Fiscal year ending March 2004 Results for the First Quarter (April 1, 2003 – June 30, 2003) August 8, 2003 Omron Corporation 1 <Contents> 1. First Quarter Results (April 1, 2003 – June 30, 2003) (1) Consolidated Statement of Income (2) Breakdown of Sales (3) Breakdown of Operating Income (4) Segment Information 2. Forecast for six months ending Sept. 30, 2003 (1) Consolidated Statement of Income (2) Breakdown of Sales (3) Breakdown of Operating Income (4) Segment Information 3. Business plan for year ending March 2004 Notes 1. 2. 3. 4. Financial figures for the quarterly period are not audited or reviewed by an auditing corporation. The financial statements are prepared in accordance with U.S. GAAP standards. Includes 134 consolidated subsidiaries and 10 affiliated companies accounted for by the equity method. Projections of results and future developments are based on information available to the Company at the present time, 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 to, (ⅰ)the economic conditions surrounding the Company’s business in Japan and overseas, (ⅱ) demand trends for the Company’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, and (ⅵ) movements in currency exchange rates and stock markets. 2 First Quarter Results Consolidated ConsolidatedStatement Statementof ofIncome Income (Unit : 100 millions of yen) Sales 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 1,169 405 Gross Profit Gross Profit Margin 34.6% 313 SG&A Ratio to sales 26.7% 94 R&D Exp Ratio to sales 8.1% -3 Operating Income Ratio to sales -0.2% 21 Non-Ope. Exp. NIBT -23 NIAT -17 Currency 1,344 532 39.6% 337 25.1% 96 7.2% 99 7.4% -1 100 61 114.9% 131.5% 5.0%P 107.7% -1.7%P 102.1% -0.9%P --7.6%P -3.9% ----- 3 months 3 months Year on year Rate ended ended Change (Yen) June 2002 June 2003 ％ 126.1 116.5 119.6 135.0 -6.5 18.5 US$ EUR 3 First Quarter Results Breakdown Breakdownof ofSales Sales (Unit : 100 millions of yen) By Region Japan Overseas Total By Business IAB ECB AEC SSB/AMB HCB Other Total 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 660 509 1,169 783 561 1,344 118.8% 110.0% 115.0% 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 469 197 137 179 101 86 1,169 545 223 146 256 117 56 1,344 116.1% 113.3% 106.2% 143.6% 115.6% 65.8% 114.9% 4 First Quarter Results Breakdown Breakdownof ofOperating OperatingIncome Income (Unit : 100 millions of yen) IAB ECB AEC SSB/AMB HCB Others HQ Cost / Eliminations Total 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 49 16 10 -51 12 -7 -31 -3 81 41 4 -7 19 -1 -39 99 165.6% 254.4% 35.5% --160.5% ------5 First Quarter Results Segment SegmentInformation Information Industrial IndustrialAutomation AutomationCompany Company Factory Automation, Industrial Component-Equipped Control Systems and Devices (Unit : 100 millions of yen) Digital Controller Industrial Components (Relays,Switches, Controllers, Timers and others) System Components (Programmable Logic Controllers and others) Sensors (Photoelectric, Proximity,Measurement and others) IAB 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 223 247 53 130 27 35 2 469 Japan Overseas North America Europe Asia China Export Total Operating Income 262 283 52 150 34 46 0 545 117.7% 114.6% 98.9% 115.3% 126.1% 132.2% 15.0% 116.1% 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 49 81 Programmable Logic Controller PCB Inspection System) 165.6% 6 First Quarter Results Segment SegmentInformation Information Electronic ElectronicComponents ComponentsCompany Company Electronic Components for Home Appliances, Telecommunication, Mobile Phones, Amusement machines and others (Unit : 100 millions of yen) Power Relay Relays, Switches, Sensors, MEMS Sensors, OA Sensors, Connectors, Micro Lens Arrays (MLA), Custom ICs, IC Coin Systems and others ECB 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 107 91 31 22 11 21 5 197 Japan Overseas North America Europe Asia China Export Total Operating Income 125 99 28 25 11 22 12 223 117.0% 109.1% 90.1% 115.1% 101.8% 106.2% 220.4% 113.3% 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 16 41 IC Coin System B-MLA 254.4% 7 Segment SegmentInformation Information First Quarter Results Automotive