terrAWell30 2n dstage
2025.4.21
Fiscal year 2025 Second Quar ter
Financial Results Explanator y Materials
Februar y 13, 2026
Air Water Inc.
FY 2025 Second Quarter Financial Results Briefing Script
Presenter:Ryousuke Matsubayashi
President, Representative Director, CEO & COO
Moderator: Aya Uesugi
Senior Manager, Finance & IR Strategy Office, IR Group
February 13, 2026
1
Agenda
Contents
Ⅰ. Introduction
P.3
Ⅱ. Summary of Second Quarter Financial Results for Fiscal Year 2025
P.11
Ⅲ. Detailｓ of Second Quarter Financial Results for Fiscal Year 2025
P.14
Ⅳ. Fiscal Year 2025 Full-Year Financial Results forecast
P.19
Ⅴ. Supplementary Material
P.21
Notes
• The numerical targets and forecasts presented in this document reflect the judgment of our company
based on information currently available and involve potential risks and uncertainties. Therefore, the
reader should note that actual business performance may differ significantly from the projections
made herein due to changes in various factors.
• Air Water Inc.'s financial statements are prepared in accordance with ”IFRS"(International
Financial Reporting Standards).
© 2025 AIR WATER INC. All Rights Reserved.
2
2
Ⅰ. Introduction
© 2026 AIR WATER INC. All Rights Reserved.
3
3
As announced in our press release dated February 12, 2026, entitled “Notice Concerning
the Receipt of the Investigation Report of the Special Investigating Committee (as of
February 9, 2026),” the investigation conducted by the Special Investigating Committee
revealed that, in addition to the fact that inappropriate accounting treatments had been
carried out within our Group, the involvement of top management and members of the
management team was recognized in part.
we extend our deepest apologies to our shareholders, investors, and all stakeholders for
the great inconvenience and concern that we have caused
We take seriously the cause analysis and recommendations set forth in the
investigation report, and, as our most important management priority, we will
implement recurrence prevention measures with unwavering determination and work
together as an entire company to restore public trust.
© 2025 AIR WATER INC. All Rights Reserved.
44
Presenter：Ryousuke Matsubayashi
President, Representative Director, CEO & COO
Thank you very much for attending our Second quarter financial results briefing for
FY2025.
Recently, it was identified that our Company and several consolidated subsidiaries
engaged in inappropriate accounting treatments related to inventories and other items.
In response to this matter, we established a Special Investigating Committee consisting of
external experts and have conducted a thorough investigation into the relevant facts.
As a result of the investigation, it was confirmed that inappropriate accounting practices
had been carried out, including the overstatement of inventories, the deferral of asset
impairment losses, and the premature recognition of revenue.
In addition, the investigation found that certain members of top management and the
management team were involved in a portion of these practices.
This situation has significantly undermined trust in our Company.
We sincerely and deeply apologize to our shareholders and investors, as well as to our
customers, business partners, and all other stakeholders, for the considerable concern and
inconvenience this matter has caused.
We are truly sorry.
We take this matter extremely seriously.
Taking to heart the cause analysis and recommendations set forth in the investigation
report, we will implement robust measures to prevent recurrence with unwavering
determination as our top management priority.
We will work to enhance the transparency and soundness of our management and will make
company-wide efforts to restore the trust of society.
4
Regarding the Investigation by the Special Investigating Committee
Background
July 2025
Improper accounting related to inventories (deferral of loss recognition) was identified at a consolidated subsidiary.
October 9, 2025
A Special Investigating Committee composed of external experts was established.
November 13, 2025
A Management Reform Committee was established.
November 14, 2025
Approval was obtained for an extension of the deadline for submission of the semiannual report (announcement of results
for the second quarter of the fiscal year ending March 2026 was postponed).
December 3, 2025
The Chairman of the Board resigned.
February 6, 2026
The Company disclosed the summary of financial results for the third quarter of the fiscal year ending March 2026 more than
45 days after the quarter-end.
February 12, 2026
The Company received the investigation report of the Special Investigating Committee (as of February 9).
February 13, 2026
The semiannual report was submitted (the accounting auditor’s review resulted in a “qualified conclusion”).
