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Occurring Fact1429Nippon Aqua Co.,Ltd.Construction and Materials

Impact of the Current Situation in the Middle East on Our Business and Financial Performance

Against the backdrop of the situation in the Middle East, prices for some raw materials have risen and concerns about supply have emerged within the industry. At present, however, we have not experienced any significant impact, such as shortages of raw materials, and opportunities have arisen to increase orders and market share through specification changes and an increase in requests for raw material supplies.

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Impact of the Current Situation in the Middle East on Our Business and Financial Performance

Subject Entity

Nippon Aqua Co.,Ltd.

Target Locations / Products

26 locations nationwide; urethane raw materials (MDI), blowing agents (HFO) and the Aqua Foam series

This disclosure05/08/2026
Cause

Changes in the current situation in the Middle East. Urethane raw materials are primarily derived from petroleum products, and fluctuations in crude oil market prices and naphtha shortages may affect raw material prices and supply conditions.

Impact on Earnings Forecast

No significant impact has occurred at this time. We will promptly announce any revisions to our earnings forecasts or other matters requiring disclosure.

Outlook

We will further diversify our procurement sources, enhance our inventory strategy, strengthen our logistics and installation capabilities, expand our workforce and enlarge our network of certified installers. We will closely monitor developments in the Middle East and raw material market conditions, and will promptly announce any revisions to our earnings forecasts or other matters requiring disclosure.

Planned follow-up disclosure

We will promptly announce any revisions to our earnings forecasts or other matters requiring disclosure.

Event that occurred
ItemDetails
Event nameImpact of the Current Situation in the Middle East on Our Business and Financial Performance
Subject EntityNippon Aqua Co.,Ltd.
Target Locations / Products26 locations nationwide; urethane raw materials (MDI), blowing agents (HFO) and the Aqua Foam series
CauseChanges in the current situation in the Middle East. Urethane raw materials are primarily derived from petroleum products, and fluctuations in crude oil market prices and naphtha shortages may affect raw material prices and supply conditions.
Impact on Earnings ForecastNo significant impact has occurred at this time. We will promptly announce any revisions to our earnings forecasts or other matters requiring disclosure.
OutlookWe will further diversify our procurement sources, enhance our inventory strategy, strengthen our logistics and installation capabilities, expand our workforce and enlarge our network of certified installers. We will closely monitor developments in the Middle East and raw material market conditions, and will promptly announce any revisions to our earnings forecasts or other matters requiring disclosure.
Planned follow-up disclosureWe will promptly announce any revisions to our earnings forecasts or other matters requiring disclosure.
Items this document does not state (18)
Date of occurrenceDate recognized / date notice receivedAmount of Impact on Business PerformanceAccounting period in which recognizedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the change

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Changes in the situation in the Middle East may affect urethane raw materials, which are primarily derived from petroleum products, through fluctuations in crude oil market prices, higher raw material prices and potential supply constraints resulting from naphtha shortages. We have diversified procurement from multiple suppliers, an inventory network spanning 26 locations nationwide and an advantage in procurement volumes. As a result, we have avoided raw material shortages to date and are capturing increased demand as a business opportunity.

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Impact of the Current Situation in the Middle East on Our Business and Financial Performance | Nippon Aqua Co.,Ltd. (1429) timely disclosure | Komori