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FY2027/3 1st Half Financial Results October 26, 2026
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Key points of financial results for 1H of FY2027/3 Net sales 303.0 billion yen 〔 Compared to 1H of FY2026/3：＋22.0%〕 Operating profit 18.4 billion yen 〔 Compared to 1H of FY2026/3：-0.3%〕 1 ▍ Net sales increased despite continued challenging business conditions in China, supported by newly consolidated subsidiaries, solid performance in the Americas and Asia-Pacific (motorcycle business), and favorable foreign exchange effects. ▍ Operating profit remained in line with the same period of the previous fiscal year and exceeded our forecast.
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(Hundred million yen) FY 2026/3 FY 2027/3 Year-on-Year Amounts rounded down 1H Results 1H Results Amount Percent Net sales 2,484 3,030 546 22.0% Operating profit 184 184 (0) (0.3%) 7.4% 6.1% (1.4pt) ― Ordinary profit 219 192 (27) (12.5%) 101 86 (15) (14.8%) 4.1% 2.9% (1.2pt) ― Capital expenditures 254 305 51 20.2% Of which strategic investments 84 100 16 18.9% Depreciation 201 246 44 22.2% R&D expenses 132 182 50 37.9% Equity Ratio 56.0% 49.3% (6.7pt) ― Basic earnings per share (yen) 69.37 70.39 1.02 1.5% Exchange rate (USD/JPY) 146.16 159.95 13.79 9.4% Profit attributable to owners of parent 1H of FY2027/3 Consolidated results summary 2 ※ Capital expenditures include software investments related to SaaS.
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2,142 2,304 8.8% 9.1% FY2026/3 FY2027/3 188 215 10.9% 9.4% FY2026/3 FY2027/3 188 215 10.9 % 9.4% 2026年3月期 2027年3月期 560 556 467 1,024 8.4% 4.2% FY2026/3 FY2027/3 1H of FY2027/3 Consolidated results by Segment 3 Operating Margin (Hundred million yen) ※ FY2027/3 Newly Consolidated (Applied Electronic Products Business)：Iwasaki Electric / Stanley Mobility Electric Newly Consolidated ▍ Automotive Equipment ▍Electronic Components ▍Applied Electronic Products Net sales
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1H of FY2027/3 Consolidated results by Segment 4 ▍Excluding Newly Consolidated ※ FY2027/3 Newly Consolidated (Applied Electronic Products Business)：Iwasaki Electric / Stanley Mobility Electric (Hundred million yen) FY 2026/3 FY 2027/3 Year-on-Year FY 2027/3 Year-on-Year Amounts rounded down 1H Results 1H Results Amount Percent 1H Results Amount Percent Net Sales Automotive Equipment Business 2,142 2,304 161 7.6% 2,304 161 7.6% Electronic Components Business 188 215 27 14.3% 215 27 14.3% Applied Electronic Products Business 560 1,024 463 82.7% 556 (3) (0.7%) Others 14 18 3 ― 18 3 ― Adjustment (422) (532) (110) ― (454) (32) ― Total 2,484 3,030 546 22.0% 2,641 156 6.3% 188 208 20 11.1% 208 20 11.1% 8.8% 9.1% 0.3pt ― 9.1% 0.3pt ― 20 20 (0) (1.2%) 20 (0) (1.2%) 10.9% 9.4% (1.5pt) ― 9.4% (1.5pt) ― 46 43 (3) (8.3%) 38 (8) (17.3%) 8.4% 4.2% (4.2pt) ― 7.0% (1.4pt) ― Others 0 0 0 ― 0 0 ― Adjustment (71) (88) (17) ― (88) (17) ― Total 184 184 (0) (0.3%) 179 (4) (2.6%) 7.4% 6.1% (1.4pt) ― 6.8% (0.6pt) ― Operating profit Automotive Equipment Business Electronic Components Business Applied Electronic Products Business
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1H of FY2027/3 Sales to outside customers by Segment 5※ FY2027/3 Newly Consolidated (Applied Electronic Products Business)：Iwasaki Electric / Stanley Mobility Electric (Hundred million yen) FY 2026/3 FY 2027/3 Year-on-Year Amounts rounded down 1H Results 1H Results Amount Percent Automobiles 1,690 1,747 57 3.4% Motorcycles 443 516 73 16.5% Subtotal 2,133 2,263 130 6.1% 95 104 9 9.8% 255 272 16 6.6% Newly Consolidated ー 389 389 ー Subtotal 255 662 406 158.9% Total 2,484 3,030 546 22.0% Automotive Equipment Business Electronic Components Business Applied Electronic Products Business
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734 928 21 949 4.0% 5.7% FY2026/3 FY2027/3 791 842 18 861 17.6% 18.7% FY2026/3 FY2027/3 314 230 9 240 10.2% 4.7% FY2026/3 FY2027/3 37 53 36 90 (5.8%) (2.2%) FY2026/3 FY2027/3 607 588 303 891 (1.5%) (4.2%) FY2026/3 FY2027/3 1H of FY2027/3 Information by geographical locations 6 ▍Japan ▍The Americas ▍Asia-Pacific ▍China ▍Europe (Hundred million yen) Operating Margin Newly Consolidated ※ FY2027/3 Newly Consolidated (Applied Electronic Products Business)：Iwasaki Electric / Stanley Mobility Electric Net sales
