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OMRON Corporation Reports Fiscal 2012 Third Quarter Consolidated Performance

OMRON Corporation (TOKYO:6645)(ADR:OMRNY) today reported consolidated performance for the third quarter of fiscal 2012, ending March 31, 2013.

Consolidated net sales for the nine months ended December 31, 2012, increased 2.4 percent compared with the same period of the previous fiscal year to JPY 463,681 million. Operating income decreased 7.6% to JPY 27,848 million, income before income taxes increased 7.2% to JPY 28,216 million, and net income attributable to shareholders increased 77.7% to JPY 20,684 million.

Note: All amounts are rounded to the nearest million yen.

1. Overview of Conditions

In the first nine months of fiscal 2012 (April – December 2012), although sales of IAB (Industrial Automation Business) were sluggish, AEC (Automotive Electronic Components Business), SSB (Social Systems, Solutions and Service Business) and HCB (Healthcare Business) performed strongly, meaning the Omron Group's net sales were essentially unchanged from the same period of the previous fiscal year when temporary factors including the Great East Japan Earthquake and floods in Thailand affected the business environment. The Omron Group's perception of conditions in the nine months ended December 31, 2012 is as follows.

Economic and Market Conditions by Region
Japan:   The automotive industry was firm but the semiconductor and other industries weakened, and business confidence worsened.
U.S.: The automotive and other industries were firm, yet business confidence deteriorated overall.
Europe: The slump continued, despite a sense that the economic downturn caused by financial instability had bottomed out.
China: Despite solid demand, the growth rate slowed due to worsening economic conditions, etc.
Asia: Conditions were firm in the emerging markets of ASEAN, including reconstruction demand in Thailand. However, the semiconductor industry weakened.

Conditions in the Omron Group's Primary Related Markets
Automotive-related:   Capital investment and component demand was firm everywhere but Europe.
Semiconductor-related: Capital investment demand was weak, other than for smartphones.
Machine tool-related: Capital investment demand was firm, mainly in emerging markets.
Home appliance and electronic component-related: Capital investment in large home appliances and component demand were firm.
Healthcare equipment-related: Demand was firm due to an increase in purchasers in connection with economic growth in emerging markets.

The average exchange rates for the nine months ended December 31, 2012 were USD 1 = JPY 80.4 and EUR 1 = JPY 103.2 (1.2 yen more and 8.2 yen less than the same period of the previous fiscal year, respectively).

Consolidated Sales and Income

(Percentages represent changes compared with the same period of the previous fiscal year).
  Millions of yen, except per share data and percentages

Nine months ended

December 31, 2012
  Nine months ended

December 31, 2011
      Change (%)     Change (%)
Net sales 463,681 2.4   452,859 0.3  
Operating income 27,848 (7.6 ) 30,137 (18.9 )
Income before income taxes 28,216 7.2   26,323 (26.8 )
Net income attributable to shareholders   20,684   77.7     11,641   (49.8 )

Note: Comprehensive income (loss):Nine months ended December 31, 2012: JPY 30,165 million (—% change);Nine months ended December 31, 2011: JPY (2,302 million) (—% change)

Results by Business Segment

IAB (Industrial Automation Business)

Millions of yen, except percentages
    Nine months ended

December 31, 2011
  Nine months ended

December 31, 2012

Sales to externalcustomers
  Japan 92,204 87,071 -5.6%
Overseas 113,706 105,381 -7.3%
  Total 205,910 192,452 -6.5%
Segment profit   27,764   20,290   -26.9%

Sales in Japan

Demand was basically unchanged from the same period of the previous fiscal year in automotive and electronic component-related industries but capital investment demand was sluggish in semiconductor-related industries. Consequently, sales weakened. Sales in Japan for the nine months ended December 31, 2012 decreased compared with the same period of the previous fiscal year due in part to the absence of the temporary rise in sales from the impact of the Great East Japan Earthquake and floods in Thailand during the same period of fiscal 2011.

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