Receipt of the Additional Investigation Report by the Special Investigation Committee and Future Actions
AIR WATER INC. and its wholly owned subsidiary, 株式会社日本海水
株式会社日本海水's Ako, Sanuki, Onahama and Kumamoto plants, and its salt, power, environmental and food businesses
Adjustments to revenue and profit to meet the budget for each period, strong pressure not to tolerate budget shortfalls, a lack of clear rules concerning accounting treatment, the concentration of authority, and deficiencies in monitoring and internal controls
Company response
Transactions in which 株式会社日本海水 sold electricity purchased from Cz社 to Cq社 (ended in ■■■■年■月)
A Special Investigation Committee comprising external experts, whose establishment was decided on 9 October 2025. The chair is Obara Masatoshi (小原正敏), and the members are Nakamori Wataru (中森亘) and Honda Mamoru (本多守)
The company will reconsider whether each item in the detailed version of the measures to prevent recurrence is sufficient. It will formulate an improvement plan taking into account the causes and other matters identified in the additional investigation report
Measures placing 株式会社日本海水's senior management on home standby, including Nf氏, Lz氏 and Mk氏
¥4,080 million on a cumulative revenue basis and ¥2,995 million on a cumulative operating profit basis. The table by fiscal year, however, states cumulative operating profit of ¥2,988 million
From the fiscal year ended March 2020 through the fiscal year ended March 2026 (capitalization of labor costs from the fiscal year ended March 2017 onward)
No impact on the earnings forecast is stated. Corrective disclosures are planned for prior-period securities reports and other filings, as well as earnings reports
Related procedures
Additional investigation by the Special Investigation Committee
Following completion of the company's self-inspection and the audit firm's audits of prior-period corrections, the company will make corrective disclosures for prior-period securities reports and other filings, reflecting the additional findings, and will issue corrected earnings reports. The earnings reports for the third quarter and full year of the fiscal year ending March 2026 will be published once the earnings announcement date is determined, subject to completion of the audits and other procedures. The improvement plan and status report are scheduled to be submitted in late July 2026
The company will promptly announce the dates of the corrective disclosures and earnings announcement once they are determined
| Item | Details |
|---|---|
| Event name | Receipt of the Additional Investigation Report by the Special Investigation Committee and Future Actions |
| Date of occurrence | 19 June 2026 (the Special Investigation Committee completed the continuing investigation and submitted the additional investigation report) |
| Date recognized / date notice received | 19 June 2026 (the company received the additional investigation report from the Special Investigation Committee) |
| Subject Entity | AIR WATER INC. and its wholly owned subsidiary, 株式会社日本海水 |
| Target Locations / Products | 株式会社日本海水's Ako, Sanuki, Onahama and Kumamoto plants, and its salt, power, environmental and food businesses |
| Cause | Adjustments to revenue and profit to meet the budget for each period, strong pressure not to tolerate budget shortfalls, a lack of clear rules concerning accounting treatment, the concentration of authority, and deficiencies in monitoring and internal controls |
| Amount of Impact on Business Performance | ¥4,080 million on a cumulative revenue basis and ¥2,995 million on a cumulative operating profit basis. The table by fiscal year, however, states cumulative operating profit of ¥2,988 million |
| Accounting period in which recognized | From the fiscal year ended March 2020 through the fiscal year ended March 2026 (capitalization of labor costs from the fiscal year ended March 2017 onward) |
| Impact on Earnings Forecast | No impact on the earnings forecast is stated. Corrective disclosures are planned for prior-period securities reports and other filings, as well as earnings reports |
| Type of litigation or proceeding | Additional investigation by the Special Investigation Committee |
| Suspended operations | Transactions in which 株式会社日本海水 sold electricity purchased from Cz社 to Cq社 (ended in ■■■■年■月) |
| Investigation structure | A Special Investigation Committee comprising external experts, whose establishment was decided on 9 October 2025. The chair is Obara Masatoshi (小原正敏), and the members are Nakamori Wataru (中森亘) and Honda Mamoru (本多守) |
| Measures to prevent recurrence | The company will reconsider whether each item in the detailed version of the measures to prevent recurrence is sufficient. It will formulate an improvement plan taking into account the causes and other matters identified in the additional investigation report |
| Directors' and officers' liability | Measures placing 株式会社日本海水's senior management on home standby, including Nf氏, Lz氏 and Mk氏 |
| Outlook | Following completion of the company's self-inspection and the audit firm's audits of prior-period corrections, the company will make corrective disclosures for prior-period securities reports and other filings, reflecting the additional findings, and will issue corrected earnings reports. The earnings reports for the third quarter and full year of the fiscal year ending March 2026 will be published once the earnings announcement date is determined, subject to completion of the audits and other procedures. The improvement plan and status report are scheduled to be submitted in late July 2026 |
| Planned follow-up disclosure | The company will promptly announce the dates of the corrective disclosures and earnings announcement once they are determined |
Items this document does not state (9)
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.To meet the budget for each period, 株式会社日本海水 adjusted revenue and profit and deferred the recognition of expenses. The reported background factors include strong pressure not to tolerate budget shortfalls, a lack of clear rules concerning accounting treatment, the concentration of authority, and deficiencies in monitoring and internal controls.