Interim report
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― 1 ― SMC Corporation Reference Translation November 13, 2025 Consolidated Financial Results for the Six Months Ended September 30, 2025 [Under Japanese GAAP] Company name : SMC Corporation Listing : Tokyo Stock Exchange, Prime Market Securities code : 6273 URL : https://www.smcworld.com/ir/en-jp/ Representative : Yoshiki Takada, President Inquiries : Masahiro Ota, Di rector and Executive Officer (disclosure.jp@smc.com) Scheduled date to file semi-annual securities report : November 13, 2025 Scheduled date to commence dividend payments : December 1, 2025 Preparation of supplementary material on financial results : Yes Holding of financial results briefing : Yes (for institutional investors and analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 400,272 1.3 90,780 (8.8) 107,916 3.5 79,185 1.3 September 30, 2024 395,061 0.4 99,497 (5.4) 104,283 (22.6) 78,189 (17.5) Note : Comprehensive income For the six months ended September 30, 2025 : ¥ 94,685 million 152.4% For the six months ended September 30, 2024 : ¥ 37,521 million (78.0%) Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 1,245.60 − September 30, 2024 1,219.46 − (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2025 2,198,597 1,973,481 89.8 March 31, 2025 2,100,767 1,928,306 91.8 Reference : Equity As of September 30, 2025 : ¥ 1,973,342 million As of March 31, 2025 : ¥ 1,928,281 million 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 − 500.00 − 500.00 1,000.00 Fiscal year ending March 31, 2026 − 500.00 Fiscal year ending March 31, 2026 (Forecast) − 500.00 1,000.00 Note : Revisions to the forecast of operating results most recently announce d : None
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― 2 ― SMC Corporation 3. Forecasts of consolidated operating results for the year ending March 31, 2026 (Percentages indicate ratio against previous fiscal year end.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Year ending March 31, 2026 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 816,000 3.0 183,000 (3.8) 209,000 (0.4) 153,000 (2.1) 2,406.70 Note : Revisions to the forecast of operating results most recently announced : Yes ＊ Notes (1) Significant changes in the scope of consolidation during the period : None (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements : Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement 1. Changes in accounting policies due to revisions to accounting standards and other regulations : None 2. Changes in accounting policies due to other reasons : None 3. Changes in accounting estimates : None 4. Restatement : None (4) Number of issued shares (common shares) 1. Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 63,869,359 shares As of March 31, 2025 67,369,359 shares 2. Number of treasury shares at the end of the period As of September 30, 2025 573,752 shares As of March 31, 2025 3,635,534 shares 3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended September 30, 2025 63,572,274 shares Six months ended September 30, 2024 64,117,891 shares Note : The Company’s shares held by the Board Benefit Trust (BBT) for the Directors’ Stock Compensation Plan (11,200 shares) is included in the number of treasury shares, which is excluded in the calculation for the above: 2. Number of treasury shares at the end of the period and 3. Average number of shares outstanding during the period. ＊Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. ＊Proper use of earnings forecasts, and other special matters 1. The revised forecasts of consolidated operating results for the fiscal year ending March 31, 2026 are shown in this release. 2. Forecasts are based on information and certain premises that the Company considers to be reasonable at the time these consolidated financial results for the six months are released. Some factors could cause actual results to differ from expectations. 3. The Company is scheduled to hold a financial results briefing for institutional investors and analysts on November 13, 2025. Presentation material will be released on the Company’s website on the day.
