increase in the composition of IAB.

Finally, fixed cost. Fixed costs are expected to increase by JPY1.6 billion, reflecting investments for growth in the next fiscal year and beyond.

In the next slide, I will explain the detail of the forecast for IAB.

In line with the previous forecasts. There is no significant change in capital investment demand, and it is generally expected to remain flat Y/Y
In line with the previous 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, capital investment demand is expected to recover gradually

* All domains except the four listed above

Others*

Logistics

Medicine/

goods

ousehold

H Food/

EV: Cautious investment in Japan; demand slightly decline versus the previous outlook
Secondary batteries: EV-related investment flat; data center investment increasing

NEV

Outlook for Q4

Semiconductors: Investment is continuing to expand in response to growing

demand for generative AI, and the market remains firm

Domains

Digital

IAB: Q4 Operating Environment Outlook

Modest improvement from the previous outlook; semiconductor-related capex and

data center battery demand remain stable amid rising generative AI demand

First, I would like to explain our perception of the business environment by industry.

See Digital industry. Semiconductors are expected to remain solid in Q4, as investments associated with demand for generated AI expand globally.

Next is the NEV industry. We expect capital investment for EVs to continue to shrink globally, especially in Japan.

On the other hand, secondary batteries are expected to outperform the previous forecast and remain solid, backed by the expansion of large-capacity power storage system applications in data centers.

We expect a gradual recovery in other industries, except for the

focused industries. See the next page.

0.95

Capturing demand for advanced semiconductors
Capturing demand for data center secondary batteries

3 Capturing demand for data utilization

- Launched new controller DX1

1.00

from AI demand

0.91

0.94 0.94

0.87

0.89

0.80

FY22 FY23

Q4 Q1 Q2 Q3

（Based on FY22 Q4）

FY24

Q4 Q1 Q2 Q3

FY25

Q4 Q1 Q2 Q3

Progress in internal initiatives (New product expansion ×
Strengthened distributer collaboration)
Gradual recovery in FA demand

Capturing growth opportunities

２

1.00

1.04

1.03

1.05

１ Recovery in the global customer base

1.20

1.25

Background of order trends of Q3

Order levels (FY24 FX FCST rate base)

IAB: Trend of Order Levels

In Q3, order levels surged, driven by a recovery in the global customer base and the capture of AI-related demand

4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2Q 3Q

FY23 FY24 FY25

1.20

1.15

1.10

1.05

1.00

0.95

0.90

0.85

The following is an explanation of changes in order levels.

Order received in the Q3 increased significantly from the Q2. See

the right side. There are three major points.

The first is the recovery of our global customer base. Amid a gradual recovery in demand for FA, we have made steady progress in continuously introducing new products and strengthening cooperation with distributors.

The second is to capture the growth opportunities associated with the increasing demand for AI. Our solutions have enabled us to capture the investment opportunities associated with the expanding AI business.

The third is to capture the demand for data utilization.

In the next slide, I will explain the details of each of them.

Approx. 15.0 ¥bn

*2. 20 models launched as of end of Q3

*1 All Domains excluding Digital, NEV, Food/Household goods, Medicine/Logistics

New Product Sales Outlook

＋7％

＋11％

＋8％

＋14％

…FY25

…FY24

Progress of new product development and launches

Sales Trend in Other domains

IAB：Recovery in the Global customer base

Sales recovery in Other domains continuing with growth-supporting new products

sales steadily expanding. New product launches are progressing as planned

FY26 Launch of 9 models planned

FY25 Completion of launches for 22 models scheduled *2

FY24 Launch of 11 models completed

The first is the recovery of our global customer base. See the chart at the left.

Here are the sales trends for other domains, which account for about 60% of the sales in IAB. As you can see, sales have continued to increase since Q1 and are expected to expand significantly in Q4. This growth is driven by the introduction of new products that meet customer and industry needs. This is one of the key measures that play a central role in the growth strategy of IAB, and each development theme is making steady progress.

