August 3, 2023
Consolidated Financial Results (Under IFRS)For the First Quarter of the March 31, 2024 Fiscal Year
AIR WATER INC.
Head Office: 12-8, Minami semba 2-chome,
Chuo-ku, Osaka, Japan(Note: All amounts are rounded down to the nearest million yen.)
1. Results for the three months ended June 30, 2023
(1) Consolidated operating results(% of change from previous year)
RevenueThree months
ended
June 30, 2023
Three months
ended
June 30, 2022

Operating profit

Profit before tax

ProfitProfitattributable toowners of parent
Million
%
yen

Total
comprehensive
incomeMillion%yen

Millionyen%

Millionyen%

Millionyen%

Millionyen%

230,039

2.4

11,263-13.3

11,501

-9.3

7,362

-13.0

7,141

-11.7

21,56328.8

224,720

8.9

12,984-19.4

12,683

-21.3

8,457

-26.6

8,089

-24.1

16,741

32.6

Three months ended
June 30, 2023
Three months ended
June 30, 2022

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

31.39

31.36

35.69

35.66

(2) Consolidated financial position

As of June 30, 2023
As of March 31, 2023

Total assets

Total equity

Equity attributableto owners of parent

Million yen
1,091,366
1,091,645

Million yen
460,846446,482

Million yen
444,111430,232

Ratio of equity
attributableto owners of parent
to total assets
%
40.7
39.4

2. Dividends

The fiscal year
ended March 31, 2023
The fiscal year
ending March 31, 2024
The fiscal year
ending March 31, 2024
(Forecasts)

End of firstquarterYen

End of second
quarter
Yen

Dividend per share
End of third
quarter
Yen

Year-end

Annual

Yen

Yen

－

28.00

－

32.00

60.00

30.00

－

30.00

60.00

－

(Note) Changes in forecast of dividends for the fiscal year ending March 31, 2024, from the latest disclosure: No

1

3. Forecast of consolidated operating results for the fiscal year ending March 31, 2024(% of change from previous year)
Revenue

Operating profit

Profit before tax

Profit attributable toowners of parent

Basic earnings
per share

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

The second
quarter(cumulative)

500,000

7.8

32,00023.4

31,00022.4

20,000

22.4

87.90

The fiscal year

1,080,000

7.5

72,00015.8

70,00014.8

44,0009.6

193.34(Note) Changes in forecast of consolidated operating results for the fiscal year ending March 31, 2024, from the latest
disclosure: No

Notes(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries with changes in the scope of
consolidation): None
(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRS:
Noneb. Changes in accounting policies other than (a):Nonec. Changes in accounting estimates:
None(3) Number of shares outstanding (ordinary shares)
a. Total number of shares outstanding (including treasury shares)
As of June 30, 2023:
229,755,057 shares
As of March 31, 2023:
229,755,057 sharesb. Number of shares of treasury shares
As of June 30, 2023:
2,145,087 shares
As of March 31, 2023:
2,402,613 sharesc. Average number of shares during the termFirst Three months of the fiscal year ending March 31, 2024: 227,478,311 sharesFirst Three months of the fiscal year ended March 31, 2023:
226,634,168 shares* This report is exempt from quarterly review procedure based on the Financial Instruments and Exchange Act.
* Explanations and other special notes concerning the appropriate use of business performance forecasts
・The forward-looking statements such as result forecasts included in this document are based on the information
available to AIR WATER INC. (hereinafter “the Company”) at the time of the announcement and on certain
assumptions considered reasonable. Actual results may differ materially from the forecast depending on a range offactors. For matters relating to the forecasts, please, refer to “1-(3) Explanation of future prediction information suchas forecast of consolidated operating results”.

