Financial Results Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027 | SMC CORPORATION (6273) timely disclosure

Worth reading

76Important

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

750

¥100 million (increase versus current operating profit guidance)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 202714 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥5,536 100 million+38.3%

Operating profit¥1,579 100 million+74.0%

Ordinary income¥1,732 100 million+60.5%

Net income¥1,289 100 million+62.9%

Gross Profit Margin47.9%

Operating profit margin28.5%

Selling, general and administrative expenses¥1,073 100 million

Results for the three months of the current quarter

Net Sales

¥2,826 100 million

Operating profit

¥839 100 million

Ordinary income

¥814 100 million

Net income

¥611 100 million

Full-year earnings forecast

Net Sales

¥10,730 100 million

Cost of sales

¥5,630 100 million

Gross profit

¥5,100 100 million

Selling, general and administrative expenses

¥2,160 100 million

Operating profit

¥2,940 100 million

Ordinary income

¥3,250 100 million

Net income

¥2,380 100 million

Average dollar exchange rate

158 Yen

Average euro exchange rate

181 Yen

Average CNY exchange rate

23.6 Yen

Capital expenditures

¥1,000 100 million

Depreciation and amortization

¥623 100 million

Research and Development Expenses

¥470 100 million

Annual dividend

¥1,000 per share

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Depreciation and amortization42.3%

Research and Development Expenses51.1%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Operating profit margin was 28.5%, substantially exceeding the plan

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Sales volumeUp 26.0% year on year

Selling PricesUp 0.6% year on year

Foreign exchange fluctuationsUp 11.5% year on year

FX transaction impact on operating profit+¥19.4 billion

FX translation impact on operating profit+¥10.7 billion

Increase in inventory write-downs-¥0.4 billion

SG&A personnel expenses-¥3.0 billion

Logistics costs in SG&A-¥2.4 billion

R&D expenses in SG&A-¥1.2 billion

Quarter-only sales volumeUp 3.5% quarter on quarter

Quarter-only selling priceUp 0.3% quarter on quarter

Quarter-only FX changeUp 0.2% quarter on quarter

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Average dollar exchange rate¥158.00

Average euro exchange rate¥181.00/EUR

Average CNY exchange rate¥23.60

New initiatives

Increasing headcount at each plant to meet robust orders
Promoting supplier BCP
Investment in warehouse buildings at domestic plants
Investment in the China New Technology Center (CTC)
Establishment of an additional ¥50 billion share buyback limit

Key KPIsA metric the company considers important as a management benchmark.

Orders received index

Consolidated151

Semiconductors and electrical equipment205

Automotive111

Machine tools134

Food109

Healthcare125

Other128

Share by region

Domestic62%

North America33%

Europe22%

Greater China36%

Other Asia54%

Worldwide total36%

Foreign-exchange sensitivity

Annual change in operating profit¥4.83 billion (when the exchange rate changes by 1%)

Equity ratio91.1%

ROE6.0% (12.1% annualized)

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Sales volumeUp 26.0% year on year

Selling PricesUp 0.6% year on year

Quarter-only sales volumeUp 3.5% quarter on quarter

Quarter-only selling priceUp 0.3% quarter on quarter

Segment results

Revenue by location of operations

Japan

¥486 100 million

North America

¥341 100 million

Europe

¥459 100 million

Greater China

¥987 100 million

Other Asia

¥477 100 million

Sales mix by industry

Semiconductors28%

Electrical equipment13%

Automotive14%

Machinery9%

Food6%

Healthcare5%

Other25%

Market Size / Share

Share by region

Domestic62%

North America33%

Europe22%

Greater China36%

Other Asia54%

Worldwide total36%

Orders received and order backlog

An order intake index is provided, but the amounts of orders received and the order backlog are Not disclosed

Number of employees

The policy calls for increasing headcount, but the number is Not disclosed

Capital expenditures

¥328 100 million actuals through the second quarter

Annual Dividend

Annual dividend per share¥1,000

Interim Dividend¥500

Payout ratio

26.1% (as shown in the graph)

Acquisition of treasury shares

Buyback limit¥50.0 billion

Actual resultsCompleted approximately ¥50 billion in share buybacks during the current interim consolidated accounting period

