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Kanadevia Technology for people and planet FY2026 1Q Financial Results August 6 , 2026
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© Kanadevia Corporation. All Rights Reserved. 2 FY2026 1Q Performance Highlights 262.6 bn + 108 % YoY 141.7bn + 13% YoY -2.4 bn +JPY 1.6 bn YoY 0.1bn + JPY 3.7 bn YoY Order Intake Net Sales Operating Profit Net Income 1 EPC (Engineering, Procurement, Construction): A project delivery model under which a contractor undertakes the entire process, f rom engineering and procurement to construction. Strong order intake in Waste - to - Energy ( WtE ) EPC and O&M businesses Secured a large - scale nuclear - related equipment project JPY JPY JPY JPY Environment business remained solid in Japan and overseas, supported by a strong order backlog Operating profit improved YoY, as higher revenue more than offset delays in Middle East projects, and higher SG&A expenses Returned to profitability , supported by a JPY 4.5 bn gain on sale of a subsidiary
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© Kanadevia Corporation. All Rights Reserved. 3 （JPY bn） FY25 1Q FY26 1Q Order Intake 126.3 262.6 136.3 Net Sales 125.4 141.7 +16.3 Gross Profit 19.3 23.5 +4.2 SG＆A 23.3 25.9 +2.6 Operating Profit -4.1 -2.4 +1.7 Operating Margin -3.2% -1.7% +1.5pts Non-Operating Income (Expense) -0.7 -0.5 +0.2 Ordinary Income -4.7 -2.9 +1.8 Extraordinary Gain (Loss) 0.0 4.5 +4.5 Net Income -3.6 0.1 +3.7 FX Rate (JPY/CHF) 175.6 201.8 +26.2 YoY FY2026 1Q Consolidated Results Order intake, net sales, and all profit levels improved year on year [ YoY Highlights ] Gross Profit Gross profit margin improved by 1.2 percentage points YoY to 16.6% SG&A Expenses SG&A expenses increased YoY, primarily due to higher personnel costs Extraordinary Gain Recognized a JPY 4.5 bn gain on the sale of a subsidiary
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© Kanadevia Corporation. All Rights Reserved. 4 [ Revision to Order Intake Forecast ] Based on a large nuclear - related equipment order received by NAC, our U.S. subsidiary, and the favorable order environment, the full - year order intake forecast has been raised from JPY 810.0 bn to JPY 840.0 bn. As revenue from this project is expected to be recognized mainly in and after the next fiscal year, forecasts for net sales and profits remain unchanged. FY2026 Full Year Forecast 1Q performance was on track. Order intake forecast raised by JPY 30.0 bn FY26 1Q Actual Initial(a) Revised (b) Change (b-a) Order Intake 262.6 810.0 840.0 +30.0 Net Sales 141.7 640.0 640.0 - Operating Income -2.4 25.5 25.5 - Oparating Margin -1.7% 4.0% 4.0% - Ordinary Income -2.9 22.0 22.0 - Net Profit 0.1 21.0 21.0 - （JPY bn） FY26 Full Year Forecast Assumed FX rates for FY26 forecast (No change from the initial forecast) : JPY 180/CHF JPY 145/USD JPY 95/AUD
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© Kanadevia Corporation. All Rights Reserved. 5 Operating Profit Variance Analysis +1.4 +1.2 - 1.1 +0.2 - 4.1 - 2.4 *Increase in SG&A represents the change excluding the impact of foreign exchange fluctuations FY25 1Q Operating Income FY26 1Q Operating Income Revenue Growth FX Impact Lower Project Provision Expenses Increase in SG&A* (JPY bn) +1.4
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© Kanadevia Corporation. All Rights Reserved. 6 Bridge from Operating Profit to Net Income (JPY bn) - 0.1 +0.9 - 0.6 - 0.7 - 1.5 +4.5 0.1 Non - Operating Items Extraordinary Gain - 2.4 Interest Income: JPY 0.2 bn Dividend Income: JPY 0.3 bn Interest Expense: JPY (0.6) bn Sale of Subsidiary Shares (VTEX) Income Taxes : JPY (1.3) bn Profit Attributable to Non - Controlling Interests: JPY (0.2) bn * Naikai Zosen Corp. : JPY 0.3 bn - 2.9 FY26 1Q Operating Income FY26 1Q Net Income Interest & Dividend Income (Net) Gain on Sale of Investment Securities Equity in Earnings of Affiliates FX Gain/Loss Other Non - OP Income /Expenses FY26 1Q Ordinary Profit Income Taxes, etc.