AutomotiveElectronic ElectronicComponents ComponentsCompany Company (Unit : 100 millions of yen) Automotive Electronic Components Automotive Relay Automotive Relays, Switches, Power Window Switches, Keyless Entry Systems, Electric Power Steering Controllers and others AEC 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 51 86 59 8 19 0 0 137 Japan Overseas North America Europe Asia China Export Total Operating Income 59 87 55 10 22 0 0 146 115.6% 100.7% 93.2% 120.7% 115.2% ----106.3% 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 10 4 Keyless Entry System Power Window Switch 35.5% 8 First Quarter Results Segment SegmentInformation Information Social SocialSystems SystemsBusiness Business** Devices, Solutions and Services to Financial Institutions, Railway Companies and Traffic Sectors (Unit : 100 millions of yen) Pass Gate ATMs, BTRs (Bill Transposer and Remitter), Cash Dispensers, Pass Gates (Passenger Gate), Automated Ticket Vending Machines, Traffic Management Systems and others SSB/AMB 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 151 28 1 0 1 1 25 179 Japan Overseas North America Europe Asia China Export Total Operating Income 232 24 1 3 0 1 20 256 153.9% 87.5% 77.8% --20.0% 81.8% 77.6% 143.5% 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ -51 -7 ATM Photo Printing Station for Mobile Phones --- *Social Systems Solutions & Services Business Company and Advanced Modules Business Company are included in the Social Systems Business. 9 Segment SegmentInformation Information Healthcare HealthcareCompany Company First Quarter Results (Unit : 100 millions of yen) Home and Professional Medical Devices Blood Pressure Monitor Digital Blood Pressure Monitors, Digital Thermometers, Nebulizers, Electronic Pulse Massagers, Massage Chairs, Pedometers, Body-fat Analyzers and others HCB 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 45 56 32 15 3 5 1 101 Japan Overseas North America Europe Asia China Export Total Operating Income 51 66 35 19 4 7 0 117 113.2% 117.6% 111.4% 126.1% 116.1% 146.9% 25.0% 115.6% 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 12 19 Massage Chair Nebulizer 160.5% 10 Segment SegmentInformation Information Others Others First Quarter Results (Unit : 100 millions of yen) Business Development Group and others Entertainment Systems (Photo sticker vending machine and other) RFID, PC Peripherals, Anti-theft Systems for Automobiles, Remote Supervisory Systems and others 3 months 3 months Year on year ended ended Change June 2002 June 2003 ％ 83 2 0 0 0 2 0 86 Japan Overseas North America Europe Asia China Export Total Operating Income 54 2 0 0 0 2 0 56 65.1% 91.7% ----72.9% --65.8% 3 months Year on year ended ended Change June 2002 June 2003 ％ -1 Anti-theft System for Automobiles (Main) --- 3 months -7 Anti-theft System for Automobiles (Remote) Broadband Router --11 Forecast for six months Consolidated ConsolidatedStatement Statementof ofIncome Income (Unit : 100 millions of yen) 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ Sales 2,469 2,680 108.6% 2,590 103.5% 949 1,030 108.5% 1,000 103.0% Gross Profit Gross Profit Margin 38.4% 651 SG&A Ratio to sales 26.4% 183 7.4% 210 115 4.6% 25.1% 8.1% 100.0% -0.3%P 140 5.4% 114.3% 0.6%P 242 10 NIBT -127 150 --- 120 125.0% NIAT -97 60 --- 40 150.0% Non-Ope. Exp. Currency 4.1% 101.5% -0.5%P 210 139.7% 1.3%P 6.0% -0.2%P 650 114.8% 0.4%P 160 38.6% 101.4% -1.7%P 7.8% Operating Income Ratio to sales 660 24.6% R&D Exp Ratio to sales 0.0%P 38.4% 20 50.0% 6 months ended 6 months ending Year on year 6 months ending Comparison Rate Sept. 2002 Sept. 2003 Change Sept. 2003 to budget (Yen) Results Revised Forecast ％ Original budget ％ 123.6 117.2 117.3 132.5 -6.3 15.3 120.0 125.0 -2.7 7.5 US$ EUR 12 Forecast for six months Breakdown Breakdownof ofSales Sales (Unit : 100 millions of yen) By Region Japan Overseas Total By Business IAB ECB AEC SSB/AMB HCB Other Total 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 1,444 1,025 2,469 1,577 1,103 2,680 109.2% 107.6% 108.5% 1,520 1,070 2,590 103.7% 103.1% 103.5% 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 982 389 284 418 204 192 2,469 1,090 440 290 520 230 110 2,680 111.0% 113.1% 102.2% 124.4% 