Yokogawa Electric : Financial Results for 1st Half of Fiscal Year 2025

About this update from Yokogawa Electric Corp.

Consolidated Financial Results for the Six Months Ended September 30, 2025 (Japan GAAP) November 4, 2025 Name of Listed Company: Yokogawa Electric Corporation (the “Company” herein) Stock Exchanges Where the Company’s Shares Are Listed: Tokyo Stock Exchange Securities Code: 6841 URL https://www.yokogawa.com/ Name and Position of the Representative: Kunimasa Shigeno, President & CEO, Representative Executive Officer Name and Position of Person in Charge: Hirohiko Nakatani, Department Manager of IR Department Telephone Number: +81-422-52-6845 Planned Semi-annual Report Filing Date: November 5, 2025 Planned Dividend Payment Starting Date: December 5, 2025 Financial Results Supplemental Materials: Yes Financial Results Presentation Meeting: Yes (for institutional investors) (Any amount less than one million yen is disregarded.) Consolidated Business Results for the Six Months Ended September 30, 2025 (April 1-September 30, 2025) Results of Operations on a Consolidated Basis (accumulated) (Percentages show the change from the same period of the previous year.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % For six months ended September 30, 2025 281,996 5.8 38,988 7.4 39,676 10.6 29,371 19.5 For six months ended September 30, 2024 266,580 4.7 36,305 7.7 35,888 (3.2) 24,573 (29.9) (Note) Comprehensive income For six months ended September 30, 2025 38,322 million yen [138.5%] For six months ended September 30, 2024 16,067 million yen [(71.5)%] Basic earnings per share Diluted earnings per share Yen Yen For six months ended September 30, 2025 114.87 - For six months ended September 30, 2024 94.45 - Financial Conditions on a Consolidated Basis Total assets Net assets Shareholders’ equity ratio Millions of yen Millions of yen % As of September 30, 2025 724,331 493,067 66.8 As of March 31, 2025 718,285 475,721 65.1 (Reference) Shareholders’ equity: As of September 30, 2025: 483,987 million yen As of March 31, 2025: 467,855 million yen (Note) In the fiscal year ended March 31, 2025, the Company finalized the provisional accounting treatment for the business combination. Amounts as of September 30, 2024 therefore reflect a revision to the initial allocation of the acquisition cost that was performed due to the finalization of the provisional accounting treatment. Dividend Status Dividends per share June 30 September 30 December 31 End of period Total For year ended March 31, 2025 For year ending March 31, 2026 Yen - - Yen 29.00 32.00 Yen - Yen 29.00 Yen 58.00 For year ending March 31, 2026 (forecast) - 32.00 64.00 (Note) Adjustment on dividend forecast in this quarter: No Consolidated Business Forecast for the Year Ending March 31, 2026 (April 1, 2025-March 31, 2026) (Percentages show the change from the previous year.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Full year Millions of yen % 577,000 2.6 Millions of yen % 83,000 (0.6) Millions of yen % 83,000 (2.8) Millions of yen % 54,500 4.6 Yen 213.56 (Note) Adjustment on consolidated business forecast in this quarter: Yes Significant changes in range of consolidation during the period: Yes Newly included: 1 company (Company name) Web Synergies (S) Pte. Ltd. Application of special methods for consolidated semi-annual financial statements: No Changes in accounting policies, changes in accounting estimates, and restatements Changes in accounting policies accompanying revision of accounting standards: No Changes in accounting policies other than (a) above: No Changes in accounting estimates: No Restatements: No Number of shares issued (common stock) Number of shares outstanding at the end of the period (including treasury shares) As of September 30, 2025 268,624,510 shares As of March 31, 2025 268,624,510 shares Number of treasury shares at the end of the period As of September 30, 2025 13,994,993 shares As of March 31, 2025 9,765,129 shares Average number of shares in the period (accumulated quarterly period) For the six months ended September 30, 2025 255,685,777 shares For the six months ended September 30, 2024 260,169,433 shares Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit corporation. Note concerning appropriate use of business forecasts, etc. The above forecasts are based on the information that was available at the time this document was released and involve assumptions regarding uncertain factors that may have an effect on future performance. Actual performance may vary greatly due to a variety of factors. For premises underlying the assumptions for business forecasts and cautions concerning the use of business forecasts, please refer to “1. Overview of Business Results and Others (3) Explanation of Consolidated