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Supplementary Presentation Material of FY2026 First Quarter Financial Results ANEST IWATA Corporation August 10 , 2026 Tokyo Stock Exchange Prime Market - Machinery Securities Code 6381 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 . ANEST IWATA Active with Newest Technology 100th Anniversary
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1 Key Points of the Material Results for FY2026 1Q ◼ Responding to increasing AI demand ✓ Increased inquiries for oil-free scroll compressors for data centers; continuing efforts to capture demand amid a buoyant AI and semiconductor market ✓ Developing technology to digitize painting technicians’ work processes. Going forward, we aim to leverage our high market share in spray guns to become a platform provider for painting data, helping customers automate processes, reduce labor requirements, and improve operational efficiency. ◼ Expanding into next-generation energy fields, including hydrogen, by acquiring new technologies in high-pressure and gas compression through M&A ◼ Developing painting equipment that reduces energy consumption in drying processes and shortens processing times, directly supporting customers’ decarbonization efforts ◼ Progress on new product development, the Medium-Term Business Plan, and the Master Plan (Medium- to Long-Term Growth Strategy) is proceeding as planned ◼ Net sales was 13,700 million yen (+13.3% year-on-year) －Air energy business achieved increased revenue and profits. Air compressors drove overall growth. Sales of oil -free scroll air compressors remained strong, particularly in Europe －Coating business achieved increased revenue and profits. Sales of coating equipment in Europe and coating systems in Japan re mained strong ◼ Operating profit was 1,234 million yen (+32.8% year-on-year) －Operating margin improved significantly to 9.0%, up 1.3 percentage points year on year, driven in part by higher revenue from oil-free compressors. ◼ Raised our first-half and full-year earnings forecasts, reflecting stronger-than-expected sales and effective SG&A management un der the regional management structure. Key Topics in Q1 Please refer to pages 7-8
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2 Financial Highlights Net sales increased, driven primarily by sales of air compressors mainly in Europe and the Americas, and coating equipment in Europe. Profit increased due to an effective expense control and the impact of foreign exchange fluctuations. FY2025 1Q FY2026 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 12,088 ― 13,700 ― +1,611 +13.3 ― Operating profit 929 7.7 1,234 9.0 +305 +32.8 +1.3 Ordinary profit 1,315 10.9 1,763 12.9 +447 +34.1 +2.0 Profit attributable to owners of parent 895 7.4 1,137 8.3 +241 +27.0 +0.9 Average exchange rate of yen to USD 152.60 yen 156.86 yen Depreciated by 4.26 yen EUR 160.50 yen 183.65 yen Depreciated by 23.15 yen CNY 20.95 yen 22.66 yen Depreciated by 1.71 yen 1H result forecasts (revised) Forecast (million yen) Progress rate （％） 30,500 44.9 3,000 41.1 3,800 46.4 2,300 49.4 151.50 yen 175.00 yen 21.00 yen ◼ Upward revision of the first-half and full-year earnings forecasts due to sales growth and effective expense control. Compared with the first-half earnings forecasts for FY2026: Net sales +4.6%; Operating income +35.7%; Ordinary income +34.8%; Ne t income +31.4%. [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 50 million, EUR 50 million, and CNY 600 million per year, respectively. ・Operating profit: For each 1 yen depreciation against other currencies, operating profit increases by approximately USD 10 million, EUR 10 million, and CNY 30million per year, respectively. * Exchange rate assumptions unchanged