Establishment of the Special
Investigating Committee
●Composition
Chairperson：
Masatoshi Obara (Attorney-at-law; Partner, Kikkawa Law Office; Former
President of the Osaka Bar Association; Former Vice President of the Japan
Federation of Bar Associations)
Member: Wataru Nakamori (Attorney-at-law; Partner, Kitahama Law Office)
Member: Mamoru Honda (Certified Public Accountant; Partner, PwC Risk Advisory LLC)
●Scope of Investigation
- Investigation of the facts
- Investigation into the existence of similar matters
- Assessment of the impact amount
- Identification of root causes and recommendations for recurrence prevention measures
- Other matters deemed necessary by the Committee
© 2025 AIR WATER INC. All Rights Reserved.
5 5
Before explaining the second-quarter financial results,
we will outline the progress to date of the investigation conducted by the Special
Investigation Committee.
In July last year, through a voluntary internal review,
we identified inappropriate accounting treatments at Japan Helium Co., Ltd., one of our
consolidated subsidiaries.
After that, we continued an internal investigation; however,
we determined that a further investigation ensuring independence and objectivity was
necessary.
Accordingly, in October, we established a Special Investigation Committee consisting of
external experts.
As the investigation covers a wide scope and was expected to require a considerable
period of time to complete,
we applied in November for an extension of the deadline for submitting the semiannual
report.
Yesterday, we received the investigation report from the Special Investigating Committee
as of February 9 of this year, and we disclosed it today.
Please note that the investigation by the Special Investigating Committee is ongoing, as
certain matters remain under investigation.
We will continue to fully cooperate with the investigation conducted by the Special
Investigating Committee, and we will promptly disclose the final results once the
investigation is completed.
Please refer to the slides for details on the composition of the Special Investigating
Committee and the scope of its investigation.
5
Summary of Findings from the Investigation Report of the
Special Investigating Committee (as of February 9)
Company
Summary
Name
Summary of Investigation Results
as of February
Nippon Helium
Air Water Ecoloca
Since fiscal year 2019, losses related to helium raw materials were intentionally understated. Repeated deferral of loss recognition for
unrecorded losses resulted in the recognition of overstated inventories that did not actually exist.
In addition to the occurrence of inventory discrepancies and the avoidance of loss recognition after their discovery, a substantial
number of improper accounting practices were identified, including the overstatement of sales.
Air Water
Mechatronics
Loss recognition for stagnant inventories was not approved, and proposals were made to defer losses by spreading them over
subsequent periods. In addition, accruals for bonuses were avoided, resulting in the deferral of expense recognition related to bonus
payments. Furthermore, multiple cases were identified in which sales were recorded without sufficient confirmation of the inspection
conditions agreed with customers.
Air Water Inc.
Plant Gas Division
With respect to impairment processing for items expected to be disposed of, loss recognition for inventories with no prospect of use
was deferred by returning approval requests for loss recognition.
9
Air Water Safety
Service
It was revealed that non-existent work-in-progress inventories were recorded on the books. Although immediate loss recognition was
required, the deferral of loss recognition was tolerated. In addition, in its power business division, fraudulent revenue recognition was
carried out by abusing the percentage-of-completion method.
At the Company and a significant number of Group companies, various improper accounting treatments were carried out with the
Others
objective of inflating sales and profits. These included the overstatement of inventories, deferral of asset impairment losses, premature
revenue recognition, inflation of consolidated sales through the use of unnecessary intermediaries, avoidance of provisions, and
capitalization of expenditures lacking asset substance to adjust profit or loss.
© 2025 AIR WATER INC. All Rights Reserved.
6 6
We will now provide an overview of the findings of the investigation.
The investigation report revealed that inappropriate accounting practices had been carried
out within our group over many years, and that the involvement of top management and the
management team was identified in a portion of these practices.
Initially, the investigation covered four cases involving Japan Helium Co., Ltd., Air Water
Ecoroca Inc., Air Water Mechatronics Inc., and our Plant Gas Division.
Subsequently, it was also confirmed that inappropriate accounting practices had been
carried out at Air Water Disaster Prevention Inc., other business divisions, and group
companies.
