Exedy Corporation · TSE:7278
Exedy — Q2 FY2026 Earnings Presentation
41 slides from Exedy's earnings presentation, Oct 29, 2026
Slide 1: FY2026 Q2 Financial Results Presentation Materials
FY2026 Q2 Financial Results Presentation Materials (2026/4–2026/9) EXEDY Corporation Securities Code: 7278 Amounts are rounded to the nearest billion yen. Figures are presented based on IFRS. 1 ４１
Slide 2: Contents
Contents 1. FY2026 Q2 Financial Results ２. Progress of the Mid- to Long-Term Strategy 1) Overview 2) Business Strategy 3) ESG Strategy 4) IR＆SR Strategy 2 ４１
Slide 3: Summary
Summary ➢ FY2026 Q2 Financial Results ✓ Revenue: Despite lower order volumes for the AT business in China due to a decline in sales of Chinese gasoline-powered vehicles amid higher crude oil prices caused by the situation in the Middle East, revenue increased slightly year on year, driven by the wea
Slide 4: Contents
Contents 1．FY2026 Q2 Financial Results ２. Progress of the Mid- to Long-Term Strategy 1) Overview 2) Business Strategy 3) ESG Strategy 4) IR＆SR Strategy 4 ４１
Slide 5: Consolidated Financial Summary
1．FY2026 Q2 Financial Results Consolidated Financial Summary ✓ Revenue : Despite lower order volumes for the AT business in China due to a decline in exports of Chinese gasoline-powered vehicles amid higher crude oil prices resulting from the situation in the Middle East, revenue increased slightly
Slide 6: Profit Increase / Decrease Factors H1 FY2026 vs H1 FY2025
1．FY2026 Q2 Financial Results Profit Increase / Decrease Factors H1 FY2026 Results vs. H1 FY2025 Results （Unit: JPY Billion） 2.0 Impact of lower order RS costs* ▲2.7 R&D expenses ▲1.2 volumes ▲3.6 Wage increases, etc. ▲0.6 Unrealized inventory losses ▲0.7 1.5 Selling price increases (Prior period +3
Slide 7: Profit Increase / Decrease Factors H2 Plan vs H1 Results
1．FY2026 Q2 Financial Results Profit Increase / Decrease Factors H2 FY2026 Plan vs. H1 FY2026 Results （Unit: JPY Billion） 6.0 Foreign exchange gain/loss +０.5 5.5 Impact of procurement price fluctuations ▲０.8 5.0 4.5 4.0 3.5 3.0 Monetization of non-operating assets +2.2 2.5 Unrealized inventory losse
Slide 8: Business/Location Segment Matrix - Revenue
1．FY2026 Q2 Financial Results Business/Location Segment Matrix - Revenue Unit: JPY Billion Location MT AT TS ２W Other Total Japan 9.4 41.7 5.6 0.1 2.2 59.0 Americas 3.7 18.6 0.7 0.0 0.0 23.1 FY ２０２５ China 2.2 19.9 0.1 0.0 0.0 22.2 Q2 Results Asia/Oceania 18.3 8.9 0.0 10.6 0.1 37.9 Others 2.9 3.0 0.0
Slide 9: Business/Location Segment Matrix - Operating Profit
1．FY2026 Q2 Financial Results Business/Location Segment Matrix - Operating Profit Unit: Company-wide JPY Billion Location MT AT TS ２W Other expenses Total*1 Japan 2.83 2.70 0.67 ▲ 0.05 ▲ 1.39 ▲ 1.80 3.16 Americas 0.24 ▲ 0.26 0.03 0.00 ▲ 0.00 0.00 0.05 FY 202５ China 0.11 2.48 0.03 ▲ 0.00 0.00 0.00 2.