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All businesses recorded increased revenue 3 Factors affecting net sales (by business) FY2026 １Q Year-on-year (million yen) (million yen) （％） Net sales 13,700 +1,611 +13.3 Air energyAir compressors 7,325 +707 +10.7 Vacuum equipment 691 +93 +15.7 Subtotal 8,017 +801 +11.1 Coating Coating equipment 4,889 +462 +10.4 Coating systems 634 +342 +117.3 Subtotal 5,523 +804 +17.0 Others Subtotal 159 +5 +3.8 Primary factors for increase or decrease ■ Air compressors • Japan: Strong sales of small and medium-sized air compressors, driven by a year-on-year increase in industry-wide shipment volumes • Europe: Orders from OEM customers remained solid. Sales of oil-free scroll air compressors remained strong. Cultivation of other OEM customers is also progressing • Americas: Sales of oil-free air compressors for in-vehicle mounting applications remained strong in the United States and Brazil • India: Sales of small and medium-sized air compressors for the general-purpose market were strong • China: Export sales remained solid, while domestic sales faced intensifying price competition ■ Vacuum • Japan and Taiwan: Sales of vacuum pumps for SPE (semiconductor production equipment) manufacturers were strong • China: Sales of vacuum pumps increased through the acquisition of new customers, particularly equipment manufacturers in the research and development sector ■ Coating equipment • Japan: Sales growth was sluggish amid an industry downturn caused by a naphtha shortage • Europe: Strong sales of spray guns for the car repair market • China: Sales of equipment for the industrial coating market and spray guns for the car repair market were strong ■ Coating systems • Japan: Sales of equipment items and environmental equipment increased following the completion of deliveries from the order backlog carried over from the beginning of the fiscal year ■ Others • Other: The automotive repair shop opened in the previous fiscal year has been operating steadily, resulting in an increase in the number of vehicles serviced Note: The “others" business includes earnings from a consolidated subsidiary in Japan that sells consumer products and provides mobility after-sales services.
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Profit increased due to higher gross profit from sales growth and better-than-expected progress in expense control. 4 Factors affecting profit SG&A expenses 929 894 717 -380 -508 -180 -238 1,234 Previous period Sales Sales (FX impact) COGS COGS (FX impact) SG&A SG&A (FX impact) Results Factors affecting ordinary profit and profit Non-operating income • Foreign exchange gains of 149 million yen on foreign-currency-denominated bond due to the appreciation of the euro. (+143 million yen year-on-year) • Profit from equity-method investments amounted to 264 million yen (-19 million yen year-on-year) *1 (Image of product-wise profit ratio) Vacuum equipment > Coating equipment > Air compressors > Coating systems *2 Profit attributable to owners of parent Air Energy • Improvement in product mix resulting from an increased sales ratio of high- margin small-sized air compressorsFY2025 １Q FY2026 １Q (million yen) Amount Profit ratio＊１ Amount profit ratio Air Energy 478 6.6 683 8.5 Coating 533 11.3 602 10.9 Others -82 - -51 - FY2025 １Q FY2026 １Q (million yen) Amount profit ratio Amount profit ratio Ordinary profit 1,315 10.9 1,763 12.9 Profit ＊２ 895 7.4 1,137 8.3 Operating profit • Overall foreign exchange impact on operating profit: -29 million yen Factors affecting operating profit • Although personnel expenses and M&A-related commission expenses increased, the SG&A expense ratio improved due to the effect of increased revenue: 38.7% (-1.7 pt year-on-year) ー Personnel expenses: +248 million yen year-on-year ー Commission expenses: +150 million yen year-on-year ー Selling expenses: -2 million yen year-on-year Extraordinary losses Cost of sales •Recorded a loss resulting from misconduct at overseas subsidiaries: 132 million yen Coating • Deterioration in product mix resulting from a higher sales ratio of low-margin coating systems Others • Although expenses were incurred for the launch of the Mobility After-Sales Service Business, the operating loss narrowed (previous period operating loss: 82 million yen) • Cost to sales ratio increased to 52.3% (+0.4 pt year-on-year) due to rise in raw material prices, etc.