21.Qualitative Information relating to First Quarter Settlement of Accounts(1) Explanation of Operating Results1) Operating results for the current period
During the first quarter of the current consolidated fiscal year, the Japanese economy recovered moderately due to the
upward trend in corporate capital investment, in addition to the recovery of consumer spending reflecting thenormalization of social and economic activity that has been impacted by the COVID-19 pandemic. However, the futureremained uncertain mainly due to the decline in global demand for semiconductors and the increasing risk of theslowdown of overseas economies.
In this business environment, the Group achieved revenue of ¥1 trillion in the year ended March 31, 2022. To achieve
the “terrAWell 30” long-term vision towards 2030, in line with its two foundations for growth, the “global environment”
and “wellness,” the Group produced synergy through the integration of its management resources, specifically its diverse
businesses, human resources and technologies, and overall optimization, and accelerated initiatives to create new
businesses that contribute to solving social issues.
Above all, in overseas and electronics-related businesses, which are positioned as growth areas, the Group pushedforward with M&A activities and the enhancement of manufacturing and supply infrastructure to expand the industrial
gas business in North America and India. At the same time, the Group continued its aggressive capital investment ingas supply plants in response to the construction and expansion of semiconductor manufacturing plants, which is under
way across Japan. Further, the Group established the new Global & Engineering Group, which oversees engineeringfunctions as a technological domain essential for supplying industrial gases and promotes and manages overseas
expansion, including the establishment of governance and risk management, in a centralized manner. The Group alsobegan to enhance its core factory, which produces gas supply plants, and implemented other initiatives to further reinforce
its engineering framework as the core of the industrial gas business.
In addition, the Group reformed its business structure with a focus on the integration and reorganization of groupcompanies in business sectors including electronics and agricultural processing in Hokkaido to push its growth strategy
forward in response to changes in the business environment. Thus, initiatives were implemented to create synergy within
the Group and improve profitability through the optimal allocation of management resources.
Further, to create new businesses through innovation as quickly as possible, the Group established the new Gas
Technology Development Center, which is specialized in the development of new ways of using gases, and set up a
Development Center in each business sector. Thus, the Group aggressively promoted the development of new businessmodels that help solve social issues, such as electronic and functional materials, decarbonization solutions, dental pulp
regeneration therapy and onshore aquaculture.
During the first quarter of the current consolidated fiscal year, steady progress was made in measures to respond to therising costs, including price revisions that were implemented in the previous fiscal year for various products including
industrial gases and salt for business use. In Japan, there was a recovery in the foods and beverages field, reflecting theresumption of people's movements. Overseas, demand for gas remained brisk in India. Further, the woody biomass power
generation business, whose overall performance was affected by the surge in marine transportation costs in the previous
fiscal year, remained on a recovery trend due to the improvement of the cost environment.
However, there were changes in the external environment, including the slump of the semiconductor market and theslowdown of demand related to COVID-19, and the impact of the shortage of raw materials for carbonic acid gas wasadded to this.
As a result, for the current first quarter consolidated cumulative period, the group’s revenue was ¥230,039 million(102.4% that of the corresponding period of the previous year), operating profit was ¥11,263 million (86.7%), and profit
attributable to owners of parent was ¥7,141 million (88.3%).

3

2) Consolidated results by segment for this period
From the first quarter of the current consolidated fiscal year, the engineering business in Japan and the overseas andengineering business including the industrial gas business in India, which were previously included in Digital & Industry,
are included in the Other Business. Similarly, the carbonic acid gas and hydrogen business, which was previously included
in Energy solutions, is now a part of Digital & Industry.
The segment information for the first quarter of the previous consolidated fiscal year shown here was prepared based on
the revised reporting segments.
（Million yen）

