Announcement Regarding the Formulation of Detailed Recurrence Prevention Measures

Overview of Recurrence Prevention Measures

Based on the Special Investigation Committee Report published on March 31, 2026, Air Water Inc. acknowledged inappropriate accounting practices and involvement of top management, and formulated recurrence prevention measures in four pillars: corporate culture reform, governance reform, reconstruction of management foundation/internal control, and review of overall corporate strategy (business portfolio review), which were resolved by the Board of Directors. Specifically, measures include strengthening compliance, enhancing the whistleblower system, reinforcing the supervisory function of the Board of Directors, establishing a financial and accounting officer position, strengthening the accounting department functions, and enhancing the internal audit function.

Governance Enhancement and Organizational Restructuring

The Board Chairperson will be changed to an independent outside director to strengthen supervisory and check-and-balance functions. Increase in outside directors and appointment of directors overseeing administrative divisions are planned. Measures to prevent excessive concentration of personnel authority in top management and enhancement of the Audit & Supervisory Board's audit functions will be implemented. The accounting department will strengthen its structure by increasing and reallocating specialized personnel, with thorough management of subsidiaries. The Internal Audit Office aims to expand to a 50-member team within fiscal 2026, utilizing external experts as well. Company-wide education and training will be intensified to improve transparency and soundness.