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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Supplementary Materials : Financial Results for FY2026 1Q August 6 , 2026 ETSUKISHIMA HOLDINGS CO . , LTD .
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©Tsukishima Holdings Co., Ltd. All Rights Reserved. 2 On track to achieve record-high orders received, net sales, and operating profit. Orders received decreased slightly overall. Orders received in the Water Environment Business increased due to the acquisition of large-scale projects, while those in the Industrial Business decreased as orders are expected to be weighted toward the second half of the fiscal year. (※Order backlog reached a record high) Net sales increased as projects progressed in both businesses, supported by a strong order backlog. Operating profit increased due to higher net sales and improved profitability in both businesses. (recorded a 1Q operating profit for the second consecutive year) Quarterly profit attributable to owners of parent decreased due to a decline in gain on sale of investment securities compared with the previous fiscal year. 【Unit： 100 million yen】 FY2025 1Q Actual FY2026 1Q Actual Change Orders received 441 434 △7 Order backlog 3,375 3,398 +23 Net sales 248 272 +24 Operating profit 2 5 +3 Operating profit margin 0.7% 1.8% 1.1% Quarterly Profit attributable to owners of parent 25 21 △4 EBITDA 11 14 +3 【Unit： 100 million yen】 FY2025 1Q Actual FY2026 1Q Actual Change Orders received Water Environmental 292 335 +43 Industrial 145 99 △46 Net sales Water Environmental 157 171 +14 Industrial 88 101 +13 Operating profit Water Environmental （OP margin） △2 △0 +2 △1.0% △0.1% +0.9% Industrial （OP margin) 2 6 +4 1.8% 6.0% +4.2% Note: As figures related to "Other Business" are excluded, totals do not match consolidated figures. 【Orders Received, Net Sales, Operating profit by Segment 】 Consolidated results for FY2026 1Q
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©Tsukishima Holdings Co., Ltd. All Rights Reserved. 3 【Water Environmental Business】 … Increased The transitional period between large-scale projects experienced in the previous fiscal year is expected to be resolved. Water infrastructure … received an order for a large-scale project (sewage sludge incinerator) Life cycle business … received multiple annual O&M projects 【Industrial Business】 … Decreased Concentration of project awards in the second half as anticipated at the beginning of the fiscal year. Industrial infrastructure …received chemical plant projects related to GX and equipment orders, including filtration systems. Environment …received incinerator refurbishment projects. Orders Received Consolidated results for FY2026 1Q （ Orders received, Net Sales) 292 335 145 99 3 0 0 100 200 300 400 500 Water Environmental Industrial Other FY2025 1Q FY2026 1Q 441 434 △3 △46 +43 △7 Unit： 100 million yen 157 171 88 101 3 0 0 50 100 150 200 250 300 Water Environmental Industrial Other FY2025 1Q FY2026 1Q 248 272 △3 +13 +14 +24 Unit： 100 million yen 【Water Environmental Business】 … Increased Water infrastructure … multiple sewage sludge incinerator projects progressed. Life cycle business … large-scale comprehensive O&M contracts progressed steadily. 【Industrial Business】 … Increased Industrial infrastructure … chemical plant and equipment projects progressed steadily. Environment … waste gas treatment equipment projects progressed steadily. Net Sales Other : Segment related to real estate management and leasing
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©Tsukishima Holdings Co., Ltd. All Rights Reserved. Operating profit increased as improved profitability in both Water Environmental and Industrial Businesses more than offset higher SG&A expenses, in addition to the positive impact of higher net sales. +2 +3 +1 +3 △ 2 △ 1 △ 3 2 5 FY2025 1Q FY2026 1Q 0 2 4 6 8 10 12 Water Environmental Industrial Other 4 Operating profit Unit： 100 million yen After-sales service ratio to net sales Water Environmental Full-year 65% １Q １１％ １Q ６％ Industrial After-sales services are defined as repair work, operation and maintenance services (Water Environment Business only), maintenance services, and parts supply services. These businesses provide a recurring and stable earnings base that supports business growth and has continued to expand year by year. The ratio of after-sales services to net sales is expected to be 65% in the Water Environment Business and 32% in the Industrial Business for FY2026. As many after-sales service projects are received and recognized as net sales within the same fiscal year, the ratio of after-sales services to net sales is expected to increase toward 4Q. ●FY2026 Forecast ●Trend in After-sales service Net Sales 0 400 800 1,200 1,600 25.3期 26.3期 27.3期(予想) アフターセールス 全売上高 FY2025 FY2026 Forecast Revenue effect Profit margin effect Selling, general and administrative expenses Other Other : Segment related to real estate management and leasing Consolidated results for FY2026 1Q （ After - sales services ratio, Operating profit) 〔 Common 〕 ・Human capital investment （Base salary increase, mid-career hiring） 〔 Water Environmental 〕 ・The absence of reversal of allowance for doubtful accounts compared with the previous fiscal year Unit： 100 million yen Full-year 32% FY2024 After-sales service Total Net Sales
