FY2023 Earnings
Results Briefing
May 8, 2024
OMRON Corporation
1
Summary
- FY2023 results
- Significant decrease in total sales and profits; mainly due to decrease of sales and profits in IAB and DMB
- HCB and SSB achieved significant increases in sales and profits capturing expanding business opportunities
- FY2024 full-year forecasts
- Gradual recovery in demand is expected from H2 in IAB and DMB. Business environments remain strong in HCB, SSB and DSB
- Targeting Y/Y growth in sales and profits. One-time expenses of approximately ¥28.0 bn for workforce/labor costs structural reform is factored in as non-operating expenses
- Full-yeardividend guidance unchanged YoY at ¥104
- Structural Reform Program "NEXT 2025"
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Copyright: 2024 OMRON Corporation. All Rights Reserved.
Contents
1.FY2023 Results | ・・・・ P.4 - 7 |
2.FY2024 Forecasts | ・・・・ P.8 - 17 |
3. Structural Reform Program "NEXT 2025" ・・・・ P.18 - 23
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Copyright: 2024 OMRON Corporation. All Rights Reserved.
1.FY2023 Results
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Copyright: 2024 OMRON Corporation. All Rights Reserved.
FY2023: Consolidated Results
Sales and profits decreased. Profits fell sharply, mainly due to decrease in sales and drop in gross profit margin
(¥bn)
FY2022 | FY2023 | Y/Y |
Actual | Actual | |
Net Sales | 876.1 | 818.8 | -6.5% | |
Gross Profit | 393.9 | 346.5 | -12.0% | |
(%) | (45.0%) | (42.3%) | (-2.7%pt) | |
Operating Income | 100.7 | 34.3 | -65.9% | |
(%) | (11.5%) | (4.2%) | (-7.3%pt) | |
Net income attributable to | 73.9 | * | -89.0% | |
OMRON shareholders | 8.1 | |||
ROE | 10.6% | 1.1% | (-9.5%pt) | |
ROIC | 10.4% | 1.0% | (-9.4%pt) | |
EPS(JPY) | 372 | 41 | -331 | |
Average USD rate (JPY) | 135.2 | 143.9 | +8.7 | |
Average EUR rate (JPY) | 140.9 | 156.3 | +15.4 | |
Average CNY rate (JPY) | 19.7 | 20.1 | +0.4 | |
FY2023 | Change from | |
Previous FCST | ||
Previous FCST | ||
810.0 | +1.1% | |
339.0 | +2.2% | |
(41.9%) | (+0.5%pt) | |
24.0 | +42.9% | |
(3.0%) | (+1.2%pt) | |
1.5 | * | +440.3% |
Approx. 1% | ー | |
Approx. 1% | ー | |
8 | +33 | |
143.4 | +0.5 | |
155.0 | +1.3 | |
20.0 | +0.1 |
*Net income includes loss on revaluation of JMDC shares associated with its additional acquisition (¥12.0 billion) | 5 |
Copyright: 2024 OMRON Corporation. All Rights Reserved.
FY2023: Results by Segment
Decreased sales and profits in IAB and DMB.
Increased sales and profits in HCB and SSB
Sales | OP | (¥bn) |
FY2022 | FY2023 | Y/Y |
Actual | Actual | |
IAB | 485.7 | 393.6 | -19.0% |
Industrial Automation | |||
HCB | 142.1 | 149.7 | +5.3% |
Healthcare | |||
SSB | 107.3 | 141.6 | +32.0% |
Social Systems, Solutions | |||
and Service | |||
DMB | 138.9 | 114.4 | -17.6% |
Device & Module Solutions | |||
DSB *2 | ー | 17.4 | ー |
Data Solutions | |||
2.1 | 2.1 | +2.4% | |
Eliminations & Corporate | |||
Total | 876.1 | 818.8 | -6.5% |
FY2022 | FY2023 | Y/Y |
Actual | Actual | |
85.8 | 21.5 | -75.0% |
(17.7%)*1 | ||
(5.5%) | (-12.2%pt) | |
16.0 | 18.5 | +15.3% |
(11.3%) | (12.3%) | (+1.1%pt) |
7.5 | 14.0 | +87.2% |
(7.0%) | (9.9%) | (+2.9%pt) |
15.5 | 3.1 | -79.7% |
(11.2%) | (2.8%) | (-8.4%pt) |
ー | 2.2 | ー |
ー | (12.6%) | ー |
-24.2 | -24.9 | ー |
100.7 | 34.3 | -65.9% |
(11.5%) | (4.2%) | (-7.3%pt) |
*1. | Figures shown in brackets under OP are segment OPMs | |
*2. | Includes JMDC results and related expenses (amortization of intangible assets and acquisition-related | |
expenses) associated with the consolidation | 6 | |
Copyright: 2024 OMRON Corporation. All Rights Reserved.