Business Forecast and Other Expectations” on page 5. The Company plans to hold a quarterly financial results presentation meeting for institutional investors via web conference on November 4, 2025. The Company also plans to promptly post to its website the materials that are used at the meeting. Attachment Contents Overview of Business Results and Others Overview of Business Results for the Period Under Review . - 4 - Overview of Financial Conditions for the Period Under Review.................................................................. - 4 - Explanation of Consolidated Business Forecast and Other Expectations ..................................................... - 5 - Consolidated Semi-annual Financial Statements Consolidated Semi-annual Balance Sheets.................................................................................................... - 7 - Consolidated Semi-annual Statements of Income and Statements of Comprehensive Income Consolidated Semi-annual Statements of Income ......................................................................................... - 9 - Consolidated Semi-annual Statements of Comprehensive Income ............................................................. - 10 - Consolidated Semi-annual Statements of Cash Flows ................................................................................ - 11 - Notes on Consolidated Semi-annual Financial Statements Notes on Segment Information ................................................................................................................... - 13 - Notes If There Is a Remarkable Change in the Amount of Shareholders’ Equity ....................................... - 13 -Notes for Going Concern ............................................................................................................................ - 13 - [Reference] Consolidated Financial Statements for the Six Months Ended September 30, 2025 .............................................. - 14 - Overview of Business Results and Others Overview of Business Results for the Period Under Review For the six months ended September 30, 2025 (April 1, 2025 to September 30, 2025), in accordance with the medium-term business plan, “Growth for Sustainability 2028 (GS2028),” the Group is working to realize Creating Shared Value (CSV) management, which aims to sustainably enhance corporate value while benefitting both society and the environment through our business. In terms of the Group’s business performance during the six months ended September 30, 2025, net sales and operating profit increased by 15.4 billion yen and 2.6 billion yen year on year, respectively, despite the impact of the foreign exchange rate in which the yen appreciated compared to the previous year. Ordinary profit increased by 3.7 billion yen year on year, and profit attributable to owners of parent increased by 4.7 billion yen year on year. Business results are as follows. Unit: billions of yen Six months ended September 30, 2024 Six months ended September 30, 2025 Difference Change Net sales 266.580 281.996 15.415 5.8% Operating profit 36.305 38.988 2.682 7.4% Ordinary profit 35.888 39.676 3.787 10.6% Profit attributable to owners of parent 24.573 29.371 4.797 19.5% (Reference) Average rate to 1 U.S. dollar (Yen) 152.40 146.26 (6.14) - Results by individual segment are outlined below. Unit: billions of yen Six months ended September 30, 2024 Six months ended September 30, 2025 Difference Change Net sales 250.619 264.480 13.860 5.5% Operating profit 33.900 36.067 2.166 6.4% Unit: billions of yen Six months ended September 30, 2024 Six months ended September 30, 2025 Difference Change Net sales 14.235 15.156 0.921 6.5% Operating profit 2.924 2.996 0.072 2.5% Unit: billions of yen Six months ended September 30, 2024 Six months ended September 30, 2025 Difference Change Net sales 1.725 2.360 0.634 36.8% Operating profit (0.519) (0.075) 0.444 - Overview of Financial Conditions for the Period Under Review In comparison to March 31, 2025, total assets as of September 30, 2025 were up 6.0 billion yen to 724.3 billion yen. In addition, total liabilities were 231.2 billion yen, down 11.3 billion yen compared to March 31, 2025. As of September 30, 2025, net assets were 493.0 billion yen, up 17.3 billion yen compared to March 31, 2025, due mainly to the recognition of profit attributable to owners of parent, despite a decrease mainly due to purchase of treasury shares. As a result, the shareholders’ equity ratio was 66.8%, up 1.7 percentage points from the end of the previous fiscal year. The cash flow from operating activities in the six months ended September 30, 2025 was a net inflow of 35.8 billion yen (down 3.8 billion yen from the same period in the previous fiscal year), mainly