Yokogawa Electric : Financial Results for Fiscal Year 2025

About this update from Yokogawa Electric Corp.

Consolidated Financial Results for the FY2025 Yokogawa Electric Corporation (6841) Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Japan GAAP) May 7, 2026 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 Treasury & IR Department Telephone Number: +81-422-52-6845 Planned Date of the Regular General Meeting of Shareholders: June 23, 2026 Planned Dividend Payment Starting Date: June 24, 2026 Planned Annual Report Filing Date: June 18, 2026 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 Fiscal Year Ended March 31, 2026 (April 1, 2025-March 31, 2026) Results of Operations on a Consolidated Basis (Percentages show the change from the previous year.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended March 31, 2026 Fiscal year ended March 31, 2025 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 604,829 7.5 562,404 4.1 82,555 (1.2) 83,523 6.0 84,259 (1.3) 85,351 1.5 58,113 11.5 52,123 (15.5) (Note) Comprehensive income For the fiscal year ended March 31, 2026 84,329 million yen [64.0%] For the fiscal year ended March 31, 2025 51,432 million yen [(42.0)%] Basic earnings per share Diluted earnings per share Return on equity Ordinary profit to total asset ratio Operating profit to net sales ratio Fiscal year ended March 31, 2026 Fiscal year ended March 31, 2025 Yen Yen % % % 227.72 200.41 - - 11.8 11.5 11.1 12.3 13.6 14.9 (Reference) Profit or loss from investments accounted for by the equity method: For the fiscal year ended March 31, 2026 524 million yen For the fiscal year ended March 31, 2025 2,058 million yen Financial Conditions on a Consolidated Basis Total assets Net assets Shareholders’ equity ratio Net assets per share Millions of yen Millions of yen % Yen As of March 31, 2026 795,618 529,894 65.4 2,042.26 As of March 31, 2025 718,285 475,721 65.1 1,807.37 (Reference) Shareholders’ equity: As of March 31, 2026: 520,016 million yen As of March 31, 2025: 467,855 million yen Consolidated Cash Flow Status Net cash provided by operating activities Net cash used in investing activities Net cash used in financing activities Cash and cash equivalents at end of period Fiscal year ended March 31, 2026 Fiscal year ended March 31, 2025 Millions of yen 85,951 99,025 Millions of yen (33,127) (28,639) Millions of yen (35,175) (26,237) Millions of yen 208,540 179,257 Dividend Status Dividends per share Total dividends (annual) Payout ratio (consol.) Net asset dividend rate (consol.) June 30 September 30 December 31 End of period Total Yen Yen Yen Yen Yen Millions of yen % % Fiscal year ended March 31, 2025 - 29.00 - 29.00 58.00 15,053 28.9 3.3 Fiscal year ended March 31, 2026 - 32.00 - 46.00 78.00 19,861 34.3 4.1 Fiscal year ending March 31, 2027 (forecast) - 46.00 - 46.00 92.00 40.0 Consolidated Business Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026-March 31, 2027) (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 % 615,000 1.7 Millions of yen % 85,000 3.0 Millions of yen % 85,000 0.9 Millions of yen % 58,500 0.7 Yen 229.75 Significant changes in range of consolidation during the period: Yes Newly included: 2 companies (Company name) Web Synergies (S) Pte. Ltd., Intellisync S.r.l. Excluded: 1 company (Company name) Intellisync S.r.l. (Note) On October 30, 2025, the Group acquired the entire equity interest in Intellisync S.r.l., making it a consolidated subsidiary. Subsequently, on January 1, 2026, an absorption-type merger was effected with the Company’s consolidated subsidiary BaxEnergy Italia S.r.l. as the surviving company and Intellisync S.r.l. as the absorbed company. 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 March 31, 2026 257,201,210 shares As of March 31, 2025 268,624,510 shares Number of treasury shares at the end of the period As of March 31, 2026 2,572,843 shares As of March 31, 2025 9,765,129 shares Average number of shares in the period For the fiscal year ended March 31, 2026 255,197,989 shares For the fiscal year ended March 31, 2025 260,086,632 shares (Reference) Summary of Non-consolidated Business Results 1. Non-consolidated Business Results for the Year Ended March 31, 2026 (April 1, 2025-March 31, 2026) Results of Operations on a Non-consolidated Basis (Percentages show the change from the previous year.) Net sales Operating profit Ordinary profit Profit Fiscal year ended March 31, 2026 Fiscal year ended March 31, 2025 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 144,727 (0.4) 145,376 3.1 9,576 (36.8) 15,148 10.5 46,182 (9.9) 51,244 0.6 41,073 (9.4) 45,314 (19.5) Basic earnings per share Diluted earnings per share Yen Yen Fiscal year ended March 31, 2026 160.95 - Fiscal year ended March 31, 2025 174.23 - Financial Conditions on a Non-consolidated Basis Total assets Net assets Shareholders’ equity ratio Net assets per share Millions of yen Millions of yen % Yen As of March 31, 2026 362,795 287,685 79.3 1,129.83 As of March 31, 2025 343,720 271,037 78.9 1,047.04 (Reference) Shareholders’ equity: As of March 31, 2026: 287,685 million yen As of March 31, 2025: 271,037 million yen Financial results reports are exempt from audit 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 (4) Future Forecast” on page 6. The Company plans to hold a financial results presentation meeting for institutional investors via web conference on May 7, 2026. 