Kanadevia : (Full version) November 6, 2025 "Report of Consolidated Financial Results For the Six Months Ended September 30, 2025"

For the Six Months Ended September 30, 2025

Name of Company: Kanadevia Corporation

November 6, 2025

Code Number:

Stock Exchange Listing:

7004 URL: https://www.kanadevia.com/ Tokyo

Representative: Michi Kuwahara, President & Chief Executive Officer

Contact Person: Shunji Kimura, Executive Officer, General Manager of Accounting Department

tel. +81-6-6569-0022

This "Consolidated Financial Results" has been prepared in accordance with accounting principles generally accepted in Japan.

(Figures are rounded down to the nearest million yen.)

1. Business results and financial position for the six months ended September 30, 2025 (April 1 - September 30, 2025)

   1. Results of operations (Accumulated)

      (Percentages show rates of increase or decrease from the period a year earlier.)

      	Net sales (million yen) (%)		Operating income (million yen) (%)		Ordinary income (million yen) (%)		Profit attributable to shareholders of Kanadevia (million yen) (%)
      6 months ended Sep. 30, 2025	267,714	(0.8)	(7,781)	-	(8,329)	-	(5,508)	-
      6 months ended Sep. 30, 2024	269,960	16.3	3,163	183.4	639	(66.5)	(1,139)	-

      	Net income per share (yen)	Net income per share-diluted (yen)
      6 months ended Sep. 30, 2025	(32.74)	-
      6 months ended Sep. 30, 2024	(6.77)	-

   2. Financial position

   	Total assets (million yen)	Net assets (million yen)	Shareholders' equity to total assets (%)
   As of September 30, 2025	582,844	186,789	30.5
   As of March 31, 2025	609,666	197,895	31.1

   (Reference) Shareholders' equity: Yen 177,896 million (September 30, 2025), Yen 189,364 million (March 31, 2025)

2. Dividends

   Record Date	Dividends per share (yen)
   	Interim	Year-end	Annual
   Year ended March 31, 2025	0.0	25.0	25.0
   Year ending March 31, 2026	0.0
   Year ending March 31, 2026 (Forecast)		25.0	25.0

   (Note) Revisions to the dividends forecast most recently announced：None

3. Forecast of consolidated earnings for the fiscal year ending March 31, 2026 (April 1, 2025 - March 31, 2026)

   (Percentages show rates of increase or decrease from the period a year earlier.)

   	Net sales (million yen) (%)		Operating income (million yen) (%)		Ordinary income (million yen) (%)		Profit attributable to shareholders of Kanadevia (million yen) (%)		Net income per share - basic (yen)
   Year ending March 31, 2026	620,000	1.6	18,000	(33.2)	14,000	(42.5)	10,000	(54.8)	59.46

   (Note) Revisions to the forecast of consolidated earnings most recently announced：Yes

4. Notes

   1. Significant changes in the scope of consolidation during the period: Yes

      Excluded: H&F Corporation, H&F SERVICES U.S.A., INC., H&F Services(Thailand) Co.,Ltd., H&F EUROPE LIMITED

   2. Specific accounting policies applied in the quarterly consolidated financial statements: Yes

   3. Changes in accounting policies, changes in accounting estimates and restatements

      1. Changes in accounting policies as per the revision of accounting standards: None

      2. Changes in accounting policies other than (i) above: None

      3. Changes in accounting estimates: None

      4. Restatements: None

   4. Number of shares issued and outstanding (common stock)

      1. Number of shares issued and outstanding (including treasury stock) September 30, 2025 170,214,843 shares

         March 31, 2025 170,214,843 shares

      2. Number of shares held in treasury

         September 30, 2025 1,969,977 shares

         March 31, 2025 2,026,463 shares

      3. Average number of shares during the respective periods

         Six months ended September 30, 2025 168,221,525 shares

         Six months ended September 30, 2024 168,410,306 shares

         (Note) The number of treasury stock at end of period includes the Company's shares held by the BIP (Board Incentive Plan) Trust established for the remuneration plan for the Company's directors, etc. (271,016 shares as of September 30, 2025, 329,630 shares as of March 31, 2025). The Company's shares held by the BIP Trust are included in the number of shares of treasury stock which are deducted from the number of shares when calculating the average number of shares outstanding during the period.

   5. Review for attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

   6. Forward -looking statements are based on information currently available to Kanadevia Corporation. Therefore, those forward-looking statements include unknown risks and uncertainties. Accordingly, you should note that the actual results could differ materially from those forward-looking statements. Risks and uncertainties that could influence the ultimate outcome include, but are not limited, to the economic conditions surrounding Kanadevia Corporation.

