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Supplementary Presentation Material of FY2025 First Quarter Financial Results ANEST IWATA Corporation Note: This document has been translated from the original document in Japanese. In the event of any discrepancy between this English translation and the original document in Japanese, the original document in Japanese shall prevail. August 8, 2025 Tokyo Stock Exchange Prime Market - Machinery Securities Code 6381
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1 Results for FY2025 1Q Performance Forecasts for FY2025 The previous forecast (announced on May 9, 2025) remains unchanged. Net sales of 12,088 million yen (-3.2% year-on-year) - Air energy business saw a decline in revenue and profits. Sales of air compressors in China were sluggish, due to weak domestic demand within China and declining export sales from China. - Coating business saw a decline in revenue, but an increase in profits. Sales of coating equipment recovered due to strengthened marketing capabilities in China, but sales in Europe slowed. Declining sales of coating systems in Japan caused a drop in overall sales. - Other business saw increased revenue, but were in the red. There were deficits due to upfront investments in new businesses. Operating profit of 929 million yen (-8.7% year-on-year) - Cost-to-sales ratio improved, but selling, general and administrative (SG&A) expenses ratio increased. Ordinary profit of 1,315 million yen (-22.8% year-on-year) - Foreign exchange gains declined drastically. Profit of 895 million yen (-14.9% year-on-year) Key Points of the Material
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Financial Highlights Decline in revenue and profits. Gross profit increased due to improved cost-to-sales ratio, but profits decreased with the rise in SG&A expenses and declining foreign exchange gains. 2 FY2024 1Q FY2025 1Q Year-on-year Actual (million yen) Profit ratio (%) Actual (million yen) Profit ratio (%) Increase/ decrease amount (million yen) Increase/ decrease rate (%) Profit ratio change (Point) Net sales 12,484 ― 12,088 ― -395 -3.2 ― Operating profit 1,017 8.2 929 7.7 -88 -8.7 -0.5 Ordinary profit 1,704 13.7 1,315 10.9 -389 -22.8 -2.8 Profit attributable to owners of parent 1,052 8.4 895 7.4 -156 -14.9 -1.0 Average exchange rate of yen to USD 148.61 yen 152.60 yen Depreciated by 3.99 yen EUR 161.31 yen 160.50 yen Appreciated by 0.81 yen CNY 20.63 yen 20.95 yen Depreciated by 0.32 yen FY2025 result forecasts Forecast (million yen) Progress rate （％） 58,000 20.8 5,550 16.7 6,710 19.6 4,150 21.6 151.50 yen 164.00 yen 21.00 yen The impact of foreign exchange on net sales: -60 million yen Realized foreign exchange gains of 6 million yen (-338 million yen year-on-year) [Foreign exchange sensitivity] Trend value based on operating profit (The currency ratio is not reflected in the following) ・Net sales: For each 1 yen depreciation against other currencies, sales increase by approximately USD 50million, EUR 50million, and CNY 600million per year, respectively. ・Operating profit: For each 1 yen depreciation against other currencies, operating profit increases by approximately USD 10 million, EUR10 million, and CNY 30 million per year, respectively.