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Established the Manufacturing Innovation Center (MIC)*1 to accelerate development and reduce prototyping costs. The MIC will optimize production processes, accelerate new product development, and create new manufacturing processes. 5 Capital Investment Plan and R&D Cost Status FY2025 FY2026 1Q actual (million yen) 1Q actual (million yen) Full year plan (million yen) Progress rate (％) Capital investment 842 659 3,910 16.9 Depreciation 551 568 2,580 22.0 R&D cost*2 390 488 2,360 20.7 Major capital investments Actual Plan ◼ Japan: Establishment of the MIC aimed at accelerating development speed and reducing prototyping costs ◼ All regions: Expansion of production facilities, primarily in Europe ◼ Japan: • Building of digital infrastructure, including factory digitalization aimed at knowledge transfer and the reduction of design man-hours—and bringing In-house production of core processes and key components ◼ Expansion of production facilities across each region 2,299 2,287 2,580 FY2024 FY2025 FY2026 (Plan) Depreciation 1,774 1,838 2,360 FY2024 FY2025 FY2026 (Plan) R&D cost 3,351 3,660 3,910 FY2024 FY2025 FY2026 (Plan) Amount of capital investment (million yen) *1 MIC (Manufacturing Innovation Center). Former name: Prototype Building. For details, refer to the press release issued on June 26 (redirected to external site). *2 R&D cost: Total of general and administrative expenses and manufacturing costs related to research and development Full-year plan remains unchanged.
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Raised full-year earnings forecast, reflecting faster-than-expected growth in oil-free compressor sales, particularly in Europe and the Americas; higher revenue following the consolidation of SANWA Co., Ltd., (“SANWA”) as a subsidiary; and tangible benefits from expense control after the launch of the regional management structure. 6 Performance Forecasts for FY2026 (Revised) Premises for Performance Forecasts ■ New product development: The new oil-free medium-sized air compressor is scheduled to be launched in FY2026. The contribution to earnings is expected from the second half onward ■ Heightened tensions in the Middle East: At present, the impact on business performance is expected to be limited. The earnings forecast does not incorporate the potential impact of rising material prices resulting from a prolonged situation ■ Foreign exchange movements: The earnings forecast does not incorporate foreign exchange gains or losses ■ Selling, general, and administrative expenses: Expenses related to the 100th-anniversary initiatives will be recorded as planned for the full year ■ Extraordinary income: The gain from the sale of a domestic sales office recorded in the previous fiscal year will not be repeated. A decline is anticipated FY2025 FY2026 Actual value Initial forecast Revised forecast Initial forecast comparison Year-on-year (Unit: million yen) Variance Increase/ decrease rate (%) Variance Increase/ decrease rate (%) Net sales Total 55,909 60,000 60,700 +700 +1.2 +4,790 +8.6 Air Energy 33,683 35,650 36,350 +700 +2.0 +2,666 +7.9 Coating 21,491 23,350 23,350 +0 +0.0 +1,858 +8.6 Others 734 1000 1,000 +0 +0.0 +265 +36.2 Operating profit Total 5,563 5,200 5,400 +200 +3.8 -163 -2.9 Air Energy 3,313 2,950 3,150 +200 +6.8 -163 -4.9 Coating 2,541 2,430 2,430 +0 +0.0 -111 -4.4 Others -291 -180 -180 +0 +0.0 +111 -38.3 Ordinary profit 7,718 6,460 6,460 +0 +0.0 -1,258 -16.3 Profit 5,356 3,950 3,950 +0 +0.0 -1,406 -26.3