Revenue
FY 2023.1Q
YoY Growth
Digital & Industry

81,316

Operating profit
FY2023.1Q
YoY Growth108.2％

5,333

92.8％

Energy Solutions

13,821

92.5％

665

71.6％

Health & Safety

52,120

97.1％

2,401

86.8％

Agriculture & Foods

38,297103.3％

1,354

100.9％

Other Business

44,483101.3％

783

57.6％（Adjustment）

-

- ％

725

86.5％

230,039
11,263102.4％
86.7％
Total(Note) The adjustment to operating profit is due to costs incurred at the company’s headquarters division which was
not allocated to any reporting segment.
<Digital & Industry>
Revenue in this segment was ¥81,316million (108.2％ that of the corresponding period of the previous year), andoperating profit was ¥5,333 million (92.8％).
In the business as a whole, there was steady progress in the revision of industrial gas prices, which has been under
way since the previous fiscal year, and on-site gas supply for large semiconductor manufacturers maintained a highoperating rate. On the other hand, there was a year-on-year decline in profit due to a shortage of the raw material gas in
the carbonic acid gas supply in addition to the deteriorated conditions of the petrochemical market and customers'
inventory adjustments in the functional materials sector.
In the electronics business, performance was on par with the previous year, despite a decline in sales of special
chemical materials and heat control equipment for semiconductor manufacturing equipment, which reflected the decreasein demand for semiconductors. Performance was maintained because on-site gas supply for large semiconductor
manufacturers basically maintained a high operating rate and customers continued to enhance equipment in anticipationof the medium- and long-term growth of demand, and as a result, demand for equipment for supplying special chemicalmaterials and related construction work remained steady.
In the functional materials business, sales of precision polishing pads, electronic materials, etc. decreased due to a
decline in semiconductor demand. In addition, basic chemicals were weak in reaction to the conditions of thepetrochemical market that was trending upward in the same period of the previous fiscal year, and functional materials
for agrochemicals were also affected by customers' inventory adjustments. Because of these and other factors, theperformance of the functional materials business as a whole declined significantly year on year.
In the industrial gas business, the carbon dioxide gas supply was affected by shortage of raw material gas, anddomestic demand for industrial gases, including on-site gas supply services for steel manufacturers, was on a weak noteoverall, despite a sign of recovery in gases for automobiles and construction equipment. In this environment, the industrial
gas business as a whole remained strong due to steady progress in measures against cost increase, including the revisionof the prices of industrial gases that began to be implemented in the previous fiscal year.

4<Energy solutions>
Revenue in this segment was ¥13,821 million (92.5％ that of the corresponding period of the previous year), andoperating profit was ¥665 million (71.6％).
In the energy business, business reorganization was conducted in Hokkaido as the main business area, with a focus on
integration of wholesale and retail functions, in an attempt to improve profitability. In addition, sales volume of industrial
LP gas increased as a result of aggressive fuel conversion carried out amid growing demand for low-carbon anddecarbonized products. At the same time, orders received for LNG tank trucks and small LNG satellite facilities remained
steady. However, unit selling price for LP gas dropped in tandem with import prices, causing revenue to decrease andalso leading profits to be affected by inventory evaluation.
In the green innovation business, the Group implemented various demonstrations of the small CO2 collection device,
ReCO2 STATION, and liquefied biomethane usable as an alternative fuel for LNG and took other initiatives to build abusiness model for the collection and use of CO2 and new energy, aiming to create a business which will help build adecarbonized society.

<Health & Safety>
Revenue in this segment was ¥52,120 million (97.1％ of the level in the same period of the previous fiscal year), andoperating profit was ¥2,401million (86.8％).
The business as a whole was affected by a year-on-year decline in contracts for leasing home oxygen concentratorsand in the demand for hygiene materials and other infection control products, which was a result of the reclassificationof COVID-19 as a class 5 infectious disease. This more than offset the strong showing of the safety services
business, which includes gas fire extinguishing systems for data centers.
There was a year-on-year decline in the performance of the medical products business due to a decrease in sales ofdental materials, which were strong in the previous fiscal year, in addition to a decline in contracts for leasing oxygen
concentrators to local governments.
The safety services business remained steady due to the growth of demand for products for data centers in the fire
extinguishing system sector, in addition to an increase in hospital renovation projects.
In the medical service business, the Group endeavored to acquire new customers by proposing measures to improvethe efficiency of hospital management, but the business's performance was affected by the termination of a contract witha large hospital.
The consumer health business benefitted from the growth of contract manufacturing of sunscreen sprays andcosmetics in addition to an increase in sales of cosmetic needles and dental needles mainly in overseas markets, reflecting
the recovery of demand following the COVID-19 pandemic. However, the business was affected by a decline in demandfor hygiene materials and other infection control products and a decline in their prices.