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 Fiscal Year Under Review . - 5 - Overview of Financial Conditions for the Fiscal Year Under Review .......................................................... - 6 - Overview of Cash Flow for the Fiscal Year Under Review .......................................................................... - 6 - Future Forecast .............................................................................................................................................. - 6 - Policy on Appropriation of Profit and Dividends for the Period Under Review and Subsequent Periods .... - 8 - Policy on Selection of Accounting Standards....................................................................................................... - 8 - Consolidated Financial Statements Consolidated Balance Sheets......................................................................................................................... - 9 - Consolidated Statements of Income and Statements of Comprehensive Income Consolidated Statements of Income ............................................................................................................ - 11 - Consolidated Statements of Comprehensive Income .................................................................................. - 12 - Consolidated Statements of Changes in Net Assets .................................................................................... - 13 - Consolidated Statement of Cash Flows ....................................................................................................... - 15 - Notes on Consolidated Financial Statements Notes for Going Concern ............................................................................................................................ - 17 - Important Items Used as the Basis for Creation of Consolidated Financial Statements ............................. - 17 -Notes on Consolidated Statements of Income............................................................................................. - 18 - Notes on Segment Information ................................................................................................................... - 20 - Notes on Per Share Information .................................................................................................................. - 21 - Notes on Significant Subsequent Events ..................................................................................................... - 21 - [Reference] Consolidated Financial Statements for the Fiscal Year Ended March 31, 2026...................................................... - 22 - Overview of Business Results and Others Overview of Business Results for the Fiscal Year Under Review In accordance with the medium-term business plan, “Growth for Sustainability 2028 (GS2028),” during the current fiscal year (fiscal year ended March 31, 2026), the Group has made efforts to realize Creating Shared Value (CSV) management, which aims to sustainably enhance corporate value while benefitting both society and the environment through our business. The Group’s business performance during the fiscal year under review is as follows. Net sales increased by 42.4 billion yen year on year, mainly due to the contribution of sales from large-scale projects for which orders were received up to the previous fiscal year. Operating profit decreased by 0.9 billion yen year on year mainly due to a lower gross profit ratio caused by factors such as changes in the business mix, falling market prices in certain regions, and the recording of one-time provision for loss on construction contracts associated with strategic project orders, although there was an increase in gross profit due to higher sales. Ordinary profit decreased by 1.0 billion yen year on year. However, profit attributable to owners of parent increased by 5.9 billion yen year on year, partly due to the recording of impairment losses, including those on goodwill, in the previous fiscal year. Business results are as follows. Unit: billions of yen FY2024 FY2025 Difference Change Net sales 562.404 604.829 42.425 7.5% Operating profit 83.523 82.555 (0.967) (1.2)% Ordinary profit 85.351 84.259 (1.092) (1.3)% Profit attributable to owners of parent 52.123 58.113 5.989 11.5% (Reference) Average