Slides
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Presentation of Financial Results for the First Quarter Ended June 30 , 2026 SMC Corporation Kyoichi Miyazaki , Director and Executive Officer Senior General Manager of Administration Headquarters General Manager of Finance & Accounting Division Supporting Automation August 7 , 2026 SMC
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(Billions of Yen) Amount vs net sales Amount vs net sales Amount % Amount vs net sales Amount vs net sales Amount vs net sales Amount % Net sales 200.1 270.9 70.8 35.4% 1,000.0 232.6 270.9 38.3 16.5% Cost of sales 111.5 55.7% 144.0 53.2% 32.5 29.2% 551.0 55.1% 127.6 54.9% 144.0 53.2% 16.3 12.8% Gross profit 88.6 44.3% 126.9 46.8% 38.2 43.2% 449.0 44.9% 104.9 45.1% 126.9 46.8% 22.0 21.0% Selling, general & administrative expenses 44.1 22.1% 52.9 19.5% 8.7 19.8% 230.0 23.0% 51.9 22.3% 52.9 19.5% 1.0 1.9% Operating profit 44.4 22.2% 73.9 27.3% 29.5 66.4% 219.0 21.9% 52.9 22.8% 73.9 27.3% 20.9 39.6% Ordinary profit 49.1 24.5% 91.7 33.9% 42.6 86.9% 239.0 23.9% 66.4 28.6% 91.7 33.9% 25.3 38.2% Net profit 34.6 17.3% 67.8 25.0% 33.2 95.9% 170.0 17.0% 45.6 19.6% 67.8 25.0% 22.1 48.6% Average exchange rate USD +14.96 10.3% +2.61 1.7% EUR +21.59 13.2% +1.76 1.0% CNY +3.46 17.3% +0.77 3.4% (Progress) Depreciation 3.6 38.6% 62.3 21.1% R&D expenses 2.8 30.9% 47.0 25.3%9.0 11.8 9.4 13.1 19.98 23.44 22.70 22.67 23.44 144.60 159.56 155.00 156.95 159.56 163.81 185.40 183.00 183.64 185.40 QoQ Result Result (25/1Q vs 26/1Q) Forecast 4Q 1Q (25/4Q vs 26/1Q) FY25/1Q FY26/1Q YoY FY26 FY25 FY26 Consolidated Statement of Income 2
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[YoY] Factors of Change of Net Sales and Operating Profit 3 < Sales qty. > 22.3% Increase Japan +7.2 (+19%), North America +1.3 (+5%), Europe +2.3 (+7%), Greater China +22.6 (+37%), Other Asia +10.8 (+35%) < Selling price > 0.1% Increase Japan +1.2, Overseas -0.9 < Exchange rate fluctuation > 12.9% Increase North America (mainly USD) +3.3 Europe (mainly EUR) +4.9 Greater China (mainly CNY) +13.3 < Exchange rate fluctuation > From transaction (Foreign currency export & import) +7.9 From conversion (Overseas subs P&L conversion) +4.0 < Inventory devaluation > 25/1Q Devaluation -2.2 ➝ 26/1Q Devaluation +0.4 = Change +2.6 < Processing costs, Material costs, Others > Processing costs increased Costs decreased as a result of a portion of the U.S. tariff refund being allocated as a reduction to cost. < SG&A expenses > Personnel -1.0, Freight expenses -1.0, R&D -0.7 ①Net Sales ②Operating Profit （Billions of yen）
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[QoQ] Factors of Change of Net Sales and Operating Profit 4 < Sales qty. > 15.2% Increase Japan +3.9 (+9%), North America +1.8 (+7%), Europe -2.0 (-5%), Greater China +25.2 (+37%), Other Asia +5.9 (+16%) < Selling price > 0.4% Decrease Japan -1.0, Overseas ±0 < Exchange rate fluctuation > 1.7% Increase North America (mainly USD) +0.5 Europe (mainly EUR) +0.4 Greater China (mainly CNY) +2.9 < Exchange rate fluctuation > From transaction (Foreign currency export & import) +1.7 From conversion (Overseas subs P&L conversion) +0.5 < Inventory devaluation > 25/4Q Devaluation +3.1 ➝ 26/1Q Devaluation +0.4 = Change -2.6 < Processing costs, Material costs, Others > Costs decreased as a result of a portion of the U.S. tariff refund being allocated as a reduction to cost. < SG&A expenses > Freight expenses -0.6 ①Net Sales ②Operating Profit （Billions of yen）
