Air Water Inc. TSE:4088
Air Water : Briefing Script For the Second Quarter of the March 31, 2026 Fiscal Year
Source: MarketScreener
Fiscal year 2025 Second Quarter
Financial Results Explanatory Materials
February 13 , 2026
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© 2025 AIR WATER INC. All Rights Reserved.
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).
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Ⅴ. Supplementary Material
P.19
Ⅳ. Fiscal Year 2025 Full-Year Financial Results forecast
P.14
Ⅲ. Detail of Second Quarter Financial Results for Fiscal Year 2025
Ⅱ. Summary of Second Quarter Financial Results for Fiscal Year 2025 P.11
Contents
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Ⅰ. Introduction
Agenda
© 2 0 26 AI R W ATE R IN C. All R igh ts R eserv ed.
Ⅰ. Introduction
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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.
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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"). |
Background Establishment of the Special Investigating Committee
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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
Establishment of the Special Investigating Committee Background
Company Name | Summary |
Nippon Helium | 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. |
Air Water Ecoloca | 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. |
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. |
Others | At the Company and a significant number of Group companies, various improper accounting treatments were carried out with the 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. |
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Prior-Period Adjustments (Planned) *1 | |||
Revenue | Special Investigating Committee | . | |
Voluntary Review* |
. | ||
Total | . | ||
Operating profit | Special Investigating Committee | . | |
Voluntary Review※2 | Impairment of property, plant and equipment and goodwill | . | |
Other | . | ||
Subtotal | . | ||
Total | . | ||
(Unit: Billion yen)
* 1 : Prior- period adjustments will be made over multiple f iscal years.
* 2 : The voluntar y review also includes i tems such as impairment of property, plant and equipment and goodwill, as well as the consolidation impact of non- consolidated subsidiaries.
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| Reform of Corporate Culture | 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. 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 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 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 | |
The redefinition of core competencies The selection and concentration of businesses The reorganization and optimization of Group companies |
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Ⅱ. Summary of Second Quarter Financial Results for Fiscal Year 2025
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Main points of the Second quarter financial results for Fiscal Year 2025
(Unit: Billion yen)
Revenue Operating profit
Profit before income taxes
FY25
1-2Q
Increase/decrease
Amount
YoY
Revenue
Profit before income taxes
•
•
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Revenue | * | ||
Profit before income taxes |
Revision to Financial Forecasts
(Unit: Billion yen)
* Including the consolidation impact of non- consolidated subsidiaries
* The annual dividend forecast remains unchanged at JPY 75 per share.
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Profit before income taxes
Operating profit
Revenue
YoY
Amount
Increase/decrease
© 2 0 26 AIR W ATE R IN C. All R igh ts R eserv ed.
Ⅲ. Detail
of Second Quarter
Financial Results for Fiscal Year 2025
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(Unit: Billion yen) | FY2024 1-2Q | FY2025 1-2Q | Increase/decrease | |
Amount | YoY | |||
Revenue | ||||
Cost of sales | ||||
Gross profit | ||||
Selling, general and administrative expenses | ||||
Other operating income and expenses | ||||
Share of profit of investments accounted for using the equity method | ||||
Operating profit | ||||
Finance income and costs | ||||
Profit before income taxes | ||||
Income taxes | ||||
Loss from discontinued operations | ||||
Profit | ||||
Owners of parent | ||||
Non-controlling interests | ||||
Second Quarter Financial Results for Fiscal Year 2025
Consolidated Statement of Income
* 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.
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Basic net earnings per share for the quarter
-
Operating profit margin
© 2 0 26 AIR W ATE R IN C. All R igh ts R eserv ed.
Group | Revenue | |||
FY24 -2Q | FY25 -2Q | Amount | YoY | |
Digital & Industry | ||||
Energy Solutions | ||||
Health & Safety | ||||
Agriculture & Foods | ||||
Other | ||||
Adjustment* | ||||
Total | ||||
Operating profit | |||
FY24 -2Q | FY25 -2Q | Amount | YoY |
5,046
▲51
+14
+74
+14
+69
5,166
Second Quarter Financial Results for Fiscal Year 2025
Revenue & Operating profit by segment
(Unit: Billion yen)
* Adjustment: Elimination of intersegment transactions and profit or loss of the Company's Head Office divisions that are not allocated to each reporting segment.
+6.9 516.6
FY2025 2Q
Segment composition ratio
Digital & Industry Energy Solutions Health & Safety Agriculture & Foods Other
Adjustment
20%
+7.4
+1.4
31%
504.6
+1.4
18%
8%
23%
FY24 2Q
D&I
ES
H&S
A&F
Other FY25 2Q
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.
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▲5.1
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(Unit: Billion yen) | End of March 2025 | End of September 2025 | Increase/decrease | ||
Amount | YoY | ||||
Current assets | |||||
Non-current assets | |||||
Total assets | |||||
Current liabilities | |||||
Non-current liabilities | |||||
Total liabilities | |||||
Total equity | |||||
Total liabilities and equity | |||||
Equity attributable to owners of the parent | |||||
Interest-bearing liabilities | |||||
Equity ratio attributable to owners of the parent | |||||
Net D/E ratio | |||||
Second Quarter Financial Results for Fiscal Year 2025
Consolidated statement of financial position
*"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.
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(Unit: Billion yen) | |||
Second Quarter Financial Results for Fiscal Year 2025
Cash flow status
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.
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Ⅲ. Fiscal Year 2025 Full-Year Financial Results forecast
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© 2 0 2 AIR W ATER I N C. All R ights Reserved.
FY2025 (Initial Forecast) |
Operating profit margin | ||
Basic earnings per share | ||
Annual dividend |
Fiscal Year 2025 Full-Year Financial Results forecast
Fiscal Year 2025 full-year financial results forecast
FY2024
(Unit: Billion yen) After Revision
FY2025
Revised Forecast
Increase/decrease
Amount YoY
Revenue Operating profit
Profit before income taxes
Profit 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.
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© 2 0 26 AIR W ATE R IN C. All R igh ts R eserv ed.
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.
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Ⅳ. Supplementary Material
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Group | Unit | Business |
Digital & Industry | 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 | 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 | |
Health & Safety | 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 & Foods | 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 | |
Other | 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 |
Supplementary Material
Main business activities by segment
* Businesses that changed on 2 Q are underlined.
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End of March 2025 | End of September 2025 | Increase/decrease | |
Consolidated subsidiaries* | Decrease of 3 companies | ||
Equity method affiliates | Increase of 1 company | ||
Decrease of 2 companies |
Supplementary Material
Number of consolidated 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.
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