Anest Iwata Corporation Supplemental Explanation Materials for 3Q FY2026 Financial Results

3Q FY2026 Performance Results

Net sales were JPY 39,488 million (YoY -1.3%), with declines in both the Air Energy and Coating businesses. The China Compressor business experienced a delayed recovery, and other businesses recorded losses due to new investments. Operating income decreased to JPY 3,796 million (YoY -18.1%) mainly due to a decrease in gross profit arising from lower sales and increased selling, general and administrative expenses. Despite gains from foreign exchange and equity-method investment income, ordinary income and net income also declined.

Trends by Region and Business Segment and Full-Year Outlook

Sales increased in Japan and Europe, but decreased in the Americas, China, and other regions. The overseas sales ratio declined to 65.3%. The Air Energy business performed well in Europe but saw reduced sales in China and India. The Coating business continued to face sluggish sales in the U.S. Other businesses expanded e-commerce sales but remained in deficit due to upfront investments. The full-year earnings forecast remains unchanged from the previous announcement. The company aims to recover through promotional activities. The dividend forecast is also unchanged.