Financial Results for Fiscal Year 2025

Consolidated Financial Results for the FY2025

Yokogawa Electric Corporation (6841)

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.)

1. Consolidated Business Results for the Fiscal Year Ended March 31, 2026 (April 1, 2025-March 31, 2026)

   1. 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

   2. 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

   3. 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

2. 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

3. 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.)

1. 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.

2. Changes in accounting policies, changes in accounting estimates, and restatements

   1. Changes in accounting policies accompanying revision of accounting standards: No

   2. Changes in accounting policies other than (a) above: No

   3. Changes in accounting estimates: No

   4. Restatements: No

3. Number of shares issued (common stock)

   1. 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

   2. 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

   3. 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)

1. 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	-

2. Financial Conditions on a Non-consolidated Basis

(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

1. Overview of Business Results and Others

   1. Overview of Business Results for the Fiscal Year Under Review . - 5 -

   2. Overview of Financial Conditions for the Fiscal Year Under Review .......................................................... - 6 -

   3. Overview of Cash Flow for the Fiscal Year Under Review .......................................................................... - 6 -

   4. Future Forecast .............................................................................................................................................. - 6 -

   5. Policy on Appropriation of Profit and Dividends for the Period Under Review and Subsequent Periods .... - 8 -

2. Policy on Selection of Accounting Standards....................................................................................................... - 8 -

3. Consolidated Financial Statements

   1. Consolidated Balance Sheets......................................................................................................................... - 9 -

   2. Consolidated Statements of Income and Statements of Comprehensive Income

      Consolidated Statements of Income ............................................................................................................ - 11 -

      Consolidated Statements of Comprehensive Income .................................................................................. - 12 -

   3. Consolidated Statements of Changes in Net Assets .................................................................................... - 13 -

   4. Consolidated Statement of Cash Flows ....................................................................................................... - 15 -

   5. 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 -

1. Overview of Business Results and Others

   1. 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)	-

   2. 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.

   3. 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.

   4. 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

   5. 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).

2. 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.

3. Consolidated Financial Statements

1. 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

2. 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

3. Consolidated Statements of Changes in Net Assets

Fiscal year ended March 31, 2025 (April 1, 2024-March 31, 2025)

(Millions of yen)

Fiscal year ended March 31, 2026 (April 1, 2025-March 31, 2026)

(Millions of yen)

(Millions of yen)

1. Notes on Consolidated Financial Statements Notes for Going Concern

   Not applicable

   Important Items Used as the Basis for Creation of Consolidated Financial Statements

   1. Items Related to the Range of Consolidation

      1. 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.

      2. 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.

   2. Items Related to Application of the Equity Method

      1. Non-consolidated subsidiaries: 1 company

         (Name of major company) Yokogawa Foundry Corporation

      2. 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.

      3. 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.

   3. 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.

   4. 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)

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)

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

1. 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.

2. Sales and Profits (Losses) by Reporting Segment

Fiscal year ended March 31, 2025 (April 1, 2024-March 31, 2025)

(Millions of yen)

(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)

(Note) The profit or loss of each reporting segment is its operating profit or loss.

Notes on Per Share Information

(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)

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.

1. 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.

2. Details on Matters Related to Acquisition

   1. Class of shares to be acquired: Common shares

   2. Total number of shares to be acquired: 9,000,000 shares (maximum)

      (3.5% of total number of issued shares, excluding treasury shares)

   3. Total amount of share acquisition costs: 30,000,000,000 yen (maximum)

   4. Acquisition period: From May 8, 2026 to September 30, 2026

   5. Acquisition method: Open-market purchase on the Tokyo Stock Exchange

[Reference]

May 7, 2026

Yokogawa Electric Corporation

(Millions of yen)

Consolidated Orders Received by Segment (Millions of yen)

Consolidated Sales by Segment (Millions of yen)

Consolidated Operating Profit by Segment (Millions of yen)

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