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― 3 ― SMC Corporation 1. Qualitative information about the semi-annual results (1) Operating results During the six months of this fiscal year (April 1, 2025 to September 30, 2025), the global economy remained uncertain due to factors such as the U.S. tariff policy and the manifestation of geopolitical risks caused by prolonged conflicts in Ukraine and in the Middle East. As for the demand for automatic control equipment, in the semi-conductor and electrical machinery-related industries, even though there was a growth in demand for the electrical machinery-related industry such as home appliances and flat panel displays in Greater China, the demand did not reach a full-scale recovery for the semi-conductor-related industry in the regions including Japan, North America, and South Korea. In the automotive-related industry, although EV-related demand recovered in Greater China, capital investments continued to hold back in other regions due to the U.S. tariff effect. Machine tool-related industry showed strength in Greater China, however, other regions remained to be in an adjustment phase. Sales to medical equipment-related, food machinery-related, and other industries remained sluggish, despite new post-covid demand for automation. Under these circumstances, the SMC Group has continued to make aggressive capital investments to expand its product supply capability, to multiple its production bases based on BCP, and to strengthen its product development capability. The Group has also continued to address issues such as increasing direct sales staff, enforcing distributor sales, promoting diversification of products and customers, improving productivity in product development, and utilizing its global human resources. Within the business environment described above, the summary of consolidated business results for the six months ended September 30, 2025 is as follows: Net sales were 400,272 million yen (increased by 1.3%, yoy). Operating profit was 90,780 million yen (decreased by 8.8%, yoy), mainly caused by the increase in cost ratio and depreciation. Ordinary profit was 107,916 million yen (increased by 3.5%, yoy), mainly due to the increases in foreign exchange gains. Profit before income taxes was 110,554 million yen (increased by 6.4%, yoy), and profit attributable to owners of parent was 79,185 million yen (increased by 1.3%, yoy). (2) Financial position Financial position as of the end of the six months of this fiscal year (September 30, 2025) is as follows: Total assets were 2,198,597 million yen (a 97,829 million yen or 4.7% increase from the previous fiscal year end), mainly due to a 4,189 million yen increase in cash and deposits, a 2,030 million yen decrease in inventories and a 109,119 million yen increase in property, plant and equipment. Total liabilities were 225,115 million yen (a 52,654 million yen or 30.5% increase from the previous fiscal year end), mainly due to a 3,278 million yen increase in trade payables and a 30,685 million yen increase in accounts payable which is included in current liabilities, other. Total net assets were 1,973,481 million yen (a 45,174 million yen or 2.3% increase from the previous fiscal year end), mainly due to a 79,185 million yen increase in retained earnings caused by recorded profit attributable to owners of parent and a 14,093 million yen increase in foreign currency translation adjustment.
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― 4 ― SMC Corporation (3) Consolidated forecasts and other forward-looking information Based on recent trends in orders and foreign exchange rates, revisions to the consolidated forecast for the fiscal year 2025, announced in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 [Under Japanese GAAP]" issued on May 14, 2025 are made as below. The average exchange rates for the fiscal year based on the revised forecasts: 1 US$ = 147.10 yen (previous forecast 141 yen), 1 EUR = 172 yen (157 yen), and 1 CNY = 20.60 yen (19.50 yen). Revision to consolidated financial forecasts for the fiscal year ending March 31, 2026 (Period from April 1, 2025 through March 31, 2026) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen Millions of yen M illions of yen Millions of yen Yen Previous Forecasts 850,000 215,000 232,000 167,000 2,620.27 Revised Forecasts 816,000 183,000 209,000 153,000 2,406.70 Increase (Decrease) (34,000) (32,000) (23,000) (14,000) % Change ሺ4.0) (14.9) (9.9) (8.4) <Reference> Results of the FY 2024 (Year ended March 31, 2025) 792,108 190,244 209,921 156,344 2,444.61
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― 5 ― SMC Corporation 2. Semi-annual consolidated financial statements (1) Semi-annual consolidated balance sheets (Millions of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 655,779 659,969 Notes and accounts receivable-trade 207,969 202,267 Securities 29,770 44,002 Merchandise and finished goods 173,938 185,452 Work in process 31,245 29,911 Raw materials and supplies 284,477 272,266 Other 39,896 46,523 Allowance for doubtful accounts (1,236) (693) Total current assets 1,421,842 1,439,700 Non-current assets Property, plant and equipment Buildings and structures, net 176,837 314,573 Machinery, equipment and vehicles, net 75,144 80,658 Land 105,475 110,616 Other, net 121,258 81,988 Total property, plant and equipment 478,717 587,836 Intangible assets 16,110 16,403 Investments and other assets Investment securities 145,267 113,996 Other 40,296 42,288 Allowance for doubtful accounts (1,466) (1,628) Total investments and other assets 184,097 154,656 Total non-current assets 678,925 758,896 Total assets 2,100,767 2,198,597