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© Kanadevia Corporation. All Rights Reserved. 7 June 2026 Financial Position Interest - bearing debt reduced by JPY 46.5 bn through cash generated from trade receivables collection 62.6 303.9 232.3 77.6 202.2 120.1 137.6 216.5 Assets Liabilities & Net Assets 676.4 676.4 (JPY billions) Cash & Deposits Operating Assets Fixed Assets Others Operating Liabilities Interest - Bearing Debt Other Liabilities Equity (JPY bn) Operating Assets JPY (51.5)bn Interest - Bearing Debt JPY (46.5) bn Equity Ratio 27.4 ％ → 29.0% Operating Assets Fixed Assets Others Cash & Deposits Operating Liabilities Interest - Bearing Debt Other Liabilities Equity 61.4 295.4 283.8 78.0 203.4 109.9 184.1 221.2 Assets Liabilities & Net Assets 718.6 718.6 March 2026 (JPY bn)
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© Kanadevia Corporation. All Rights Reserved. 8 Cash Flows Strengthened the balance sheet through cash generation from working capital improvements 17.6 45.9 FY25 1Q FY26 1Q -31.9 -47.0 FY25 1Q FY26 1Q Operating Cash Flow Investing Cash Flow Financing Cash Flow Working capital improved through receivable collections Recorded proceeds from portfolio transformation initiatives Reduced interest - bearing debt using generated cash (JPY bn) (JPY bn) (JPY bn ) FY25 1Q FY26 1Q Income before Income Taxes - 4.7 +1.6 Working Capital Improvement +22.7 +39.5 FY25 1Q FY26 1Q CapEx - 1.3 - 5.1 Subsidiary Share Sale +5.0 +7.6 Acquisition of Subsidiary Shares - 1.5 - FY25 1Q FY26 1Q Net Decrease in ST Borrowings - 27.6 - 41.5 Repayment of LT Borrowings - 0.4 - 1.1 Dividend Payments - 4.2 - 4.2 1.8 1.6 FY25 1Q FY26 1Q
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© Kanadevia Corporation. All Rights Reserved. 9 1Q Full Year （JPY bn） Actual Actual Actual (a) YoY Initial (b) Current (c) Chg (c-b) Progress(a/c) Net Sales 125.4 645.2 141.7 +16.3 640.0 640.0 0.0 22.1% ■ Environment 96.1 505.2 121.4 +25.3 537.0 537.0 0.0 22.6% EPC 51.2 256.0 60.3 +9.1 288.0 276.0 -12.0 20.9% 44.9 249.2 61.1 +16.2 249.0 261.0 12.0 24.5% ■ Machinery ＆Infrastructure 13.4 68.5 13.1 -0.3 61.0 61.0 0.0 21.5% ■ Carbon Neutral Solutions 15.1 69.2 6.3 -8.8 38.0 38.0 0.0 16.5% ■ Other 0.8 2.3 1.0 +0.2 4.0 4.0 0.0 24.5% Operating Profit -4.1 12.2 -2.4 +1.6 25.5 25.5 0.0 － ■ Environment -0.6 16.7 -0.5 +0.1 26.7 26.7 0.0 － EPC 1.1 2.5 0.0 -1.2 8.4 5.9 -2.5 － O&M -1.8 14.2 -0.5 +1.3 18.3 20.8 2.5 － ■ Machinery ＆Infrastructure -2.1 -2.4 -0.8 +1.3 -0.6 -0.6 0.0 － ■ Carbon Neutral Solutions -1.4 -2.5 -0.8 +0.5 -0.8 -0.8 0.0 － ■ Other 0.0 0.4 -0.2 -0.2 0.2 0.2 0.0 － O&M 1Q Full Year Forecast FY2025 FY2026 Net Sales & Operating Profit by Segment
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© Kanadevia Corporation. All Rights Reserved. 10 Key Topics • The WtE plant under construction in Abu Dhabi has been delayed by approximately three months due to the situation in the Middle East, with no physical damage to the project • Received orders in Japan for a WtE plant development and operation project (DBO) and the construction of a sludge recycling facility Environment Business Sales increased on a strong order backlog, while profit improvement was limited due to higher costs Net Sales (JPY bn) Operating Profit (JPY bn) • Both EPC and O&M businesses grew steadily, supported by a strong order backlog • Profit improvement was limited by higher procurement and labor costs • Costs increased due to delays in the Abu Dhabi EPC project caused by the situation in the Middle East 51.2 60.3 44.9 61.1 96.1 121.4 FY25 1Q FY26 1Q -0.6 -0.5 FY25 1Q FY26 1Q FY25 1Q FY26 1Q O&M - 1.8 - 0.5 EPC 1.1 0 O&M EPC
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© Kanadevia Corporation. All Rights Reserved. 11 Key Topics • Completed the sale of all shares of VTEX, a subsidiary engaged in the valve business for semiconductor, effective June 1, 2026. • Stopped accepting new bridge orders and plans to cease operations at the Mukaishima Works during FY2026 after completing fabrication for existing projects Machinery & Infrastructure Business Sales were largely unchanged, while improved Infrastructure profitability narrowed losses Net Sales (JPY bn) Operating Profit (JPY bn) • Losses narrowed mainly due to improved profitability in the Infrastructure business • Sales declined due to the divestitures of the Press Machinery subsidiary and valve business subsidiary, while Infrastructure and Other Machinery posted revenue growth 4.6 5.6 2.3 2.8 5.7 4.7 0.8 0.0 13.4 13.1 FY25 1Q FY26 1Q - 2.1 - 0.8 FY25 1Q FY26 1Q FY25 1Q FY26 1Q Press Machinery 0.1 0.0 Precision Machinery - 0.2 - 0.4 Other Machinery 0 0.2 Infrastructure - 2.0 - 0.7 Press Machine (Machinery) Precision Machinery (Machinery) Other Machinery Infrastructure
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© Kanadevia Corporation. All Rights Reserved. 12 Key Topics • Hitachi Zosen Marine Engine became an equity - method affiliate following the partial sale of shares (ownership: 65% → 40%) effective March 31, 2026 • Signed a cooperation agreement with Bahwan Engineering Company LLC to develop green hydrogen opportunities in Oman and the broader Middle East market Carbon Neutral Solution Business Sales declined due to Marine Engine deconsolidation, while operating losses narrowed Net Sales (JPY bn) Operating Profit (JPY bn) • Losses narrowed due to improved profitability in Process Equipment, in addition to the deconsolidation of the Marine Engine business • Marine Engine sales fell to zero following the deconsolidation of Hitachi Zosen Marine Engine. Wind Power Decarbonization Systems Process Equipment Marine Engine 6.7 0.0 4.5 4.9 0.7 1.3 3.3 0.1 15.1 6.3 FY25 1Q FY26 1Q - 1.4 - 0.8 FY25 1Q FY26 1Q FY25 1Q FY26 1Q Wind Power - 0.3 - 0.2 Decarbonization Systems - 0.1 - 0.2 Process Equipment - 0.7 - 0.4 Marine Engine - 0.2 0