<Agriculture & Foods>
Revenue in this segment was ¥38,297 million (103.3％ that of the corresponding period of the previous year), andoperating profit was ¥1,354 million (100.9％).
In the business as a whole, both revenue and profit increased due to steady performance in the contract manufacturingof plastic bottle beverages, more than offsetting the impact of the rising cost of eggs and other raw materials in the sweets
and delicatessen sectors.
In the foods business, sales remained strong due to the development of new sales channels, with a focus on products
for consumers, in addition to products for professional use such as at hotels and restaurants. However, profit decreased
year on year because the increased raw materials costs were not fully absorbed. The sweets sector was affected by asupply shortage of eggs, which caused the discontinuation of sales of some products and other effects.
The natural food business that conducts the contract manufacturing of vegetable- and fruit-based drinks remained
steady due to an increase in contracts for plastic bottle beverages for convenience stores.
The performance of the agriculture business remained unchanged year on year, despite an increase in the number ofcustomers visiting stores operated in the area of direct sales of agricultural products and the fruit and vegetable retail5sector, offset by a decline in the efficiency of processing potatoes and onions in the agricultural and processing sector,
whose major production region is Hokkaido.
In this business, under a collaborative structure based on a capital and business alliance with two major companies in theindustry, the Group pushed forward with the reinforcement of the fruit and vegetable distribution and processing platform
through the mutual exploitation of the procurement, processing, sales and logistics functions of each company.

<Other business>
Revenue in this segment was ¥44,483 million (101.3％ that of the corresponding period of the previous year), andoperating profit was ¥783 million (57.6％).
In the logistics business, the food distribution sector remained strong mainly due to the acquisition of new customers.
However, the business was affected by a decline in the volume of infectious waste cargo handled in the collection andtransportation of waste from industrial and medical organizations, in addition to a decline in the volume of general cargohandled in the Hokkaido area. In this business, the Group reinforced its own logistics networks through initiatives suchas starting operations at new logistics centers in Mie and Iwate.
The performance of Nihonkaisui Co., Ltd. remained brisk due to an increase in sales of pipeline systems for seweragerehabilitation in the urban infrastructure business, in addition to the steady progress in measures to address the cost
increases, including the revision of prices of commercial salt and magnesium hydroxide, which had begun in the previous
fiscal year.
In the global & engineering business, in the industrial gas sector in North America, sales of liquefied hydrogen tanks
and carbon dioxide-related equipment continued to trend toward recovery due to progress in the resolution of production
stagnation attributed mainly to material procurement, which impacted performance in the previous fiscal year. At thesame time, gas sales in New York, USA, also remained strong. However, the business's performance declined year on
year because of the recording of upfront expenses related to M&A activities in the first quarter of the current consolidated
fiscal year. On the other hand, in the industrial gas sector in India, demand for both on-site gas supply services for steel
manufacturers and off-site gas supply services using tanker trucks and cylinders remained brisk, and the business's
performance remained strong. Further, performance in the power supply system (UPS) sector exceeded the previous year
due to progress in the resolution of delays in customers' investment plans and construction delays, among other factors.
The electric power business continued to trend toward recovery due to the continuous stable operation of the Onahama
woody biomass power generation plant, a decrease in marine transportation costs for the palm kernel shells (PKS)
and woody pellets used as fuels for power generation, and additionally the progress in the measures for reducing
demurrage at port unloading facilities. Compared with the previous year, however, the performance of this business wasaffected by the absence of the results of the subsidiary that was operating Hofu Power Plant due to the transfer of theequity stake in that subsidiary in January 2023.

(2) Explanation of financial position for the current period
Total assets at the end of the current first quarter consolidated fiscal year stood at ¥1,091,366 million, a decrease of¥278 million from the end of the previous consolidated fiscal year due mainly to a decrease in trade and other receivables.
Liabilities stood at ¥630,519 million, a decrease of ¥14,643 million from the end of the previous consolidated fiscal year
due mainly to a decrease in trade and other payables. Equity stood at ¥460,846 million, an increase of ¥14,364 million
from the end of the previous consolidated fiscal year, due mainly to an increase in other components of equity.
Equity attributable to owners of parent per share grew from ¥1,892.36 at the end of the previous consolidated fiscal
year to ¥1,951.20, and ratio of equity attributable to owners of parent to total assets changed to 40.7％ from 39.4％ at
the end of the previous consolidated fiscal year.
Cash flows from operating activities for the first quarter of the current fiscal year was an inflow of ¥13,129 million,
reflecting an increase of ¥2,250 million from the same period of the previous fiscal year, after deducting income taxes
paid from profit before tax, depreciation and others.
Cash flows from investing activities for the first quarter of the current fiscal year was an outflow of ¥19,299 million,
reflecting an increase in outflow by ¥8,175 million from the same period of the previous fiscal year, due mainly to anincrease in expenditures resulting from purchase of property, plant and equipment and purchase of investment securities
6

despite a decrease in payments for acquisition of business.
Cash flows from financing activities for the first quarter of the current fiscal year was an outflow of ¥7,853 million,
reflecting a decrease of ¥10,813 million from the same period of the previous fiscal year, due mainly to adecrease proceeds from issuance of bonds.
As a result, cash and cash equivalents at the end of the first quarter of the current fiscal year stood at ¥52,785 million,a decrease of ¥10,945 million from the end of the first quarter of the previous consolidated fiscal year.
(3) Explanation of future prediction information such as forecast of consolidated operating results
Our full-year operating results forecasts remain unchanged from the forecasts announced on May 10, 2023.