We plan to complete the launches of 22 models this fiscal year as planned. The impact of these new products on the current fiscal year's performance is expected to be approximately JPY15 billion for the full year.

Since they are being launched sequentially during the term, their contribution is still limited at the moment, but they will become a more significant growth driver in terms of both sales and profits, as they will contribute to our performance for a full year from the next term onward.

We will firmly link the development investments we are strengthening this fiscal year to enhance competitiveness and expand sales.

*YoY sales in Semiconductor and Secondary Battery Industries, excluding foreign exchange impact

YoY

(H2) ＋37％

Secondary battery industry Sales

Ongoing implementation of industry solutions for key Chinese customers and continued high-end product orders

Expansion of investments in Secondary energy storage for data centers

Battery (China)

Industry

YoY

(H2) ＋182％

AXI Sales

Acceleration of standardization

and expanded deployment of Automated X-ray Inspection systems (AXI)

Rising demand for high-precision

inspection for data centers

(China, Asia etc.)

Industry

＋8％

YoY (H2)

Semiconductor Industry Sales

Expansion of Industry-focused solution deployment and related component sales

Investment Acquisition Status*

Expanding Demand for Generative AI

Expansion of Investments in Advanced semiconductors and Manufacturing equipment

Semiconductor (Japan, China, Asia etc.)

IAB：Capturing growth opportunities from AI demand

Expanding sales by capturing investment in the semiconductor and secondary battery industries driven by AI demand

Next, I will explain the growth opportunities associated with increasing demand for AI. Against the backdrop of rising demand for AI, increased capital investment is becoming apparent in the semiconductor and secondary battery areas. First, semiconductors. As investment in advanced semiconductors continues to expand, the adoption of our solutions is progressing, and we expect sales in H2 to be 8% higher than the previous year.

In addition, data center servers are increasingly demanding higher quality for PCB. Sales of AXI have expanded significantly in response to this demand.

We have the number one market share in this field, and our differentiating technologies, such as the industry's fastest CT imaging technology, are being adopted as standard by major semiconductor manufacturers. As a result, H2 sales are up 182% from the previous year, with an acceleration in installations.

Next, secondary batteries. We expect sales in H2 to increase 37% over the previous year, as we have been responding to demands for data centers in addition to EVs, mainly from major customers in China.

We view these AI-related demands as a structural growth trend that will continue in the next fiscal year and beyond, rather than a transient phenomenon. We will continue to strengthen our competitiveness in the high-end area to achieve sustainable

sales growth. 18

IAB：Capturing demand for data utilization

Launched a new controller to accelerate data utilization at manufacturing sites Data Flow Controller DX1 (Launched in September 2025)

Enables easy data collection and visualization from existing production equipment

Product Features

Cloud

＞

Retrofit installation on existing equipment using third-party PLCs
No-code deployment independent of specialized skills
Analytics tools offered as modular components

Data Data

acquisition acquisition

Equipment A: Equipment B:

OMRON's PLC third-party PLC

Devices Devices

Data acquisition

Equipment C: third-party PLC

Devices

・・・

Data acquisition

I/O-Link Master

Devices

umulative Sa

(vs. Plan) ＋30％

les

Orders (vs. Plan)

＋

106％

Challenges in utilizing manufacturing site data

Lack of clarity on how to acquire and utilize data

Avoid downtime of existing equipment

Data formats vary by equipment manufacturer

Finally, we will explain our approach to the utilization of manufacturing site data.

As reported in the roadmap announced in November, we will promote GEMBA DX throughout the Company. In the area of factory automation, we aim to realize more innovative manufacturing through the utilization of manufacturing site data. In September last year, we launched the "Data Flow Controller DX1," a PLC that will be the core product to realize this goal.