rate to 1 U.S. dollar (Yen)(Yen) 152.55 151.17 (1.38) - Results by individual segment are outlined below. Unit: billions of yen FY2024 FY2025 Difference Change Net sales 528.302 565.523 37.220 7.0% Operating profit 77.582 75.155 (2.426) (3.1)% Unit: billions of yen FY2024 FY2025 Difference Change Net sales 29.946 34.006 4.059 13.6% Operating profit 6.223 7.792 1.568 25.2% Unit: billions of yen FY2024 FY2025 Difference Change Net sales 4.155 5.300 1.145 27.6% Operating profit (0.282) (0.391) (0.108) - Overview of Financial Conditions for the Fiscal Year Under Review In comparison to March 31, 2025, total assets as of March 31, 2026 were up 77.3 billion yen to 795.6 billion yen, mainly due to increases in cash and deposits, accounts receivable - trade and contract assets. In addition, total liabilities were 265.7 billion yen, up 23.1 billion yen compared to March 31, 2025, mainly due to increases in accounts payable - trade and other current liabilities. As of March 31, 2026, net assets were 529.8 billion yen, up 54.1 billion yen compared to March 31, 2025, mainly due to the recognition of profit attributable to owners of parent and an increase in foreign currency translation adjustment. As a result, the shareholders’ equity ratio was 65.4%, up 0.2 percentage points from the end of the previous fiscal year. Overview of Cash Flow for the Fiscal Year Under Review The cash flow from operating activities in the fiscal year under review was a net inflow of 85.9 billion yen (down 13.0 billion yen from 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 33.1 billion yen (up 4.4 billion yen from 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 35.1 billion yen (up 8.9 billion yen from the previous fiscal year), mainly due to dividends paid and purchase of treasury shares. As a result, the balance of cash and cash equivalents at the end of the fiscal year under review was 208.5 billion yen, up 29.2 billion yen from the end of the previous fiscal year. Future Forecast Uncertainties in the global economy are increasing due to the prolonged stagnation of economic activities in China and the manifestation of geopolitical risks, including the situation in the Middle East. In the short term, there is a possibility that delays in customers’ investment decisions, price increases driven by supply and demand trends of raw materials including those derived from crude oil, and rising transportation and labor costs may impact performance. On the other hand, we anticipate that medium-to long-term demand, driven by the energy transition, will remain robust. The Group’s consolidated business forecasts for the next fiscal year (fiscal year ending March 31, 2027) are as follows. Orders received are expected to increase due to bullish investment among customers, driven by strong energy demand, despite concerns about the short-term impact of the situation in the Middle East. Growth in net sales is expected to be limited, taking into account the impact of the situation in the Middle East. Operating profit is expected to increase mainly due to higher sales. Ordinary profit and profit attributable to owners of parent are expected to perform on par with the fiscal year under review. The world is experiencing drastic change due to pressing issues that call for solutions such as an energy transition to enable a carbon-neutral society, and due to innovations in digital technologies. We eagerly embrace these shifts in our landscape and perceive them as valuable opportunities to create shared value. We will accomplish this by making contributions through our business that benefit both society and the environment and lead to the sustainable enhancement of corporate value. The operating results forecast assumes a foreign exchange rate of 1 USD = 150 yen (compared to 1 USD = 151.17 yen in the fiscal year ended March 31, 2026). Based on the above, the current consolidated business forecasts are as follows. The results for fiscal year 2025 are provided for comparison. Unit: billions of yen FY2025 (results) FY2026 (forecast) Difference Change Orders received 617.838 645.0 27.161 4.4% Net sales 604.829 615.0 10.170 1.7% Operating profit 82.555 85.0 2.444 3.0% Ordinary profit 84.259 85.0 0.740 0.9% Profit attributable to owners of parent 58.113 58.5 0.386 0.7% (Reference) Average rate to 1 U.S. dollar (Yen) 151.17 150 (1.17) - The forecast by segment is as follows. In our industrial automation and control business, as mentioned above, we expect orders received, net sales and operating profit to increase compared to the fiscal year under review. In our measuring instruments business, we expect orders received to decrease, and net sales and operating profit to increase compared to the fiscal year under review. In our new businesses and others, we expect orders received, net sales and operating profit to