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― 6 ― SMC Corporation (Millions of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable-trade 46,898 50,176 Short-term borrowings 5,041 4,999 Income taxes payable 18,223 24,625 Provision for bonuses 3,730 5,532 Other 61,745 97,095 Total current liabilities 135,639 182,430 Non-current liabilities Provision for retirement benefits for directors 620 630 Provision for share awards for directors 440 535 Retirement benefit liability 7,957 8,283 Other 27,803 33,235 Total non-current liabilities 36,821 42,685 Total liabilities 172,461 225,115 Net assets Shareholders' equity Share capital 61,005 61,005 Capital surplus 74,473 73,779 Retained earnings 1,808,633 1,653,040 Treasury shares (219,814) (30,298) Total shareholders' equity 1,724,298 1,757,526 Accumulated other comprehensive income Valuation difference on available-for-sale securities 14,492 12,619 Foreign currency translation adjustment 178,700 192,794 Remeasurements of defined benefit plans 10,789 10,402 Total accumulated other comprehensive income 203,983 215,815 Non-controlling interests 25 138 Total net assets 1,928,306 1,973,481 Total liabilities and net assets 2,100,767 2,198,597
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― 7 ― SMC Corporation (2) Semi-annual consolidated statement of income and Semi-annual consolidated statement of comprehensive income Semi-annual consolidated statement of income (Millions of yen) Six months ended September 30, 2024 From April 1, 2024 to September 30, 2024 Six months ended September 30, 2025 From April 1, 2025 to September 30, 2025 Net sales 395,061 400,272 Cost of sales 209,524 219,232 Gross profit 185,536 181,040 Selling, general and administrative expenses 86,039 90,259 Operating profit 99,497 90,780 Non-operating income Interest income 10,930 9,825 Foreign exchange gains − 4,815 Gain on sale of securities − 1,283 Other 2,102 1,434 Total non-operating income 13,032 17,359 Non-operating expenses Interest expenses 35 83 Foreign exchange losses 8,155 − Other 55 139 Total non-operating expenses 8,247 223 Ordinary profit 104,283 107,916 Extraordinary income Gain on sale of non-current assets 208 243 Gain on sale of investment securities 50 2,485 Total extraordinary income 258 2,729 Extraordinary losses Loss on sale of non-current assets 22 19 Loss on retirement of non-current assets 565 71 Other 6 − Total extraordinary losses 595 91 Profit before income taxes 103,947 110,554 Income taxes 25,643 31,365 Profit 78,303 79,189 Profit attributable to non-controlling interests 114 3 Profit attributable to owners of parent 78,189 79,185
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― 8 ― SMC Corporation Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended September 30, 2024 From April 1, 2024 to September 30, 2024 Six months ended September 30, 2025 From April 1, 2025 to September 30, 2025 Profit 78,303 79,189 Other comprehensive income Valuation difference on available-for-sale securities (4,951) (1,876) Deferred gains or losses on hedges 10 − Foreign currency translation adjustment (35,567) 17,759 Remeasurements of defined benefit plans, net of tax (274) (387) Total other comprehensive income (40,782) 15,495 Comprehensive income 37,521 94,685 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 37,659 94,680 Comprehensive income attributable to non-controlling interests (138) 4
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― 9 ― SMC Corporation (3) Semi-annual consolidated statement of cash flows (Millions of yen) Six months ended September 30, 2024 From April 1, 2024 to September 30, 2024 Six months ended September 30, 2025 From April 1, 2025 to September 30, 2025 Cash flows from operating activities Profit before income taxes 103,947 110,554 Depreciation 15,505 20,191 Increase (decrease) in allowance for doubtful accounts (44) (518) Increase (decrease) in provision for retirement benefits for directors (245) 8 Increase (decrease) in retirement benefit liability (178) (201) Interest and dividend income (11,250) (10,083) Interest expenses 35 83 Foreign exchange losses (gains) 1,254 (64) Loss (gain) on sale of investment securities (50) (2,485) Decrease (increase) in trade receivables 13,951 15,152 Decrease (increase) in inventories 3,818 6,889 Increase (decrease) in trade payables (6,957) (3,198) Decrease (increase) in other current assets 673 (3,731) Increase (decrease) in other current liabilities (1,936) (382) Other, net 27 606 Subtotal 118,551 132,821 Interest and dividends received 11,258 9,977 Interest paid (38) (84) Income taxes refund (paid) (31,777) (24,055) Net cash provided by (used in) operating activities 97,993 118,658