The product's major strengths are that it can be easily retrofitted to existing equipment, including PLCs from other manufacturers, and that it enables visualization and utilization of data without relying on specialized skills.

Since its launch in September, the product has received inquiries from a wide range of customers and has exceeded expectations with cumulative sales 30% higher than planned and orders 106% higher than planned.

We will continue to further strengthen value-added creation through data and automation, leading to medium- to long-term growth.

Shareholder Returns

DPS guidance for fiscal year-end of ¥52 reiterated. Initial full-year dividend guidance of ¥104 maintained

FY-end (Forecast)

Full-year (Forecast)

¥52

¥104

Finally, I will explain the shareholder returns.

The year-end dividend is planned to be JPY52 per share, as previously forecasted, and the annual dividend forecast remains unchanged at JPY104 per share.

We will continue to strive for stable and continuous returns to shareholders, aiming for a dividend payout ratio of approximately 3%.

The above is an explanation of the full-year forecast for FY2025.

３． CFO Message

In closing, I would like to summarize our efforts this term and look forward to the next term.

As I explained today, we expect both sales and profits to expand in Q4, and we expect both sales and profits to increase for the full year.

In IAB in particular, we expect AI-related demand to remain firm in the next fiscal year, particularly in the semiconductor and secondary battery industries, and we will seize this opportunity through our strengths in control solutions and AXI.

In addition, we will further strengthen our customer base by developing new products and collaborating with distributors. Through these efforts, we will achieve sustainable sales growth in the next fiscal year.

Strengthening the earning structure

Accelerating the execution of various earnings initiatives to further improve operating margins in and beyond the next fiscal year

- New product launches and enhanced

Improve earning power pricing management
(GP margin) - Expanded use of locally sourced components in China and
implementing local design, development and production
- Exit from the payment terminal business
Optimize the business - Divestment of the automotive relay business in Europe
portfolio - Reorganization of manufacturing sites for HCB
- Japan: Indirect function efficiency through JV* establishment
Improve SG&A efficiency - Overseas: Dissolution of regional headquarters

Korea and Asia (Mar. '25), Americas (Sep. '25), Europe (Mar. '26)

＊OMRON Transcosmos Process Innovation Co., Ltd.

On the other hand, the improvement in the operating profit margin was limited this fiscal year due to the external environment and growth investments, but efforts to improve it in the next fiscal year are progressing sequentially.

The first is to improve GP margin. In addition to new product launches and stronger selling price management, we are accelerating efforts to strengthen our cost competitiveness in China. As released today, in IAB, we will assign a new executive to oversee the China area. We will shift to a business operation that integrates the value chains, production, sales, development, and planning, thereby increasing business speed and cost competitiveness.

The second is to optimize the business portfolio. In the current fiscal year, we executed an exit from the payment terminal business in SSB and the divestment of the automotive relay business in Europe in DMB. In HCB, we are also optimizing our production functions, including the termination of production at the Brazilian production plant. We will also reorganize the remaining underperforming businesses and allocate management resources to growth areas.

The third is to improve the efficiency of SG&A expenses. In addition to the consolidation and streamlining of domestic indirect operations through the establishment of a joint venture with Transcosmos this fiscal year, the dissolution of overseas regional headquarters is proceeding as planned. These efforts are expected to contribute to a gradual reduction in SG&A expenses. We will continue to implement initiatives to improve the efficiency of SG&A expenses.

In April, "SF2030 2nd Stage " announced in November will start. Although fluctuations in the external environment are expected to continue, the path to re-growth is clear, and we will steadily implement the measures set forth in our roadmap.

We will firmly move forward to grow IAB and strengthen our profitability, and through both offensive and defensive management, we will achieve an increase in corporate value. Thank you for your attention today.