Slide 10: Impact of U.S. Tariff Policies on Financial Performance
1．FY2026 Q2 Financial Results Impact of U.S. Tariff Policies on Financial Performance Status of IEEPA Reciprocal Tariff Refunds at U.S. Operations (Unit: thousand USD) Apr.–Sep. Refunds Oct.–Mar. Refunds U.S. Locations of the EXEDY Group Total (Actual) (Forecast) EXEDY Globalｐarts Corporation 593 22
Slide 11: Impact of the Middle East Situation on Performance
1．FY2026 Q2 Financial Results Impact of the Middle East Situation on Performance Sales Impact in 1H FY2026 (Apr.–Sep. 2026) (Unit: JPY billion) Impact on Revenue * Direct impact ±０.0 EXEDY Indirect impact ▲ ０.68 Overseas subsidiaries Direct impact* ▲ 0.19 Total ▲ 0.87 EXEDY EXEDY MIDDLE EAST ✓ FY202
Slide 12: Business Segment Performance Trends
1．FY2026 Q2 Financial Results Business Segment Performance Trends MT AT （JPY Billion） MT Revenue MT Operating Profit Ratio （JPY Billion） AT Revenue AT Operating Profit Ratio 120.0 20.0% 120.0 20.0% 16.1% 100.2 99.5 15.4% 100.0 15.2% 100.0 92.2 96.2 13.8% 14.4% 15.0% 86.9 15.0% 80.0 80.0 10.0% 60.0 1
Slide 13: Capital Allocation
1．FY2026 Q2 Financial Results Capital Allocation Capital Allocation for FY2024-FY2026 Cash Flow (3-years cumulative) IN OUT Renewal Investment(JPY billion): FY2024 actual: 4.1 / FY2025 actual: 7.8 / FY2026 forecast: 9.7 Renewal Investment: JPY ２２ billion Growth Investment (JPY billion): ‐ Strategica
Slide 14: Shareholder Returns
1．FY2026 Q2 Financial Results Shareholder Returns Capital Efficiency, Financial Strength, and Sustainable Shareholder Returns REVOLUTION 2026 (3 years) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 JPY 60 JPY 90 JPY 90 JPY 120 JPY 250 JPY 300 Mid-year: Mid-year: JPY 1５0 Per Share JPY 100 A
Slide 15: Contents
Contents 1. FY2026 Q2 Financial Results ２. Progress of the Mid- to Long-Term Strategy 1) Overview 2) Business Strategy 3) ESG Strategy 4) IR＆SR Strategy 15 ４１
Slide 16: Overview / Mid- to Long-Term Strategy Toward FY2030
２. Progress of the Mid- to Long-Term Strategy Overview / Mid- to Long-Term Strategy Toward FY2030 ✓ Based on the mid-to-long-term strategy formulated in April 2024, we will improve the earning power of our core business while concentrating management resources on creating new businesses to transform
Slide 17: Positioning of the Current Medium-Term Management Plan
２. Progress of the Mid- to Long-Term Strategy Overview / Positioning of the Current Medium-Term Management Plan in the Mid- to Long-Term Strategy Performance Medium-Term Management Plan ”REVOLUTION2026” (JPY billion) FY2023 FY2024 FY2025 FY2026 FY2027 FY2030 *1 *2 *３ *4 Results Target Results Target
Slide 18: Roadmap towards FY2030
２. Progress of the Mid- to Long-Term Strategy Business Strategy / Overview: Roadmap towards the FY 2030 ✓ In the automotive industry, which is undergoing a major transformation, the reduction of internal combustion engine vehicles inevitably leads to a contraction of the OEM (AT) business. ✓ Aim to
Slide 19: Business Strategy / Core Businesses: Aftermarket
２. Progress of the Mid- to Long-Term Strategy Business Strategy / Core Businesses: Aftermarket FY2030 Targets & Strategy ➢ Expansion of MT repair parts lineup & price competitiveness by cost reduction Aftermarket Product Sales JPY 57.5 billion ➢ Expansion of AT repair parts business (deployment of O
Slide 20: Aftermarket Business: Strengths
２. Progress of the Mid- to Long-Term Strategy Business Strategy / Core Businesses: Aftermarket Business : Strengths Global “Sales Channels" built up over nearly 50 years of history ➢ 11 countries and 22 companies (sales & production/sales) covering nearly 200 countries Top 7 Distributors by Net Sale
Slide 21: Business Strategy / New Businesses: Overview
２．Progress of the Mid- to Long-Term Strategy Business Strategy / New Businesses: Overview NewFiscal 2030 Business Target Year Goals & Measures & Measures for FY 2030 in the New Business ➢ Accelerate Electrification Strategies by acquiring insufficient resources from outside New product sales through
Slide 22: New Businesses: Key Electrification Businesses
２. Progress of the Mid- to Long-Term Strategy Business Strategy / New Businesses: Key Electrification Businesses Mobility Area Plant Solutions Area Commercial Drone General-Purpose Small e-Mobility In-Wheel Motor Smart Robot Electric Drive Unit e-Mobility Products JPY 0.0０４ billion － － JPY 1.２５ bill
Slide 23: New Businesses: Drone
2．Progress of the Mid- to Long-Term Strategy Business Strategy / New Businesses: Drone By combining our investees’ expertise with our technology, manufacturing, and global sales network, we will internalize the entire value chain. Drone market size* Sales Plan FY2026 JPY 2.４１ billion / FY2030 JPY 13
Slide 24: New Businesses: Smart Robot
２. Progress of the Mid- to Long-Term Strategy Business Strategy / New Businesses: Smart Robot Supporting Labor Saving and Automation with “Neibo,” Focusing on Building a Strong Track Record Sales FY2026 JPY ０.１７billion / Plan FY2030 JPY 6.0 billion Moves Heavy Low Initial Easy to Powerful robots, mu
Slide 25: New Businesses: Commercial e-Mobility
２. Progress of the Mid- to Long-Term Strategy Business Strategy / New Businesses: Commercial e-Mobility Transitioned to a structure led by PRE-EV Mobility to commercialize Commercial e-Mobility Planned start of ➢ In October 2026, all 21 project members Sales Plan FY2030 JPY 8.0 billion mass producti
Slide 26: New Businesses: In-Wheel Motor
