November 9, 2023
Consolidated Financial Results (Under IFRS)For the Second 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 Six Months Ended September 30, 2023
(1) Consolidated operating results(% of change from previous year)

Millionyen%

Millionyen%

Millionyen%

Millionyen%

Profitattributable toowners of parent
Million%yen

476,975

2.9

28,3759.5

27,822

9.9

17,9107.6

17,312

6.0

41,08723.3

463,666

10.5

25,925-18.1

25,322-18.8

16,646-25.1

16,336-20.7

33,32927.0

RevenueSix months
ended
September 30,
2023
Six months
ended
September 30,
2022

Six months ended
September 30, 2023
Six months ended
September 30, 2022

Operating profit

Profit before tax

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

76.05

75.99

72.05

71.97

ProfitTotal
comprehensive
incomeMillion%yen(2) Consolidated financial position

As of September 30,
2023
As of March 31, 2023

Total assets

Total equity

Equity attributableto owners of parent

Million yen

Million yen

Million yen

Ratio of equity
attributableto owners of parent
to total assets%

1,169,398

475,321457,484

39.1

1,091,645

446,482

430,232

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

The fiscal year

Operating profit

Profit before tax

Profit attributable toowners of parent

Basic earnings
per share

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

1,080,000

7.5

72,00015.8

70,00014.8

44,0009.6

193.20(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 September 30, 2023:
229,755,057 shares
As of March 31, 2023:
229,755,057 sharesb. Number of shares of treasury shares
As of September 30, 2023:
1,910,564 shares
As of March 31, 2023:
2,402,613 sharesc. Average number of shares during the term
Six months of the fiscal year ending March 31, 2024:
227,634,448 shares
Six months of the fiscal year ended March 31, 2023:
226,756,043 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 Second Quarter Settlement of Accounts(1) Explanation of Operating Results1) Operating results for the current period
During the cumulative second quarter of the current consolidated fiscal year, the Japanese economy saw a recovery in
the flow of people following the normalization of social and economic activity that had been impacted by the COVID-19
pandemic. However, the business sentiment of manufacturing companies lacked strength overall, and performance varied
across industries. In addition, the future remained uncertain mainly due to the decline in global demand forsemiconductors and the increasing risk of the slowdown of overseas economies including China.
In this business environment, the Group achieved revenue of ¥1 trillion in the year ended March 31, 2023 by facilitating
business unit-based management across the Group as one team. In addition, in line with its two foundations for growth,
the “global environment” and “wellness,” the Group sought to produce synergies through the overall optimization of its
management resources, specifically its diverse businesses, human resources and technologies. The Group moved forwardwith new businesses creation initiatives based on three basic strategies developed to achieve further growth: the expansionof growth areas, enhancement of the profitability of existing businesses and solution social issues.
In conjunction with the expansion of growth areas, the Group set up the Global & Engineering Group with an eye toward
accelerating overseas expansion in a range of areas, including engineering functions, essential for the supply of industrial
gases, while also beginning to gear up its core facility to produce gas supply plants. In North America, we have alsoacquired several gas dealers. And in New York State, began construction of a large gas plant that is the first North
American production base of its own. In addition, it joined helium business. while in India, it received an order for onsite gas plant for a steel mill from SAIL, a state-owned steel-making company, thereby making steady progress ininitiatives for future business expansion. Further, in the electronics-related businesses, the Group continued its aggressive
capital investment in gas supply plants for major semiconductor factories, also, in the Kumamoto area, the Group
proceeded with organizing its office complexes, specializing in electronics-related businesses by constructing warehouses
for special gases and chemicals, etc.
To bolster the profitability of its existing businesses, the Group reformed integration and reorganization of Group
companies in sectors including electronics and medical equipment, as well as agricultural processing and energy in
Hokkaido. It also took steps to create Group synergies, such as the optimal deployment of staff members andimprovements in operational efficiency. Also, the Group continue to revise prices to ensure profit levels with the value of
products and services offered as well as their costs. It then simultaneously working in capping SG&A expenses andreviewing of low-profitability projects. As a result, steady progress was made in earnings capabilities, primarily at three
regional operating companies.
In creating new businesses, by utilizing the gas purification/separation technology and regional facility in Hokkaido, theGroup worked to build a supply chain model of methane, which is carbon neutral energy. In addition, recognizing that
ensuring food security and improving self-sufficiency in food products are social issues, the Group Started a new
distribution/processing business for fruits and vegetables based on capital and business alliances with the industry's two
major companies in the agriculture/processing sectors. It also focused on initiatives to promote the business of supplying
a land-based aquaculture platform by leveraging diverse products and technologies, such as those related to oxygen,artificial seawater and freshness preservation.
With a view toward creating corporate value over the medium and long terms, as part of efforts to facilitate investments
in intangible assets such as intellectual property, the Group opened “Air Water in KENTO”, in Settsu city, Osaka
prefecture, a facility that creates new "wellness"-related businesses and offers relevant information. It also launched open
innovation initiatives through industry-academia-government collaboration. The Group promoted simultaneously
reforming its personnel system, including the introduction of an in-house recruitment program, to help employees achieveautonomous growth and improve their skills. By doing so, it worked to enhance human resources to drive sustainablegrowth going forward.
In terms of results for the first six months of the current consolidated fiscal year, profit increased significantly in thesecond quarter compared with the first quarter, reflecting a general recovery trend thanks to group-wide efforts to improve
the revenue structure producing effects as expected in response to rises in a range of costs.
With respect to industrial gases and salt for industrial use, which had been affected by rising energy costs, profitability3