decrease. (Reference) Consolidated Business Forecast by Segment Unit: billions of yen FY2025 (results) FY2026 (forecast) Difference Change Industrial automation and control business 570.881 603.0 32.118 5.6% Measuring instruments business 41.974 39.0 (2.974) (7.1)% New businesses and others 4.983 3.0 (1.983) (39.8)% Total 617.838 645.0 27.161 4.4% Unit: billions of yen FY2025 (results) FY2026 (forecast) Difference Change Industrial automation and control business 565.523 573.0 7.476 1.3% Measuring instruments business 34.006 39.0 4.993 14.7% New businesses and others 5.300 3.0 (2.300) (43.4)% Total 604.829 615.0 10.170 1.7% Unit: billions of yen FY2025 (results) FY2026 (forecast) Difference Change Industrial automation and control business 75.155 76.5 1.344 1.8% Measuring instruments business 7.792 9.0 1.207 15.5% New businesses and others (0.391) (0.5) (0.108) –% Total 82.555 85.0 2.444 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 Policy on Appropriation of Profit and Dividends for the Period Under Review and Subsequent Periods The distribution of earnings to shareholders is a top management priority for the Company. By achieving growth in earnings, we aim to steadily increase our dividend payments. While giving overall consideration to our business results, the need to secure investment funds for maximizing medium- to long-term shareholder value, and maintain the financial base supporting growth investment, we will strive to secure a consolidated dividend payout ratio in excess of 30%. Furthermore, we will maintain a stable dividend based on the shareholders’ equity ratio, even when business results deteriorate due to temporary factors. We will then flexibly consider additional shareholder returns through acquisition of own shares, taking into account opportunities for investment in growth, financial conditions, and stock price levels. Regarding the year-end dividend for the fiscal year under review, the year-end dividend will be 46 yen per share as announced in the dividend forecast on February 3, 2026, giving consideration on the consolidated dividend payout ratio, shareholders’ equity ratio, financial positions and other related factors. As a result, we plan to pay 78 yen per share in dividend payments for the fiscal year when including the interim dividend. With regard to dividends for the next fiscal year, we plan to pay 92 yen per share (interim dividend of 46.00 yen and year-end dividend of 46.00 yen). Policy on Selection of Accounting Standards For the time being, the Group will continue to compile its consolidated financial statements based on generally accepted Japanese accounting principles, taking into consideration the comparability of the consolidated financial statements from period to period and the comparability among enterprises. We have been monitoring accounting trends in and outside Japan and will consider the adoption of other accounting standards if it is judged that this will enhance our corporate value. Consolidated Financial Statements Consolidated Balance Sheets (Millions of yen) As of March 31, 2025 As of March 31, 2026 Assets Current assets Cash and deposits 188,754 217,549 Notes receivable - trade 11,309 8,877 Accounts receivable - trade 140,063 158,203 Contract assets 87,118 93,221 Merchandise and finished goods 20,174 21,492 Work in process 5,791 6,619 Raw materials and supplies 24,962 24,533 Other 22,941 27,368 Allowance for doubtful accounts (4,801) (6,271) Total current assets 496,313 551,595 Non-current assets Property, plant and equipment Buildings and structures, net 43,161 43,842 Machinery, equipment and vehicles, net 11,001 12,580 Tools, furniture and fixtures, net 7,483 8,116 Land 13,581 13,172 Leased assets, net 32 48 Right-of-use assets, net 9,677 9,643 Construction in progress 2,794 4,589 Total property, plant and equipment 87,732 91,995 Intangible assets Software 21,387 21,604 Goodwill 6,563 12,987 Other 25,117 29,402 Total intangible assets 53,068 63,993 Investments and other assets Investment securities 64,290 70,796 Deferred tax assets 10,547 11,046 Other 7,528 6,953 Allowance for doubtful accounts (1,193) (763) Total investments and other assets 81,171 88,033 Total non-current assets 221,972 244,022 Total assets 718,285 795,618 (Millions of yen) As of March 31, 2025 As of March 31, 2026 Liabilities Current liabilities Notes and accounts payable - trade 34,730 41,446 Electronically recorded obligations - operating 7,509 5,918 Short-term borrowings 327 24,318 Accounts payable - other 21,444 20,952 Income taxes payable 12,730 11,741 Contract liabilities 59,524 63,667 Lease liabilities 2,584 2,589 Provision for bonuses 22,526 23,788 Provision for loss on construction contracts 8,847 12,869 Other 27,559 34,079 Total current liabilities 197,784 241,370 Non-current liabilities Long-term borrowings 24,025 18 Deferred tax liabilities 4,916 5,615 