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FY26 FY26 FY26 FY26 FY26 FY26 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q Net Sales (Bil. of Yen ） 200.1 200.0 209.6 232.6 270.9 39.2 39.5 39.3 44.8 47.7 26.4 25.9 25.1 28.6 31.2 36.5 37.7 39.9 45.4 43.8 61.3 59.5 65.8 68.9 96.7 30.8 31.0 33.0 38.2 44.3 19% 19% 19% 21% 26% 22% 21% 22% 25% 30% 13% 11% 12% 14% 14% 9% 9% 9% 8% 11% 24% 23% 22% 25% 30% 33% 33% 34% 40% 43% 12% 12% 13% 13% 13% 10% 10% 10% 10% 10% 4% 3% 5% 4% 5% 3% 3% 4% 4% 4% 24% 23% 24% 25% 23% 13% 13% 14% 13% 12% 17% 17% 17% 16% 16% 18% 18% 18% 16% 15% 19% 21% 20% 19% 19% 12% 11% 11% 10% 10% 22% 21% 22% 22% 19% 15% 16% 16% 15% 15% 11% 10% 10% 10% 10% 10% 11% 10% 9% 10% 8% 8% 7% 7% 7% 13% 13% 12% 12% 11% 11% 11% 10% 10% 10% 13% 13% 12% 10% 10% 7% 7% 7% 7% 6% 6% 6% 6% 5% 5% 12% 12% 13% 12% 11% 13% 13% 13% 14% 13% 4% 4% 4% 3% 3% 3% 3% 3% 3% 2% 6% 6% 6% 5% 5% 5% 5% 5% 4% 4% 10% 10% 8% 9% 8% 10% 11% 11% 11% 10% 4% 5% 5% 4% 4% 2% 2% 2% 2% 2% 28% 29% 28% 28% 24% 29% 29% 29% 31% 26% 34% 35% 35% 35% 36% 40% 40% 40% 41% 41% 11% 13% 13% 11% 11% 21% 20% 19% 17% 16% *Impact to operating profit from 1% exchange rate change (Yearly conversion) 50.0 60.0 70.0 80.0 90.0 100.0 FY25 FY25 FY25 FY25 FY25FY25 10.0 0.0 CNY 1.74 bil. yen KRW 0.50 bil. yen －Beijing Autom obile Machine tools Food Medical Other Ratio of Sales by Industry Semiconductor Electric Production Base Soka and etc., total of 6 factories USA, Indiana Czech Beijing ・Tianjin Vietnam・Singapore・India Foreign Exchange Sensitivity (１％)* － USD 0.25 bil. yen EUR 0.93 bil. yen R&D Base Kashiwa City USA UK ・Germany Sales Ratio 18% 12% 16% 36% 16% 40.0 30.0 20.0 4.67 bil. yen Consolidated Japan North America Europe Greater China Other Asia [Quarterly] Consolidated Net Sales by Location 5
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(Billions of Yen) FY25 FY26/1Q Assets 2,311.8 2,368.5 56.7 2.5% Current assets 1,504.2 1,585.2 80.9 5.4% (①Cash and deposits) (663.8) (711.0) (47.2) (7.1%) (Trade receivables) (235.3) (271.4) (36.1) (15.3%) (②Securities) (47.8) (48.1) (0.3) (0.6%) (Inventories) (506.6) (513.2) (6.5) (1.3%) Non-current assets 807.5 783.2 -24.2 -3.0% (③Investment securities with fair value) (121.1) (78.4) (-42.7) (-35.3%) *Cashable Financial Assets 827.8 832.6 4.8 0.6% ①+②+③-④ Liabilities 196.5 213.7 17.1 8.7% Current liabilities 145.6 163.0 17.4 11.9% (Trade payables) (31.8) (42.1) (10.2) (32.4%) (④Borrowings) (5.0) (5.0) (-0.0) (-1.8%) Non-current liabilities 50.9 50.6 -0.2 -0.5% Net assets 2,115.2 2,154.8 39.5 1.9% Equity ratio 91.5% 91.0% -0.5 Net assets per share (yen) 33,498 34,271 +772 ROE 8.3% 3.2% (※Yearly conversion 12.8%) Change (Billions of Yen) FY25 FY26/1Q Change Total inventory 506.6 513.2 6.5 Merchandise and finished goods 198.4 195.2 -3.1 Work in process 33.2 33.4 0.1 Raw materials and supplies 274.9 284.5 9.5 Impact due to consolidation expansion 0.8 Impact due to exchange rate fluctuation 5.6 Impact due to inventory devaluation 0.4 Actual change -0.4 FY average monthly sales ratio 7.2 5.7 -1.5 Closing month sales ratio 5.9 5.4 -0.5 Closing exchange rate USD 159.93 162.45 +2.52 EUR 183.44 185.44 +2.00 CNY 23.12 23.88 +0.76 Consolidated Balance Sheet 6