2. Progress of the Mid- to Long-Term Strategy Business Strategy / New Businesses: In-Wheel Motor In March 2026, we acquired Protean Electric Ltd. (UK), an in-wheel motor developer, manufacturer, and distributor. FY2026 JPY 1.５２ billion / About Protean Electric Ltd. Sales Plan FY2030 JPY 14.9 billion
Slide 27: New Businesses: DYNAX Materials Technology Products
２. Progress of the Mid- to Long-Term Strategy Business Strategy / New Businesses: DYNAX Materials Technology Products Thermal Insulation High-Friction Products Low-Friction Products Products Low-Friction Material Thermal Insulation Brake Disc for Power High-Friction Material Low-Friction Sliding for
Slide 28: ESG Strategy / Corporate Governance
２. Progress of the Mid- to Long-Term Strategy ESG Strategy / Corporate Governance REVOLUTION Revamped the Executive Compensation System to Align Interests with Shareholders FY2026 Executive Compensation Linked to ➢ Strengthened the linkage between Business Performance & Share Price executive compens
Slide 29: SR & IR Strategy: Dialogue with Shareholders and Investors
２. Progress of the Mid- to Long-Term Strategy SR & IR Strategy: Status of Dialogue with Shareholders and Investors SR & IR Framework Officer in charge: Director, Representative Executive Officer, Executive Vice President Department in charge: Sustainability Group, ESG・IR Promotion Department Financi
Slide 30: Enhanced Disclosure and Dialogue with Investors
２. Progress of the Mid- to Long-Term Strategy SR & IR Strategy: Status of Dialogue with Shareholders and Investors Strengthening Communication with Capital Markets through Enhanced Disclosure and Dialogue Enhanced Disclosure Dialogue with Investors Corporate Website Fully Renewed Resumed Overseas IR
Slide 31: Appendix
Appendix Drive our future Let's create fulfillment for all, and our future. 31 41
Slide 32: EXEDY Group Business Overview
Reference： EXEDY Group Business Overview ✓ 5９ companies in 26 countries, and the world's leading share of clutches/torque converters for OEMs (according to our own estimates). ✓ In the aftermarket business, we achieve high profitability through a unique sales network and strong brand power. ✓ In add
Slide 33: Overall Picture of Improve Corporate Value Initiatives
Reference： Overall Picture of Improve Corporate Value Initiatives ✓ We are promoting initiatives to increase corporate value through the execution of our business, financial, ESG, and IR strategies. In October 2025, we disclosed an increase in our ROE target for FY2030 (from 8% to 10%), and we are s
Slide 34: Medium-Term Management Plan REVOLUTION 2026
*Reproduced from “FY2026 Financial Results Presentation,” disclosed in April 2026. Reference： Business Strategy / Core Businesses: Medium-Term Management Plan “REVOLUTION 2026” ✓ OEM business (AT & MT) is improving profitability through price pass-through reflecting cost increases, as well as the im
Slide 35: Transformation to appropriate capital adequacy ratio
*Reproduced from “Actions to achieve cost of capital and stock price conscious management (Updateｄ) ,” disclosed in December 2025. Reference： Balance Sheet Analysis （as of Sep 30, 2024） ✓ Calculate an appropriate capital adequacy ratio (approximately 60%) based on recognition of the business environ
Slide 36: Key Topics from Dialogue with Shareholders and Investors
Reference： Key Topics from Dialogue with Shareholders and Investors (data) item Question Answer Regarding pricing, we have two key concepts: passing on cost increases and achieving appropriate pricing. Passing on cost increases means transferring increases in steel material costs, labor costs, suppl
Slide 37: Key Topics from Dialogue with Shareholders and Investors
Reference： Key Topics from Dialogue with Shareholders and Investors (data) item Question Answer In the process of No, we are not aiming to increase our share in the OEM business. achieving Torque converters are designed to correspond one-to-one with current appropriate pricing, are you manufacturing
Slide 38: Key Topics from Dialogue with Shareholders and Investors
Reference： Key Topics from Dialogue with Shareholders and Investors (data) item Question Answer The market for repair parts is completely different for MT and AT. MT clutches are consumable items that are subject to wear, and there is a demand for periodic replacement, especially in commercial vehic
Slide 39: Key Topics from Dialogue with Shareholders and Investors
Reference： Key Topics from Dialogue with Shareholders and Investors (data) item Question Answer When creating and nurturing new businesses, we use the “stage gate method” to determine whether or not a business can move to the next stage, which consists of business idea creation, initial research, bu
Slide 40: Key Topics from Dialogue with Shareholders and Investors
Reference： Key Topics from Dialogue with Shareholders and Investors (data) item Question Answer Over the past 2–3 years, I feel that both executives and employees have developed a I have the growing awareness that we must change the company. impression As we transform our capital policy and business
Slide 41: Contact for inquiries regarding content
Contact for inquiries regarding content Corporate Strategy Promotion Headquarters ESG・IR Promotion Department 072-822-1695 [email protected] The statements regarding the future contained in this document are based on the information available at the time of preparation, and actual performance may diffe