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（million yen） Increase in gross profit (Sales -costs) +107 Increase in sales- related expenses -61 Increase in personnel expenses -111 Decrease in other expenses +30 Increase in goodwill and other depreciation costs -23 929 1,017 FY2024 1Q FY2025 1Q The cost of sales ratio decreased, partly due to FX effects, while the SG&A ratio continued to rise due to persistent increases in personnel costs. 3 -88 Increase in commission expenses -29 Improvement of cost of sales ratio FY2025 1Q: 51.9% (-2.4 point year-on-year) Impact of foreign exchange on cost of sales (6,275 million yen: -503 million yen year-on-year): -201 million yen In Japan, procurement and labor costs increased, including FX impacts. The cost of sales ratio decreased due to changes in product mix and a reduction in inventory valuation following the yen appreciation at period-end. Increase in SG&A expenses ratio FY2025 1Q: 40.4% (+2.8 point year-on-year) Impact of foreign exchange on SG&A expenses (4,884 million yen: +195 million yen year-on-year): -8 million yen Increase in labor costs mainly in Japan. Repair expenses increased due to major repair work on the head office building. Analysis of Causes of Increase/Decrease in Operating Profit
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Decreased revenue in the Americas and China repressed the overall net sales, causing the overseas sales ratio to fall from 69.1% to 67.3%. 4 FY2024 1Q FY2025 1Q Year-on-year Actual (million yen) Composition ratio (%) Actual (million yen) Composition ratio (%) Increase/ decrease amount (million yen) Increase/ decrease rate (%) Japan 3,858 30.9% 3,953 32.7% +95 +2.5 Europe 2,365 18.9% 2,392 19.8% +2 ６ +1.1 Americas 1,802 14.4% 1,616 13.4% - 186 - 10.3 China 2,652 21.2% 2,313 19.1% - 339 - 12.8 Others 1,805 14.5% 1,813 15.0% +8 +0.4 Total 12,484 100.0% 12,088 100.0% - 396 - 3.2 Region-wise Performance (Notes) 1. In Japan and India, the year ends in March, while in other areas, it ends in December, so the period of the consolidated financial settlement in other areas is three months behind. 2. Segment category: Others = Asia excluding China, and Australia and South Africa ■ Japan Revenue increased due to the effects of price revisions implemented in October 2024, etc. ■ Americas Sales of oil - free compressors for general - purpose and vehicle - mounted markets at our U.S. equity - method affiliate declined due t o trade policy impacts. ■ China Sluggish domestic demand within China weighed on sales. ■ Others Southeast Asia is now on a recovery track thanks to measures implemented since the past fiscal year to strengthen the sales structure.
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Although sales in Japan remained strong, they were unable to offset the slump in China, causing a drop in revenue. Costs related to preparations for the operation of a new factory in India increased. 5 Japa n EuropeAmericas China OthersAir compressors Japan EuropeAmericas China Others Vacuum equipment Japan： 〇 Europe： 〇 Americas： × China： × Others： ● Japan： ● Europe： 〇 Americas： △ China： × Others： △ Category FY2024 1Q FY2025 1Q Year-on-year Overview (Arrows indicate year-on-year comparisons)Increase/ decrease amount Increase/ decrease rate (%) Netsales Air compressors 6,834 6,618 -216 -3.2 (Japan)↑In particular, sales of small air compressors increased due to the effect of the price revisions implemented in October last year. (Europe)↑Sales of oil-free air compressors increased due to the recovery of OEM demand. (Americas) ↓Sales of oil-free compressors for general-purpose and vehicle-mounted markets declined. (China)↓In addition to continued slump in domestic sales, export sales from China decreased due to sluggish market conditions in destination countries. (Others)↓In India, sales of small air compressors for the general-purpose market decreased. ↑Sales in Southeast Asia showed a recovery trend due to the strengthened sales structure. Vacuum equipment 748 597 -151 -20.2 (China)↓Sales of vacuum pumps for lithium-ion battery manufacturing-related equipment decreased year-on-year. Total 7,583 7,215 -367 -4.9 Operating profit Air energy 565 478 -87 -15.4 Operating profit ratio: 6.6% (-0.9 points year-on-year) *1 ↓Increase in costs associated with the construction of a new assembly plant for air