The report made the severe observation that these issues were not attributable to specific
individuals, but rather resulted from a combination of factors, including a corporate culture
that prioritized the achievement of performance targets above all else, strong top-down
organizational management, insufficient effectiveness of internal controls and governance,
low accounting literacy, and a lack of ethical standards required of a listed corporate
group.
As those bearing ultimate responsibility for management, we take extremely seriously the
fact that we failed to detect and correct such misconduct.
While we have pursued business expansion with growth as our top priority, we recognize
that, in the process, investment of resources in governance and internal controls was
insufficient, and that the foundations most critical for a listed corporate group—namely
management oversight, internal controls, and ethics—were not functioning adequately.
6
Prior-Period Adjustments (Planned)
■ Adjustments (Planned) Based on the Investigation by the Special
Investigating Committee and the Company’s Voluntary Review
(Unit: Billion yen)
Prior-Period
Adjustments
(Planned)）*1
Revenue
Operating profit
Voluntary
Review※2
Special Investigating Committee
▲２５.７
Voluntary Review*２
▲４１.０
Total
▲６６.７
Special Investigating Committee
▲７.６
Impairment of property, plant and equipment and
goodwill
▲１２.２
Other
▲１３.３
Subtotal
▲２５.５
Total
▲３３.２
- 1 : Prior-period adjust ment s will be made ov er mult iple f iscal years.
- 2 : The v olunt ar y rev iew also includes it ems such as impairment of proper t y, plant and equipment and goodwill,
as well as t he consolidat ion impact of non-consolidat ed subsidiaries.
© 2025 AIR WATER INC. All Rights Reserved.
7 7
We will explain the impact of the investigation and the voluntary internal review.
With respect to the investigation by the Special Investigating Committee, we commissioned
a comprehensive review of inappropriate accounting practices within our group.
At the same time, in order to achieve early identification of facts and prompt remediation,
we organized an independent voluntary internal review team consisting of external experts
and have been conducting our own investigation in parallel, while coordinating closely with
the Special Investigating Committee.
The voluntary internal review primarily covered inventory procedures, follow-up actions in
response to the Special Investigating Committee’s investigation, financial analysis, digital
forensic investigations, the operation of workshops to thoroughly communicate the
leniency program, verification of internal controls, and reviews of the appropriateness of
revenue recognition.
As a result, multiple instances of inappropriate accounting practices were identified, and
matters requiring corrections to prior-period profit and loss were detected.
Based on the investigation by the Special Investigating Committee and the voluntary
internal review, the amounts currently expected to require correction for prior periods are
JPY 66.7 billion in revenue and JPY 33.2 billion in operating profit.
7
Regarding Recurrence Prevention Measures
In order to undertake fundamental reforms with real effectiveness, we have established four key items as
recurrence prevention measures and will implement them with unwavering determination.
・A fundamental reform of the corporate culture that places the highest priority on compliance and aims
to foster a sound, open, and integrity-driven environment that encourages appropriate conduct.
１．Reform of Corporate Culture
・The appropriate setting of performance targets and the elimination of excessive performance pressure
・A fundamental strengthening of education and training, including ethics and accounting literacy
・Enhancement of the internal whistleblowing system
・Strengthening of the supervisory function of the Board of Directors
２．Governance Reform
・Strengthening of the audit function of the Audit & Supervisory Board
・Strengthening the role of the Nomination and Remuneration Committee
・The establishment of executive officers responsible for management and finance
３．Rebuilding of the Management
Infrastructure and Internal Control
・The strengthening of the functions of the management departments, centered on the accounting
department
・The rebuilding of internal control systems from a Group-wide perspective
・The strengthening of the internal audit function
４．Review of Group-wide Strategy
(Business Portfolio)
・The redefinition of core competencies
・The selection and concentration of businesses
・The reorganization and optimization of Group companies
© 2025 AIR WATER INC. All Rights Reserved.
8 8
Next, we will explain the measures to prevent recurrence.
Toward preventing recurrence, we have held continuous discussions centered on the
Management Reform Committee.
Taking seriously the cause analysis and recommendations regarding preventive measures
presented in the investigation report, we have identified four priority areas as
fundamental reforms aimed at ensuring true effectiveness.