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― 10 ― SMC Corporation (Millions of yen) Six months ended September 30, 2024 From April 1, 2024 to September 30, 2024 Six months ended September 30, 2025 From April 1, 2025 to September 30, 2025 Cash flows from investing activities Payments into time deposits (98,132) (49,134) Proceeds from withdrawal of time deposits 66,232 62,794 Purchase of property, plant and equipment (42,954) (79,112) Purchase of intangible assets (542) (1,609) Purchase of short-term and long-term investment securities (3,898) (31,203) Proceeds from sale and redemption of short-term and long-term investment securities 15,288 32,048 Proceeds from capital reduction of subsidiaries and affiliates 3,001 − Purchase of insurance funds (1,942) − Proceeds from maturity of insurance funds 4,527 − Other, net 384 (414) Net cash provided by (used in) investing activities (58,035) (66,631) Cash flows from financing activities Net increase (decrease) in shor t-term borrowings (25) (40) Repayments of long-term borrowings (1,103) − Purchase of treasury shares (9,648) (21,801) Dividends paid (32,068) (31,880) Purchase of shares of subsidiaries not resulting in change in scope of consolidation (2,994) − Other, net (72) (388) Net cash provided by (used in) financing activities (45,913) (54,110) Effect of exchange rate change on cash and cash equivalents (12,193) 6,651 Net increase (decrease) in cash and cash equivalents (18,149) 4,567 Cash and cash equivalents at beginning of period 405,586 531,649 Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation − 10,281 Cash and cash equivalents at end of period 387,437 546,498
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― 11 ― SMC Corporation (4) Notes to Semi-annual Consolidated Financial Statements (Notes on changes in scope of consolidation or equity method) (Changes in scope of consolidation) To enhance the transparency in financial accounting, from the beginning of the six months ended September 30, 2025, the Group has consolidated 27 small-sized subsidiaries which were previously out of the scope of consolidation. During the six months ended September 30, 2025, Seigyo Kizai Corporation, which was a consolidated subsidiary of the Company, was excluded from the scope of consolidation as it was dissolved through an absorption- type merger with the Company’s consolidated and surviving company, NIHON KIZAI Co., Ltd. Simultaneously with the merger, NIHON KIZAI Co., Ltd. changed its corporate name to ACS Co., Ltd. (Notes on special accounting methods for presenting semi-annual consolidated financial statements) (Calculation of tax expenses) Tax expenses were calculated by multiplying profit before income taxes by the estimated effective tax rates (effective tax rates were calculated by reasonably estimating effective tax rate of profit before income taxes of consolidated fiscal year, including the consolidated six months of this fiscal year, after the application of tax effect accounting). Tax expenses for some subsidiaries were calculated with effective statutory tax rates instead of the estimated effective tax rates. Recoverable amount for deferred tax assets were reasonably estimated. (Notes on segment information) The Company and its consolidated subsidiaries are composed of a single business segment, Automatic control equipment business. The disclosure of segment information is thereby omitted. (Notes in the event of significant changes in shareholders' equity) Based on the resolution of the Board of Directors’ Meeting held on May 14, 2025, the Company repurchased 438,100 shares amounting 21,795 million yen, during the six months ended September 30, 2025. Also, as of May 30, 2025, the Company cancelled 3,500,000 treasury shares amounting 211,317 million yen. As a result, as of the end of the six months, capital surplus decreased by 694 million yen, retained earnings decreased by 210,622 million yen, and treasury shares decreased by 189,516 million yen, from the previous fiscal year end. (Notes on going-concern assumption) N/A
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― 12 ― SMC Corporation 3. Supplementary information (1) Sales by region - Customer location (Millions of yen) Japan U.S. China Asia (excl. China) Europe Other Total 77,075 41,001 111,745 73,964 75,444 21,041 400,272 Note : Net sales of Japan, U.S., and China (including Hong Kong) are individually di sclosed since they consist 10% or above the consolidated net sales respectively. (2) Sales by region - Group company location (Millions of yen) Japan North America Greater China Other Asia Europe Other Total 78,743 52,453 120,893 61,922 74,295 11,963 400,272 Note : Net sales of “North America” includes U.S., Canada, and Mexico, and “Greater China” includes China, Hong Kong, and Taiwan. (3) Consolidated Capital expenditures, Depreciation and R&D expenses (Millions of yen) Six months ended September 30, 2025 Year ending March 31, 2026 (Forecast) (amount) (YoY) (amount) (vs FY24) Capital expenditures 111,208 160.8% 180,000 67.0% Depreciation 20,191 30.2% 42,300 23.3% R&D expenses 17,605 9.3% 37,000 10.9% (4) Foreign currency exchange rates Six months ended September 30, 2025 Year ending March 31, 2026 (Forecast) (average) (at end) (average) U S $ ¥ 146.02 ¥ 148.89 ¥ 147.10 E U R ¥ 168.05 ¥ 174.51 ¥ 172.00 C N Y ¥ 20.29 ¥ 20.88 ¥ 20.60 Note : Predicted average exchange rates of US$, EUR and CNY for the fiscal year ending March 31, 2026 are respectively changed to the above amounts from the latest forecast (1 US$ = 141 yen, 1 EUR = 157 yen, and 1 CNY = 19.50 yen). (5) Consolidated Full-time employees and Temporary employees (Number of personnel) Six months ended September 30, 2025 Difference from last year end Full-time employees (at end) 24,463 1,349 Temporary employees (average) 5,551 70 Note : The increase in the number of employees is mainly due to the in clusion of the 27 previously non-consolidated subsidiaries in the scope of consolidation from the beginning of this fiscal year.