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© Kanadevia Corporation. All Rights Reserved. 13 (JPY bn) Actual (a) YoY Current (b) Progress(a/b) Order Intake 262.6 136.3 840.0 31.3% ■ Environment 201.6 115.0 713.0 28.3% EPC 87.6 68.2 324.0 27.0% O&M 114.1 46.8 389.0 29.3% ■ 13.6 -10.6 55.0 24.8% ■ Carbon Neutral Solutions 46.7 32.2 68.0 68.7% ■ Others 0.6 -0.3 4.0 15.5% Machinery & Infrastructure 1Q Full Year Forecast FY2026 Order Intake and Order Backlog Environmental recurring business continued to expand, driving backlog to a record high 526.9 529.8 627.4 707.7 795.6 623.5 834.1 995.7 1,435.0 1,511.7 167.3 179.6 173.4 142.1 180.0 1,317.7 1,543.5 1,796.5 2,284.8 2,487.3 FY22 FY23 FY24 FY25 FY26 1Q Non-Environment Environment (O&M) Environment (EPC) （ JPY bn) （＋ 76.7 ） O&M EPC
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© Kanadevia Corporation. All Rights Reserved. 14 Selected Highlights (1) Recovers phosphorus from human waste and septic tank sludge, contributing to a circular economy Biomethane Project Approved Project approved, contributing to sustainable energy supply and the local circular economy Overview: Processes more than 63,000 tons of feedstock annually to produce biogas and upgrade it into biomethane of natural gas quality Biomethane Production : 4,420,000S ㎥ /year Location : Sicilia, Italy Operation: Mar 2028 Italy Awarded in recognition of Kanadevia’s efficient energy recovery, advanced energy - saving technologies, and operational excellence Awarded Waste - to - Energy Plant Contract Contract Scope : DBO Location : Nishinomiya, Hyogo Waste Capacity : 432 t/day Design & Construction: May 2026 - Mar 2035 Operation: May 2026 - Mar 2052 Contract Scope : Construction Waste capacity : 37 kl/day Location : Nishiusuki - gun, Miyazaki Completion: Mar 2029 Japan Inova Kanadevia Kanadevia Awarded Sewage Sludge Recycling Center Contract Japan
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© Kanadevia Corporation. All Rights Reserved. 15 Selected Highlights (2) Acquisition of a Water Treatment Company Australia < Guidera O’Connor Pty Ltd> Location: South Australia, Australia Business: Design and construction of water and wastewater treatment plants and related infrastructure Established: Dec 10, 2001 Revenue: AUD 114.8 mn (FY2025) Employees: 180 (Jun 2026) • Acquisition of Guidera O’Connor Pty Ltd, an Australian water and wastewater treatment EPC company • Completion expected around September 2026 • Expand into the municipal market in addition to the private - sector market, further strengthening our presence in Australia Collaboration Agreement in the Hydrogen Sector Oman • Signed a collaboration agreement with Bahwan Engineering Company LLC to develop green hydrogen projects in Oman using hydrogen production systems • Collaborate across the full value chain of low - carbon fuel projects, including green hydrogen and e - methane, from bid preparation through engineering, procurement, manufacturing, and sales Demonstration of Sewage Sludge Gasification Japan Demonstration site: Kagoshima, Japan Processing Capacity: 2t/day Project Period: Apr 2026 - Mar 2028 • Gasify sewage sludge at high temperatures to recover hydrogen - rich fuel gas, evaluate its suitability for power generation and hydrogen utilization, and assess the feasibility of an integrated gasification - to - power system Osmoflo Kanadevia Kanadevia
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© Kanadevia Corporation. All Rights Reserved. 16 Business Integration with Nippon Steel Engineering Co., Ltd. Due diligence underway since business integration consideration was announced on February 5, 2026 Aims of the Business Integration Consideration • While continuing to pursue standalone growth, considering the possibility of accelerating discontinuous growth through business integration as an important option for capturing greater growth opportunities and strengthening medium - to long - term competitiveness Expected Synergies • Building a stable and growth - oriented earnings base through domestic and international business expansion centered on WtE business • Enhancing technological competitiveness to handle design through implementation in decarbonization fields including Carbon Capture and Storage (CCS). • Strengthening the business operation structure integrating organization, human resources, and operations to support global business expansion • Due diligence is ongoing with the aim of executing a definitive agreement in September 2026 • Integration terms, including the post - integration governance and business operation framework as well as capital conditions such as the integration ratio, will be discussed based on the results of DD Current Progress (Note) : The content described in this document is at the consideration stage toward business integration, and no decisions have been made at this point .
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© Kanadevia Corporation. All Rights Reserved. 17 Initiatives to Prevent Recurrence of Quality Misconduct