The first priority is “corporate culture reform.”
Among the preventive measures, this is the area that we personally regard as the most
important.
By placing the highest priority on compliance, we will implement fundamental reforms to
establish a corporate culture that is sound, open, and encourages appropriate behavior.
We will set appropriate performance targets and eliminate excessive performance
pressure.
We will fundamentally strengthen education and training, with a focus on ethics and
accounting literacy.
In addition, we will strengthen the internal reporting system and foster a culture that
protects whistleblowers.
The second priority is “governance reform.”
In addition to strengthening the supervisory function of the Board of Directors and the
audit function of the Audit & Supervisory Board, we will thoroughly review the roles and
effectiveness of the Nomination and Compensation Committees.
We will establish a structure in which oversight of management functions appropriately.
The third priority is “rebuilding the management infrastructure and internal controls.”
This includes appointing executives responsible for management, strengthening and
developing management and finance personnel, enhancing the functions of managementrelated departments centered on the accounting function, and rebuilding internal controls
from a group-wide perspective.
At the same time, we will strengthen the internal audit function.
Finally, as part of the measures to prevent recurrence, we will review our overall corporate
strategy itself.
By reanalyzing all businesses, we will redefine our group’s core competencies and, based
on this, thoroughly implement a policy of selection and concentration.
We will allocate resources with priority to areas where our strengths can be fully
leveraged, promote business portfolio reform, and reanalyze group companies not only
from the perspective of business viability but also from a group-wide governance
8
perspective, in order to achieve appropriate optimization and restructuring.
Future Action
■ Future Schedule
From March 2026 onward
・Disclosure of disciplinary actions against the relevant parties
・Implementation of recurrence prevention measures, verification of their effectiveness, and
consideration of additional measures
・Restatement of prior-period securities reports, financial results summaries, and internal control
reports
・Completion of the investigation by the Special Investigating Committee (receipt of the final
investigation report)
・Announcement of third quarter financial results for the fiscal year ending March 2026
May 2026
・Announcement of full-year financial results for the fiscal year ending March, 2026
We will continue to fully cooperate with the investigation by the Special Investigating Committee, including
matters that remain outstanding, while aiming for the early completion of the investigation and taking steps
toward the early normalization of our financial results announcements. In order to restore public trust, we will
disclose the status of our recurrence prevention measures in a timely and appropriate manner.
© 2025 AIR WATER INC. All Rights Reserved.
9
9
The future response schedule is as shown here.
We will continue to fully cooperate with the investigation conducted by the Special
Investigating Committee, aim for the early completion of the investigation, and work
toward the early normalization of earnings announcements.
To restore public trust, we will disclose the status of our initiatives to prevent recurrence
in a timely and appropriate manner.
9
By leveraging irreplaceable global resources such as “air” and “water,”
we contribute to people’s daily lives and industries through
indispensable products and services.
The Group will return once again to this founding principle, with each
member of management and every employee thinking independently,
acting with integrity, and transforming ourselves into a company guided
by the highest ethical standards.
United as one company, we will carry out fundamental reforms with
unwavering determination and rebuild ourselves into a valuable
enterprise that achieves sound and sustainable growth.
© 2025 AIR WATER INC. All Rights Reserved.
1010
Here, we would like to speak about our group’s purpose and our determination looking
ahead.
Air Water’s purpose is “Harnessing the blessings of the Earth to meet the needs of
society.”
By utilizing irreplaceable natural resources of the Earth, such as air and water, and
providing indispensable products and services, we contribute to people’s lives and
industries.
This has been the foundation of our group since its establishment.
In light of the current situation, we will once again return to this foundation and reassess
the direction we should pursue.
Not only management, but each and every employee will think independently, act with
integrity, and transform our group into an organization with a high standard of ethics.
With the entire group united and with unwavering determination, we will carry out
fundamental reforms, achieve sound and sustainable growth, and restore our group as a
company that creates genuine value.
We hereby make this commitment.
10
© 202６ AIR WATER INC. All Rights Reserved.
Ⅱ. Summary of Second Quarter
Financial Results for Fiscal Year 2025
11
Aya Uesugi : Senior Manager, Corporate Communications & Investor
Next, we will go over detailed financial results for the first quarter of FY2025.
