OMRON : Presentation Materials of Financial Results w/o Script (20251107 presentation e)

‌FY2025 H1 Financial Results‌ November 7, 2025 OMRON Corporation

‌Summary

• FY2025 H1 Results

  • 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

• FY2025 Full-year Forecasts

  • 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"

‌Contents

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

‌１．H1 FY2025 Results

‌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）

‌H1 Results by Segment

Sales and profits up Y/Y at IAB, SSB, DMB and DSB, down Y/Y at HCB

Sales

OP （¥bn）

*1

*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.

Copyright: 2025 OMRON Corporation. All Rights Reserved. 6

‌H1 Results: Analysis of Change in Operating Income (Y/Y)

While GP increased significantly, mainly driven by higher sales in IAB, OP declined due to a lower gross profit margin and increased development investments

①GP increase

on higher sales

②Lower GP margin

③Increased fixed costs

-6.7

（Labor costs-0.6 / Expenses-6.1）

(¥ bn)

Forex impact

+12.2

-5.5

Higher SG&A Higer R&D

-2.3

19.2

-4.3

-1.6

Mix -0.4

Labor costs -0.2

17.7

Selling price initiatives * -0.2

Expenses -2.2

H1 FY2024

Actual

Ref: Sales by BC IAB +18.9

HCB -3.9

SSB +0.8

DMB +7.2

DSB +3.8

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

*excl. Tariff impact

Labor costs -0.4

Expenses -3.9

H1 FY2025

Actual

Y/Y -1.5

‌２．FY2025 Full-year Forecasts

‌H2 Operating Environment

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

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

‌Update on the impact of U.S. Tariff Policy (Impact on Internal Costs)

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.

as of Q1 FY25 current outlook

Amount of

tariff burden

• IAB

• HCB

• DMB

  ¥-11.5bn

  ¥-3.5bn

  ¥-3.0bn

  ¥-5.0bn

  ¥-6.0bn

  ¥-2.0bn

  ¥-2.0bn

  ¥-2.0bn

  Profit impact risk ¥0～¥-4.0bn ¥-1.3bn

  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％

【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％

‌Forecasts: Consolidated Earnings

Full-year forecasts revised, with revenue and profit expected to increase Y/Y

（¥ bn）

* *

*High end: Assumes no demand fluctuations

Low end: Reflects risks of demand fluctuations and limited absorption of internal cost increases

‌Forecasts: by Segments

Revenue and profit expected to increase Y/Y, excluding HCB

Sales

OP （¥ bn）

*1

*3

*2

*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,

12

both recalculated for this segment.

Copyright: 2025 OMRON Corporation. All Rights Reserved.

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

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

③Increased fixed costs

①GP increase

on higher sales

+25.4

②Lower GP margin

-2.9

-14.5

(Labor costs -8.1/ Expenses -6.4）

Others -2.6

Production added value -1.8 Inventory valuation loss -7.0 Variable costs down +0.0 Production cost ratio +6.7

-1.3

Tariff costs impact

+2.5

Mix

-6.8

Forex impact

Selling price initiatives * +0.6

Higer R&D

-7.7

54.0

60.0

-2.0

Labor costs Expenses

-4.9

-1.9

Labor costs -3.2

Expenses -4.5

*excl. Tariff impact

Higher SG&A

(¥ bn)

FY2024

Actual

FY2025

Y/Y ＋6.0

Forecast

Copyright: 2025 OMRON Corporation. All Rights Reserved. 13

‌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

Domains Outlook for H2

• In Semiconductors, investment is continuing to expand in response to growing demand for

Digital

NEV

Food/ Household goods

Medicine/

Logistics

Others*

Copyright: 2025 OMRON Corporation. All Rights Reserved.

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

• 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

14

‌IAB: Trend of Order Levels

In Q2, order levels declined due to stagnation in automotive-related investments and the completion of secondary battery investments

1.00

1.00

Order levels (FY24 FX FCST rate base)

1.05

1.03 1.04

0.95

1.00

Background of order trends

１

Automotive-related investments stagnated in Japan

Amid uncertainty over tariff policies, Japanese automakers with high U.S. exposure scaled back new capital investments

0.87

0.91

0.89

0.94 0.94

Investments in China's secondary

２

batteries have peaked

Chinese manufacturers, aiming to expand

global market share, are slowing capital

FY22 FY23 FY24 FY25

expenditures in response to the recent

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

stagnation in EV demand

（Based on FY22 Q4）

Copyright: 2025 OMRON Corporation. All Rights Reserved.

&beyond

15

‌IAB：Advancement in Growth Initiatives

Ongoing internal initiatives are showing results, supporting expectations for

sustained sales growth

IAB Sales Trend Progress in Growth Initiatives / H1 Results

…FY24 …FY25

(¥bn)

Customer Base Recovery

1

- Steady progress in strengthening

＋8.2％

＋5.8％

distributor relationships

174.5

188.8

186.3

197.2

- Component sales to a broad range of customers are progressing, with "Other" Industries sales continuing to recover across all regions

2

New Product Release

- 11 new products released in H1

- Sales of new products released last year

have exceeded internal targets

3

Solution Expansion

• Ongoing investment gains driven by generative AI demand

• Automated X-ray Inspection system (AXI)

H1 H2

adoption expanding in advanced segments

with competitive advantages

* All industries excluding Focus industries 16

‌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.

GP Margin Trend *1

GP Margin Change in Q2 and Key Factors(Y/Y)

Outlook for H2 and Beyond

excluding Inventory valuation loss

① Inventory Profit impact

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 H2

FY23 FY24

FY25

(Forecast)

valuation loss

Continuing

Gradual

- Effects of the previous year's

strong improvement, etc.

② Demand and customer trends [Temporary factors]

- Received a large order from

key customers

- Changes in product mix

[Continuing factor]

- Rising freight costs

reduction from FY26 onward

Resolved

Continuing

③ New Products

Expansion of profit

- Increase in sales of

high-value-added products

contribution

*1. FY25 FX FCST rate base

*2. excl. foreign exchange impact

17

‌Shareholder Returns

Interim dividend fixed at ¥52.

Initial full-year dividend guidance of ¥104 maintained

Interim Dividend (Fixed) Full-year (Forecast)

¥52 ¥104

18

Copyright: 2024 OMRON Corporation. All Rights Reserved.

‌３． Review of Structural Reform Program

"NEXT 2025"

‌Review of Structural Reform Program "NEXT 2025"

0.2

0.18

0.16

0.14

0.12

0.1

0.08

0.06

0.04

0.02

0

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.

9500

9000

8500

8000

7500

7000

6500

6000

5500

5000

Sales

OPM

876.1

SF 1st Stage

11.5%

818.8

NEXT2025

845.0

801.8

（¥bn）

4.2%

6.7%

7.1%

FY22 FY23 FY24 FY25

(Forecast)

‌

‌Reference

‌Consolidated Balance Sheet

(¥ bn)

‌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.

‌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

ROIC ＝

Net income attributable to OMRON shareholders

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

‌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

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these projections.