Interim report
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1 Consolidated Results for the First Half of the Fiscal Year Ending February 28, 2027 [IFRS] October 9, 2026 Listed company name: YASKAWA Electric Corporation https://www.yaskawa-global.com/ Representative: Hiroshi Ogasawara, Representative Director, Chairman of the Board and President Stock exchange listings: Tokyo and Fukuoka Stock ticker number: 6506 (Note: This document is a summarized translation of the financial statements submitted to the Tokyo Stock Exchange and Fukuoka Stock Exchange for the period stated above. Figures under ¥1 million are rounded down.) 1. Summary of Consolidated Results for the First Half of the Fiscal Year Ending February 28, 2027 (From March 1, 2026 to August 31, 2026) (1) Consolidated Statements of Income (Millions of yen, percentage change from the previous year) Revenue Operating profit Profit before tax Profit Six months ended August 31, 2026 285,598 9.8% 22,058 -5.5% 25,963 3.0% 19,329 2.7% Six months ended August 31, 2025 260,195 -0.5% 23,334 1.8% 25,204 3.2% 18,827 4.4% Profit attributable to owners of parent Comprehensive income Earnings per share (basic, Yen) Earnings per share (diluted, Yen) Six months ended August 31, 2026 18,988 4.1% 30,086 19.5% 73.21 73.11 Six months ended August 31, 2025 18,247 2.2% 25,170 133.8% 70.36 70.28 (2) Consolidated Financial Position (Millions of yen, except ratio) Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets As of August 31, 2026 842,833 514,590 504,101 59.8% As of February 28, 2026 812,365 493,615 483,542 59.5% 2. Dividends Dividends per share (yen) End of 1Q End of 2Q End of 3Q Year-end Annual total Year ended February 28, 2026 - 34.00 - 34.00 68.00 Year ending February 28, 2027 - 36.00 Year ending February 28, 2027 (Forecasts) - 36.00 72.00 Note: Revisions to the most recently announced dividend forecast: No
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2 3. Consolidated Financial Forecasts for the Fiscal Year Ending February 28, 2027 (From March 1, 2026 to February 28, 2027) (Millions of yen, percentage change from the corresponding period of the previous year) Revenue Operating profit Profit before tax Profit attributable to owners of parent Earnings per share (diluted, Yen) Year ending February 28, 2027 600,000 10.7% 57,500 21.5% 65,500 32.2% 47,500 34.8% 183.11 Note: Revisions to the most recently announced financial forecasts: Yes The forecast for the fiscal year ending February 2027 (March 1, 2026 - February 28, 2027) is shown above. The Company has revised its full-year consolidated earnings forecast for the fiscal year ending February 28, 2027, which was originally announced on April 10, 2026. The revision reflects the positive impact of a weaker yen on revenue, while also incorporating the effects of the new ERP system implementation on production and shipments during the first half of the fiscal year. The average exchange rates for the period from September 1, 2026 to February 28, 2027 are revised from 1USD = 145.0 JPY, 1EUR = 170.0 JPY, 1CNY = 20.50 JPY, 1KRW = 0.105 JPY, announced on April 10, 2026 to 1USD = 155.0 JPY, 1EUR = 180.0 JPY, 1CNY = 22.00 JPY, 1KRW = 0.107 JPY. There is no change in the annual dividend forecast. (Millions of yen) Revenue Operating profit Profit before tax Profit attributable to owners of parent Earnings per share (basic, Yen) Previous forecast (A) (Announced on April 10, 2026) 580,000 60,000 65,000 47,000 181.21 Revised forecast (B) 600,000 57,500 65,500 47,500 183.11 Change (B-A) 20,000 -2,500 500 500 1.90 Change (%) 3.4 -4.2 0.8 1.1 1.0 Results of the previous fiscal year (Year ended February 28, 2026) 542,122 47,307 49,563 35,240 135.88 *Please see supplements to financial results on our website for detailed information. (https://www.yaskawa-global.com)
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3 *Notes: (1) Major Change in Scope of Consolidation: No (2) Changes in Accounting Policies, Changes in Accounting Estimates: 1. Changes in accounting policies required by IFRS: No 2. Changes in accounting policies other than the above: No 3. Changes in accounting estimates: No (3) Number of Common Shares Outstanding The number of shares outstanding including treasury shares at end of period First half of fiscal year ending February 2027 266,690,497 Fiscal year ended February 2026 266,690,497 The number of treasury shares at end of period First half of fiscal year ending February 2027 7,251,147 Fiscal year ended February 2026 7,322,538 Average during the period First half of fiscal year ending February 2027 259,378,899 First half of fiscal year ended February 2026 259,354,270 * This financial report is not subject to the audit procedure. *About the appropriate use of business forecasts and other matters ・ Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that mana gement believes are reasonable and are not disclosed for the purpose of making a commitment to their achievement. Actual results may differ from these statements for a number of reasons. Please refer to "3. Consolidated Financial Forecasts for the Fiscal Year Ending February 28, 2027 (From March 1, 2026 to February 28, 2027)" on page 2 for the assumptions for the financial forecasts. ・ The Company will hold a financial results briefing in Japanese for securities analysts and institutional investors on October 13, 2026 (JST).