11
Main points of the Second quarter financial results for Fiscal Year 2025
(Unit: Billion yen)
FY24
1-2Q
FY24
1-2Q
Before Revision
After Revision
FY25
1-2Q
Increase/decrease
Amount
YoY
Revenue
508.0
504.6
516.6
＋12.0
102.4%
Operating profit
32.0
27.6
▲5.4
▲33.0
-
Profit before income taxes
31.2
26.8
▲17.6
▲44.4
-
（Impact on Financial Performance from Major Non-Recurring Items）
Impairment
losses on fixed
assets and
goodwill
－
－
▲37.8
Profit before
income taxes
Finance costs
－
－
▲12.0
Major Non-Recurring Items
Impairment losses on fixed assets and goodwill
India: 10.2 billion Yen ・ North America (Industrial Gases): JPY 6.4 billion Yen
North America (Cryogenic Equipment): 2.3 billion Yen・ UPS: JPY 7.1 billion・A&F-related: 3.1 billion Yen, etc.
Finance Cost
Losses on Overseas Hydrogen-Related Investments
© 2026 AIR WATER INC. All Rights Reserved.
Revenue
12
First, we will explain the main points of the consolidated results for the first half of fiscal
year 2025, up to the second quarter.
For the second quarter of fiscal year 2025, revenue amounted to JPY 516.6 billion,
representing an increase of JPY 12.0 billion, while operating loss totaled JPY 5.4 billion.
As a result, profit decreased by JPY 33.0 billion compared with the same period of the
previous fiscal year.
Please note that these increases and decreases are calculated based on the figures for
the second quarter of fiscal year 2024, after reflecting the revisions resulting from the
investigation by the Special Investigating Committee and the voluntary internal review, as
explained earlier.
During the second quarter, main non-recurring factors included impairment losses on fixed
assets and goodwill, mainly in overseas operations, amounting to JPY 37.8 billion at the
operating profit level,
and financial expenses of JPY 12.0 billion at the profit before tax level, attributable to
losses related to hydrogen-related investments overseas.
12
Revision to Financial Forecasts
FY25 Full-Year
FY25 Full-Year
Initial Forecast
Revised Forecast
Increase/decrease
Amount
(Unit: Billion yen)
YoY
1,150.0
1,150.0
－
－
Operating profit
84.0
14.0
▲70.0
▲83.3%
Profit before income taxes
81.0
0
▲81.0
▲100.0％
Revenue
（Impact on Financial Performance from Major Non-Recurring Items）
－
▲37.8
Inventory-related
－
▲3.7
Revenue
Profit before
income taxes
Business Withdrawal
－
▲6.6
Investigation-related
Costs
－
▲13.5
Finance Costs
－
▲12.0
© 2026 AIR WATER INC. All Rights Reserved.
Impairment losses on
fixed assets and
goodwill*
13
Next, we will explain the revision to the earnings forecast.
For the revised full-year forecast for fiscal year 2025, revenue is expected to remain
unchanged at JPY 1,150.0 billion.
On the other hand, operating profit is forecast at JPY 14.0 billion, representing a downward
revision of JPY 70.0 billion from the initial forecast,
and profit before tax is forecast at JPY 0.0 billion, representing a downward revision of JPY
81.0 billion from the initial forecast.
These revisions reflect, in addition to the impairment losses on fixed assets and goodwill
recognized in the second quarter, the impact of inventory-related items, business
withdrawals, and costs related to the current investigation.
All of these impacts are expected to be one-time factors in fiscal year 2025.
Please note that the annual dividend forecast remains unchanged at JPY 75 per share from
the initial forecast.
13
© 202６ AIR WATER INC. All Rights Reserved.
Ⅲ. Detailｓ of Second Quarter
Financial Results for Fiscal Year 2025
14
Next, we will explain the details of the second-quarter results for fiscal year 2025.