5. Analysis of Financial Results

   In this chapter, we analyze the consolidated operating results and consolidated financial position. Numerical figures are quoted from "8. Supplementary information" of this report.

   1. Analysis of business results

      ①Overview of the consolidated financial results

      For the six-month period ended September 30, 2025, the economic situation was affected by the trade policies of the United States, however, gradually picking up. Looking ahead, while improvements in employment and income conditions, as well as the effects of various policies, are expected to support a moderate recovery, we need to be mindful of economic downturns due to the impact of U.S. trade policies. In addition, the impacts of continued inflation on consumer spending through a downturn in consumer

      sentiment, are also the downside risks of domestic economy.

      Under such circumstances, based on the medium-term management plan "Forward 25" that started in the fiscal year 2023, the Group is actively advancing various key initiatives grounded in the following basic policies; sustainable growth of existing businesses, creation and expansion of growth businesses and promotion of sustainable management (enhancement of corporate value).

      In pursuing the initiatives outlined above, for the six months ended September 30, 2025, Order intake was Yen 307.5 billion, increasing by 8.0% from the same period in the previous fiscal year, mainly due to an increase in Carbon Neutral Solution Business. Net sales were Yen 267.7 billion, decreasing by 0.8 % from the same period in the previous fiscal year mainly due to a decrease in Machinery & Infrastructure Business.

      In terms of profit and loss, Operating loss was Yen 7.7 billion, deteriorating by Yen 10.8 billion from the same period of the previous year, mainly due to the decline in Environment Business.

      As a result of deteriorating Operating loss, Ordinary loss deteriorated by Yen 8.9 billion to Yen 8.3 billion from the same period in the previous fiscal year, Loss attributable to shareholders of Kanadevia deterioratedby Yen 4.4 billion to Yen 5.5 billion from the same period in the previous fiscal year.

      Business results by segments are as follows.

      Environment Business:

      Net sales increased by 4.3% to Yen 208.0 billion due to the net sales increase of foreign subsidiaries. However, Operating loss deteriorated Yen 8.2 billion to Yen 2.7 billion due to decline in high-margin projects and the impact of rising costs.

      Machinery & Infrastructure Business:

      Net sales decreased by 17.9% to Yen 28.5 billion due to a sale of the press business. Operating loss decreased by Yen 1.1 billion to Yen 2.4 billion due to the impact of infrastructure issues, and other factors.

      Carbon Neutral Solution Business:

      Net sales decreased by 12.7% to Yen 29.6 billion due mainly to a reduction in process instruments. Operating loss was recorded Yen 2.9 billion due to worse earnings of process instruments, whereas operating loss was recorded Yen 1.3 billion in the same period a year earlier.

      Other Businesses:

      Net sales decreased to Yen 1.6 billion and Operating income increased to Yen 0.3 billion.

      Due to the nature of the Group's business, a large proportion of projects is completed at the end of March, fiscal year closing month, and therefore sales are concentrated at the end of the consolidated fiscal year. Thus, there is a tendency that the Company's operating results experience the seasonal fluctuation.

   2. Overview of consolidated financial position

      ①Assets, Liabilities and Net assets

      Total assets decreased by Yen 26.8 billion to Yen 582.8 billion from the previous fiscal year-end mainly due to a decrease in notes, accounts receivables and contract assets by collection of trade receivables. Total liabilities decreased by Yen 15.7 billion to Yen

      396.0 billion from the previous fiscal year-end due to redemption of corporate bonds, repayment of Notes, accounts payable and accrued expenses. Net assets decreased by Yen 11.1 billion to Yen 186.8 billion from the previous fiscal year-end due to the dividend payment and net loss attributable to shareholders of Kanadevia.

   3. Forecast of consolidated earnings

   As for the fiscal year ending March 31, 2026, Operating income is forecast to decrease by Yen 9 billion to Yen 18 billion from the previous announcement of Yen 27 billion, due to the impact of rising costs and the impact of infrastructure issues, in Environment Business and Machinery & Infrastructure Business. Ordinary income decreased by Yen 9 billion to Yen 14 billion from Yen 23 billion, Profit attributable to shareholders of Kanadevia decreased by Yen 6 billion to Yen 10 billion from Yen 16 billion.

   The impact of the inappropriate conduct in marine engine business and the inappropriate conduct related to businesses other than marine engines has not been determined yet. We will promptly incorporate any anticipated impact on our business performance into our forecast.

6. Consolidated Balance Sheets

Kanadevia Corporation Report of Consolidated Financial Results - September 2025

Assets

(Millions of yen) As of March 31, 2025 As of September 30, 2025

Current assets

- 1 -