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4 4. Qualitative Information on the First Half Results Business Performance In the first half of the fiscal year under review, although geopolitical risks, including the situation in the Middle East, continued, capital investment demand remained strong, particularly in data center - and semiconductor-related markets driven by AI-related investments. In addition, demand for automation in the general industry remained steady. In terms of our group's business performance in this environment, despite the impact resulting from the new ERP system implemented to strengthen our management foundation, revenue increased year on year, as demand expanded mainly in the data center- and semiconductor-related markets and sales grew, particularly in the Motion Control segment. On the other hand, operating profit decreased year on year due to the impact of the new ERP system implementation on production and shipments, increased indirect expenses, and the temporary expenses related to business structural reforms in Europe. The business performance of the first half of fiscal 2026 is as follows. Six months ended August 31, 2025 Six months ended August 31, 2026 Change Revenue 260,195 million JPY 285,598 million JPY +9.8% Operating profit 23,334 million JPY 22,058 million JPY -5.5% Profit attributable to owners of parent 18,247 million JPY 18,988 million JPY +4.1% Average exchange rate for USD 146.23 JPY 159.82 JPY +13.59 JPY Average exchange rate for EUR 166.04 JPY 184.91 JPY +18.87 JPY Average exchange rate for CNY 20.26 JPY 23.48 JPY +3.22 JPY Average exchange rate for KRW 0.104 JPY 0.108 JPY +0.004 JPY <Management environment of each region> Japan: Capital investment demand remained strong, particularly in the semiconductor and electronic components- related markets, and demand for automation also recovered in the general industry. In addition, a recovery trend was observed in the automotive market, where capital investment had remained sluggish. The Americas: Strong demand related to data centers and semiconductors continued, and capital investment in the automotive market and general industry also remained steady. Demand remained at a high level, also supported by an increase in oil and gas-related large-scale projects. Europe: Although capital investment in the automotive market remained sluggish, semiconductor -related demand expanded. In addition, demand across the manufacturing industry remained steady, and a recovery trend was observed in demand for automation. China: Demand remained strong, supported by expanding investment related to semiconductors, while demand for automation in the general industry also remained steady. Although the demand in the automotive market declined compared to the first half of the previous fiscal year, when large-scale projects contributed, capital investment demand remained steady.
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5 Other Asian Countries: Semiconductor-related demand, particularly in South Korea and Taiwan, remained at a high level , while demand for automation in the general industry also remained steady.
