Air Water maintains dividend amid accounting inquiry, reforms

Air Water Inc. announced an interim dividend of JPY37.50 per share, consistent with its previous forecast, with a total dividend amount of JPY8,596 million. This decision comes despite the company's disclosure of inappropriate accounting practices involving loss deferral, with an estimated impact of approximately JPY2.5 billion across four cases. The company reaffirms its policy of a 35% consolidated net income payout ratio and a progressive dividend.

To address these issues, Air Water has established a "Management Reform Committee" as an advisory body to its board of directors. Formed on November 13, 2025, the committee comprises external experts, directors, auditors, and executives. Its purpose is to rebuild the management control system, reconstruct internal controls, and formulate recurrence prevention measures.

The committee's activities will include cause analysis, ethical reforms, and monitoring the implementation of improvement recommendations. Air Water aims to enhance management transparency, soundness, and restore public trust based on the committee's findings and recommendations. The year-end dividend for this fiscal year remains forecasted at JPY37.50, leading to a projected annual dividend of JPY75.00 per share.