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7 Key Topics in Q1 Growing AI-Related Demand Responding to the Declining Labor Force Track coating motion data and other relevant parameters Step1 Step2 Step3 ・ ・ ・ Oil-free compressors essential to precision industries Solution Smart Spray: Digitizing Coating Expertise Solution As a manufacturer and supplier of oil-free compressors, we have long supported production at data center-related companies. In response to higher production volumes driven by growing AI-related demand, deliveries to these companies have increased. ・ ・ ・ Digitizing Coating Expertise for New Employee Training Quantify the techniques of skilled coating professionals and apply the data to training for new employees Building a Coating Data Platform Teaching for Automated Coating Robots Using Physical AI Accumulate coating data across a wide range of applications and operating conditions to build a comprehensive coating database. Current Status Vision Use the coating data platform and AI to supplement coating expertise that would otherwise be lost. Expansion of data center capacity SPE (Semiconductor production equipment) Cooling equipment (chillers) Power supply units Semiconductors Growing AI-related demand Increased production volumes
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Key Topics in Q1 8 Gateway to the Gas Compression Market Realizing a Decarbonized Society No drying oven required No VOCs*2 Reduced paint waste Paint curing via LED irradiation eliminates the need for electric drying ovens, which consume a significant amount of power, and gas-fired drying ovens Reducing CO₂ emissions Eliminating the need to mix volatile solvents into the paint reduces environmentally harmful VOC* emissions Reduced environmental impact The paint can be reused repeatedly until exposed to curing LEDs, reducing paint waste. Lower coating losses Decarbonizing coating processes through a solvent-free UV coating system Solution ＊2 Volatile Organic Compounds Total compressor market: approximately 1,991.0 billion yen Entered the gas compressor market—including hydrogen, CO₂, nitrogen, and other gases—by leveraging SANWA’s technology Solution Air compressor market: approximately 1,154.5 billion yen Gas compressor market*1: approximately 836.5 billion yen Expansion of the target market Current addressable market Completed the acquisition of SANWA, which possesses high- pressure compression technology, and plan to expand into the gas compressor market through further technology- focused M&A *1 GLOBAL PROCESS GAS COMPRESSOR MARKET ANALYSIS, 2025 – 2034 (Custom Market Insights, 2025)
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Appendix 9
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10 <Appendix> Net Sales by Region FY2026 1Q Year-on-year change＊1 Segments ＊ 2 ＊ 3 Net sales (million yen) Air compressors Vacuum equipment Coating equipment Coating systems Others Total net sales 13,700 〇 ◎ 〇 ◎ 〇 Reporting segments Japan and Asia 4,959 〇 ◎ ▼ ◎ ▼ (Japan) 4,334 〇 〇 ▼ ◎ ▼ Europe, Australia, and Africa 3,198 ◎ ✕ ◎ － － (Europe) 2,919 ◎ ● ◎ － － Americas and India 2,775 ◎ △ 〇 ◎ － (Americas) 1,846 ◎ △ ▼ － － China and ASEAN 2,634 ● ◎ ◎ ◎ － (China) 2,341 ● ◎ ◎ ◎ － Others 133 － － － － 〇 ＊ 4 ＊ 1. （ Year - on - year change ） ◎ : +10% or more; O: +3% or more to less than +10%; △ : +0% or more to less than +3%; ▼ : negative margin less than 3%; ● : negative margin of 3% or more but less than 10%; × : negative margin of 10% or more 2. In Japan and India, the year ends in March, while in other areas, it ends in December, resulting in a three - month gap in consol idated financial results 3. (Segment classification) Japan & Asia: Japan, South Korea and Taiwan, "Others": Business activities of certain subsidiarie s n ot included in the reporting segments. 4. Includes earnings from a Japanese subsidiary established to build a third business pillar
