OMRON Corporation and subsidiaries ANNUAL RESULTS For the year ended March 31, 1999. DATE : May 17, 1999. OMRON CORPORATION CODE : 6645 Annual closing date : March 31 Stock listed on : Tokyo, Osaka, Nagoya, Kyoto Contact to : Masaaki Sadatomo Director, Corporate Financial and Accounting H.Q. Telephone : 075-344-7070 1. Results for the year (From April 1, 1998 to March 31, 1999.) The Japanese Yen amounts are rounded at Million Japanese Yen. (1) Statements of Income summary (Millions of Yen) Net sales Increase Operating Increase Net income Increase ratio income ratio before tax ratio Mar. 1999 555,280 -9.2% 11,849 -74.3% 8,249 -80.5% Mar. 1998 611,795 3.0% 46,032 12.5% 42,243 7.6% Net income Mar. 1999 Mar. 1998 Increase ratio 2,174 -88.4% 18,704 18.8% Equity in net income (2) Balance Sheets summary Total assets Mar. 1999 Mar. 1998 580,586 593,129 Earnings Return on Return on Income before per share equity total assets tax per net sales JPY 8.34 0.7% 1.4% 1.5% JPY 69.80 5.5% 7.0% 6.9% 1999 -52 million (Loss), 1998 -232 million (Loss). (Millions of Yen) Total shareholders' equity 321,258 343,066 Shareholders' Shareholders' equity ratio equity per share 55.3% JPY 1,250.28 57.8% JPY 1,308.88 (3) Information of consolidation a. Number of subsidiaries consolidated ................................... 123 companies b. Number of subsidiaries non consolidated ........................... 0 companies c. Number of affiliated companies ......................................... 13 companies (4) Changes in accounting principle a. Changes in subsidiaries consolidated Added : Gyoden-sya Co. Ltd. and 2 other companies. Exclusion : OMRON Micon Systems Co. Ltd. and 9 other companies b. Changes in affiliated companies Added : Future Logic Co. and 1 other company Exclusion : -c. Changes in accounting policy Adoption of SFAS115 "Accounting for certain investments in debt and equity securities". Adoption of SFAS130 "Reporting Comprehensive Income". (5) Basis for financial statements The financial statements are prepared in accordance with U.S. GAAP. 2. Estimated annual results For the year ending March 31, 2000. Net sales Net income before tax 2000 554,500 14,000 (Millions of Yen) Net income 7,500 OMRON Corporation and subsidiaries ANNUAL RESULTS For the year ended March 31, 1999. 3. Net sales categorized by business unit urities". Business Unit Industrial Business Group Social Systems Business Group Specialty Products Division Healthcare Division Open Systems Division Others 1999 Amount Ratio 267,503 48.2% 135,872 24.5% 51,338 9.2% 43,729 7.9% 31,908 5.7% 24,930 4.5% (Millions of Yen) 1998 Amount Ratio '99 / '98 313,642 51.3% 85.3% 138,203 22.6% 98.3% 47,263 7.7% 108.6% 40,793 6.7% 107.2% 50,131 8.2% 63.6% 21,763 3.5% 114.6% Total 555,280 100.0% 611,795 Note : The Japanese Yen amounts are rounded at Million Japanese Yen. 100.0% 90.8% Consolidated Balance Sheets March 31, 1999, 1998 and 1997. Millions of Yen ASSETS 1999 1998 CURRENT ASSETS : Cash and cash equivalents ...................................................... 88,900 68,365 Short-term investments .......................................................... 1,054 6,142 Notes and accounts receivable, trade ............................................ 134,183 138,149 Allowance for doubtful receivables ............................................... (2,450) (3,301) Inventories ................................................................................. 79,535 94,981 Deferred income taxes ............................................................ 11,336 11,798 Other current assets ................................................................. 9,705 12,613 Total current assets ....................................................... 322,263 328,747 1997 Millions of U.S. dollars 1999 U.S. dollars 121.00 1999 79,288 29,035 133,771 (3,023) 85,966 10,139 8,310 343,486 735 9 1,109 (20) 657 93 80 2,663 734,710.74 8,710.74 1,108,950.41 (20,247.93) 657,314.05 93,685.95 80,206.61 2,663,330.58 PROPERTY,PLANT AND EQUIPMENT : Land ......................................................................................... 50,598 50,166 51,169 Buildings ................................................................................... 111,263 107,974 107,036 Machinery and equipment ......................................................... 135,197 143,809 143,736 Construction in progress ....................................................... 4,326 4,124 2,746 Total .................................................................................. 301,384 306,073 304,687 Accumulated depreciation ......................................................... (138,489) (135,591) (134,277) Net property, plant and equipment ............................... 162,895 170,482 170,410 418 920 1,117 36 2,491 (1,145) 1,346 418,165.29 919,528.93 1,117,330.58 35,752.07 2,490,776.86 (1,144,537.19) 1,346,239.67 15 447 100 73 154 789 4,798 14,628.10 447,223.14 99,462.81 73,008.26 154,338.84 788,661.16 4,798,231.40 OTHER ASSETS : Investments in and advances to associates ........................................ 1,770 1,843 Investment securities .............................................................. 54,114 55,336 Leasehold deposits ................................................................... 12,035 11,730 Deferred income taxes .......................................................... 8,834 7,507 Other .......................................................................................... 18,675 17,484 Total other assets .............................................................. 95,428 93,900 TOTAL .......................................................................................... 580,586 593,129 2,098 59,710 11,809 6,945 16,472 97,034 610,930 Note : 1. The Japanese Yen amounts are rounded at Million Japanese Yen. 2. The U.S. dollar amounts represent translations of Japanese Yen at the approximate exchange rate at March 31, 1999 of JPY121.00 = US$ 1. Consolidated Balance Sheets March 31, 1999 ,1998 and 1997. Millions of Yen LIABILITIES AND SHAREHOLDERS' EQUITY1999 1998 CURRENT LIABILITIES : Bank loans ................................................................................. 