7

2.Condensed Quarterly Consolidated Financial Statements and Significant Notes(1) Condensed Quarterly Consolidated Statement of Financial Position(Unit：Million yen)

End of the previous fiscal year
(As of March 31, 2023)
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Income taxes receivable
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using equity method
Retirement benefit asset
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

8

End of the first quarter offiscal year
(As of June 30, 2023)

65,944229,276
92,0146,151
4,307
33,444431,139

52,785204,094
101,5456,450
6,387
32,117403,381443,443
65,13032,56832,6303,836
78,182
2,184
2,528
660,505
1,091,645

449,596
68,22733,31433,1703,931
95,041
2,231
2,471
687,984
1,091,366

End of the previous fiscal year
(As of March 31, 2023)
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

9

End of the first quarter offiscal year
(As of June 30, 2023)

166,601
83,340
5,035
10,127901
33,691
299,697

150,811
86,195
13,3234,641
896
35,890291,758

283,385
30,192
6,365
3,157
14,601
7,762
345,465
645,162

282,531
21,691
6,504
2,953
17,911
7,169
338,761
630,51955,85549,962(3,532)
303,680
24,266430,232
16,249446,482
1,091,645

55,85549,784(3,135)
303,564
38,041
444,111
16,735
460,846
1,091,366

(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement ofComprehensive Income
Condensed quarterly consolidated statement of profit or loss
Cumulative first quarter of the consolidated fiscal year
(Unit：Million yen)Three months ended June 30, 2022

Three months ended June 30, 2023

224,720(177,116)
47,604(35,890)
1,594
(958)

230,039(182,188)
47,851(37,722)
1,326
(723)

636

532

12,984535(836)
12,683(4,223)
8,459

11,263
1,018(779)
11,501(4,137)
7,364

(1)
8,457

(2)
7,362

8,089
368
8,457

7,141
220
7,362

Continuing operations
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Share of profit of investments accounted
for using equity method
Operating profit
Finance income
Finance costs
Profit before tax
Income tax expense
Profit from continuing operations
Discontinued operations
Profit (loss) from discontinued operations
ProfitProfit attributable to
Owners of parent
Non-controlling interests
Profit(Unit：Yen)

Earnings per share
Basic earnings (loss) per share
Continuing operations
Discontinued operations
Basic earnings per share
Diluted earnings (loss) per share
Continuing operations
Discontinued operations
Diluted earnings per share

10

35.70
(0.01)
35.69

31.40(0.01)
31.39

35.66(0.01)
35.66

31.37(0.01)
31.36

Condensed quarterly consolidated statement of comprehensive income
Cumulative first quarter of the consolidated fiscal year
(Unit：Million yen)Three months ended June 30, 2022
ProfitThree months ended June 30, 2023

8,457

7,362

(603)

4,174

(4)

10

(608)

4,185

6,031

7,361

2,786

2,602

73

53

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of financial assets
measured through other comprehensive
incomeShare of other comprehensive income ofinvestments accounted for using equity method
Total of items that will not be reclassified to
profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Effective portion of gains and losses on
hedging instruments in a cash flow hedge
Share of other comprehensive income ofinvestments accounted for using equity method
Total of items that may be reclassified to profit
or loss
Total other comprehensive income
Comprehensive income

8,891

10,016

8,283
16,741

14,201
21,563Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

14,986
1,754
16,741

21,273290
21,56311

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Three months ended June 30, 2022
(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
Capital

Exchangedifferences ontranslation offoreign operations

275,158

－

4,614

－

8,089

－

－

－

－

－

6,017

Treasury shares

55,85552,638(4,838)