compressors in India ↑Decreased cost-to-sales ratio of vacuum pumps (Unit: Million yen) [Image of sales composition ratio by areaand year-on-year comparison*2] (Note) Starting in the fourth quarter of the previous fiscal year, earnings from the consumer business, including e-commerce site sales, have been reclassified as “other.” For the previous fiscal year, figures after retroactive processing reflecting the changes in classification are shown. Air Energy Business Overview *1: (Image of product-wise profit ratio) Vacuum equipment > Coating equipment > Air compressors > Coating systems *2: Year-on-year comparison ◎ 10％ or more 〇 3％ to 10％ △ 0％ to 3％ ▽ 0％ to -3％ ● -3％ to -10％ × -10％ or less
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Sales of coating equipment in China and Southeast Asia are now on a recovery track thanks to strengthened sales activities 6 [Image of sales composition ratio by areaand year-on-year comparison*2] Japan Europe Americas China Others Japan： ● Europe： △ Americas： ● China： ◎ Others： 〇 Coating equipment Japan China OthersCoating systems Japan： × Europe： － Americas： － China： × Others： ◎ Category FY2024 1Q FY2025 1Q Year-on-year Overview (Arrows indicate year-on-year comparisons)Increase/ decrease amount Increase/ decrease rate (%) Netsales Coating equipment 4,348 4,427 +79 +1.8 (Japan)↓Spray guns for the car repair market remained strong, but sales to the general painting market declined. (Europe) ↓Sales of spray guns for the car repair market decreased. ↑Sales of airbrushes increased. (Americas) ↓Sales of spray guns for the car repair market and airbrushes decreased. (China)↑Mainly, the sales of spray guns showed a recovery trend due to improved sales activities. (Others)↑Sales increased due to strengthened marketing activities in Southeast Asia. Coating systems 524 291 -233 -44.4 (Japan)↓Sales decreased due to fewer delivery projects in 1Q. (Others)↑Increased orders for coating systems for automobile parts in India. (Japan, China, Others)↑Order backlog for car manufacturing-related projects increased year-on-year. Total 4,872 4,719 -153 -3.2 Operating profit Coating 438 533 +94 +21.6 Operating profit ratio: 11.3% (+2.3 points year-on-year) *1 ↑Increase in sales ratio of high-margin coating equipment (Unit: Million yen) Coating Business Overview (Note) Starting in the fourth quarter of the previous fiscal year, earnings from the consumer business, including e-commerce site sales, have been reclassified as “other.” For the previous fiscal year, figures after retroactive processing reflecting the changes in classification are shown. *1: (Image of product-wise profit ratio) Vacuum equipment > Coating equipment > Air compressors > Coating systems *2: Year-on-year comparison ◎ 10％ or more 〇 3％ to 10％ △ 0％ to 3％ ▽ 0％ to -3％ ● -3％ to -10％ × -10％ or less
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The "Other" category was extracted from the end of the previous fiscal year. Business activities of the subsidiary (A.I.R.)*1, which is the focus of sales, are progressing smoothly. 7 FY2024 1Q FY2025 1Q Year-on-year Overview (Arrows indicate year-on-year comparisons)Increase/ decrease amount Increase/ decrease rate (%) Net sales 27 153 +125 +451.0 (Japan)↑ E-commerce site management and sales of equipment for DIY use transferred to A.I.R. ↑ Revenue increased due to expanded sales channels for DIY equipment, enhanced product listings on e-commerce sites, and strengthened collaboration with major online retailers. Operating profit 13 - 82 -96 ― Operating profit ratio: -53.8% (Year-on-year: ―) ↓ Preparatory expenses incurred for the new expansion of light sheet metal repair business in Japan and the Philippines (see page 12 for details). [Image of sales composition ratio by area and year-on-year comparison*2] Japan Japan： ◎ Europe： － Americas： － China： － Others： － *1 ANEST IWATA A.I.R. Corporation: Established in July 2024 *2: Year-on-year comparison ◎ 10％ or more 〇 3％ to 10％ △ 0％ to 3％ ▽ 0％ to -3％ ● -3％ to -10％ × -10％ or less (Unit: Million yen) (Notes) 1. From the fourth quarter of the previous fiscal year, earnings from consumer business, including EC site sales, which were formerly classified as “air energy business" and “coating business," have been reclassified as “other" to make comparisons easier from the perspective of their strategic importance. For the previous fiscal year, figures after retroactive processing reflecting the changes in classification are shown. 2. Effective this first quarter, revenue from DIY equipment, previously categorized under "Air Energy Business" and "Coating Business," has been reclassified to "Other," following a comprehensive review of product characteristics and sales structures. 3. The “other" business includes earnings from a consolidated subsidiary in Japan that sells consumer products and provides mobility after-sales services. Other Business Overview