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1H of FY2027/3 Information by geographical locations 7※ FY2027/3 Newly Consolidated (Applied Electronic Products Business)：Iwasaki Electric / Stanley Mobility Electric ▍Excluding Newly Consolidated (Hundred million yen) FY 2026/3 FY 2027/3 Year-on-Year FY 2027/3 Year-on-Year Amounts rounded down 1H Results 1H Results Amount Percent 1H Results Amount Percent Net sales Japan 607 891 284 46.8% 588 (19) (3.2%) The Americas 734 949 215 29.3% 928 194 26.5% Asia-Pacific 791 861 69 8.8% 842 51 6.5% China 314 240 (74) (23.7%) 230 (84) (26.8%) Europe 37 90 52 142.5% 53 16 44.3% Total 2,484 3,030 546 22.0% 2,641 156 6.3% Japan (9) (37) (28) ― (32) (23) ― (1.5%) (4.2%) (2.7pt) ― (5.6%) (4.0pt) ― The Americas 29 54 24 83.9% 53 24 83.1% 4.0% 5.7% 1.7pt ― 5.8% 1.8pt ― Asia-Pacific 139 161 22 15.9% 158 19 13.8% 17.6% 18.7% 1.1pt ― 18.8% 1.2pt ― China 32 11 (20) (64.8%) 11 (20) (64.7%) 10.2% 4.7% (5.5pt) ― 4.9% (5.3pt) ― Europe (2) (2) 0 ― (7) (5) ― (5.8%) (2.2%) 3.6pt ― (14.3%) (8.5pt) ― Total 184 184 (0) (0.3%) 179 (4) (2.6%) 7.4% 6.1% (1.4pt) ― 6.8% (0.6pt) ― Operating profit
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1H of FY2027/3 Consolidated results affecting operating profit (0) 80 (51) 17 (67) 15 1 4 184 184 FY 2026/3 1H Results FY 2027/3 1H Results -0 -0.3% Impact of exchange rate fluctuations Influence other expenses Sales impact Strategic cost Rationalization Effect innovation- in-production Price impact One-off cost New Consolidation Impact 8 ▍Operating profit （Hundred million yen） Amounts rounded down ＋119 Total operating profit growth effects -119 Decrease in total operating profit effects ※ FY2027/3 New Consolidation (Electronic Applied Products Business): Iwasaki Electric / Stanley Mobility Electric
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Exchange rate 9 Reference Average rate FY 2026/3 FY 2027/3 FY 2027/3 (yen) 1H Results 1H Results Forecasts USD/JPY 146.16 159.95 150.00 EUR/JPY 168.74 184.44 180.00 IDR/JPY 0.0089 0.0090 0.0088 VND/JPY 0.0056 0.0061 0.0056 THB/JPY 4.48 4.84 4.71 CNY/JPY 20.34 23.64 22.02 FX sensitivity (Hundred Million Yen/Year) Impact of a ¥1 depreciation against the U.S. dollar Net Sales By some ＋ 32 Operating income By some ＋ 3
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FY2027/3 Shareholder Returns Consolidated dividend payout ratio Dividend on Equity （ＤＯＥ） Purchase of treasury stock Dividend Policy ※Dividend on equity ratio (DOE) = total dividends paid/shareholders’ equity 40% or more 3.5% or more Acts in a continuous and flexible manner Dividend per share FY2026/3 104yen Interim 49yen Year-End 55yen FY2027/3 111yen Interim 55yen Year-End 56yen ▍Reference：Shareholder return policy Whichever is higher 10 Reference
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All forward -looking statements in this document regarding Stanley Electric’s plans, forecasts, strategies and other future developments are based on the company’s current judgments in light of the information available as of the respective announcement dates and include known or unknown risks and uncertainties. Please be aware that the actual results may differ materially due to various factors, including economic conditions, exchange rates, and market trends. Also note that such information is subject to change without notice. Therefore, please use this document and material at your own discretion. Moreover, this document and material have been prepared for the purpose of providing a better understanding of Stanley Electric and are not intended as a solicitation to invest or for any similar purpose. Stanley Electric is not liable for any other damages resulting from the use of this document and material. This material has been filed with the Tokyo Stock Exchange for disclosure and is also available on our website. ＜Contact＞ Investor Relations Office Corporate Communications Department E-mail： stanley.ir@stanley-electric.com Disclaimer 11