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18 © Kanadevia Corporation. All Rights Reserved. Quality Misconduct Recurrence Prevention Initiatives Guided by the Kanadevia Values, “Strive boldly to achieve success,” “Communicate with sincerity,” and “Learn broadly, think deeply,” we monitor behavioral change through internal surveys from five perspectives to assess the effectiveness of recurrence preven tio n measures. Sample questions and recent responses are shown below. Monitoring Behavioral Change Through Employee Surveys １． Management Commitment I believe that our management team makes the right decisions for the company Management clearly communicates its quality - related policies ２． “Sincere Dialogue” and “Bold Challenges” Within the Company I am conscious of improving productivity in my daily work and put it into practice My workplace provides an environment where employees can freely express their opinions without fear of retaliation ３． “Sincere Dialogue” with Customers I actively communicate with business partners and relevant departments ４． Think Deeply (Root Cause Analysis and Corrective Actions) When implementing quality improvements, I support my explanations with objective data ５． Learn Broadly (Organizational Learning) During the past year, I have shared mistakes and lessons learned within the company and promoted improvement initiatives 88% 56% 67% 77% 77% 75% 88% Positive Neutral/ Don’t Know Negative ＜ Sample Survey Questions ＞ Answers (Most Recent)
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19 © Kanadevia Corporation. All Rights Reserved. Action FY2026 1Q 2Q 3Q 4Q 1. Leadership Commitment • CEO ’ s n ew fiscal year m essage • Quality Policy Communication Meeting ( Town Hall Meetings ) • CEO ’ s m id - y ear m essage • New e mployee i nduction c eremony m essage • CEO ’ s y ear - e nd m essage 2. Organizational Culture and Awa reness • Town h all m eetings • Career growth seminar • Town Hall Meeting • Career i nterview t raining • Establishment of disciplinary rules for managers • Town Hall Meeting • Compliance e - Learning • Compliance s eminar • Town Hall Meeting • Compliance t raining for g roup c ompanies 3. Improvement of Business Processes • Clarification of the Three Lines Model • Prevention of f alsification through d igital t ools Operation and c ontinuous i mprovement 4. Initiatives to Prevent Quality Misconduct • Review of quality compliance committee rules • Quality assurance regulations • 5th Quality Compliance Committee • 1st Quality Committee • Quality Misconduct Prevention Day Event • 2nd Quality Committee • 6th Quality Compliance Committee • 3rd Quality Committee • Recurrence prevention update meeting 5. Strengthening Quality Assurance Functions • Revision and rollout of a tier - based quality training curriculum • Establishment of g roup q uality p olicy • Launch of QMS Office • Quality training for sales staff • Quality c ompliance t raining • Quality a wareness s urvey 6. Strengthening Board Oversight • Report on recurrence prevention progress • Report on recurrence prevention progress • Compliance c ommittee r eport • Report on recurrence prevention progress • Report on recurrence prevention progress Key Recurrence Prevention Measures and FY2026 Implementation Plan Quality Misconduct Recurrence Prevention Initiatives
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© Kanadevia Corporation. All Rights Reserved. 20 Financial Information
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© Kanadevia Corporation. All Rights Reserved. 21 Net Sales & Operating Profit by Quarter 141.7 0.0 50.0 100.0 150.0 200.0 250.0 1Q 2Q 3Q 4Q Net Sales by Quarter FY22 FY23 FY24 FY25 FY26 - 2.4 -10 -5 0 5 10 15 20 1Q 2Q 3Q 4Q Operating Profit by Quarter FY22 FY23 FY24 FY25 FY26 （ JPY bn ） （ JPY bn ）
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© Kanadevia Corporation. All Rights Reserved. 22 （JPY bn） FY23 FY24 FY25 FY26 (Forecast) FY25 1Q FY25 2Q FY25 3Q FY25 4Q FY26 1Q Net Sales 555.8 610.5 645.2 640.0 125.4 142.3 157.0 220.5 141.7 Cost of Sales 460.5 496.3 536.2 106.2 122.5 127.2 180.4 118.2 Gross Profit 95.3 114.2 109.1 19.3 19.8 29.9 40.1 23.5 SG&A 71.0 87.2 96.9 23.3 23.5 26.8 23.3 25.9 Operating Profit 24.3 26.9 12.2 25.5 -4.1 -3.7 3.1 16.9 -2.4 Non-Operating Income 5.9 3.3 10.1 1.8 1.2 2.0 5.1 2.0 Non-Operating Expenses 4.6 5.9 8.7 2.5 1.1 1.8 3.3 2.5 Recurring Profit 25.6 24.3 13.6 22.0 -4.7 -3.6 3.4 18.6 -2.9 Extraordinary Income 0.0 2.9 2.0 0 0 0 2.0 4.5 Extraordinary Losses 1.6 3.6 4.6 0 0 3.2 1.4 0 Profit before Income Taxes 24.1 23.7 11.0 -4.7 -3.6 0.1 19.2 1.6 Total Income taxes 5.0 1.4 -0.3 -1.1 -1.7 0.9 1.6 1.3 Net Income 19.0 22.1 11.1 21.0 -3.6 -1.9 -0.8 17.4 0.1 Full Year Quarterly Profit and Loss Statements
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© Kanadevia Corporation. All Rights Reserved. 23 Balance Sheets Full Year Quarterly （ JPY bn ） FY22 FY23 FY24 FY25 FY25 1Q FY25 2Q FY25 3Q FY25 4Q FY26 1Q Cash and Deposits 86.4 71.6 70.8 78.0 53.3 50.4 68.8 78.0 77.6 Operating Assets 215.6 254.7 251.1 283.8 220.1 231.7 268.6 283.8 232.3 Tangible Fixed Assets 98.3 104.5 136.1 143.6 131.8 133.2 141.3 143.6 144.4 Intangible Fixed Assets 11.1 19.3 41.2 62.9 44.8 45.5 47.2 62.9 62.3 Investments and Other Assets 51.4 62.7 75.3 88.8 78.2 79.1 84.1 88.8 97.2 Others 17.0 20.8 35.3 61.4 36.5 42.9 45.3 61.4 62.6 Total Assets 479.7 533.6 609.7 718.6 564.6 582.8 655.2 718.6 676.4 Operating Liabilities 184.8 190.8 188.2 221.2 183.6 185.6 214.5 221.2 216.5 Current Interest Bearing Debt 18.0 31.3 48.1 78.1 19.8 40.8 88.7 78.1 52.6 Non - current Interest Bearing Debt 68.5 60.1 87.7 106.0 87.7 86.3 76.1 106.0 85.0 Others 67.1 82.4 87.8 110.0 83.6 83.4 89.0 110.0 120.1 Total Liabilities 338.4 364.6 411.8 515.2 374.7 396.1 468.3 515.2 474.2 Shareholders ’ Equity 139.6 162.7 189.4 196.8 181.2 177.9 176.7 196.8 196.4 Non - Controlling Interests 1.7 6.3 8.5 6.6 8.6 8.9 10.2 6.6 5.8 Total Net Assets 141.3 168.9 197.9 203.4 189.9 186.8 186.9 203.4 202.2 Total Liabilities and Net Assets 479.7 533.6 609.7 718.6 564.6 582.8 655.2 718.6 676.4
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© Kanadevia Corporation. All Rights Reserved. 24 Cash Flows Full Year Quarterly (JPY bn) FY22 FY23 FY24 FY25 FY26 1Q Cash Flows from Operating Activities 28.0 0.5 24.8 11.6 45.9 Cash Flows from Investing Activities - 2.5 - 21.5 - 56.6 - 48.0 1.6 Cash Flows from Financing Activities - 7.8 - 2.6 30.2 41.5 - 47.0 Foreign Currency Translation Differences 1.2 5.0 0.6 3. 4 - 0.3 Increase in Cash and Cash Equivalents 18.9 - 18.6 - 1. 1 8.6 0 . 2 Cash and Cash Equivalents at Beginning 6 6 . 0 84. 9 69. 8 68.7 77.3 Cash and Cash Equivalents at End 84. 9 69. 8 68.7 77.3 77.5
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© Kanadevia Corporation. All Rights Reserved. 25 (JPY bn) FY22 FY23 FY24 FY25 FY26 (Forecast) Shareholders’ Equity Ratio 29.1% 30.5% 31.1% 27.4% 30.2% Interest Bearing Debt 86.5 91.4 135.8 184.1 171.0 R&D Expenses 8.6 11.2 12.0 12.6 14.4 Capital Investment 7.9 9.6 27.5 25.2 27.8 Depreciation 10.5 11.1 11.9 15.6 15.7 ROE 11.5% 12.6% 12.6% 5.8% 10.2% ROIC 6.2% 7.4% 6.8% 2.5% 4.9% Key Financial Indicators
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© Kanadevia Corporation. All Rights Reserved. 26 (JPY bn) FY23 FY24 FY25 FY26 (Forecast) FY25 1Q FY25 2Q FY25 3Q FY25 4Q FY26 1Q Inova group 156.2 218.3 282.7 195.0 7.5 73.3 2.4 199.6 46.4 Ex. Inova group 38.6 91.1 55.6 129.0 11.9 13.8 11.3 18.7 41.1 EPC 194.9 309.4 338.3 324.0 19.3 87.0 13.7 218.3 87.6 Inova group 165.6 142.9 249.7 260.0 18.7 24.1 71.9 135.0 45.1 Ex. Inova group 198.3 165.0 138.0 129.0 48.6 35.4 26.4 27.6 69.0 O&M 364.0 308.0 387.7 389.0 67.3 59.5 98.3 162.6 114.1 Order Intake 558.9 617.4 726.0 713.0 86.6 146.5 112.0 380.9 201.6 Inova group 165.4 176.7 179.1 207.0 38.7 39.0 47.3 54.1 45.3 Ex. Inova group 67.1 67.1 76.9 69.0 12.5 15.9 22.2 26.4 15.0 EPC 232.5 243.9 256.0 276.0 51.2 54.9 69.4 80.5 60.3 Inova group 32.9 63.7 99.3 111.0 22.7 25.6 20.7 30.3 32.7 Ex. Inova group 141.8 145.9 149.9 150.0 22.3 31.4 33.3 62.9 28.4 O&M 174.8 209.6 249.2 261.0 44.9 57.0 54.0 93.3 61.1 Net Sales 407.3 453.5 505.2 537.0 96.1 111.9 123.4 173.8 121.4 Inova group 7.9 11.0 4.6 11.5 2.6 -1.3 -0.4 3.8 1.2 Ex. Inova group -6.5 -3.9 -2.1 -5.6 -1.5 -1.2 0.2 0.3 -1.2 EPC 1.5 7.1 2.5 5.9 1.1 -2.5 -0.2 4.1 0 Inova group 2.0 1.3 -0.2 8.4 -0.6 0.9 -0.9 0.4 0.5 Ex. Inova group 15.7 17.0 14.4 12.4 -1.2 -0.5 4.5 11.6 -1.0 O&M 17.7 18.3 14.2 20.8 -1.8 0.4 3.6 11.9 -0.5 Operating Income 19.1 25.4 16.7 26.7 -0.6 -2.1 3.4 16.0 -0.5 Full Year Quarterly Order Intake / Net Sales / Operating Profit Environment Business
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© Kanadevia Corporation. All Rights Reserved. 27 Order Intake/Net Sales/Operating Profit Machinery & Infrastructure Business (JPY bn) FY23 FY24 FY25 FY26 (Forecast) FY25 1Q FY25 2Q FY25 3Q FY25 4Q FY26 1Q Press Machine 22.0 23.3 0 0 0.1 -0.1 0 0 0 Precision Machinery 23.7 32.1 38.6 25.0 15.1 6.6 6.4 10.4 5.5 Others 9.1 9.6 17.5 10.0 6.9 4.9 2.7 3.0 3.4 Machinery 54.7 65.0 56.1 35.0 22.1 11.5 9.2 13.4 9.0 Infrastructure 26.1 26.2 33.4 20.0 2.2 5.4 18.1 7.7 4.7 80.8 91.2 89.5 55.0 24.3 16.8 27.3 21.1 13.6 Press Machine 19.5 21.6 0.9 0 0.8 0.1 0 0 0 Precision Machinery 28.0 25.8 34.2 25.0 5.7 7.9 8.8 11.7 4.7 Others 12.9 9.6 11.5 10.0 2.3 2.4 2.9 3.9 2.8 Machinery 60.3 57.0 46.5 35.0 8.8 10.4 11.7 15.6 7.5 Infrastructure 30.6 26.0 21.9 26.0 4.6 4.7 6.0 6.6 5.6 91.0 83.0 68.5 61.0 13.4 15.1 17.8 22.1 13.1 Press Machine 0.8 1.3 0 0 0.1 -0.1 0 0 0 Precision Machinery 1.2 -0.1 1.4 0.5 -0.2 0.3 0.4 0.9 -0.4 Others 0.5 0.2 0.5 0.5 0.0 0.1 0.0 0.3 0.2 Machinery 2.6 1.5 1.9 1.0 -0.1 0.4 0.4 1.2 -0.2 Infrastructure 0.4 -0.5 -4.3 -1.6 -2.0 -0.7 -0.9 -0.8 -0.7 3.0 1.0 -2.4 -0.6 -2.1 -0.3 -0.5 0.4 -0.8 Full Year Quarterly Order Intake Net Sales Operating Income
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© Kanadevia Corporation. All Rights Reserved. 28 Order Intake/Net Sales/Operating Profit Carbon Neutral Solution Business (JPY bn) FY23 FY24 FY25 FY26 (Forecast) FY25 1Q FY25 2Q FY25 3Q FY25 4Q FY26 1Q Marine Engine 37.1 18.8 49.6 0 3.4 13.7 6.1 26.5 0 Process Equipment 20.7 30.7 24.9 60.0 10.3 2.2 6.4 5.9 45.7 Decarbonization System 3.8 4.0 4.9 7.5 0.7 1.3 1.0 1.9 0.9 Wind Power 11.1 0.5 0.5 0.5 0.1 0.1 0.2 0.2 0.1 72.6 54.0 80.0 68.0 14.5 17.3 13.7 34.5 46.7 Marine Engine 24.2 27.0 30.3 0 6.7 7.4 7.8 8.3 0 Process Equipment 21.8 26.7 26.1 32.0 4.5 4.8 4.7 12.1 4.9 Decarbonization System 4.4 3.9 3.9 5.0 0.7 0.7 1.1 1.5 1.3 Wind Power 4.8 12.6 9.0 1.0 3.3 1.6 1.8 2.3 0.1 55.3 70.2 69.2 38.0 15.1 14.5 15.4 24.3 6.3 Marine Engine -0.3 -0.2 -0.9 0 -0.2 -0.4 0.1 -0.4 0 Process Equipment 2.0 1.1 -0.4 1.3 -0.7 -0.7 0.0 1.0 -0.4 Decarbonization System 0.5 -0.3 -0.4 -1.2 -0.1 -0.2 0.1 -0.2 -0.2 Wind Power -0.3 -0.5 -0.8 -0.9 -0.3 -0.3 -0.1 -0.1 -0.2 1.8 0.1 -2.5 -0.8 -1.4 -1.6 0.1 0.4 -0.8 Order Intake Net Sales Operating Profit Full Year Quarterly
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© Kanadevia Corporation. All Rights Reserved. 29 (Reference) Net Sales Trends of Key Overseas Subsidiaries ■ Actual (1Q) ■ Results (Full Year) ■ Actual (FY26 1Q) ■ Forecast (FY26 Full Year) 289 350 392 1,401 1,472 1,775 FY24 FY25 FY26 Forecast Inova ( WtX Business) （ M CHF) Osmoflo (Water Business) 19 25 36 93 160 185 FY24 FY25 FY26 Forecast （ M AUD) NAC (Nuclear Equipment) 26 15 22 116 121 146 FY24 FY25 FY26 Forecast （ M USD)
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© Kanadevia Corporation. All Rights Reserved. 30 Appendix
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© Kanadevia Corporation. All Rights Reserved. 31 Company Profile Kanadevia Corporation Founded Location Representative Number of Employees Group Companies About Business Design and manufacture of waste - to - energy plants, seawater desalination plants, water supply/sewage and sludge recycling treatment plants, process equipment, precision machinery, floodgates, disaster prevention equipment, etc. 168 Consolidated Subsidiaries, 37 Equity - Method Affiliates 12,668 (As of March 31, 2026) Michi Kuwahara April 1, 1881 Head Office(Osaka): 1 - 7 - 89 Nanko Kita, Suminoe - ku , Osaka Head Office (Tokyo) : Omori Bellport D Building 15F, 6 - 26 - 3 Minami - Oi, Shinagawa - ku, Tokyo Founder: E.H. Hunter 1881 Founded as Osaka Iron Works with shipbuilding as its original business 1943 Changed company name to Hitachi Zosen 2002 Separated shipbuilding business October 1, 2024 Changed company name to Kanadevia Major Overseas Subsidiaries Kanadevia Inova (Switzerland) Osmoflo Holdings (Australia) NAC International (USA) Seawater Desalination, Water Treatment Design of storage and transportation equipment for spent nuclear fuel, etc. WtE , Biogas