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6 Performance by Business Segment The business of the Yaskawa Group is divided into four segments. The performance of each business segment for the first half of fiscal 2026 is as follows. Motion Control Revenue 137,286 million JPY (+21.7 % year-on-year) Operating profit 15,973 million JPY (+32.8 % year-on-year) The Motion Control segment consists of the AC servo & controller business and the drives business. Revenue increased year on year, as we captured expanding demand driven by investments related to data centers and semiconductors, leading to increased sales mainly in the Americas, China, and South Korea and Taiwan. Operating profit increased due to higher revenue, despite the impact on production and shipments resulting from the implementation of the new ERP system. [AC servo & controller business] Revenue increased in all regions, driven primarily by higher sales to the semiconductor and electronic components- related markets and the machine tool market. [Drives business] Revenue increased due to expanded sales for data center applications, semiconductor manufacturing equipment, and the oil and gas market. Robotics Revenue 118,404 million JPY (-0.7 % year-on-year) Operating profit 5,974 million JPY (-43.3% year-on-year) Although sales expanded overseas, particularly in the Americas, where sales to the automotive market remained firm, and in China, where sales of semiconductor robots remained strong, revenue decreased slightly year on year as sales in Japan declined due to the impact of the implementation of the new ERP system. Operating profit decreased year on year due to lower revenue and the temporary recording of expenses related to business structural reforms in Europe. System Engineering Revenue 20,778 million JPY (+11.2% year-on-year) Operating profit 3,480 million JPY (+79.5% year-on-year) Revenue increased year on year due to expanded sales related to port cranes and other applications. Operating profit increased significantly due to higher revenue and improved profitability of projects. Other Revenue 9,128 million JPY (-3.5% year-on-year) Operating profit 575million JPY (-38.5% year-on-year) Other segment consists of logistics and other businesses. Revenue decreased, and operating profit also declined year on year due to a decrease in other income.
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7 5. Consolidated Financial Statements 1) Consolidated Balance Sheets (Millions of yen) As of February 28, 2026 As of August 31, 2026 Assets Current assets Cash and cash equivalents 61,223 66,083 Trade receivables 163,942 161,485 Contract assets 11,000 8,082 Inventories 210,764 218,108 Other financial assets 3,162 4,093 Other current assets 21,422 17,974 Total current assets 471,517 475,827 Non-current assets Property, plant and equipment 163,955 176,018 Goodwill 7,412 10,639 Intangible assets 30,179 34,597 Right-of-use assets 16,852 18,046 Investments accounted for using equity method 5,513 7,580 Other financial assets 90,424 93,581 Deferred tax assets 10,753 11,020 Other non-current assets 15,755 15,521 Total non-current assets 340,847 367,006 Total assets 812,365 842,833
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8 (Millions of yen) As of February 28, 2026 As of August 31, 2026 Liabilities and equity Liabilities Current liabilities Trade payables 57,681 60,303 Bonds and borrowings 45,572 43,218 Income taxes payable 3,841 2,910 Lease liabilities 3,737 3,959 Other financial liabilities 10,823 5,807 Provisions 1,395 2,646 Contract liabilities 28,014 36,952 Other current liabilities 40,094 41,168 Total current liabilities 191,159 196,965 Non-current liabilities Bonds and borrowings 64,457 66,084 Lease liabilities 11,085 12,083 Other financial liabilities 691 1,242 Retirement benefit liability 25,963 26,133 Deferred tax liabilities 12,784 13,736 Provisions 3,265 2,854 Other non-current liabilities 9,341 9,141 Total non-current liabilities 127,590 131,276 Total liabilities 318,749 328,242 Equity Equity attributable to owners of parent Share capital 30,562 30,562 Capital surplus 29,916 29,829 Retained earnings 369,336 380,179 Treasury shares -31,608 -31,325 Other components of equity 85,335 94,856 Total equity attributable to owners of parent 483,542 504,101 Non-controlling interests 10,073 10,489 Total equity 493,615 514,590 Total liabilities and equity 812,365 842,833
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9 2) Consolidated Statements of Income and Comprehensive Income (Consolidated Statements of Income) (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Revenue 260,195 285,598 Cost of sales -167,320 -184,413 Gross profit 92,874 101,185 Selling, general and administrative expenses -71,285 -78,155 Other income 2,130 936 Other expenses -385 -1,907 Operating profit 23,334 22,058 Finance income 3,451 4,200 Finance costs -1,746 -2,287 Share of profit (loss) of investments accounted for using equity method 165 1,992 Profit before tax 25,204 25,963 Income tax expense -6,376 -6,633 Profit 18,827 19,329 Profit attributable to Owners of parent 18,247 18,988 Non-controlling interests 580 340 Total 18,827 19,329 Earnings per share Basic earnings per share 70.36 73.21 Diluted earnings per share 70.28 73.11