Profit－－Other comprehensive income－－

Balance as of April 1, 2022

Retainedearnings

Remeasurementsof defined benefit
plans

Capital surplus

Comprehensive income

－

－

－

8,089

－

6,017

Purchase of treasury shares

－

－

(0)

－

－

－

Disposal of treasury shares

－

0

388

－

－

－

Dividends
Increase (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings

－

－

－

(6,637)

－

－

－

(446)

－

－

－

－

－

－

－

575

－

176

－

－

－

(0)

－

－

Put option provided to non-controllingshareholders

－

(118)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

－

(564)

387

(6,062)－

176

55,85552,073(4,451)

277,185－

10,809Total transactions with owners
Balance as of June 30, 2022

12

(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
Net change infair value of
Effective portion
financial assets
of gains andmeasured through losses on hedging
otherinstruments in acomprehensive cash flow hedge
incomeBalance as of April 1, 2022

ShareacquisitionrightsNon-controllinginterests

Total

Total
equity

Total

7,416

3,995

291

16,317395,131

24,725419,857

－

－

－

－

8,089

368

8,457

Other comprehensive income

(583)

1,463

－

6,897

6,897

1,386

8,283

Comprehensive income

(583)

1,463

－

6,897

14,986

1,754

16,741

Purchase of treasury shares

－

－

－

－

(0)

－

(0)

Disposal of treasury shares

－

－

－

－

388

－

388

Dividends

－

－

－

－

(6,637)(412)(7,050)

－

－

－

－

(446)

(104)

(551)

－

－

－

176

752

－

752

0

－

－

0

－

－

－

Put option provided to non-controllingshareholders

－

－

－

－

(118)

－

(118)

Transfer to non-financial assets

－

(182)

－

(182)

(182)

(175)

(357)

0

(182)

－

(4)

(6,244)(692)(6,937)

6,833

5,276

291

23,210403,873

25,787

429,660

ProfitIncrease (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings

Total transactions with owners
Balance as of June 30, 202213

Three months ended June 30, 2023
(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
CapitalBalance as of April 1, 2023

Capital surplus

Treasury shares

Retainedearnings

Remeasurementsof defined benefit
plans

Exchangedifferences ontranslation offoreign operations

55,85549,962(3,532)

303,680－

11,427

Profit

－

－

－

7,141

－

－

Other comprehensive income

－

－

－

－

－

7,385

Comprehensive income

－

－

－

7,141

－

7,385

Purchase of treasury shares

－

－

(0)

－

－

－

Disposal of treasury shares

－

－

397

－

－

－

Dividends
Increase (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings

－

－

－

(7,326)

－

－

－

－

－

－

－

－

－

－

－

(30)

－

－

－

－

－

99

－

－

Put option provided to non-controllingshareholders

－

(177)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

－

(177)

396

(7,256)－－55,85549,784(3,135)

303,564－

18,812

Total transactions with owners
Balance as of June 30, 2023

14

(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
Net change infair value of
Effective portion
financial assets
of gains andmeasured through losses on hedging
otherinstruments in acomprehensive cash flow hedge
incomeBalance as of April 1, 2023

ShareacquisitionrightsNon-controllinginterests

Total

Total
equityTotal

10,7081,846

284

24,266430,232

16,249446,482

－

－

－

－

7,141

220

7,362

Other comprehensive income

4,165

2,581

－

14,132

14,132

69

14,201

Comprehensive income

4,165

2,581

－

14,132

21,273290

21,563Purchase of treasury shares

－

－

－

－

(0)

－

(0)

Disposal of treasury shares

－

－

－

－

397

－

397

Dividends

－

－

－

－

(7,326)(279)(7,605)

－

－

－

－

－

－

－

－

－

－

－

(30)

474

443

(99)

－

－

(99)

－

－

－

Put option provided to non-controllingshareholders

－

－

－

－

(177)

－

(177)

Transfer to non-financial assets

－

(256)

－

(256)

(256)

－

(256)

ProfitIncrease (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings

Total transactions with owners

(99)

(256)

－

(356)

(7,394)

194(7,199)Balance as of June 30, 2023

14,773

4,170

284

38,041

444,111

16,735

460,84615

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Unit：Million yen)Three months ended June 30, 2022

Three months ended June 30, 2023

12,683

11,501

Cash flows from operating activities
Profit before tax
Profit (loss) before tax from discontinued operations