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32 © Kanadevia Corporation. All Rights Reserved. 2021 Shield tunnelling machine business integrated with Kawasaki Heavy Industries 2022 Acquisition of Steinmüller Ship building Environment & Others Ship building Environment & Others 1960 Technological collaboration with Von Roll (current Inova) 2002 Shipbuilding business was separated 2013 Acquisition of NAC (U.S.) 2010 Acquisition of Inova (Switzerland) Present 1977 Shipbuilding business achieved record - high sales 2017 Launched long - term vision, and Acquisition of Osmoflo (Australia) 2024 Acquisition of Babcock & Wilcox Renewable Service (Denmark) 2022 Acquisition of Steinmüller ( Germany ) 2021 Shield tunneling machine business integrated with Kawasaki Heavy Industries Environment & Others 1881 Shipbuilding business started by E.H. Hunter 1936 Joined Hitachi Group 1947 Separated from Hitachi Group 1960s － Entered the environment business 2002 Shipbuilding business was separated 2010 Acquisition of Inova Oct. 2024 Company name change to Kanadevia Corporation History of Business Transformation FY2025 Net Sales JPY 645.2 bn
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© Kanadevia Corporation. All Rights Reserved. 33 Business Portfolio Machinery & Infrastructure Carbon Neutral Solution Niche I ndustry S ector Next - G eneration G rowth F ield Environment Growth Field centered on Overseas Markets ・ WtE Plants ・ Water/Sludge Treatment Plants ・ Biogas ・ Desalination Plants ・ Energy Systems (Power Generation Equipment) ・ Wholesale electricity etc. ・ Precision Machinery ・ Plastic Machinery ・ Food and Pharmaceutical Equipment ・ Hydraulic Gate ・ Marine Civil Engineering ・ Disaster Prevention System ・ Boiler etc. ・ Pressure Vessels ・ Nuclear Fuel Related Equipment ・ Hydrogen Generation Systems ・ Methanation Equipment ・ Wind Power Generation ・ SCR etc. 50.7%49.3% Net sales composition in FY25 ■ EPC ■ O&M/Service 1.3% 49.9% 16.8% 32.0% Net sales composition in FY25 ■ Press machines (Machinery)* ■ Precision machinery (Machinery) ■ Others (Machinery) ■ Infrastructure 43.7% 37.7% 5.6% 13.0% Net sales composition in FY25 ■ Marine Engine* ■ Process equipment ■ Decarbonization Systems ■ Wind power * Business transfer in May 2025 * Transfer of shares in the marine engine subsidiary and its transition to an equity - method affiliate in March 2026 EPC ： Engineering, Procurement, and Construction in plant construction. O&M/Service ： Incidental projects after the handover of plants, such as maintenance, operation, management, and other services, and projects based on long - term contracts, such as power generation. Business ： https://www.kanadevia.com/english/business/ 英訳済
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© Kanadevia Corporation. All Rights Reserved. 34 Net Sales Composition （ fiscal 2025 ） 78.3% 10.6% 10.7% 0.4% Sales by Segment ■ Environment ■ Machinery / Infrastructure ■ Carbon Neutral Solution ■ Other 49.2% 38.3% 4.2% 3.4% 2.4% 2.6% Sales by Region ■ Japan ■ Europe ■ Middle East ■ North America ■ Asia ■ Others
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35 © Kanadevia Corporation. All Rights Reserved. Net Sales Operating Profit/Operating Profit margin ■ Kanadevia (Non - Consolidated) and Other Group Companies ■ Inova Group ■ Kanadevia (Non - Consolidated) and Other Group Companies ■ Inova Group Operating Profit margin （％） 3,764 3,781 4,024 4,085 4,417 4,926 5,558 6,105 6,452 6,400 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 （ Forecast ） 59 73 138 153 155 200 243 269 121 255 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 （ Forecast ） 1.6 1.9 3.4 3.7 3.5 4.1 4.4 4.4 1.9 4.0 Consolidated Revenue and Operating Profit Trends Unit ： ¥ 100 million Unit ： ¥ 100 million
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36 © Kanadevia Corporation. All Rights Reserved. World’s Number One Provider of Waste Treatment Solutions Middle East ■ Waste treatment facilities 4 ■ Biogas facilities 2 Europe ■ Waste treatment facilities 552 ■ Biogas facilities 473 Japan ■ Waste treatment facilities 554 ■ Biogas facilities 19 Asia ■ Waste treatment facilities 413 ■ Biogas facilities 3 Australia ■ Waste treatment facilities 3 North America ■ Waste treatment facilities 55 ■ Biogas facilities 2 Waste treatment plant delivery record No.1 in the world Expanding to 45 countries and regions around the world Total 1,581 facilities Biogas plant delivery record World - class Expanding to 21 countries and regions around the world Total 499 facilities * including licensees Number of operating waste treatment plants 54 facilities in Japan 5 facilities overseas Track record ( as of the end of March 202 6)