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥5,536 100 million (YoY +38.3%)
Operating profit	¥1,579 100 million (YoY +74.0%)
Ordinary income	¥1,732 100 million (YoY +60.5%)
Net income	¥1,289 100 million (YoY +62.9%)
Gross Profit Margin	47.9%
Operating profit margin	28.5%
Selling, general and administrative expenses	¥1,073 100 million
Results for the three months of the current quarter	Net Sales ¥2,826 100 million / Operating profit ¥839 100 million / Ordinary income ¥814 100 million / Net income ¥611 100 million
Full-year earnings forecast	Net Sales ¥10,730 100 million / Cost of sales ¥5,630 100 million / Gross profit ¥5,100 100 million / Selling, general and administrative expenses ¥2,160 100 million / Operating profit ¥2,940 100 million / Ordinary income ¥3,250 100 million / Net income ¥2,380 100 million / Average dollar exchange rate 158 Yen / Average euro exchange rate 181 Yen / Average CNY exchange rate 23.6 Yen / Capital expenditures ¥1,000 100 million / Depreciation and amortization ¥623 100 million / Research and Development Expenses ¥470 100 million / Annual dividend ¥1,000 per share
Progress against full-year forecast	Depreciation and amortization 42.3% / Research and Development Expenses 51.1%
Self-assessment against the plan	Operating profit margin was 28.5%, substantially exceeding the plan
Segment results	Revenue by location of operations Japan ¥486 100 million / North America ¥341 100 million / Europe ¥459 100 million / Greater China ¥987 100 million / Other Asia ¥477 100 million / Sales mix by industry Semiconductors 28% / Electrical equipment 13% / Automotive 14% / Machinery 9% / Food 6% / Healthcare 5% / Other 25%
Breakdown of Factors Affecting the Change	Sales volume Up 26.0% year on year / Selling Prices Up 0.6% year on year / Foreign exchange fluctuations Up 11.5% year on year / FX transaction impact on operating profit +¥19.4 billion / FX translation impact on operating profit +¥10.7 billion / Increase in inventory write-downs -¥0.4 billion / SG&A personnel expenses -¥3.0 billion / Logistics costs in SG&A -¥2.4 billion / R&D expenses in SG&A -¥1.2 billion / Quarter-only sales volume Up 3.5% quarter on quarter / Quarter-only selling price Up 0.3% quarter on quarter / Quarter-only FX change Up 0.2% quarter on quarter
Key KPIs	Orders received index Consolidated 151 / Semiconductors and electrical equipment 205 / Automotive 111 / Machine tools 134 / Food 109 / Healthcare 125 / Other 128 / Share by region Domestic 62% / North America 33% / Europe 22% / Greater China 36% / Other Asia 54% / Worldwide total 36% / Foreign-exchange sensitivity Annual change in operating profit ¥4.83 billion (when the exchange rate changes by 1%) / Equity ratio 91.1% / ROE 6.0% (12.1% annualized)
Unit price and quantity metrics	Sales volume Up 26.0% year on year / Selling Prices Up 0.6% year on year / Quarter-only sales volume Up 3.5% quarter on quarter / Quarter-only selling price Up 0.3% quarter on quarter
Number of employees	The policy calls for increasing headcount, but the number is Not disclosed
Assumptions Underlying the Business Outlook	Average dollar exchange rate ¥158.00 / Average euro exchange rate ¥181.00/EUR / Average CNY exchange rate ¥23.60
Annual Dividend	Annual dividend per share ¥1,000 / Interim Dividend ¥500 / Year-end dividend Not disclosed
Payout ratio	26.1% (as shown in the graph)
Acquisition of treasury shares	Buyback limit ¥50.0 billion / Period Not disclosed / Actual results Completed approximately ¥50 billion in share buybacks during the current interim consolidated accounting period
Capital expenditures	¥328 100 million (actuals through the second quarter)
Orders received and order backlog	An order intake index is provided, but the amounts of orders received and the order backlog are Not disclosed
Market Size / Share	Share by region Domestic 62% / North America 33% / Europe 22% / Greater China 36% / Other Asia 54% / Worldwide total 36%
New initiatives	Increasing headcount at each plant to meet robust orders, Promoting supplier BCP, Investment in warehouse buildings at domestic plants, Investment in the China New Technology Center (CTC), Establishment of an additional ¥50 billion share buyback limit

Items this document does not state (5)

Number of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The factors behind the increase in revenue and profit were expanding demand centered on semiconductors, higher sales volumes and the effects of the weaker yen. The company explained that the upward revision to its full-year forecasts reflected second-quarter progress.

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