112.9% 57.3% 108.6% 1,040 420 310 500 210 110 2,590 104.8% 104.8% 93.5% 104.0% 109.5% 100.0% 103.5% 13 Forecast for six months Breakdown Breakdownof ofOperating OperatingIncome Income (Unit : 100 millions of yen) IAB ECB AEC SSB/AMB HCB Others HQ Cost / Eliminations Total 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 131 46 23 -38 19 12 -79 115 156 73 9 -17 33 -1 -93 160 118.9% 157.8% 38.7% --177.6% ----139.7% 137 59 24 -22 17 3 -78 140 114.1% 124.4% 37.8% --193.0% ----114.3% 14 Forecast for six months Segment SegmentInformation Information Industrial IndustrialAutomation AutomationCompany Company (Unit : 100 millions of yen) IAB 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 491 492 103 253 59 74 2 982 Japan Overseas North America Europe Asia China Export Total Operating Income 536 554 101 296 66 90 1 1,090 109.2% 112.7% 98.2% 116.9% 112.6% 121.5% 29.2% 111.0% 510 530 99 279 62 90 0 1,040 105.1% 104.5% 102.3% 106.1% 106.5% 100.0% --104.8% 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 131 156 118.9% 137 114.1% 15 Forecast for six months Segment SegmentInformation Information Electronic ElectronicComponents ComponentsCompany Company (Unit : 100 millions of yen) ECB 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 211 178 61 43 22 37 15 389 Japan Overseas North America Europe Asia China Export Total Operating Income 246 194 57 50 22 39 26 440 230 190 58 48 24 40 20 420 116.8% 108.7% 93.3% 115.7% 98.7% 104.6% 179.3% 113.1% 107.0% 102.1% 98.3% 104.2% 91.7% 97.5% 130.0% 104.8% 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 46 73 157.8% 59 124.4% 16 Forecast for six months Segment SegmentInformation Information Automotive AutomotiveElectronic ElectronicComponents ComponentsCompany Company (Unit : 100 millions of yen) AEC 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 109 175 118 17 40 0 1 284 Japan Overseas North America Europe Asia China Export Total Operating Income 119 171 111 19 41 0 0 290 120 190 124 20 45 0 1 310 109.8% 97.4% 94.3% 112.7% 102.5% ----102.1% 99.3% 89.9% 89.4% 93.5% 91.8% --0.0% 93.5% 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 23 9 38.7% 24 37.8% 17 Segment SegmentInformation Information Social SocialSystems SystemsBusiness Business** Forecast for six months (Unit : 100 millions of yen) SSB/ AMB 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 355 63 2 0 1 2 59 418 Japan Overseas North America Europe Asia China Export Total Operating Income 468 52 1 9 0 2 40 520 450 50 1 6 0 2 41 500 131.9% 82.1% 62.5% --0.0% 133.3% 67.3% 124.4% 104.0% 104.0% 100.0% 150.0% --100.0% 97.6% 104.0% 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ -38 -17 --- -22 --- *Social Systems Solutions & Services Business Company and Advanced Modules Business Company are included in the Social Systems Business. 18 Segment SegmentInformation Information Healthcare HealthcareCompany Company Forecast for six months (Unit : 100 millions of yen) HCB 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 96 108 63 31 6 9 0 204 Japan Overseas North America Europe Asia China Export Total Operating Income 103 127 71 37 7 12 0 230 107.9% 117.3% 112.4% 122.6% 101.6% 142.4% 400.0% 112.9% 100 110 61 34 5 10 0 210 103.0% 115.5% 115.7% 110.0% 130.0% 121.0% --109.5% 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 19 33 177.6% 17 193.0% 19 Segment SegmentInformation Information Others Others Forecast for six months (Unit : 100 millions of yen) 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 183 9 0 0 0 7 2 192 Japan Overseas North America Europe Asia China Export Total Operating Income 105 5 0 0 0 5 0 110 57.4% 55.1% 0.0% ----66.7% 6.7% 57.3% 110 0 0 0 0 0 0 110 95.5% ------------100.0% 6 months ended 6 months ending Year on year 6 months ending Comparison Sept. 2002 Sept. 2003 Change Sept. 2003 to budget Results Revised Forecast ％ Original budget ％ 12 -1 --- 3 --20 Business Plan For March 2004 Full Full Year Year Business Business Plan Plan (Unit : 100 millions of yen) Year Ended Year Ending Change March 2003 March 2004 Results Plan ％ Sales 5,351 5,600 104.7% Gross Profit Margin 38.8% 39.6% 0.8% NIBT 323 47 430 380 133.1% 808.5% ROE 0.2% 7.5% 7.3% Operating Income 21 OMRON Corporation