Air Water : Notice Regarding the Completion of Submission of the Semi-Annual Report for the Fiscal Year Ending March 31, 2026

To All Concerned Parties

Company Name

Air Water Inc.

February 13, 2026

Representative President and

Representative Director

Ryosuke

Matsubayashi

（Code Number 4088 Tokyo Stock Exchange Prime Market, Sapporo Stock Exchange Market）

Contact General Manager of Corporate Communications Office

Keisuke Fukushima

（TEL 06-6252-3966）

Notice Regarding the Completion of Submission of the Semi-Annual Report for the Fiscal Year Ending March 31, 2026

As announced in the "Notice Regarding Approval for Extension of Filing Deadline for the Semi-Annual Securities Report" dated November 14, 2025, we had obtained approval for an extension of the filing deadline for the Semi-Annual Report for the fiscal year ending March 31, 2026, with the extended deadline set as February 13, 2026. We hereby announce that we have today submitted the relevant Semi-Annual Report to the Kanto Local Finance Bureau.

In addition, we determined that certain inappropriate accounting treatments identified through the investigation conducted by the Special Investigating Committee and the voluntary self-inspections required retroactive corrections, and accordingly restated and revised our consolidated financial statements and other related financial information for prior fiscal years.

We sincerely apologize to our shareholders, investors, and all other concerned parties for the significant inconvenience and concern this matter may have caused.

1. Details of Restatement

   In July 2025, we identified, through a voluntary internal review, inappropriate accounting

   treatments related to inventory (deferral of losses) at one of our consolidated subsidiaries. Subsequently, based on an internal investigation and indications from the accounting auditor, similar inappropriate accounting treatments related to inventory were identified at other consolidated subsidiaries and at us, and the potential involvement of officers and employees were also identified. Accordingly, on October 9, 2025, we established a Special Investigating Committee and commenced an investigation. In addition, we formed a support team consisting of external experts to assist the investigation by the Special Investigating Committee and to conduct voluntary internal reviews as a top priority.

   The investigation by the Special Investigating Committee and our voluntary internal review included financial analyses, verification of the implementation status of physical inventory counts, and re-examination of the appropriateness of revenue recognition, as well as the following investigative procedures to identify the actual conditions of the inappropriate accounting treatments:

   • Interviews with approximately 240 individuals, including employees of us and our consolidated subsidiaries

     , its consolidated subsidiaries, and external related parties

   • Digital forensic investigations of approximately 200 key individuals of us and its consolidated subsidiaries

   • Questionnaire surveys of approximately 500 individuals regarding involvement in inappropriate accounting treatments

   • Establishment of a hotline covering we and all consolidated subsidiaries, introduction of an internal leniency program (reduction of internal disciplinary actions in exchange for cooperation with investigations), and implementation of a leniency awareness program targeting approximately 60 group companies

     On February 12, 2026, we received the investigation report (as of February 9, 2026) from the Special Investigating Committee. The report concluded that, against the backdrop of excessive pressure from top management to achieve sales or profit targets, various inappropriate accounting treatments had been conducted over prior periods within the Group. These included premature or deferred recognition of revenue accompanied by falsification of supporting documents or data manipulation, double-counting of revenue, overstatement of inventories, deferral of asset impairment, avoidance of provision recognition, capitalization of expenditures that do not meet asset recognition criteria, and other methods.

     We determined that these inappropriate accounting treatments required correction retroactively and have restated the comparative information and reflected the corrections in the condensed interim consolidated financial statements for the current interim period. In addition to the findings of the Special Investigating Committee, the restatement also reflects the results of the voluntary internal review conducted by the support team and other inappropriate accounting treatments and errors identified during audit procedures. Of the misstatements related to revenue that were corrected, the amounts were △530 million yen for the current interim consolidated accounting

     period and △3,353 million yen for the previous interim consolidated accounting period, covering a large number of transactions.

2. Major Impacts of the Restatement

• Cumulative impact on periods prior to the presented period: As a cumulative impact of retroactive corrections made for the inappropriate accounting treatments described above, retained earnings as of the beginning of the previous consolidated fiscal year decreased by 36,596 million yen.

• The investigation by the Special Investigating Committee will continue, and we will also continue to conduct voluntary self-inspections by the support team. Based on the results obtained to date, we have evaluated the impact of the limitations and unresolved matters of the investigation and have determined that, even if additional misstatements are identified through future investigations and voluntary self-inspections, there is no likelihood that such findings will have a material impact on the condensed interim consolidated financial statements. Furthermore, upon completion of the investigation and voluntary self-inspections, we intend to promptly submit amended reports for prior years' securities reports and other relevant filings; accordingly, no amendments have been made to the securities reports for prior years as of this time.

END