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10 (Consolidated Statements of Comprehensive Income) (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Profit 18,827 19,329 Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income 1,748 1,846 Remeasurements of defined benefit plans -276 -263 Share of other comprehensive income of investments accounted for using equity method 31 0 Total 1,502 1,582 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 4,847 9,135 Effective portion of cash flow hedges -7 39 Total 4,839 9,174 Total other comprehensive income 6,342 10,757 Comprehensive income 25,170 30,086 Comprehensive income attributable to Owners of parent 24,429 29,183 Non-controlling interests 740 903 Total 25,170 30,086
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11 3) Consolidated Statements of Changes in Equity First half of Fiscal 2025 (From March 1, 2025 to August 31, 2025) (Millions of yen) Equity attributable to owners of parent Non- controlling interests Total Share capital Capital surplus Retained earnings Treasury shares Other components of equity Total Balance at beginning of period 30,562 29,817 348,003 -31,702 54,508 431,188 8,421 439,610 Profit － － 18,247 － － 18,247 580 18,827 Other comprehensive income － － － － 6,182 6,182 160 6,342 Comprehensive income － － 18,247 － 6,182 24,429 740 25,170 Purchase of treasury shares － － － 0 － 0 － 0 Disposal of treasury shares － -7 － 96 － 88 － 88 Dividends of surplus － － -8,818 － － -8,818 -408 -9,226 Share-based payment transactions － 22 － － － 22 － 22 Changes in ownership interest in subsidiaries － -1 － － － -1 － -1 Transfer from other components of equity to retained earnings － － 1,892 － -1,892 － － － Other － － 139 － － 139 － 139 Total － 13 -6,785 95 -1,892 -8,569 -408 -8,977 Balance at end of period 30,562 29,831 359,464 -31,607 58,798 447,049 8,753 455,803 First half of Fiscal 2026 (From March 1, 2026 to August 31, 2026) (Millions of yen) Equity attributable to owners of parent Non- controlling interests Total Share capital Capital surplus Retained earnings Treasury shares Other components of equity Total Balance at beginning of period 30,562 29,916 369,336 -31,608 85,335 483,542 10,073 493,615 Profit － － 18,988 － － 18,988 340 19,329 Other comprehensive income － － － － 10,194 10,194 563 10,757 Comprehensive income － － 18,988 － 10,194 29,183 903 30,086 Purchase of treasury shares － － － -1 － -1 － -1 Disposal of treasury shares － 44 － 283 － 328 － 328 Dividends of surplus － － -8,819 － － -8,819 -487 -9,306 Share-based payment transactions － -12 － － － -12 － -12 Changes in ownership interest in subsidiaries － － － － － － － － Transfer from other components of equity to retained earnings － － 672 － -672 － － － Other － -119 － － － -119 0 -120 Total － -87 -8,146 282 -672 -8,623 -487 -9,111 Balance at end of period 30,562 29,829 380,179 -31,325 94,856 504,101 10,489 514,590
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12 4) Consolidated Statements of Cash Flows (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Cash flows from operating activities Profit before tax 25,204 25,963 Depreciation, amortization and impairment losses 10,373 13,148 Share of loss (profit) of investments accounted for using equity method -165 -1,992 Finance income and finance costs -2,634 -2,806 Decrease (increase) in trade receivables 1,880 7,128 Decrease (increase) in inventories -3,840 -2,875 Increase (decrease) in trade payables -793 956 Increase (decrease) in retirement benefit liability -276 153 Increase (decrease) in provisions -277 482 Other -7,281 12,124 Subtotal 22,188 52,284 Interest and dividends received 1,518 1,383 Interest paid -631 -959 Income taxes paid -7,271 -7,079 Net cash provided by (used in) operating activities 15,804 45,628 Cash flows from investing activities Payments into time deposits － -7 Proceeds from withdrawal of time deposits － 32 Purchase of property, plant and equipment, and intangible assets -17,963 -27,286 Proceeds from sale of property, plant and equipment, and intangible assets 847 76 Purchase of investment securities -2,702 -78 Proceeds from sale of investment securities 3,495 1,316 Payments for acquisition of subsidiaries － -3,736 Net decrease (increase) in short-term loans receivable 944 -74 Other -245 115 Net cash provided by (used in) investing activities -15,625 -29,642 Cash flows from financing activities Net increase (decrease) in short-term borrowings 7,867 3,057 Proceeds from long-term borrowings － 15,007 Repayments of long-term borrowings -8,399 -9,373 Redemption of bonds － -10,000 Repayments of lease liabilities -1,948 -2,272 Purchase of treasury shares 0 -1 Dividends paid -8,835 -8,861 Dividends paid to non-controlling interests -174 -333 Net cash provided by (used in) financing activities -11,491 -12,776 Net increase (decrease) in cash and cash equivalents -11,312 3,208 Cash and cash equivalents at beginning of period 59,028 61,223 Effect of exchange rate changes on cash and cash equivalents 585 1,651 Cash and cash equivalents at end of period 48,301 66,083 Note: The terms in parentheses of cash flow items apply when the figures are negative.