14
Second Quarter Financial Results for Fiscal Year 2025
Consolidated Statement of Income
(Unit: Billion yen)
Revenue
Cost of sales
FY2024
1-2Q
Increase/decrease
FY2025
1-2Q
Amount
504.6
516.6
＋12.0
▲394.9
▲400.2
▲5.3
109.7
116.4
＋6.7
▲83.0
▲87.0
▲4.0
Other operating income and expenses
▲2.3
▲37.2
▲34.9
Share of profit of investments accounted
for using the equity method
3.1
2.3
▲0.8
Gross profit
Selling, general and administrative expenses
Operating profit
27.6
▲5.4
▲33.1
▲0.8
▲12.2
▲11.4
102.4％
106.1％
－
26.8
▲17.6
▲44.4
Income taxes
▲9.4
▲4.0
＋5.5
Loss from discontinued operations
▲0.0
－
＋0.0
17.3
▲21.6
▲38.9
－
17.2
▲21.2
▲38.4
－
0.2
▲0.4
▲0.6
Profit before income taxes
Profit
Owners of parent
Non-controlling interests
Operating profit margin
Basic net earnings per share for the quarter
5.5%
－
75.18 Yen
92.42 Yen
－
- Basic earnings per share for the quarter are calculated based
on the average number of issued shares during the period.
The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company’s voluntary review.
The investigation is currently ongoing, and the figures may be subject to further revision.
© 2026 AIR WATER INC. All Rights Reserved.
Finance income and costs
YoY
15
15
Second Quarter Financial Results for Fiscal Year 2025
Revenue & Operating profit by segment
(Unit: Billion yen)
Revenue
Group
Operating profit
FY24
FY25
１-2Q
１-2Q
Digital & Industry
165.1
160.0
▲5.1
96.9％
13.8
▲16.7
Energy Solutions
38.4
39.8
＋1.4
103.7％
2.1
▲0.4
▲2.5
▲16.7%
Health & Safety
114.5
121.9
＋7.4
106.5％
3.0
7.3
＋4.2
238.9%
Agriculture & Foods
87.8
89.2
＋1.4
101.6%
4.4
1.4
▲3.0
31.8%
Other
98.8
105.8
＋6.9
107.0％
3.4
2.4
▲1.0
70.1%
YoY
FY24
FY25
１-2Q
１-2Q
YoY
▲30.5 ▲120.8%
－
－
－
0.8
0.6
▲0.3
68.5%
516.6
＋12.0
102.4%
27.6
▲5.4
▲33.1
▲19.7%
FY2025 2Q
Segment composition ratio
+7.4
+74
20%
31%
516.6
5,166
Other
FY25 2Q
504.6
5,046
+1.4
+14
Revenue
▲51
▲5.1
516.6
18%
+6.9
+69
+1.4
+14
Billion yen
8%
23%
FY24 2Q
D&I
ES
H&S
A&F
The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company’s voluntary review.
The investigation is currently ongoing, and the figures may be subject to further revision.
© 2026 AIR WATER INC. All Rights Reserved.
－
- Adjustment: Elimination of intersegment transactions and profit or loss of the Company’s Head Office divisions that are not allocated to each reporting segment.
■Digital & Industry
■Energy Solutions
■Health & Safety
■Agriculture & Foods
■Other
■Adjustment
Amount
504.6
Adjustment*
Total
Amount
16
Next, we will explain the segment performance, focusing on the main points excluding
one-time factors.
（Digital & Industry Segment）
In the domestic business, sales of gases and equipment for semiconductor-related
applications increased, supported by demand related to generative AI, and price
management of industrial gases also contributed.
On the other hand, overseas business remained sluggish. In North America, partial
business withdrawals were carried out in the cryogenic equipment field, while in India, onsite gas volumes declined due to the temporary suspension of customer plant operations.
（Energy Solutions Segment）
In the energy-related business, although overall sales volumes of LP gas and kerosene
remained weak, we implemented revisions to selling prices and strengthened sales to
household customers.
In the green innovation-related business, supply of carbon dioxide continued to be
affected by shortages of source gas; however, efforts were made to strengthen sales and
ensure stable supply.
（Health & Safety Segment）
In the dental-related business, profits increased at Ci Medical Co., Ltd., an equity-method
affiliate.
In addition, the home healthcare-related business benefited from increased sales of
consumer products by Kawamoto Corporation.
Meanwhile, in the medical products business, although new SPD contracts were secured,
the supply volume of medical oxygen declined.