Retirement benefit liability 6,726 9,310 Lease liabilities 7,115 7,313 Other 1,996 2,094 Total non-current liabilities 44,779 24,352 Total liabilities 242,564 265,723 Net assets Shareholders’ equity Share capital 43,401 43,401 Capital surplus 54,575 36,305 Retained earnings 342,573 373,700 Treasury shares (23,251) (6,668) Total shareholders’ equity 417,298 446,738 Accumulated other comprehensive income Valuation difference on available-for-sale securities 21,599 26,071 Deferred gains or losses on hedges (38) 61 Foreign currency translation adjustment 28,576 47,019 Remeasurements of defined benefit plans 419 126 Total accumulated other comprehensive income 50,557 73,278 Non-controlling interests 7,865 9,878 Total net assets 475,721 529,894 Total liabilities and net assets 718,285 795,618 Consolidated Statements of Income and Statements of Comprehensive Income Consolidated Statements of Income (Millions of yen) Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Net sales 562,404 604,829 Cost of sales 294,959 328,436 Gross profit 267,444 276,392 Selling, general and administrative expenses 183,921 193,836 Operating profit 83,523 82,555 Non-operating income Interest income 2,678 3,010 Dividend income 1,239 1,286 Share of profit of entities accounted for using equity method 2,058 524 Miscellaneous income 1,060 764 Total non-operating income 7,036 5,585 Non-operating expenses Interest expenses 1,214 1,053 Foreign exchange losses 2,074 1,135 Commission expenses 71 256 Miscellaneous losses 1,848 1,436 Total non-operating expenses 5,207 3,882 Ordinary profit 85,351 84,259 Extraordinary income Gain on sale of non-current assets 2,916 351 Gain on sale of investment securities 645 525 Gain on step acquisitions - 176 Total extraordinary income 3,562 1,054 Extraordinary losses Loss on sale of non-current assets 1,236 233 Loss on retirement of non-current assets 396 2,839 Impairment losses *1 3,987 *1 855 Loss on valuation of investment securities 3,130 287 Loss on termination of retirement benefit plan 1,338 - Retirement benefit expenses - *2 1,659 Business restructuring expenses 297 509 Total extraordinary losses 10,387 6,384 Profit before income taxes 78,527 78,929 Income taxes - current 22,910 19,480 Income taxes - deferred 411 (1,519) Total income taxes 23,321 17,961 Profit 55,206 60,967 Profit attributable to non-controlling interests 3,082 2,854 Profit attributable to owners of parent 52,123 58,113 Consolidated Statements of Comprehensive Income (Millions of yen) Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Profit 55,206 60,967 Other comprehensive income Valuation difference on available-for-sale securities (342) 4,493 Deferred gains or losses on hedges (82) 99 Foreign currency translation adjustment (4,606) 18,491 Remeasurements of defined benefit plans, net of tax 989 (20) Share of other comprehensive income of entities accounted for using equity method 268 297 Total other comprehensive income (3,773) 23,362 Comprehensive income 51,432 84,329 Comprehensive income attributable to Comprehensive income attributable to owners of parent 48,525 80,834 Comprehensive income attributable to non-controlling interests 2,906 3,495 Consolidated Statements of Changes in Net Assets Fiscal year ended March 31, 2025 (April 1, 2024-March 31, 2025) (Millions of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 43,401 54,464 303,979 (19,357) 382,487 Changes during period Dividends of surplus (13,529) (13,529) Profit attributable to owners of parent 52,123 52,123 Purchase of treasury shares (4,046) (4,046) Disposal of treasury shares 110 152 263 Net changes in items other than shareholders’ equity Total changes during period - 110 38,593 (3,894) 34,810 Balance at end of period 43,401 54,575 342,573 (23,251) 417,298 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 21,953 43 32,831 (674) 54,154 8,120 444,763 Changes during period Dividends of surplus (13,529) Profit attributable to owners of parent 52,123 Purchase of treasury shares (4,046) Disposal of treasury shares 263 Net changes in items other than shareholders’ equity (353) (82) (4,255) 1,093 (3,597) (255) (3,852) Total changes during period (353) (82) (4,255) 1,093 (3,597) (255) 30,958 Balance at end of period 21,599 (38) 28,576 419 50,557 7,865 475,721 Fiscal year ended March 31, 2026 (April 1, 2025-March 31, 2026) (Millions of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 43,401 54,575 342,573 (23,251) 417,298 Changes during period Dividends of surplus (15,655) (15,655) Profit attributable to owners of parent 58,113 58,113 Purchase of treasury shares (13,022) (13,022) Disposal of treasury shares 0 0 0 Cancellation of treasury shares (18,275) (11,330) 29,605 - Change in ownership interest of parent due to transactions with non-controlling interests 4 4 Net changes in items other than shareholders’ equity Total changes during period - (18,270) 