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13 5) Notes to the Consolidated Financial Statements (Notes pertaining to the presumption of a going concern) None (Segment information) 1. Overview of Reporting Segments Yaskawa Group's reportable segments are components of Yaskawa Group for which separate financial information is available and which are subject to periodic review by the Board of Directors to determine the allocation of management resources and to evaluate performance. The organization of Yaskawa Group is based on three business units: motion control, robotics and system engineering. Each business unit formulates comprehensive strategies for Japan and overseas and develops business activities. Accordingly, Yaskawa Group has three reportable segments, namely, "Motion Control" "Robotics" and "System Engineering". "Motion Control" develops, manufactures, sells and provides maintenance services for AC servo motor, controllers and AC drives. "Robotics" develops, manufactures, sells and provides maintenance services for industrial robots and other products. "System Engineering" develops, manufactures, sells and provides maintenance services for industrial automation drives and social systems. The method of accounting for the reported business segments is generally the same as the accounting policy applied to the consolidated financial statements. Reportable segment profit is based on operating profit. Intersegment revenue or transfers are primarily based on prevailing market prices.
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14 2. Revenue, profit (loss) and other items for each reporting segment First half of Fiscal 2025 (From March 1, 2025 to August 31, 2025) (Millions of yen) Reportable segments Other *1 Total Adjustment *2 Total Motion Control Robotics System Engineering Total Revenue Revenue from external customers 112,837 119,204 18,690 250,732 9,462 260,195 － 260,195 Intersegment revenue and transfers 9,052 942 225 10,220 8,594 18,814 -18,814 － Total 121,889 120,146 18,916 260,952 18,056 279,009 -18,814 260,195 Operating profit 12,024 10,542 1,939 24,506 935 25,441 -2,107 23,334 Finance income 3,451 Finance costs -1,746 Share of profit (loss) of investments accounted for using equity method 165 Profit before tax 25,204 Notes: 1. Logistics services, etc. are included in the Other segment. 2. The components of adjustment are as follows: Operating profit (loss) adjustment of -2,107 million yen includes inter-segment eliminations of 14 million yen and corporate earnings (expenses) of -2,122 million yen that are not allocated to each segment. The main components are expenses related to basic research not attributable to reportable segments and the difference in allocation of corporate expenses.
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15 First half of Fiscal 2026 (From March 1, 2026 to August 31, 2026) (Millions of yen) Reportable segments Other *1 Total Adjustment *2 Total Motion Control Robotics System Engineering Total Revenue Revenue from external customers 137,286 118,404 20,778 276,470 9,128 285,598 － 285,598 Intersegment revenue and transfers 8,826 639 296 9,761 8,430 18,192 -18,192 － Total 146,112 119,043 21,075 286,231 17,559 303,790 -18,192 285,598 Operating profit 15,973 5,974 3,480 25,428 575 26,003 -3,944 22,058 Finance income 4,200 Finance costs -2,287 Share of profit (loss) of investments accounted for using equity method 1,992 Profit before tax 25,963 Notes: 1. Logistics services, etc. are included in the Other segment. 2. The components of adjustment are as follows: Operating profit (loss) adjustment of -3,944 million yen includes inter-segment eliminations of -52 million yen and corporate earnings (expenses) of -3,892 million yen that are not allocated to each segment. The main components are expenses related to basic research not attributable to reportable segments and the difference in allocation of corporate expenses.