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11 ＜Appendix＞Details of Statement of Income FY2025 1Q FY2026 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 12,088 ― 13,700 ― +1,611 +13.3 ― Cost of sales 6,275 51.9 7,163 52.3 +888 +14.2 +0.4 Gross profit 5,813 48.1 6,537 47.7 +723 +12.4 -0.4 SG&A expenses 4,884 40.4 5,302 38.7 +418 +8.6 -1.7 Operating profit 929 7.7 1,234 9.0 +305 +32.8 +1.3 Non-operating income 412 3.4 553 4.0 +140 +34.1 +0.6 Non-operating expenses 26 0.2 24 0.2 -2 -7.8 +0.0 Ordinary profit 1,315 10.9 1,763 12.9 +447 +34.1 +2.0 Extraordinary income 2 0.0 63 0.5 +61 +2,617.5 +0.5 Extraordinary losses 2 0.0 133 1.0 +130 +4,625.7 +1.0 Profit before income taxes 1,314 10.9 1,693 12.4 +378 +28.8 +1.5 Income taxes 235 1.9 327 2.4 +91 +39.0 +0.5 Profit attributable to non- controlling interests 183 1.5 228 1.7 +45 +24.8 +0.2 Profit attributable to owners of parent 895 7.4 1,137 8.3 +241 +27.0 +0.9
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FY2025 End of full year FY2026 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 47,507 47,374 -132 -0.3 ・ Decrease in “Cash and deposits” -4,022 million yen ・ Increase in “Securities” +1,041 million yen Non-current assets 27,133 27,807 +673 +2.5 ・ Increase in “Goodwill” +506 million yen Assets 74,641 75,181 +540 +0.7 Liabilities and capital Current liabilities 13,677 15,230 +1,552 +11.3 ・ Increase in “Dividends payable” included in “Other” Dividends payable +981 million yen Non-current liabilities 3,420 3,659 +238 +7.0 ・ Increase in “Retirement benefit liability” +68 million yen Liabilities 17,098 18,890 +1,791 +10.5 Shareholders' equity 44,308 43,299 -1,008 -2.3 ・ Decrease in “Retained earnings” -683 million yen Accumulated other comprehensive income 6,437 6,803 +366 +5.7 ・ Increase in “Foreign currency translation adjustment” +291 million yen Non-controlling interests 6,796 6,188 -608 -8.9 Net assets 57,542 56,291 -1,250 -2.2 Liabilities and net assets 74,641 75,181 +540 +0.7 The equity ratio fell to 66.6% (-1.4 pt vs. FY2025 year-end) due to factors such as a decrease in retained earnings resulting from the payment of year-end dividends and an increase in non-current assets following the acquisition of an air compressors manufacturing and sales company as a subsidiary. 12 <Appendix> Overview of Balance Sheet
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13 <Reference Information> FY2026 Changes in Business Results ［Quarterly］ Unit： Million yen FY2026 1Q 2Q 3Q 4Q Net sales 13,700 Year-on-year +13.3% Air energy Air compressors 7,325 Year-on-year +10.7% Vacuum equipment 691 Year-on-year +15.7% Net sales 8,017 Year-on-year +11.1% Coating Coating equipment 4,889 Year-on-year +10.4% Coating systems 634 Year-on-year +117.3% Net sales 5,523 Year-on-year +17.0% Others Net sales 159 Year-on-year +3.8% Operating profit 1,234 Year-on-year +32.8% Air energy Operating profit 683 Year-on-year +42.9% Coating Operating profit 602 Year-on-year +12.9% Others Operating profit -51 Year-on-year ー [Cumulative Total] Unit: Million yen FY2026 1Q 1～2Q 1～3Q 1～4Q Net sales 13,700 Year-on-year +13.3% Air energy Air compressors 7,325 Year-on-year +10.7% Vacuum equipment 691 Year-on-year +15.7% Net sales 8,017 Year-on-year +11.1% Coating Coating equipment 4,889 Year-on-year +10.4% Coating systems 634 Year-on-year +117.3% Net sales 5,523 Year-on-year +17.0% Others Net sales 159 Year-on-year +3.8% Operating profit 1,234 Year-on-year +32.8% Air energy Operating profit 683 Year-on-year +42.9% Coating Operating profit 602 Year-on-year +12.9% Others Operating profit -51 Year-on-year ー
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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. 14 <Reference Information> Our Company's Origins and Current Business Overview 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 Diversification of products Development of new applications
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15 Disclaimer 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 Group, Corporate Planning Department, Corporate Planning Division, ANEST IWATA Corporation Phone: 045-591-9344 E-mail: ir_koho@anest-iwata.co.jp URL : https://www.anestiwata-corp.com/ Contact: