Main industries for revenues:

• Automation technology
• Pneumatic systems
• Industrial automation

TOP 3 markets and their percentage shares:

1. Japan: approx. 25%
2. China: approx. 20%
3. USA: approx. 18%

SMC Corporation generates the majority of its revenues from automation technology and pneumatic systems. These technologies are widely used in various industries such as automotive, electronics, and food industries.

Japan remains the largest market for SMC, followed by China, which plays a significant role due to its advancing industrialization and automation. The USA is also an important market as there is high demand for advanced automation solutions in the manufacturing industry.

Production facilities of SMC Corporation:

SMC Corporation operates production facilities in several countries worldwide. The key production sites include:

• Japan: Headquarters and multiple production facilities covering a large portion of the production.
• China: Large production capacities to serve the Asian market.
• USA: Production facilities to supply the North American market.
• Europe: Production plants in countries such as Germany and Italy to efficiently serve the European market.

SMC Corporation pursues a strategy of global presence to be able to quickly respond to regional market demands and optimize supply chains.

Revenue Growth: Estimated 5-7% annually (2025-2027)

SMC Corporation, a leading provider of pneumatic control technology, is pursuing a growth strategy based on several pillars.

First, the company focuses on continuously expanding its product portfolio, particularly through the introduction of innovative and energy-efficient solutions. This is intended not only to strengthen existing markets but also to tap into new market segments.

Second, SMC is focusing on geographical expansion, especially in emerging markets in Asia and Latin America, to benefit from the industrialization and automation taking place there.

Third, SMC is investing in research and development to achieve technological advancements and meet the increasing demands of Industry 4.0. This includes the integration of IoT technologies into their products.

Additionally, the company is pursuing a strategy of operational efficiency to reduce costs and improve margins, which is to be achieved through automation and supply chain optimization.

Main raw materials: Aluminum, steel, plastic

Main supplying countries: China, Japan, South Korea

SMC Corporation, a leading manufacturer of pneumatic control systems, mainly imports aluminum, steel, and plastics. These materials are essential for the production of their components and systems.

China is one of the largest suppliers of aluminum and steel, while Japan and South Korea are also significant sources of these raw materials. These countries not only provide the required materials in high quality but also in the necessary quantity to meet SMC's production requirements.

By diversifying their supply chains, SMC ensures that it remains competitive while minimizing the risks of supply shortages.

Market Share in the Pneumatics Industry: Approximately 30% (Estimated 2025) Research and Development Budget: 7% of revenue (2024) Global Presence: Active in over 80 countries

SMC Corporation is one of the leading providers in the pneumatics industry, with an estimated market share of around 30%. This strong market position is supported by continuous investments in research and development, which account for about 7% of revenue. These investments enable SMC to develop innovative products and continuously expand their product range.

The company's global presence in over 80 countries gives SMC a significant competitive advantage, as it benefits from a broad customer base and diversified sources of revenue. Furthermore, close collaboration with customers and adaptation to local market needs enhance the company's competitiveness.

In summary, SMC Corporation possesses a significant competitive advantage through its strong market position, continuous innovation, and global reach.

Institutional Investor Share: approximately 60% (estimated for 2025)

Insider Buys/Sells: No significant transactions reported (2024)

The institutional investor share at SMC Corporation traditionally stands at around 60%, indicating the trust of large investors in the company's stability and growth potential. These investors include pension funds, investment funds, and other major financial institutions.

In 2024, no significant insider buys or sells were reported. This suggests that the management and other insiders are either satisfied with the current valuation of the company or do not anticipate any significant changes in the company's strategy or performance.

Market share of SMC Corporation: 30% (2025, estimated)

Top competitors and their market shares:

1. SMC Corporation: 30%
2. Festo: 25%
3. Parker Hannifin: 15%
4. Bosch Rexroth: 10%
5. Norgren (IMI Precision Engineering): 8%
6. Camozzi Automation: 5%
7. CKD Corporation: 4%
8. Aventics (Emerson): 3%

Moat of SMC Corporation:

SMC Corporation has a significant moat supported by its strong global presence, wide product portfolio, and continuous innovations in the field of automation technology. Their ability to offer customized solutions and maintain an extensive sales and service network reinforces this advantage.

In comparison to competitors, Festo also has a strong moat, particularly due to its innovation capabilities and technological leadership in certain niches. Parker Hannifin and Bosch Rexroth excel with a broad product range and strong customer relationships, while Norgren and Camozzi stand out with specialized solutions and regional strengths.

Overall, SMC Corporation has one of the strongest moats in the industry, although the differences with competitors in some areas are not significant, indicating intense competition.

Revenue Growth: 8.2% (2024)
Profit Growth: 9.5% (2024)
Market Share in Automation Technology: 25% (2024)

In 2024, SMC Corporation recorded solid revenue growth of 8.2%, driven by strong demand for automation solutions in various industries. The profit growth of 9.5% indicates that the company is operating efficiently and has been able to improve its margins.

SMC Corporation holds a significant market share of 25% in automation technology, highlighting its leading position in the industry. This market position enables the company to benefit from the increasing automation in the manufacturing industry.

Additionally, SMC is continuously investing in research and development to develop innovative products that meet the changing customer needs. These strategic investments could further strengthen the company's future growth potential.

Overall, the strong market position, combined with solid growth figures and strategic investments, suggests that SMC Corporation represents an attractive investment opportunity, provided that market conditions remain stable and the company maintains its innovative capabilities.

Dividend Yield: 1.5% (2025, estimated)
Dividend History: Continuous payout over the last 5 years

SMC Corporation is known for regularly distributing dividends to its shareholders. In recent years, the company has achieved a dividend yield of approximately 1.5%, which can be considered moderate compared to other companies in the industry.

The reliability of dividend payments from SMC Corporation is high, as the company has a solid financial foundation and stable earnings. The continuous payout over the last five years indicates that the company is committed to providing its shareholders with a consistent return.