reflecting the recording of profit before income taxes and depreciation. The cash flow from investing activities was a net outflow of 11.4 billion yen (down 1.0 billion yen from the same period in the previous fiscal year), mainly reflecting purchase of property, plant and equipment, intangible assets, and shares of subsidiaries resulting in change in scope of consolidation. The cash flow from financing activities was a net outflow of 27.8 billion yen (up 15.9 billion yen from the previous fiscal year), mainly due to purchase of treasury shares and dividends paid. As a result, the balance of cash and cash equivalents as of September 30, 2025 was 178.1 billion yen, down 1.1 billion yen from the end of the previous fiscal year. Explanation of Consolidated Business Forecast and Other Expectations With regard to the consolidated business forecast for the fiscal year ending March 31, 2026, we have revised the assumed foreign exchange rate from 1 USD = 140 yen to 1 USD = 145 yen, and the consolidated business forecast announced on May 7, 2025, as follows. The following compares the full-year consolidated business forecast announced on May 7, 2025, with the revised forecast announced on November 4, 2025. Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Previously announced forecast (A) Billions of yen 560.0 Billions of yen 80.0 Billions of yen 80.0 Billions of yen 52.5 Yen 202.81 Revised forecast (B) 577.0 83.0 83.0 54.5 213.56 Difference (B) - (A) 17.0 3.0 3.0 2.0 - Change 3.0% 3.8% 3.8% 3.8% - (Reference) Results for fiscal year ended March 31, 2025 562.4 83.5 85.3 52.1 200.41 (Reference) Full-Year Consolidated Business Forecast by Segment Unit: billions of yen Previously announced forecast (May 7, 2025) Revised forecast (November 4, 2025) Difference Industrial automation and control business 544.5 561.5 up 17.0 Measuring instruments business 31.5 31.5 - New businesses and others 4.0 4.0 - Total 580.0 597.0 up 17.0 Unit: billions of yen Previously announced forecast (May 7, 2025) Revised forecast (November 4, 2025) Difference Industrial automation and control business 525.0 542.0 up 17.0 Measuring instruments business 31.0 31.0 - New businesses and others 4.0 4.0 - Total 560.0 577.0 up 17.0 Unit: billions of yen Previously announced forecast (May 7, 2025) Revised forecast (November 4, 2025) Difference Industrial automation and control business 74.0 77.0 up 3.0 Measuring instruments business 6.5 6.5 - New businesses and others (0.5) (0.5) - Total 80.0 83.0 up 3.0 As the above business forecast is based on certain assumptions judged by the Company to be reasonable at present, actual business results may differ. The main factors that may cause changes in the results are as follows. Changes in foreign exchange rates, particularly the U.S. dollar, the euro, Asian currencies, and the currencies of the Middle East Sudden changes in the price of crude oil Sudden changes in the political and economic situation in major markets Geopolitical risks in the Middle East and East Asia, etc. Changes in the business environment such as revisions to trade regulations Dramatic shifts in product supply and demand in the market Changes in Japanese share prices Protection of the Company’s patents and securement of the licensing of patents held by other companies M&A and business alliances with other companies for purposes such as product development Occurrences of natural disasters such as earthquakes, floods, and tsunamis Consolidated Semi-annual Financial Statements Consolidated Semi-annual Balance Sheets Assets (Millions of yen) As of March 31, 2025 As of September 30, 2025 Current assets Cash and deposits 188,754 186,189 Notes and accounts receivable - trade, and contract assets 238,491 237,317 Merchandise and finished goods 20,174 21,177 Work in process 5,791 7,339 Raw materials and supplies 24,962 24,639 Other 22,941 25,348 Allowance for doubtful accounts (4,801) (4,740) Total current assets 496,313 497,272 Non-current assets Property, plant and equipment Buildings and structures, net 43,161 42,505 Other 44,570 44,221 Total property, plant and equipment 87,732 86,726 Intangible assets Software 21,387 20,936 Goodwill 6,563 7,743 Other 25,117 25,540 Total intangible assets 53,068 54,221 Investments and other assets Investment securities 64,290 70,068 Other 18,075 17,320 Allowance for doubtful accounts (1,193) (1,277) Total investments and other assets 81,171 86,111 Total non-current assets 221,972 227,059 Total assets 718,285 724,331 Liabilities (Millions of yen) As of March 31, 2025 As of September 30, 2025 Current liabilities Notes and accounts payable - trade 34,730 33,931 Electronically recorded obligations - operating 7,509 7,729 Short-term borrowings 327 109 Accounts payable - other 21,444 14,630 Income taxes