31,127 16,582 29,439 Balance at end of period 43,401 36,305 373,700 (6,668) 446,738 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 21,599 (38) 28,576 419 50,557 7,865 475,721 Changes during period Dividends of surplus (15,655) Profit attributable to owners of parent 58,113 Purchase of treasury shares (13,022) Disposal of treasury shares 0 Cancellation of treasury shares - Change in ownership interest of parent due to transactions with non-controlling interests 4 Net changes in items other than shareholders’ equity 4,472 99 18,442 (293) 22,721 2,012 24,733 Total changes during period 4,472 99 18,442 (293) 22,721 2,012 54,173 Balance at end of period 26,071 61 47,019 126 73,278 9,878 529,894 (4) Consolidated Statement of Cash Flows (Millions of yen) Fiscal year ended Fiscal year ended March 31, 2025 March 31, 2026 Cash flows from operating activities Profit before income taxes 78,527 78,929 Depreciation 21,064 23,085 Impairment losses 3,987 855 Amortization of goodwill 1,800 1,962 Increase (decrease) in allowance for doubtful accounts (759) 743 Increase (decrease) in provision for bonuses (810) 210 Increase (decrease) in provision for loss on construction contracts 327 3,666 Increase (decrease) in retirement benefit liability 629 2,093 Interest and dividend income (3,917) (4,297) Interest expenses 1,214 1,053 Share of loss (profit) of entities accounted for using equity method (2,058) (524) Loss (gain) on sale of non-current assets (1,680) (118) Loss on retirement of non-current assets 396 2,839 Loss (gain) on valuation of investment securities 3,130 287 Loss on termination of retirement benefit plan 1,338 - Decrease (increase) in trade receivables 10,214 (9,749) Decrease (increase) in inventories 5,256 1,368 Increase (decrease) in trade payables 1,566 3,609 Increase (decrease) in accounts payable - other (891) (800) Increase (decrease) in accrued expenses 954 2,529 Other, net (7,225) (2,808) Subtotal 113,062 104,933 Interest and dividends received 3,751 4,328 Interest paid (1,267) (1,143) Income taxes refund (paid) (16,521) (22,168) Net cash provided by (used in) operating activities 99,025 85,951 Cash flows from investing activities Payments into time deposits (11,313) (5,768) Proceeds from withdrawal of time deposits 6,984 6,563 Purchase of property, plant and equipment (10,845) (11,124) Proceeds from sale of property, plant and equipment 6,628 1,235 Purchase of intangible assets (16,069) (16,558) Purchase of investment securities (782) (295) Proceeds from sale and redemption of investment 796 1,132 securities Purchase of shares of subsidiaries and associates - (369) Purchase of shares of subsidiaries resulting in change in scope of consolidation (4,471) (8,508) Other, net 432 566 Net cash provided by (used in) investing activities (28,639) (33,127) (Millions of yen) Fiscal year ended Fiscal year ended March 31, 2025 March 31, 2026 Cash flows from financing activities Net increase (decrease) in short-term borrowings (23) (99) Proceeds from long-term borrowings 14 - Repayments of long-term borrowings (17) (42) Repayments of lease liabilities (3,821) (3,034) Dividends paid (13,521) (15,646) Purchase of treasury shares (4,046) (13,022) Decrease (increase) in deposits for treasury shares purchase (960) - Dividends paid to non-controlling interests (3,861) (3,329) Net cash provided by (used in) financing activities (26,237) (35,175) Effect of exchange rate change on cash and cash equivalents 680 11,634 Net increase (decrease) in cash and cash equivalents 44,828 29,283 Cash and cash equivalents at beginning of period 134,428 179,257 Cash and cash equivalents at end of period 179,257 208,540 Notes on Consolidated Financial Statements Notes for Going Concern Not applicable Important Items Used as the Basis for Creation of Consolidated Financial Statements Items Related to the Range of Consolidation Consolidated subsidiaries: 130 companies The range of consolidation has been revised due to changes involving the following companies: Due to the acquisition of the shares of Web Synergies (S) Pte. Ltd., the company and its six subsidiaries have been newly included in the range of consolidation. Due to the acquisition of equity interest in Intellisync S.r.l., the company and its subsidiary WiSNAM S.r.l. have been newly included in the range of consolidation. Subsequently, Intellisync S.r.l. and WiSNAM S.r.l. were absorbed and merged into BaxEnergy Italia S.r.l., and therefore have been excluded from the range of consolidation. In addition, Yokogawa Africa Holding B.V. was liquidated and thus excluded from the range of consolidation. Non-consolidated subsidiaries: 1 company (Name of major company) Yokogawa Foundry Corporation Non-consolidated subsidiaries do not significantly influence the consolidated financial statements regarding to any of their total assets, net sales, profit or loss for