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FY2024 End of full year FY2025 1Q Difference against the end of the previous period Actual (million yen) Actual (million yen) Increase/ decrease amount (million yen) Increase/ decrease rate (%) Primary factors for increase or decrease Assets Current assets 45,229 43,053 -2,176 -4.8 ・Decrease in “Cash and deposits" -2,496 million yen Non-current assets 23,973 24,082 +106 +0.4 ・Increase in “Investment securities" +257 million yen ・Decrease in “Construction in progress" -118 million yen Assets 69,202 67,135 -2,069 -3.0 Liabilities and capital Current liabilities 12,161 11,753 -408 -3.4 ・Decrease in “Notes and accounts payable-trade" -362 million yen ・Decrease in “Provision for bonuses" -463 million yen Non-current liabilities 3,479 3,378 -100 -2.9 ・Decrease in “Lease liabilities" -62 million yen Liabilities 15,641 15,132 -509 -3.3 Shareholders' equity 41,435 41,421 -14 -0.0 Accumulated other comprehensive income 5,417 4,532 -887 -16.4 ・Decrease in “Foreign currency translation adjustment" -923 million yen Non-controlling interests 6,707 6,049 -657 -9.8 Net assets 53,561 52,003 -1,560 -2.9 Liabilities and net assets 69,202 67,135 -2,069 -3.0 Current liabilities and net assets decreased due to the impact of exchange rate fluctuations. Equity ratio was 68.4% (+0.7 points from the end of the previous fiscal year). 8 Overview of Balance Sheet
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9 In India, a core strategic market, the assembly plant for medium -sized air compressors is scheduled to commence full -scale operation around winter 2025 . FY2024 FY2025 1Q actual results (million yen) 1Q actual results (million yen) Full year plan (million yen) Progress rate (%) Capital investment 622 842 3,450 24.4 Depreciation 540 551 2,400 23.0 R&D cost* 399 390 2,000 19.5 Major capital investments Actual Plan Japan: Implementation of large-scale repair work in the headquarters building India: A new assembly plant for medium-sized air compressors was completed (see page 12 for details). Japan: Building digital infrastructure, including factory digitalization. Completion of the Head Office Prototype Building. Strengthening production facilities in each area 1,510 1,789 2,011 2,299 2,400 FY2021 FY2022 FY2023 FY2024 FY2025 (Forecast) Depreciation (million yen) 1,048 1,355 1,468 1,774 2,000 FY2021 FY2022 FY2023 FY2024 FY2025 (Forecast) R&D cost (million yen) 1,568 2,557 2,854 3,351 3,450 FY2021 FY2022 FY2023 FY2024 FY2025 (Forecast) Amount of capital investment (million yen) *R&D cost: Total of general administrative expenses and manufacturing costs related to research and development Capital Investment Plan and R&D Cost Status
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Prospects for FY2025 (Unchanged) The financial impact of U.S. trade policy is currently being assessed. At this time, our full-year guidance for FY2025 remains unchanged. 10 FY2024 FY2025 Actual (million yen) Composition ratio (%) Target value (million yen) Composition ratio (%) Increase/decrease amount (million yen) Increase/ decrease rate (%) Net sales 54,411 100.0 58,000 ― +3,588 +6.6 Air energy Air compressors 30,787 56.6 ― ― ― ― Vacuum equipment 2,822 5.2 ― ― ― ― Subtotal 33,609 61.8 35,800 61.7 +2,190 +6.5 Coating Coating equipment 17,943 33.0 ― ― ― ― Coating systems 2,736 5.0 ― ― ― ― Subtotal 20,679 38.0 22,100 38.1 +1,420 +6.9 Others Subtotal 123 0.0 100 0.2 -23 -18.8 Operating profit 5,903 10.8 5,550 9.6 -353 -6.0 Air energy Operating profit 3,388 ― 3,400 ― +11 +0.3 Coating Operating profit 2,608 ― 2,750 ― +141 +5.4 Others Net sales -94 ― -600 ― -505 ― Ordinary profit 7,139 13.1 6,710 11.6 -429 -6.0 Profit attributable to owners of parent 4,276 7.9 4,150 7.2 -126 -3.0 Average exchange rate of yen to USD 151.58 ― 151.50 ― -0.08 EUR 163.95 ― 164.00 ― 0.05 CNY 21.02 ― 21.00 ― -0.02