payable 12,730 10,031 Contract liabilities 59,524 60,613 Provision for bonuses 22,526 18,349 Provision for loss on construction contracts 8,847 8,576 Other 30,144 32,249 Total current liabilities 197,784 186,221 Non-current liabilities Long-term borrowings 24,025 24,017 Retirement benefit liability 6,726 7,071 Other 14,028 13,952 Total non-current liabilities 44,779 45,042 Total liabilities 242,564 231,263 Net assets Shareholders’ equity Share capital 43,401 43,401 Capital surplus 54,575 54,575 Retained earnings 342,573 364,437 Treasury shares (23,251) (36,268) Total shareholders’ equity 417,298 426,145 Accumulated other comprehensive income Valuation difference on available-for-sale securities 21,599 25,774 Deferred gains or losses on hedges (38) (100) Foreign currency translation adjustment 28,576 32,048 Remeasurements of defined benefit plans 419 118 Total accumulated other comprehensive income 50,557 57,841 Non-controlling interests 7,865 9,080 Total net assets 475,721 493,067 Total liabilities and net assets 718,285 724,331 Consolidated Semi-annual Statements of Income and Statements of Comprehensive Income Consolidated Semi-annual Statements of Income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 266,580 281,996 Cost of sales 139,076 149,221 Gross profit 127,504 132,775 Selling, general and administrative expenses 91,198 93,786 Operating profit 36,305 38,988 Non-operating income Interest income 1,247 1,472 Dividend income 852 894 Share of profit of entities accounted for using equity method 1,004 547 Other 521 468 Total non-operating income 3,625 3,382 Non-operating expenses Interest expenses 537 526 Foreign exchange losses 2,634 1,678 Donations 176 227 Other 696 262 Total non-operating expenses 4,043 2,695 Ordinary profit 35,888 39,676 Extraordinary income Gain on sale of non-current assets 2,892 19 Gain on sale of investment securities 147 189 Gain on step acquisitions - 176 Total extraordinary income 3,040 385 Extraordinary losses Loss on sale of non-current assets 1,234 222 Loss on retirement of non-current assets 110 1,923 Impairment losses - 33 Loss on valuation of investment securities 614 17 Total extraordinary losses 1,959 2,196 Profit before income taxes 36,969 37,864 Income taxes - current 8,841 8,319 Income taxes - deferred 1,451 (1,407) Total income taxes 10,292 6,911 Profit 26,676 30,952 Profit attributable to non-controlling interests 2,102 1,581 Profit attributable to owners of parent 24,573 29,371 Consolidated Semi-annual Statements of Comprehensive Income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit 26,676 30,952 Other comprehensive income Valuation difference on available-for-sale securities (1,908) 4,194 Deferred gains or losses on hedges (105) (62) Foreign currency translation adjustment (8,883) 3,384 Remeasurements of defined benefit plans, net of tax 36 (26) Share of other comprehensive income of entities accounted for using equity method 252 (121) Total other comprehensive income (10,609) 7,369 Comprehensive income 16,067 38,322 Comprehensive income attributable to Comprehensive income attributable to owners of parent 14,182 36,655 Comprehensive income attributable to non-controlling interests 1,884 1,666 (3) Consolidated Semi-annual Statements of Cash Flows (Millions of yen) Six months ended Six months ended September 30, 2024 September 30, 2025 Cash flows from operating activities Profit before income taxes 36,969 37,864 Depreciation 10,356 11,488 Amortization of goodwill 799 812 Increase (decrease) in allowance for doubtful accounts 570 54 Increase (decrease) in provision for bonuses (5,466) (4,260) Increase (decrease) in retirement benefit liability 514 249 Interest and dividend income (2,099) (2,367) Interest expenses 537 526 Share of loss (profit) of entities accounted for using equity method (1,004) (547) Loss (gain) on sale of non-current assets (1,657) 202 Loss on retirement of non-current assets 110 1,923 Loss (gain) on valuation of investment securities 614 17 Decrease (increase) in trade receivables 20,125 3,427 Decrease (increase) in inventories (1,367) (1,322) Increase (decrease) in trade payables (6,976) (1,901) Increase (decrease) in accounts payable - other (3,242) (3,388) Increase (decrease) in accrued expenses 302 2,412 Other, net (2,182) 435 Subtotal 46,904 45,629 Interest and dividends received 2,020 2,379 Interest paid (657) (646) Income taxes refund (paid) (8,537) (11,531) Net cash provided by (used in) operating activities 39,730 35,830 Cash flows from investing activities Payments into time deposits (4,403) (2,379) Proceeds from withdrawal of time deposits 3,633 3,651 Purchase of property, plant and equipment (6,089) (4,941) Proceeds from sale of property, plant and equipment 6,554 265 Purchase of intangible assets (7,764) (7,399) Purchase