SMC : Presentation of Financial Results for the Second Quarter ended September 30, 2021 (FY2021)

Presentation of Financial Results

for the Second Quarter ended

September 30, 2021 (FY2021)

(Supplemental Material for Consolidated Financial Highlights)

November 16, 2021

FY21 1st Half Financial Results Conference

For the 6 months ended on September 30, 2021

November 16, 2021

Yoshiki Takada, President

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FY21 1st Half Consolidated Financial Summary

Ẕ1ẕ We had ¥358.6 billion net sales and ¥90.2 billion net profit in the FY21 1st half, gaining on an year over year basis.

Ẕ2ẕ We revised up our FY21 full year net sales and net profit guidance to ¥700.0 billion and ¥163.0 billion respectively.

Ẕ3ẕ We revised up our FY21 full year Capex guidance to ¥80.0 billion in the Q1 results, adding ¥30.0 billion of land acquisition costs for our new headquarters.

Ẕ4ẕ The interim dividend per share is 300 yen.

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FY21 1st Half Financial Results Conference	November 16, 2021

The FA Demand Environment

The change in society, the environment and the industrial structure

Ẕ1ẕ Aging and shrinking population, decrease in labor force, rises in personal costs

Ẕ2ẕ Promoting DX and Digital Shift Ẕ3ẕ Carbon Neutral

Ẕ4ẕ COVID-19

5G communication, IoT, AI, Robots, Automated warehouses, EVs, CASE, Medical related, Social distancing, Contactless

Expecting the continuous growth of the FA demand	3
FY21 1st Half Financial Results Conference	November 16, 2021

Points to note

Ẕ1ẕ The orders may decrease temporarily in response to eating up demand ahead of time in each industry.

Ẕ2ẕ Global shortage of semiconductors and electronics parts, and raw materials prices increase and their supply shortage may impact on production adjustments and stops.

Ẕ3ẕ Accelerating yen's depreciation

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FY21 1st Half Financial Results Conference	November 16, 2021

Focused Measures in the FY21 2nd Half

Ẕ1ẕ Establishing BCP for continuing our business in any conditions

Ẕ2ẕ Utilizing IT tools for reinforcing cooperation crossing sections and nations to increase productivity in each country

Ẕ3ẕ Training global talents leading the next generation

Ẕ4ẕ Promoting SDGs (Environment, Human resources, Health & Safety, Social contribution)

Ẕ5ẕ Reinforcing security coping with a cyber attack, strengthening the network and setting up data centers

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FY21 1st Half Financial Results Conference	November 16, 2021

Notice

This document contains projections concerning the future performance estimated by SMC. These statements are based on information available at the time of compiling this report and may include potential risks and unforeseen factors. Accordingly, please be aware that actual results may differ materially from those projections because of multiple economic factors that influence industrial market.

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Presentation of Financial Results for

the Second Quarter Ended September 30, 2021

Masahiro Ota,

Director and Executive Officer

Head of Finance & Accounting Division

November 16, 2021

SMC Corporation

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Consolidated Financial Summary (P&L)

			FY2020 1st Half		FY2021 1st Half		FY2021 1st Half
			Results		Original		Results	Growth rate	year-on-year FOREX
				Forecasts	against Plan	% change	rate impact
	Net sales	251.9		340.0		358.6	5%	42%	19.9)
	Overseas sales	181.0		251.3		268.6	7%	48%
	ẅ [Overseas sales ratio]	[ 71.8%]		[ 73.9%]		[ 74.9%]
	Operating profit	65.0		100.0		118.0	18%	81%	8.7)
	(Operating margin)	(25.8%)		(29.4%)		(32.9%)
	Ordinary profit					126.0	20%	85%	13.9)
	68.2		105.0
	Profit attributable to owners of parent						90.2	20%	95%
	46.2		75.0
	Average exchange rate(US$)	¥106.92	¥109.00		¥109.81
	Average exchange rate( € )	¥121.32	¥130.00		¥130.87
	Average exchange rate( CNY )		¥15.26		¥17.00		¥16.98
	Capital expenditures(tangible/intangible)		11.2		55.0		53.4	▲3%	377%
	Depreciation(tangible/intangible)	8.9	10.7		9.7	▲9%	9%
	R&D expenses	10.1	11.2		11.2	▲0%	10%
								(Unit: Billions of yen)
	Interim dividend per share		200 JPY		300 JPY		300 JPY

SMC Corporation

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