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Premises for Performance Forecasts for FY2025 (Unchanged) Despite continued investments for mid-and long-term business expansion and external environment putting downward pressure on earnings, revenue is expected to increase. 11 Premises Prospects for FY2025 Forecast (million yen) Year-on- year (%) Net sales 58,000 +6.6 Operating profit 5,550 -6.0 Ordinary profit 6,710 -6.0 Profit 4,150 -3.0 Net sales Revenue is expected to increase in all areas in Japan and overseas. Sales of air compressors in Japan and India, and coating equipment in Europe and the U.S. are expected to increase. Rebuilding the sales structure for air compressors in Europe has started, but it will take time. Domestic demand in China is expected to increase slightly. Operating profit Increase in labor cost mainly in Japan, the Americas and China Increase in operating costs in Japan Continue to invest for further growth, including strengthening investment in development Ordinary profit / profit While ongoing reduction of cross-shareholdings continues, gains on sales are expected to decrease due to the absence of the one-time gains recorded in FY2024. Reversal of impairment losses on business assets recognized in FY2024. In addition to labor and logistics costs both domestically and overseas, procurement prices for raw materials and parts are expected to rise. Exchange rates are assumed to remain at FY2024 levels, but FX gains/losses are excluded from targets due to uncertainty. US tariff policy may affect exports from Japan to the US (compressors and coating equipment), but not included in targets due to uncertainty over trends.
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12 Topics Completion of a new assembly plant for medium-sized air compressors (India) An assembly plant for medium-sized air compressors was completed on the premises of our Indian subsidiary*1. Full-scale operation is expected to begin around winter 2025. Inside the plant New development of mobility after-sales service business (Japan and other countries <Philippines>) A Japanese subsidiary*2, that was established with the aim of establishing a third business, is planning to develop a new mobility after -sales service business that is highly compatible with existing businesses. *1 ANEST IWATA MOTHERSON Private Ltd. Stores scheduled to open in Japan and the Philippines first → Japan: Stores and personnel have been already secured, and the stores are scheduled to open around autumn 2025. → Philippines: The market's required quality is similar to that of Japan, and although there is demand, there are not many stor es that can meet the demand, so sales are expected to expand. • Economic growth has led to increased activity in various manufacturing industries. • Demand for medium-sized air compressors is growing at newly established production facilities in the same country. Indian market Previously, we imported medium-sized air compressors from our Chinese subsidiary and sold them within India. Once the new plant begins operation, it will be possible to make proposals that meet customer needs and deliver products within short delivery periods. Business description Providing vehicle maintenance, sheet metal coating, and car coating services, utilizing the coating technology we have cultivated as a leading manufacturer of coating equipment Purpose Using on-site knowledge to inform product development and create products that better meet customer needs *2 ANEST IWATA A.I.R. Corporation: Established in July 2024
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13 Equity in earnings of affiliates increased by 22 million year-on-year due to the solid performance of the equity-method affiliate that sells air compressors in the United States. On the other hand, ordinary profit decreased due to a decline in foreign exchange gains of 338 million yen. FY2024 1Q FY2025 1Q Year-on-year Actual (million yen) Composition ratio (%) Actual (million yen) Composition ratio (%) Increase/ decrease amount (million yen) Increase/ decrease rate (%) Composition ratio change (point) Net sales 12,484 ― 12,088 ― -395 -3.2 ― Cost of sales 6,778 54.3 6,275 51.9 -503 -7.4 -2.4 Gross profit 5,706 45.7 5,813 48.1 +107 +1.9 +2.4 SG&A expenses 4,688 37.6 4,884 40.4 +195 +4.2 +2.8 Operating profit 1,017 8.2 929 7.7 -88 -8.7 -0.5 Non-operating income 728 5.8 412 3.4 -316 -43.4 -2.4 Non-operating expenses 42 0.3 26 0.2 -15 -36.3 -0.1 Ordinary profit 1,704 13.7 1,315 10.9 -389 -22.8 -2.8 Extraordinary income 2 0.0 2 0.0 +0 +1.6 +0.0 Extraordinary losses 2 0.0 2 0.0 +0 -2.4 +0.0 Profit before income taxes 1,703 13.6 1,314 10.9 -388 -22.8 -2.8 Income taxes 453 3.6 235 1.9 -218 -48.1 -1.7 Profit attributable to non- controlling interests 197 1.6 183 1.5 -13 -7.1 -0.1 Profit attributable to owners of parent 1,052 8.4 895 7.4 -156 -14.9 -1.0 <Reference Information> Details of Statement of Income