27,946 12,578 Notes and accounts payable, trade ................................................ 70,971 88,756 Accrued expenses ...................................................................... 20,924 23,117 Income taxes ............................................................................... 9,020 15,011 Deferred income taxes .......................................................... 551 1,713 Other current liabilities ............................................................ 26,074 26,944 Current portion of long-term debt ............................................... 2,167 8,466 Total current liabilities .................................................... 157,653 176,585 1997 Millions of U.S. dollars 1999 Thousands of U.S. dollars 1999 15,302 95,552 22,478 16,236 2,305 23,298 18,024 193,195 231 587 173 75 4 215 18 1,303 230,958.68 586,537.19 172,925.62 74,545.45 4,553.72 215,487.60 17,909.09 1,302,917.36 LONG-TERM DEBT ................................................................ 56,610 33,500 41,821 DEFERRED INCOME TAXES ......................................................... 908 11,698 13,145 TERMINATION AND RETIREMENT BENEFITS 40,076 24,913 22,909 OTHER LONG-TERM LIABILITIES ................................................................ 1,525 367 108 MINORITY INTERESTS IN SUBSIDIARIES 2,556 3,000 6,650 468 8 331 13 21 467,851.24 7,504.13 331,206.61 12,603.31 21,123.97 529 816 56 1,372 (116) (99) (59) 42 (3) 2,654 4,798 529,578.51 815,719.01 56,289.26 1,372,066.12 (115,801.65) (98,793.39) (58,991.74) 41,983.47 (2,826.45) 2,655,025 4,798,231.40 SHAREHOLDERS' EQUITY Common stock: ........................................................................ 64,079 64,079 Additional paid in capital ....................................................... 98,702 98,702 Legal reserve .......................................................................... 6,811 6,314 Retained earnings .................................................................... 166,020 174,686 Accumulated other comprehensive income.............. (14,012) (715) Cumulative translation adjustments .............................................. (11,954) (5,912) Minimum pension liability adustments .............................................. (7,138) (1,401) Net Unrealized Gain on Securities ........................ 5,080 6,598 Treasury Stock ...................................................... (342) 0 Total shareholders' equity .............................................. 321,258 343,066 TOTAL ....................................................................................... 580,586 593,129 64,079 98,702 5,963 159,741 4,617 (3,320) (2,146) 10,083 0 333,102 610,930 Note : 1. The Japanese Yen amounts are rounded at Million Japanese Yen. 2. The U.S. dollar amounts represent translations of Japanese Yen at the approximate exchange rate at March 31, 1999 of JPY 121.00 = US$ 1. Consolidated Statements of Income and Retained Earnings For year ended March 31, 1999, 1998 and 1997. Millions of Yen 1999 1998 1997 NET SALES ............................................................................... 555,280 611,795 594,261 COSTS AND EXPENSES : Cost of sales .................................................................................. 364,314 387,445 388,005 Selling general and administrative ............................................. 136,734 138,404 130,163 Research and development ........................................................ 42,383 39,914 35,188 Interest expense (income) net ................................................. 862 682 1,591 Foreign exchange loss (gain) .................................................. 2,766 4,419 860 Other, net .................................................................................... (28) (1,312) (794) Total ...................................................................................... 547,031 569,552 555,013 INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS ......................................... 8,249 42,243 39,248 INCOME TAXES : Current ...................................................................................... 12,426 24,579 22,915 Deferred .................................................................................... (6,382) (1,208) 37 Total ................................................................................... 6,044 23,371 22,952 Millions of U.S. dollars 1999 4,589 3,011 1,130 350 7 23 0 4,521 Thousands of U.S. dollars 1999 4,589,090.91 3,010,859.50 1,130,033.06 350,272.73 7,123.97 22,859.50 (231.40) 4,520,917.36 68 68,173.55 103 (53) 50 102,694.21 (52,743.80) 49,950.41 INCOME BEFORE MINORITY INTERESTS 2,205 18,872 MINORITY INTERESTS .............................................................. 31 168 16,296 557 18 0 18,223.14 256.20 NET INCOME ............................................................................ 2,174 18,704 RETAINED EARNINGS : Balance at beginning of period .................................................. 174,686 159,741 Cash dividends ...................................................................... (3,372) (3,408) Transfer to legal reserve ............................................................. (497) (351) Other appropriation of R/E .................................................. (6,971) 0 Balance at end of period ............................................................ 166,020 174,686 15,739 18 17,967 147,900 (3,408) (490) 0 159,741 1,444 (28) (4) (58) 1,372 Note : 1. The Japanese Yen amounts are rounded at Million Japanese Yen. 2. The U.S. dollar amounts represent translations of Japanese Yen at the approximate exchange rate at March 31, 1999 of JPY 121.00 = US$ 1. 1,443,685.95 (27,867.77) (4,107.44) (57,611.57) 1,372,066.12