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37 © Kanadevia Corporation. All Rights Reserved. ◼ Providing environmental plants for essential infrastructure, including WtE and water treatment ◼ Providing long - term infrastructure services covering EPC through O&M Market Environment (Waste - to - Energy Plants) • Primary customers are local governments, with comprehensive evaluation - based bidding as the standard procurement method • Annual order volume of 3,000 – 5,000 t/day expected to remain stable, with new plant construction driven mainly by replacement demand • Continuous replacement demand (rebuilding and major refurbishment) driven by the aging of existing facilities Business Characteristics / Strengths • Extensive know - how in waste combustion backed by proven experience, along with a strong foundation in maintenance services • Capability to offer integrated solutions by combining technologies across divisions and group companies, including CO ₂ capture and methanation • Advancing remote monitoring and operation, as well as combustion forecasting and autonomous operation utilizing AI technologies Environment Business - Japan 4,902 3,243 4,171 2,420 2,757 3,214 4,000 3,889 3,847 21.0 9.4 36.9 5.1 9.2 0.6 0 10 20 30 40 50 60 0 1,000 2,000 3,000 4,000 5,000 6,000 Market Order Volume Tonnage Share *Company Estimate Domestic Waste - to - Energy : Market Order Volume and Our Market Share Company A , 23.7% Company B , 17.1% Kanadevia , 11.8% Company D , 10.5% Others, 36.9% Operational Count Company A , 23.7% Company B , 16.1% Company C , 13.8% Kanadevia , 12.8% Others, 33.6% EPC Ton Share *Based on FY2021 - FY2025 results ( Kanadevia estimate)
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38 © Kanadevia Corporation. All Rights Reserved. Source: Prepared by Kanadevia based on the ESWET Report (2026) Market Share in EMEA (Cumulative, 2021 – 2025) ◼ Global WtX expansion led by Kanadevia Inova in Switzerland ◼ Strengthening the value chain through strategic M&A Market Environment • Europe has traditionally been the core market, while demand for WtX has recently emerged in emerging regions such as the Middle East and Southeast Asia, driven by rising environmental awareness and growing demand for clean energy • In Europe, demand for biogas is also increasing, supported by the need to strengthen energy security Kanadevia Inova • Entered into a technical partnership with the Company in the 1960s and became part of the Group in 2010 • Extensive experience and expertise in delivering turnkey contracts for large - scale plants • Also engages in project development and asset management, securing long - term and stable revenue across the entire value chain • Promoting the development and commercialization of broader WtX solutions, including CO ₂ and metal recovery and recycling, beyond conventional WtE Environment Business - Overseas 0 1000 2000 3000 2020 2021 2022 2023 2024 2025 2030 mCHF Non-recurrent business Recurrent origination business Recurrent business 40 % 40 % 20 % Revenue trends of Inova (target) Inova Group 59.9% Market Volume 52,003 tpd
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39 © Kanadevia Corporation. All Rights Reserved. ◼ Providing products to a wide range of industries — including food, healthcare, and transportation — primarily for private - sector customers ◼ Providing integrated design, construction, and maintenance services for floodgates and disaster prevention systems Machinery Infrastructure Precision Machinery • Providing industrial machinery for food, pharmaceuticals, and chemicals, including roll - to - roll coating equipment for perovskite solar cells, where demand is expected to expand. Supporting customers from the product development stage through prototype collaboration and delivering optimal equipment Electronic Control Equipment • Directly selling hardware and software — including electronic boards, video recording devices, and various control systems — to customers. Also offering data sales and analytics services based on analyzed data Water Gate • Contributing to national resilience and safe, secure communities, with increasing demand for hydropower floodgate systems driven by carbon neutrality initiatives • TANGENT Kanadevia (Thailand) responding to region - specific demand for flood control measures and hydropower projects in Southeast Asia Flap Gate • Our proprietary technology utilizing natural forces such as tsunamis and storm surges Machinery & Infrastructure Business
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40 © Kanadevia Corporation. All Rights Reserved. Wind Power • Providing integrated services covering project development, EPC, and O&M for onshore wind power • Promoting offshore wind foundation manufacturing by leveraging marine structure technologies and a large - scale dock Onshore Wind Power Offshore Wind Power Methanation Systems Hydrogen Production Systems Spent Nuclear Fuel Casks ◼ Promoting decarbonization solutions to achieve carbon neutrality ◼ Leading decarbonization through high - quality products and advanced technologies, contributing to a sustainable society Process Equipment • Meeting growing demand for alternative fuel tanks such as ammonia • Accelerating global expansion of spent fuel transport and storage solutions with NAC International (U.S.) Carbon Neutral Solution Business Decarbonization Systems • Scaling up hydrogen production and methanation systems to support the large - scale adoption of hydrogen and synthetic methane • Decided to construct a mass production plant for water electrolysis stacks
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41 © Kanadevia Corporation. All Rights Reserved. ROIC by Segment ■ Environmental Business ■ Machinery & Infrastructure Business ■ Carbon Neutral Solution Business ■ Others Environmental Business ROIC declined in FY2025 due to increased invested capital from Inova M&A. Advancing PMI to boost overseas profitability. Machinery & Infrastructure Business Profitability challenges remain; promoting portfolio management for improvement. Carbon Neutral Solution Business Driving initiatives for medium - to long - term market growth; investments prioritized. 12.2 5.8 0.9 - 2.0 0.2 - 4.1 6.8 2.5 -5 0 5 10 15 FY2024 FY2025 Environmental Business Machinery & Infrastructure Business Carbon Neutral Solution Business consolidation Assumed Consolidated WACC: Approximately 6 – 7% (%) 60.1% 24.7% 12.3% 3.0% FY2025 353.052.3% 30.1% 14.9% 2.7% FY2024 289.6 Investment Ratio by Segment (Billions of JPY)