the period (amount corresponding to the Company’s ownership interest) as well as retained earnings (amount corresponding to the Company’s ownership interest) and others, and have therefore been excluded from the range of consolidation. Items Related to Application of the Equity Method Non-consolidated subsidiaries: 1 company (Name of major company) Yokogawa Foundry Corporation Affiliated companies: 4 companies (Name of major company) Yokogawa Rental & Lease Corporation Semantum Oy has been newly included in the scope of the equity method due to the acquisition of its shares. For certain equity method affiliates whose closing dates differ from the consolidated closing date, financial statements based on a provisional closing conducted as of the consolidated closing date are used. Items Related to the Fiscal Year of Consolidated Subsidiaries, Etc. The closing date for Yokogawa Electric China Co., Ltd. and 18 other non-Japan subsidiaries is December 31. For creation of consolidated financial statements, financial statements based on the provisional settlement of accounts implemented on the consolidated closing date are used for these companies. Application of Group Tax Sharing System The Company and some of its domestic consolidated subsidiaries have applied the group tax sharing system. Notes on Consolidated Statements of Income *1. Impairment Losses Fiscal year ended March 31, 2025 (April 1, 2024-March 31, 2025) Impairment losses were recorded for the following asset groups. (Millions of yen) Location Use Category Impairment losses United States Business assets Machinery, equipment and vehicles 97 Tools, furniture and fixtures 2 Right-of-use assets 25 Software 0 Goodwill 2,222 Other intangible assets 1,480 Japan Business assets Tools, furniture and fixtures 15 Software 5 Idle assets Buildings and structures 115 Land 22 Total 3,987 The Group’s business assets are grouped based on management accounting classification. The book value with respect to the goodwill, etc. recognized at the time of acquisition of the U.S.-based consolidated subsidiary, Yokogawa Fluence Analytics, Inc., has been reduced to its recoverable amount and the amount of said reduction has been recorded as an impairment loss because the business results of that company are trending below the initially forecasted business plan. The recoverable amounts for the said asset groups are measured by value in use and are calculated by discounting future cash flows at a rate of 10%. Fiscal year ended March 31, 2026 (April 1, 2025-March 31, 2026) Impairment losses were recorded for the following asset groups. (Millions of yen) Location Use Category Impairment losses Japan Business assets Buildings and structures 2 Tools, furniture and fixtures 9 Software 423 Other 39 Idle assets Buildings and structures 25 Machinery, equipment and vehicles 27 Land 4 United States Business assets Goodwill 297 Denmark Business assets Goodwill 25 Total 855 The Group’s business assets are grouped based on management accounting classification. The book value with respect to the goodwill recognized at the time of acquisition of shares of the U.S.-based consolidated subsidiary, Yokogawa Fluid Imaging Technologies, Inc., was primarily reduced to its recoverable amount and the amount of said reduction has been recorded as an impairment loss because the business results of that company is expected to fall below the initially forecasted business plan due to shifts in the business landscape surrounding that company. The recoverable amounts for the said asset groups are measured by value in use and are calculated by discounting future cash flows at a rate of 10%. *2. Retirement benefit expenses Fiscal year ended March 31, 2026 (April 1, 2025-March 31, 2026) Following the enforcement of the new Labor Codes in India, the calculation basis related to the retirement benefit plans at the Company’s India-based consolidated subsidiaries was revised. As a result, retirement benefit liability associated with the plans increased. This increase is recorded in full under extraordinary losses in the fiscal year under review as prior service cost resulting from the revision of the retirement benefit plans. Notes on Segment Information Segment Information Overview of Reporting Segments The business segments for financial reporting are categorized as the industrial automation and control business, measuring instruments business, and new businesses and others. The industrial automation and control business offers comprehensive solutions including field instruments such as flowmeters, differential pressure/pressure transmitters, and process analyzers; control systems, programmable controllers, industrial recorders, etc.; various types of software that enhance productivity; and services that minimize plant lifecycle costs. The measuring instruments business offers waveform measuring