Reference

FY2025 Q3

Cumulative Actual

Y/Y -2.0

FY2024 Q3

Cumulative Actual

Others -2.7

*1. excl. Tariff impact

*2. incl. Material prices -2.1

Labor costs -0.6

Expenses -5.5

33.9

Labor costs -1.1

Expenses -3.4

Higer R&D

-6.2

-1.0

Selling price initiatives -0.1 Tariff costs impact -1.2 Production added value -0.9 Inventory valuation loss -5.2 Variable costs down -0.5 Production cost ratio +3.2

Mix

Higher SG&A

-4.5

Forex impact

+0.2

35.9

(¥ bn)

③Increased fixed costs

-10.6

(Labor costs -1.7/ Expenses-8.9）

-8.4

+16.7

①GP increase ②Lower GP on higher sales margin

Q3 Cumulative Results: Analysis of Change in Operating Income (Y/Y)

Ref: Sales by BCIAB +25.3

HCB -2.9

SSB -1.1

DMB +9.6

DSB +6.3

Y/Y +6.0

FY2025

Forecast

FY2024

Actual

*1. excl. Tariff impact

*2. incl. Material prices -4.8

Production cost ratio +6.3

Others -3.4

Labor costs -2.0

Expenses -5.3

60.0

Labor costs -2.4

Expenses -2.6

Selling price initiatives +0.8 Tariff costs impact -1.2 Production added value -0.1 Inventory valuation loss -7.2 Variable costs down -2.5 *2

Ref: Sales by BC(Y/Y)

IAB +34.4

HCB -1.5

SSB +1.6

DMB +10.2

DSB +8.3

54.0

-7.3

+1.8

Mix

Forex impact

+1.0

Higer R&D

Higher SG&A

-5.0

③Increased fixed costs

-12.3

（Labor costs -4.4 / Expenses-7.9）

②Lower GP

margin

-5.6

①GP increase on higher sales

+22.8

(¥ bn)

Full-year Forecasts: Analysis of Change in Operating Income (Y/Y)

End-Mar. 2025		End-Dec. 2025	Change (Y/Y)
Current assets	539.3	585.2	+45.9
(Cash and cash equivalents)	(149.0)	(155.2)	(+6.2)
(Inventory)	(173.0)	(204.8)	(+31.9)
Property, plant and equipment	135.1	140.9	+5.8
Investments and other assets	687.4	721.9	+34.5
Total assets 1,361.8		1,448.0	+86.2
Current liabilities	233.3	277.3	+44.0
Long-term liabilities	194.1	198.4	+4.3
Total Liabilities	427.4	475.7	+48.3
Shareholders' equity	771.9	808.3	+36.4
Noncontrolling interests	162.5	164.1	+1.5
Total net assets	934.4	972.3	+37.9
Total Liabilities and net assets	1,361.8	1,448.0	+86.2

Equity ratio 56.7%

55.8%

-0.9%pt

Consolidated Balance Sheet

(¥ bn)

	FY2024 Q1-Q3 Actual	FY2025 Q1-Q3 Actual	Change (Y/Y)
Operating cash flow 32.9		33.2	+0.3
Investment cash flow -43.2		-49.8	-6.6
Free cash flow (FCF) -10.3		-16.6	-6.3
Financing cash flow -2.2		15.0	+17.2
Cash and cash equivalents as of end of period 136.9		155.2	+18.3

Capital expenditure	*	34.2	35.4	+1.2
Depreciation	25.0		25.0	+0.1

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.

	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

FY2025

Q4 Assumptions

¥150.0

¥175.0

¥21.5

FY2025 Forex Sensitivities and Assumptions

Impact of 1 yen move (full year)

CNY impact of 0.1 yen move

Sensitivities

Assumptions

* If emerging market currency trends diverge from trends in major currencies contrary to our expectations, it will impact sensitivities

ROIC Definition

Net income attributable

to OMRON shareholders

ROIC ＝

Invested capital

＊

*Invested capital = Borrowings + Shareholders' equity

Invested capital: The average of previous fiscal year-end result and quarterly results (or forecasts) of current fiscal year