（Agri & Foods Segment）
In the Agriculture-related business, sales of Hokkaido-produced potatoes, daikon radish,
and other products performed well, and operational rationalization progressed in the fresh
produce retail business.
In the foods-related business, sales of ham and delicatessen products to major mass
retailers expanded, while sales of sweets for convenience stores remained sluggish.
In addition, overseas production of frozen vegetables declined significantly due to
adverse weather conditions, which had a substantial impact.
（Other Business Segments）
In the seawater-related business, profit contributions from large-scale water treatment
projects recorded in the same period of the previous year were no longer present.
In the power-related business, efforts to reduce PKS fuel procurement costs at biomass
power plants contributed positively.
In the trading business, sales of electronic materials increased both domestically and
overseas.
In the logistics business, handling volumes of food and foodstuffs increased, and revisions
to contract fees for major customers progressed.
16
Second Quarter Financial Results for Fiscal Year 2025
Consolidated statement of financial position
(Unit: Billion yen)
Current assets
End of
March 2025
Increase/decrease
End of
（単位：億円）
September 2025
Amount
YoY
447.9
411.5
▲36.3
91.9%
95.3%
741.9
▲36.5
1,153.4
▲72.8
94.1%
332.4
297.4
▲35.0
89.5％
Non-current liabilities
401.5
396.5
▲5.0
98.8％
Total liabilities
733.9
693.9
▲40.0
94.6%
Total equity
492.3
459.5
▲32.9
93.3%
1,226.2
1,153.4
▲72.8
94.1%
Equity attributable to owners of the
parent
472.9
444.7
Interest-bearing liabilities
446.4
423.7
Equity ratio attributable to owners of
the parent
３８．６%
３８．６%
0.79Times
0.81Times
Total assets
Current liabilities
Total liabilities and equity
Net D/E ratio
*“Net interest-bearing liabilities” ÷“Equity attributable to owners of the parent”
The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company’s voluntary review.
The investigation is currently ongoing, and the figures may be subject to further revision.
© 2026 AIR WATER INC. All Rights Reserved.
778.4
1,226.2
Non-current assets
17
Next, we will explain the consolidated statement of financial position.
Total assets decreased by JPY 72.8 billion compared with the end of the previous fiscal
year, to JPY 1,153.4 billion.
This includes impairment losses on assets and goodwill resulting from the voluntary
internal review.
Total liabilities decreased by JPY 40.0 billion.
In addition, the net debt-to-equity ratio increased to 0.81 times compared with the end of
the previous fiscal year.
17
Second Quarter Financial Results for Fiscal Year 2025
Cash flow status
(Unit: Billion yen)
FY2024.
1-2Q
FY2025.
1-2Q
Increase/
decrease
48.0
44.6
▲3.4
Investment cash flows [(2)]
▲36.8
▲32.3
+4.5
Financial cash flows [(3)]
▲20.5
▲22.2
▲1.7
Total cash flows [(1)+(2)+(3)]
▲9.3
▲9.9
▲0.6
Cash and cash equivalents at the
end of the period
58.8
63.8
+5.0
Free cash flows [(1)+(2)]
11.2
+12.3
＋1.0
The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company’s voluntary review.
The investigation is currently ongoing, and the figures may be subject to further revision.
© 2026 AIR WATER INC. All Rights Reserved.
Operating cash flows [(1)]
18
Next, we will explain the cash flow situation.
Operating cash flow decreased by JPY 3.4 billion, mainly due to an increase in income tax
payments.
Investing cash flow also decreased by JPY 4.5 billion, mainly due to an increase in
proceeds from asset sales.
As a result, free cash flow increased by JPY 1.0 billion.
18
© 202６ AIR WATER INC. All Rights Reserved.
Ⅲ. Fiscal Year 2025 Full-Year Financial
Results forecast
19
Finally, we will explain the full-year earnings forecast for fiscal year 2025.