(1)

(2)

Depreciation and amortization

11,016

11,110Interest and dividend income

(495)

(809)

Interest expenses

497

719

Share of loss (profit) of investments accounted for using equity method

(636)

(532)

Loss (gain) on sale and retirement of fixed assets

283

50

Decrease (increase) in trade and other receivables

7,322

26,559Decrease (increase) in inventories(8,943)(8,433)

Increase (decrease) in trade and other payables(5,432)(18,272)

Decrease (increase) in contract assets

1,924

2,885

Increase (decrease) in contract liabilities

571

1,768

(1,630)(2,046)Other

17,15924,499Interest received

Subtotal

76

179

Dividends received

655

701

(475)

(660)

Income taxes paid

Interest paid

(6,536)(11,590)

Net cash provided by (used in) operating activities

10,87813,129(9,277)(11,467)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

241

134

Purchase of intangible assets

(395)

(584)

Purchase of investment securities(17)(7,723)

3

181

431

156

(2,094)－

Proceeds from sale of investment securities
Collection of loans receivable
Payments for acquisition of businesses
Other

(15)

3

(11,124)(19,299)

Net increase (decrease) in short-term borrowings

3,509

3,263

Proceeds from long-term borrowings

1,977

319

Repayments of long-term borrowings(4,990)(4,014)

Proceeds from issuance of bonds

10,000－Additional purchase of shares of subsidiaries

(551)

－

Proceeds from sale and leaseback transactions

298

289

Repayments of lease liabilities(1,122)(1,046)

Dividends paid

(6,130)(6,779)Dividends paid to non-controlling interests

(412)

(279)

Other

382

394

2,960

(7,853)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities
Impact of exchange fluctuations for cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Net increase (decrease) in cash and cash equivalents due to a change
in the scope of consolidation
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

16

620

706

3,335

(13,317)841

157

59,55465,94463,73152,785(5) Notes to Condensed Quarterly Consolidated Financial Statements(Notes on assumption of going business)
Not applicable.
(Reporting company)
Air Water Inc. (the “Company”) is a joint-stock company located in Japan. The registered address of the head office of
the Company is in Chuo-ku, Osaka-shi.
The condensed quarterly consolidated financial statement of the Company and its subsidiaries (the “Group”) closes on
December 31 and consists of equity interests of the Group and its affiliates and joint control agreement.
The Group operates manufacturing and sale in the segments, Digital & Industry, Energy Solutions, Health & Safety,
Agriculture & Foods, and Other products and services. See the section, “segment information, etc.” for the details ofeach business.
(Basis of preparation)(1) Compliance with the IFRSThe condensed quarterly consolidated financial statement of the Group satisfies the requirements of a Specified
Company engaging in international financing activities in Article 1-2 of the Ordinance on Quarterly Consolidated
Financial Statements and, therefore, is prepared in conformity to IAS 34 pursuant to the provisions of Article 93 of thesaid Ordinance.
(2) Basis of Measurement
The condensed quarterly consolidated financial statement of the Group is prepared based on acquisition costs except
retirement benefit liability (Assets) and financial instruments, etc. measured at fair value.
(3) Functional Currency and Presentation Currency
The monetary amounts in the condensed quarterly consolidated financial statement are presented in units of yen, thefunctional currency of the Company. All financial data presented in Japanese yen are rounded down to the nearest
million yen.
(4) Important Accounting Estimates and Decisions involving Estimates
In the preparation of the Group’s condensed quarterly consolidated financial statement, the business manager must
make decisions, estimates, and assumptions that affect the application of accounting policies and reported amounts ofassets, liabilities, revenues, and expenses. The actual results may vary from such estimates.
Estimates and assumptions that become the basis of estimates are reviewed continuously. The impact of a revision of
accounting estimates is recognized during the accounting period in which the estimates are revised and futureaccounting periods that will be affected.
The important accounting estimates and decisions involving estimates in this condensed quarterly consolidated
financial statement are the same as the consolidated financial statement for the accounting year ending March 31, 2023.
(Significant accounting policies)
The accounting principles that the Group applies to the condensed quarterly consolidated financial statement are thesame as the accounting principles applied to the consolidated financial statement for the consolidated fiscal year ending
March 31, 2023.