instruments; optical communications measuring instruments; signal generators; and electric power, temperature, and pressure measuring instruments. The new businesses and others is engaged in a solutions business that offers industrial IoT (IIoT) hardware, software, and cloud environments. Sales and Profits (Losses) by Reporting Segment Fiscal year ended March 31, 2025 (April 1, 2024-March 31, 2025) (Millions of yen) Reporting segments Adjustment Total Industrial automation and control Measuring instruments New businesses and others Total Net sales Net sales to unaffiliated customers 528,302 29,946 4,155 562,404 - 562,404 Intersegment net sales or transfers - - - - - - Total 528,302 29,946 4,155 562,404 - 562,404 Segment profit (loss) 77,582 6,223 (282) 83,523 - 83,523 (Note) The profit or loss of each reporting segment is its operating profit or loss. Fiscal year ended March 31, 2026 (April 1, 2025-March 31, 2026) (Millions of yen) Reporting segments Adjustment Total Industrial automation and control Measuring instruments New businesses and others Total Net sales Net sales to unaffiliated customers Intersegment net sales or transfers 565,523 - 34,006 - 5,300 - 604,829 - - - 604,829 - Total 565,523 34,006 5,300 604,829 - 604,829 Segment profit (loss) 75,155 7,792 (391) 82,555 - 82,555 (Note) The profit or loss of each reporting segment is its operating profit or loss. Notes on Per Share Information Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Net assets per share (yen) 1,807.37 2,042.26 Basic earnings per share (yen) 200.41 227.72 (Notes) 1. The amount of diluted earnings per share is not described because there are no potential shares. 2. The basis for calculation of basic earnings per share is as follows: (Millions of yen) Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Profit attributable to owners of parent 52,123 58,113 Profit attributable to owners of parent related to common stock 52,123 58,113 Average number of shares during the period 260,086,632 255,197,989 Notes on Significant Subsequent Events Acquisition of Own Shares At the Board of Directors meeting held on May 7, 2026, the Company resolved on matters concerning acquisition of own shares pursuant to the provisions of Article 156 of the Companies Act, as applied by replacing the relevant terms pursuant to the provisions of Article 165, paragraph (3) of the same Act. Reason for Acquisition of Own Shares In order to improve the shareholder return as well as capital efficiency and to implement flexible capital policy in response to change in the business environment. Details on Matters Related to Acquisition Class of shares to be acquired: Common shares Total number of shares to be acquired: 9,000,000 shares (maximum) (3.5% of total number of issued shares, excluding treasury shares) Total amount of share acquisition costs: 30,000,000,000 yen (maximum) Acquisition period: From May 8, 2026 to September 30, 2026 Acquisition method: Open-market purchase on the Tokyo Stock Exchange [Reference] May 7, 2026 Yokogawa Electric Corporation Consolidated Financial Statements for the Fiscal Year Ended March 31, 2026 (Millions of yen) FY2024 FY2025 Change Amount Ratio to net sales Amount Ratio to net sales Amount Ratio to net sales Net sales 562,404 - 604,829 - 42,425 - Operating profit 83,523 14.9% 82,555 13.6% (967) (1.2)% Ordinary profit 85,351 15.2% 84,259 13.9% (1,092) (1.2)% Profit attributable to owners of parent 52,123 9.3% 58,113 9.6% 5,989 0.3% Comprehensive income 51,432 9.1% 84,329 13.9% 32,897 4.8% Total assets 718,285 795,618 77,332 Net assets 475,721 529,894 54,173 Return on equity 11.5% 11.8% 0.2% Basic earnings per share 200.41 yen 227.72 yen 27.31 yen Net assets per share 1,807.37 yen 2,042.26 yen 234.89 yen Capital investment 33,120 32,225 (895) Depreciation 22,864 25,048 2,183 Research and development expenses 32,061 33,011 950 Average exchange rate during the period (USD) 152.55 yen 151.17 yen (1.38) yen Consolidated Orders Received by Segment (Millions of yen) FY2024 FY2025 FY2026 full year (forecast) Industrial automation and control business 564,268 570,881 603,000 Measuring instruments business 30,299 41,974 39,000 New businesses and others 4,023 4,983 3,000 Total 598,591 617,838 645,000 Consolidated Sales by Segment (Millions of yen) FY2024 FY2025 FY2026 full year (forecast) Industrial automation and control business 528,302 565,523 573,000 Measuring instruments business 29,946 34,006 39,000 New businesses and others 4,155 5,300 3,000 Total 562,404 604,829 615,000 Consolidated Operating Profit by Segment (Millions of yen) FY2024 FY2025 FY2026 full year (forecast) Industrial automation and control business 77,582 75,155 76,500 Measuring instruments business 6,223 7,792 9,000 New businesses and others (282) (391) (500) Total 83,523 82,555 85,000 -

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