19
Fiscal Year 2025 Full-Year Financial Results forecast
Fiscal Year 2025 full-year financial results forecast
(Unit: Billion yen)
FY2024
（After Revision）
FY2025
（Revised Forecast）
Increase/decrease
Amount
FY2025
(Initial Forecast)
YoY
1,061.1
1,150.0
＋88.9
108.4％
1,150.0
Operating profit
61.3
14.0
▲４７.３
22.8％
84.0
Profit before income taxes
59.8
0.0
▲59.8
－
81.0
Profit attributable to owners of the parent
37.7
▲10.0
▲47.7
▲26.5
53.0
Revenue
5.7%
－
Basic earnings per share
214.57 Yen
▲43.63 Yen
75.00 Yen
75.00 Yen
Annual dividend
The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company’s voluntary review.
The investigation is currently ongoing, and the figures may be subject to further revision.
© 2026 AIR WATER INC. All Rights Reserved.
Operating profit margin
20
As previously explained, our revised full-year forecast for FY2025,compared with the restated results
for FY2024, is as follows:
Revenue is expected to be JPY 1,150.0 billion, representing an increase of JPY 88.9 billion year on
year.
Operating profit is forecast at JPY 14.0 billion, a decrease of JPY 47.3 billion.
Profit before tax is expected to be JPY 0.0 billion, reflecting a decrease of JPY 59.8 billion.
This concludes my presentation. Thank you very much for your attention.
20
Ⅳ. Supplementary Material
© 202６ AIR WATER INC. All Rights Reserved.
21
21
Supplementary Material
Main business activities by segment
Group
Digital & Industry
Business
Unit
Industrial Gases
Industrial gases (oxygen, nitrogen, argon, carbonic acid, hydrogen, helium and others) and related equipment and construction
Gas Products
On-site gas supply for steel manufacturers
Digital
Gas supply for semiconductor manufacturers, special gases and chemicals, related equipment, functional chemicals, basic chemicals, etc.
Global & Engineering
Industrial gases (India and North America), industrial gas-related equipment, engineering and high-power uninterrupted power
supplies (UPS)
Energy Solutions
LP gas, kerosene, LP gas-related equipment
Green Innovation
Carbonic acid, hydrogen, LNG-related equipment, development of businesses related to low carbon and decarbonization
Medical Products
Medical gases, medical equipment, home care、SPD(centralized management of medical materials and pharmaceuticals in
hospitals) and sterilization
Safety Services
Hospital facility construction, gas fire extinguishing equipment and respirators
Home Health Care
Hygiene materials、OEM contracts for aerosols and cosmetics、injection needles
Dental Care
Dental materials
Agriculture
Vegetable processing、Vegetable processing, wholesaling, farm-fresh market、Agricultural Machinery
Foods
Ham and delicatessen products, frozen vegetables and sweet
Beverage
OEM contract manufacturing of beverages, manufacturing and sales of our own beverages
Sea water
Salt, environment and woody biomass power generation (Ako City, Hyogo and Kanda machi, Fukuoka)、Magnesia
Logistics
Transport, food distribution, medical and environmental distribution and designing and modifying vehicle bodies
Electricity
Woody biomass-fired power plant (Iwaki City, Fukushima)
Specialized Trading Company
Electronics-related specialized trading companies
Other
Construction work
Energy Solutions
Health & Safety
Other
- B usinesses t hat changed on 2 Q are underlined.
© 2025 AIR WATER INC. All Rights Reserved.
Agriculture & Foods
22
22
Supplementary Material
Number of consolidated companies
(Unit: Number of companies)
End of March 2025
End of September 2025
Increase/decrease
Consolidated subsidiaries*
159
157
Decrease of 2 companies
Equity method affiliates
51
52
Increase of 1 company
Total
210
209
Decrease of 1 companies
- The number of consolidated subsidiaries include only companies which Air Water directly consolidates. Affiliated companies consolidated by
consolidated subsidiaries are excluded from this number. Consolidated companies listed above include joint operations.
In the Digital & Industry segment, the number of overseas operating companies decreased by 2.
In addition, one company in the Energy Solutions segment was merged and integrated.
Furthermore, as of the end of March 2025 and the end of September 2025,certain non-consolidated
subsidiaries were included in the scope of consolidation.
※
© 2026 AIR WATER INC. All Rights Reserved.
Major newly consolidated companies in Second quarter of FY2025
23
23
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