of investment securities (508) (55) Proceeds from sale and redemption of investment securities 165 685 Purchase of shares of subsidiaries resulting in change in scope of consolidation (4,471) (1,451) Other, net 413 184 Net cash provided by (used in) investing activities (12,469) (11,440) (Millions of yen) Six months ended Six months ended September 30, 2024 September 30, 2025 Cash flows from financing activities Net increase (decrease) in short-term borrowings (370) (215) Proceeds from long-term borrowings 14 - Repayments of long-term borrowings (8) (9) Repayments of lease liabilities (1,930) (1,463) Dividends paid (5,979) (7,504) Dividends paid to non-controlling interests (3,618) (2,740) Purchase of treasury shares (2) (13,017) Decrease (increase) in deposits for treasury shares – (2,944) purchase Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents (11,894) (4,018) (27,894) 2,386 Net increase (decrease) in cash and cash equivalents 11,347 (1,117) Cash and cash equivalents at beginning of period 134,428 179,257 Cash and cash equivalents at end of period 145,776 178,139 Notes on Consolidated Semi-annual Financial Statements Notes on Segment Information Segment Information Six Months Ended September 30, 2024 (April 1-September 30, 2024) Sales and Profits (Losses) by Reporting Segment (Millions of yen) Reporting segments Adjustment Amount on consolidated semi-annual statements of income Industrial automation and control Measuring instruments New businesses and others Total Net sales Net sales to unaffiliated customers Intersegment net sales or transfers 250,619 - 14,235 - 1,725 - 266,580 - - - 266,580 - Total 250,619 14,235 1,725 266,580 - 266,580 Segment profit (loss) 33,900 2,924 (519) 36,305 - 36,305 (Note) The profit or loss of each reporting segment is its operating profit or loss. Six Months Ended September 30, 2025 (April 1-September 30, 2025) Sales and Profits (Losses) by Reporting Segment Reporting segments Adjustment Amount on consolidated semi-annual statements of income Industrial automation and control Measuring instruments New businesses and others Total Net sales Net sales to unaffiliated customers Intersegment net sales or transfers 264,480 - 15,156 - 2,360 - 281,996 - - - 281,996 - Total 264,480 15,156 2,360 281,996 - 281,996 Segment profit (loss) 36,067 2,996 (75) 38,988 - 38,988 (Millions of yen) (Note) The profit or loss of each reporting segment is its operating profit or loss. Notes If There Is a Remarkable Change in the Amount of Shareholders’ Equity The Company acquired 4,229,400 shares of its own shares during the six months ended September 30, 2025 in accordance with a resolution of the Board of Directors meeting held on March 4, 2025. As a result, treasury shares increased by 13,015 million yen, and the amount and number of treasury shares as of September 30, 2025 were 36,268 million yen and 13,994,993 shares, including shares less than one unit acquired through purchase requests. Notes for Going Concern Not applicable [Reference] November 4, 2025 Yokogawa Electric Corporation Consolidated Financial Statements for the Six Months Ended September 30, 2025 (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Change Amount Ratio to net sales Amount Ratio to net sales Amount Ratio to net sales Net sales 266,580 - 281,996 - 15,415 - Operating profit 36,305 13.6% 38,988 13.8% 2,682 0.2% Ordinary profit 35,888 13.5% 39,676 14.1% 3,787 0.6% Profit attributable to owners of parent 24,573 9.2% 29,371 10.4% 4,797 1.2% Total assets 662,520 724,331 61,810 Net assets 454,707 493,067 38,360 Return on equity 5.6% 6.2% 0.6% Basic earnings per share 94.45 yen 114.87 yen 20.42 yen Capital investment 14,015 12,236 (1,779) Depreciation 11,156 12,301 1,145 Research and development expenses 16,871 16,231 (640) Average exchange rate during the period (USD) 152.40 yen 146.26 yen (6.14) yen Orders received (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 FY2025 full year (forecast) Industrial automation and control business 273,141 281,748 561,500 Measuring instruments business 15,804 16,268 31,500 New businesses and others 2,031 2,432 4,000 Total 290,977 300,449 597,000 Net sales (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 FY2025 full year (forecast) Industrial automation and control business 250,619 264,480 542,000 Measuring instruments business 14,235 15,156 31,000 New businesses and others 1,725 2,360 4,000 Total 266,580 281,996 577,000 Operating profit (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 FY2025 full year (forecast) Industrial automation and control business 33,900 36,067 77,000 Measuring instruments business 2,924 2,996 6,500 New businesses and others (519) (75) (500) Total 36,305 38,988 83,000

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