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42 © Kanadevia Corporation. All Rights Reserved. Highlights of Initiatives Since FY2023 Date Content Acquisition Strategic Alliance Transfer /Exit April 2023 Kanadevia spun off its marine engine business, and began alliance with Imabari Shipbuilding Co., Ltd. 〇 May 2023 Kanadevia established an operations tie - up with TRE Holdings Corporation in the environmental business segment 〇 June 2023 NAC International acquired Canadian company NIAGARA ENERGY PRODUCTS 〇 March 2024 Inova acquired Italian company Schmack Biogas 〇 June 2024 Inova acquired Danish company Babcock & Wilcox Renewable Service 〇 October 2024 Inova makes French EST Industries a subsidiary 〇 January 202 5 Inova acquires biogas plant asset management company 〇 April 2025 Inova acquires Waste to Energy plant related company in the U.S. 〇 April 2025 Inova acquires intellectual property rights and engineers for Waste to Energy plant combustion equipment 〇 May 2025 Transfer of press machinery subsidiary 〇 February 2026 Announced withdrawal from the bridge business and the termination of operations at the Mukaishima Works 〇 March 2026 Inova acquires Irish O&M company (acquisition contract signed March 2025) 〇 March 2026 Transfer of shares in the marine engine subsidiary and its transition to an equity - method affiliate 〇 June 2026 Transfer of the special valve subsidiary 〇 July 2026 Transfer of solid - state battery business 〇 Business Portfolio Management
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© Kanadevia Corporation. All Rights Reserved. 43 Securing Recurring Earnings Base/ Accelerating Overseas Expansion Acceleration of Technological Innovation and Commercialization Enhancement of Human Capital, Organization and Business Fundamentals ◼ Improve productivity by organizational streamlining, accelerating adoption of AI/robotics, and DX initiatives ◼ Provide diverse career opportunities Securing HR ◼ Strengthen supply chain through joint procurement, etc. ◼ Maximize order intake for anticipated replacement of aging facilities and secure O&M demand ◼ Respond to widening and consolidation of waste - to - energy facilities, strengthen regional complementarity ◼ Optimize technology adoption for environmental performance and regional characteristics; pursue global expansion ◼ As a key player in realizing resource circulation and decarbonization, take on the challenge of social implementation of advanced technologies ◼ Build a track record in the early phase and nurture businesses that will become the next pillar of earnings Requirements toward realizing a decarbonized society Near - term replacement demand and medium - to long market trends Continued changes in the macro environment • Domestic labor shortages and tighter labor markets • Increasing disaster and geopolitical risks • Greater need for global management capabilities • Aging facilities built largely in the 1990s • Market impacts from demographics; broader area coverage and consolidation of facilities • Expansion of resource - circulation domains overseas • Growing global need for resource recycling and decarbonization • Insufficient number of labors capable of social implementation Aims/Objectives of the Business Integration Consideration Key trends and challenges Business Environment and Aims for Integration Consideration This presentation describes matters currently under consideration regarding a potential Business Integration. No decisions ha ve been made at this time.
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© Kanadevia Corporation. All Rights Reserved. 44 Strengthen Strengthen Resource Circulation Resilience Decarbonization Integrations Leveraging world - class positioning and technologies to accelerate "Waste to Energy" and "Waste to X" Developing infrastructure for stable energy supply and foundational technologies for resource circulation and decarbonization Integrating advanced technologies to facilitate the clean - energy transition while ensuring supply stability ◼ Construction of wind - turbine foundations, incl. jackets and monopiles ◼ End - to - end services from engineering and design to construction ◼ Integrated solutions spanning CO ₂ separation/capture through storage ◼ Integrated CO ₂ solutions from capture to storage ◼ Delivery of industrial buildings — from advanced facilities employing seismic isolation and vibration - control technologies to offices ◼ Provide advanced technologies for the hygienic treatment of organic waste, including night soil. WtE Water Treatment Industrial Architecture Tank/Pipeline Offshore Wind Power CCUS ／ CCS ◼ EPC of facilities and equipment that enable hygienic waste treatment and resource utilization ◼ Comprehensive post - delivery support to ensure stable O&M ◼ Design, manufacture, and construction of high quality tanks utilizing optimal steel and advanced technologies Key Initiatives Comprising the Business Portfolio ◼ Power - supply and energy - management services supporting renewable energy use ◼ Efficient on - site heat and electricity supply using low - environmental - impa ct fuels On - site Energy Supply Business Portfolio Management This presentation describes matters currently under consideration regarding a potential Business Integration. No decisions ha ve been made at this time.
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(Cautionary Statement) The forward-looking statements in this document, including performance forecasts, are based on information currently available and on certain assumptions deemed reasonable at this time. Actual results may differ materially due to various factors.