17

(Segment Information)(1) Overview of Reportable Segments
The Group’s reportable segments are components of an entity for which separate financial information is available andis evaluated regularly by the Board of Directors in determining the allocation of management resources and in assessing
performance.
The Group plans comprehensive strategies for each product and service and operates its business activities.
Therefore, the Group consists of operating segments for each product and service, and has five reportable segments,
including “Digital & Industry,” “Energy Solutions,” “Health & Safety,” “Agriculture & Foods,” and “Other
Businesses.”
The Digital & Industry segment primarily manufactures and sells industrial gases including oxygen, nitrogen, argon,carbon dioxide and hydrogen, and also manufactures and sells electronic materials, functional materials and so on.
The Energy Solutions segment primarily sells LP gas and kerosene, and also manufactures and sells LNG-related
equipment.
The Health & Safety segment primarily manufactures and sells oxygen and other medical gases, dental and hygienematerials, hypodermic needles, aerosol products and other items, and also provides services including hospital facility
construction, hospital services and home medical care.
The Agriculture & Foods segment primarily processes and distributes vegetables and fruits, manufactures and sellsfrozen food and processed meat products, and operates contract manufacturing of soft drinks.
The Other Business segment consists of the logistics business, which provides logistics services for general cargo, food,medical supplies and environmental products, Nihonkaisui Co., Ltd. which manufactures and sells commercial-use salt,
overseas industrial gas businesses in North America, India and elsewhere, a business supplying high-output
uninterruptible power sources (UPS), and a woody biomass power generation business, etc.
(2) Matters related to changes in reportable segments
From the first quarter of the current consolidated fiscal year, the engineering business in Japan and the overseas andengineering business including the industrial gas business in India, which were previously included in Digital & Industry,
are included in the Other Business. Similarly, the carbonic acid gas and hydrogen business, which was previously
included in Energy solutions, is now a part of Digital & Industry.
The segment information for the first quarter of the previous consolidated fiscal year shown here was prepared basedon the revised reporting segments.

18

(3) Information about the Amounts of Revenue and Profit or Loss by Reportable Segment
The accounting method of the reported operating segments is the same as the accounting method used to prepare theconsolidated financial statements.
The profit figures of the reportable segments are operating profit. Intersegment revenue and transfers of funds arepresented based on prevailing market prices.
Three months ended June 30, 2022
（Unit：Million yen）
Reportable Segment
Digital& Industry

EnergySolutions

Health& Safety

Agriculture &Foods

Other Business

Total

Adjustment(Note)

Quarterly
consolidated
statements ofincomeRevenue
Revenue from outside
customers

75,133

14,94253,66837,07343,901

224,720－

224,720

Inter-segment revenue

2,087

1,040

86

169

4,074

7,459

(7,459)－

Total

77,221

15,98353,75537,24347,976

232,180(7,459)224,720

Revenue by segment

5,746

929

2,767

1,343

1,359

12,146838

12,984

Finance income

535

Finance costs(836)

Operating profit

12,683(Note) 1. The reconciling item of -7,459 million yen of intersegment revenue and transfers is elimination ofintersegment transactions.
2. The reconciling item of 838 million yen of segment profit is related to profit or loss of the Company’s head
office, which is not distributed to elimination of inter-segment transactions and each reportable segment.

Three months ended June 30, 2023
（Unit：Million yen）
Reportable Segment
Digital& Industry

Energy Solutions

Health& Safety

Agriculture &Foods

Other Business

Total

Adjustment(Note)

Quarterly
consolidated
statements ofincomeRevenue
Revenue from outside
customers

81,316

13,821

52,12038,29744,483230,039－

230,039

Inter-segment revenue

1,793

1,110

130

177

3,657

6,870

(6,870)－

Total

83,11014,932

52,251

38,475

48,141

236,910(6,870)230,039

Revenue by segment

5,333

665

2,401

1,354

783

10,537725

11,263Finance income

1,018

Finance costs(779)

Operating profit

11,501(Note) 1. The reconciling item of -6,870 million yen of intersegment revenue and transfers is elimination ofintersegment transactions.
2. The reconciling item of 725 million yen of segment profit is related to profit or loss of the Company’s head
office, which is not distributed to elimination of inter-segment transactions and each reportable segment.

19

(Significant subsequent events)
Not applicable.

20