FY2023: Analysis of Change in Operating Income (Y/Y)
Impacted by decline in sales and GP margin in IAB and DMB.
SG&A expenses increased due to the impact of inflation on labor costs
Forex
impact
100.7 +4.5
- Decreased GP on lower sales
-36.6
(¥bn)
Ref: Sales by BC
(Increase Y/Y) ・HCB +0.9 ・SSB +34.3 ・DSB +17.4
(Decrease Y/Y) ・IAB -105.3・DMB -28.7
- Lower
GP Margin ③Increased fixed costs
-24.2 | -10.1 (Labor costs -8.3/Expenses-1.8) | |||||||||
Higher SG&A | ||||||||||
▲10.9 | Lower R&D | |||||||||
+0.8 | ||||||||||
・Variable costs | ||||||||||
down | +14.7 | |||||||||
・Business/product | ・Labor costs -7.2 | ・Labor costs | -1.1 | |||||||
mix | -21.8 | |||||||||
・Expenses -3.7 | ・Expenses | +1.9 | ||||||||
・Production added | ||||||||||
value | -5.0 | |||||||||
・Inventory | ||||||||||
provision | -6.7 | |||||||||
・Others | -5.4 |
34.3
FY2022 | FY2023 | |
-66.4 Y/Y | ||
Actual | Actual | |
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Copyright: 2024 OMRON Corporation. All Rights Reserved.
2.FY2024 Forecasts
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Copyright: 2024 OMRON Corporation. All Rights Reserved.
Operating Environment Outlook
Overall improvement from FY2023.
Expect gradual recovery in IAB and DMB from H2
IAB
Industrial
Automation
HCB
Healthcare
Business environment remains sluggish in H1, with differences among markets.
In H2, expect gradual recovery in demand, mainly in digital market *Details on later pages
BPM market to grow gradually on a global basis
Cardiovascular: Expect gradual growth on a global basis, centered on China and Asia
Respiratory: Demand for nebulizers continues to expand globally, although affected by the backlash from China's special demand for respiratory diseases
SSB | Overall favorable business environment continues |
Social Systems, | Energy: Renewable energy-related investments in the residential area will continue. In the industrial field, the need for PV |
Solutions & | installation is expected to increase |
Service | Railway: Investment demand from railway companies is steady due to recovery in ridership and fare revisions |
Demand remained sluggish in general in H1; gradual improvement from H2 | |
DMB | |
DC Equipment/Microwave Devices: Driven by increased demand for advanced semiconductors, expect full-scale growth | |
Device & Module | from H2 |
Solutions | Commodity Devices: Despite some differences among markets, expect gradual recovery from H2 as the market continues |
to deplete inventory | |
Strong business environment continues, centered on health big data business | |||
DSB | |||
JMDC:Expect expansion of medical data utilization movements, mainly among pharmaceutical and Life and non-life insurance | |||
Data Solutions | industries. In response to growing social awareness of health and prevention, expect demand for services for insurers and | ||
consumers to increase | |||
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Copyright: 2024 OMRON Corporation. All Rights Reserved.
Forecasts: Consolidated Earnings
Increased sales and profits. Plan to significantly increase OP by improving GPM and fixed cost productivity
Net Sales
Gross Profit
(%)
Operating Income
(%)
Net income attributable to OMRON shareholders
ROE
ROIC
EPS(JPY)
FY2023 FY2024
ActualForecast
818.8825.0
346.5368.5
(42.3%)(44.7%)
34.349.0
(4.2%)(5.9%)
8.18.5*
1.1% Approx. 1%
1.0% Approx. 1%
4143
Y/Y
+0.8%
+6.4%
(+2.4%pt)
+42.7%
(+1.7%pt)
+4.9%
ー
ー
+2
Average USD rate (JPY) Average EUR rate (JPY) Average CNY rate (JPY)
143.9 | 145.0 | +1.1 |
156.3 | 155.0 | -1.3 |
20.1 | 20.0 | -0.1 |
Copyright: 2024 OMRON Corporation. All Rights Reserved.
*Reflects non-operating expenses of approximately 28.0 billion yen as expenses such as special lump-sum | 10 |
payments associated with "optimizing the number of personnel and capabilities" in structural reforms |
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Omron Corporation published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 09:19:11 UTC.