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(Billions of Yen) Function Region Plan Item Result Item Soka Fac. Soka Fac. Shimotsuma Fac. Shimotsuma Fac. Tsukuba Fac. Tsukuba Fac. Tono Fac & SP. Tono Fac & SP. Others Others Vietnam Mfg Vietnam Mfg China Mfg(s) China Mfg(s) Singapore Mfg Singapore Mfg Others Others JTC JTC Others Others SMC China (Sales) SMC China (Sales) SMC Taiwan SMC Taiwan SMC Australia SMC Australia SMC Germany SMC Germany European Warehouse European Warehouse SMC Romania SMC Romania Others Others 100.0 18.8 FY26 Plan FY26 1Q PRD Japan 34.7 7.8 Overseas 29.6 Total 5.0 Admin. R&D Sales Logistics Japan 6.6 2.7 Overseas 29.1 3.3 Capital Expenditure 7
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FY26 '25/4Q '26/1Q '26/07 26/07 Situation Semiconductor/Electric 173 140 173 175 Automobile 116 107 115 120 Machine tools 119 108 119 118 Food 111 107 110 112 Medical 111 102 111 110 Other 114 114 113 116 Japan 127 128 127 124 North America 126 121 121 144 Europe 108 111 109 105 Greater China 156 114 156 159 Other Asia/Oceania 144 139 146 138 Consolidated 136 121 135 138 Consolidated [Increase] Greater China [Pause] Other Regions [Slowdown] Greater China [Increase] Other Regions [Stable at High Level] North America, Europe [Soft] Greater China [Increase] North America, Europe, Greater China [Increase] Greater China [Slowdown] Other Regions [Pause] Semiconductor [Flat] Automobile, Machine tools [Stable at High Level] Semiconductor [Increase] Food [Slowdown] Medical [Increase] Semiconductor [Slowdown] Automobile [Pause] Semiconductor [Soft] Other industries Current Order Situation (FY25=100) 8
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Consolidated Orders Trend by Industry 9
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Consolidated Orders Trend by Region 10
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Consolidated Orders Trend (Monthly) (FY25=100) 11
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Consolidation of SMC Nederland and SMC Belgium (Acquisition of Distributors) 12 As part of its sales expansion strategy in Europe, the Company acquired the shares of its distributors, SMC Nederland B.V. and SMC Belgium B.V., and made them consolidated subsidiaries. SMC Belgium B.V.SMC Nederland B.V.Name of Company Wommelgem, Belgium Amsterdam, the Netherlands Location 75,144 EUR15,882 EURCapital Abt 11.1 mil EUR （Abt 2.0 bil JPY） Abt 38.5 mil EUR （Abt 7.0 bil JPY） Net Sales (December 2024） SMC Belgium B.V.SMC Nederland B.V.Name of Company July 2026June 2026Date of Acquisition 0%→100%11.4%→94.3%Percentage of Shares Acquired Abt 11.5 mil EUR （Abt 2.1 bil JPY） Abt 50.6 mil EUR （Abt 9.2 bil JPY） Acquisition Price ・Expand market share in the Benelux region (currently approximately 20%) ・Cover areas that SMC could not serve through consolidated subsidiaries previously ・Acquire the experienced management team and workforce with strong customer relationships and extensive knowledge of selling the Company's products ・High growth potential in semiconductor and hydroponic agriculture markets ＜Outline of the Share Acquisition＞ ＜Company Overview＞ ＜Purpose of the Share Acquisition＞
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This document contains projections concerning future performance estimates of SMC. These statements are information available at the time of the compiling of this report and may include potential risks and unforeseen factors. Accordingly, please be aware that actual results may change considerably according to multiple factors that influence the industrial market. Thank you for your time and attention