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©Tsukishima Holdings Co., Ltd. All Rights Reserved. Topics for FY2026 1Q 5 Orders Received for a sewage sludge incinerator (approximately JPY 6.8 billion) and dewatering facilities (approximately JPY 1.9 billion) for the Tobu Sludge Treatment Plant, from the Tokyo Metropolitan Government Bureau of Sewerage. Our company holds the leading market share in the sewage sludge incinerator market. Our incinerator adopts the "Pressurized fluidized bed incineration system," which has a high greenhouse gas reduction effect. Its superior environmental performance has been highly evaluated, resulting in the 23rd order received for this system. Established the "TSUKISHIMA HOLDINGS ASEAN R&D CENTER" in Thailand, the first overseas development base of our Group. Contributing to customers' business activities in Thailand and the ASEAN region by supporting them from the research and development stage. The installed test equipment includes filters, mills and mixers. Started a capital alliance with LiLz Inc. for the purpose of jointly developing an inspection solution integrating a "Five-Senses IoT Camera” and a “Quadruped Robot." Aiming for the social implementation of next-generation inspection solutions by combining our Group's engineering and maintenance expertise in the water and wastewater sector with LiLz's AI image analysis technology and five-senses sensing technology. The technology that integrates sensors corresponding to the five human senses, such as sight, hearing, and smell, and applies them to water and wastewater infrastructure facilities is the first of its kind in the world (according to our Group's research). Although not included in 1Q order received, a basic agreement was signed on July 28 regarding the Renovation and Operation Project for the Sewage Sludge Recycling Facility at the Hiroshima City Western sewage treatment plant (DBO) (total project cost: JPY 26.6 billion). Promoting the social implementation of next-generation inspection solutions for water infrastructure utilizing AI and robots. Establishment of ASEAN R&D Center Orders Received Strategic Investment ① Strategic Investment ② Next-Generation Inspection Solution Integrating a "Five-Senses IoT Camera" and a "Quadruped Robot"
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©Tsukishima Holdings Co., Ltd. All Rights Reserved. Forecast for FY2026 Orders received, net sales, and operating profit are expected to hit record highs Orders received are expected to increase, supported by large-scale projects in the Water Environmental Business and continued strong performance in the Industrial Business. Net sales are expected to increase as projects in the order backlog progress in both businesses. Operating profit is expected to increase, mainly due to higher profit in the Water Environmental Business. Profit attributable to owners of parent is expected to decrease due to the absence of gains from the sale of logistics facilities in the previous fiscal year. Note: As figures related to "Other Business" are excluded, totals do not match consolidated figures. Impact of military conflict in the Middle East Although no material impact has been observed to date, we will continue to closely monitor the situation, as the potential impacts listed below are anticipated. [ Orders received ] • Potential impact on customers’ capital investment decisions in the Industrial Business. [ Net sales, Operating profit ] • Increased costs due to rising prices and delivery delays due to procurement difficulties of petroleum-derived products • Challenges in securing utilities (chemicals, etc.) for operation and maintenance business in the Water Environmental Business, as well as rising costs. ⇒Although we plan to recover costs through negotiations with customers, the magnitude and outlook of the impact remain difficult to estimate at this point. 【Orders Received, Net Sales, Operating profit by Segment 】 【Unit： 100 million yen】 FY2026 1Q Actual FY2026 Forecast Orders received Water Environmental 335 1,300 Industrial 99 600 Net sales Water Environmental 171 1,000 Industrial 101 520 Operating profit Water Environmental （OP margin） △0 70 △0.1% 7.0% Industrial （OP margin) 6 43 6.0% 8.3% 【Unit： 100 million yen】 FY2026 1Q Actual FY2026 Forecast 1Q Progress Orders received 434 1,900 22.8% Order backlog 3,398 3,615 － Net sales 272 1,520 17.9% Operating profit 5 110 4.5% Operating profit margin 1.8% 7.2% － Profit attributable to owners of parent 21 85 24.7% EBITDA 14 146 9.6% ROIC － around 7% － ROE － mid 8% range － 6