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<Reference Information> FY2025 Changes in Business Results 14 [Total] Unit: Million yen FY2025 １Q 1～２Q 1～３Q 1～4Q Net sales 12,088 Year-on-year -3.2% Air energy Air compressors 6,618 Year-on-year -3.2% Vacuum equipment 597 Year-on-year -20.2% Net sales 7,215 Year-on-year -4.9% Coating Coating equipment 4,427 Year-on-year +1.8% Coating systems 291 Year-on-year -44.4% Net sales 4,719 Year-on-year -3.2% Others Net sales 153 Year-on-year +451.0% Operating profit 929 Year-on-year -8.7% Air energy Operating profit 478 Year-on-year -15.4% Coating Operating profit 533 Year-on-year +21.6% その他 Operating profit -82 Year-on-year ― [Quarterly] Unit: Million yen FY2025 １Q 1～２Q 1～３Q 1～4Q Net sales 12,088 Year-on-year -3.2% Air energy Air compressors 6,618 Year-on-year -3.2% Vacuum equipment 597 Year-on-year -20.2% Net sales 7,215 Year-on-year -4.9% Coating Coating equipment 4,427 Year-on-year +1.8% Coating systems 291 Year-on-year -44.4% Net sales 4,719 Year-on-year -3.2% Others Net sales 153 Year-on-year +451.0% Operating profit 929 Year-on-year -8.7% Air energy Operating profit 478 Year-on-year -15.4% Coating Operating profit 533 Year-on-year +21.6% Others Operating profit -82 Year-on-year ―
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15 Oil-free scroll vacuum pump Product differentiation concept Atomizing paint with compressed air Spray gun Started manufacturing of spray guns using an American-made spray gun as a model Coating hand gun Started manufacturing of air compressors as power for spray guns Compressor Air compressor Coating robot Airbrush Oil-free scroll air compressor Environment-friendly Ability to present proposals for coating surface creation Oil-free Energy-saving C o a t i n g b u s i n e s sA i r e n e r g y b u s i n e s s Founded in 1926 (Former company name: Iwata Seisakusho) Coating systems Equipment comprising a series of pre- and post- coating processes Systems combining coating equipment with coating robots, ventilation and drying equipment, etc. Coating equipment Tools for atomizing paint and other liquids or machinery for conveying liquids Equipment units such as spray guns and paint supply pumps Air compressors Machines that compress gas, mainly air Air compressors, N2 gas generators, and auxiliary equipment such as tanks Vacuum equipment Machines that suck in gas to reduce the pressure, creating a vacuum Vacuum pumps and auxiliary equipment such as valves <Reference Information> Our Company's Origins and Current Business Overview Starting with the manufacture of spray guns for painting and the compressors that power them, we have continued to expand our business by diversifying our products and developing new applications. Diversification of products Development of new applications
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Notes on the descriptions about future prospects and other matters The future prospects for our Company mentioned in this document are based on the currently available information. Please be advised that there are various external factors that can impact our business performance, such as the global economy, exchange rate fluctuations, the industry's market conditions, and capital investment trends, and that the actual performance may differ from what is stated herein. This document is intended to provide investors with relevant information and not meant to invite or recommend anyone to buy or sell shares in our Company or any other securities. Investor Relations & Public Relations Group, Corporate Planning Department, ANEST IWATA Corporation Phone: 045-591-9344 E-mail: ir_koho@anest-iwata.co.jp URL : https://www.anestiwata-corp.com/ Contact: Disclaimer