improved thanks to the effects of cost reductions through improvements in the efficiency of production and distribution,
as well as price revision. Further, the overseas engineering business remained on an expansion trend, mainly against the
backdrop of brisk demand for liquefied hydrogen tanks. Meanwhile, the woody biomass power generation business,
which had a significant impact on the previous fiscal year's performance, continued to recover with a decline in the marinetransportation cost of power generation fuels.
As a result, for cumulative second quarter of the current fiscal year, the group’s revenue was ¥476,975million (102.9%
that of the corresponding period of the previous year), operating profit was ¥28,375million (109.5%), and profit
attributable to owners of parent was ¥17,312million (106.0%).

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 cumulative second quarter of the previous consolidated fiscal year shown here wasprepared based on the revised reporting segments.
（Million yen）

Revenue
FY 2023.2Q
YoY Growth

Operating profit
FY2023.2Q
YoY Growth

Digital & Industry

166,251105.3%

13,525116.7%

Energy Solutions

25,266

91.0%

533

45.7%

Health & Safety

107,866

98.4%

5,750

98.4%

Agriculture & Foods

80,060105.6%

3,852

112.0%

Other Business

97,529105.3%

3,916

202.1%（Adjustment）

-

- ％

797

41.0％

476,975
102.9%
28,375109.5%
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 ¥166,251million (105.3％ that of the corresponding period of the previous year), andoperating profit was ¥13,525 million (116.7％).
In the business as a whole, there was significant progress in the improvement of profitability, reflecting the steadyprogress in the revision of industrial gas prices despite a year-on-year decrease in gas sales volume. The on-site supplyof gas for large semiconductor manufacturers was carried out steadily. Meanwhile, affected by stock adjustments
attributable to sluggish semiconductor market conditions, sales of functional materials and semiconductor-related
equipment and devices remained poor.
The electronics business remained firm, reflecting high operating rates in the on-site supply of gas for large
semiconductor manufacturers. In the business dedicated to the sale of materials for semiconductor plants, sales of highpurity chemicals, coating materials and other items remained steady. On the other hand, sales of gas-related devices andthermal control-related equipment for semiconductor manufacturing equipment and their parts were slow, reflecting theimpact of stock adjustments attributable to sluggish semiconductor market conditions.
In the functional materials business, sales of products such as magnesia for electromagnetic steel sheets andfunctional food ingredients that have the largest share of their respective markets remained solid, aided by stable demand.
However, due to sluggish semiconductor market conditions, semiconductor related products including precision polishingpads and sales of naphthoquinone for agricultural chemicals remained weak, reflecting the slowdown of the Chinese
4

economy.
In the industrial gas business, revenue increased due to the continued implementation of measures such as pricerevisions in response to cost increases. In addition, the supply of carbon dioxide was trending toward recovery, reflecting
the elimination of raw material gas shortages that had affected the first quarter results. At the same time, progress wasmade in the improvement of profitability partly due to the effects of the efficiency of logistics and the reduction of costs.
<Energy solutions>
Revenue in this segment was ¥ 25,266 million (91.0％), and operating profit was ¥ 533million (45.7％).
In the energy business, the sales volume of industrial LP gas increased as a result of fuel conversion carried out
amid the growing demand for low-carbon and decarbonized products. Further, the Group integrated and reorganizedgroup companies in Hokkaido, the main area where it conducts business, while also taking measures to increase the ratioof direct sales of LP gas for home use. Through these and other initiatives, it sought to enhance profitability. However,revenue decreased, reflecting a sharp decline in the unit selling price of LP gas in tandem with their import prices, andprofit declined year on year due to the impact of losses on inventory valuation recorded chiefly in the first quarter.
In the green innovation business, the Group toward the creation of new businesses which will help establish adecarbonized society, implemented various demonstrations related to the ReCO2 STATION small CO2 collection device
and liquefied biomethane which is a fuel usable as an alternative to LNG<Health & Safety>
Revenue in this segment was ¥ 107,866 million (98.4％), and operating profit was ¥ 5,750 million (98.4％).
In the business as a whole, sales were affected by the termination of contracts for the lease of oxygen concentrators
and a decline in demand for infection control products which was a result of the reclassification of COVID-19 as a class
5 infectious disease. Meanwhile, the safety services business and consumer health business remained steady. The Group
streamlined production to address surging raw material prices and rising personnel expenses while also revising prices atappropriate times, which resulted in profit recovering to almost the level in the previous year.
In the medical products business, it sought to improve profitability mainly by revising prices and reviewing lowprofitability projects in the medical gas area. However, the business was affected by the termination of contracts forleasing oxygen concentrators to local governments at the end of the previous fiscal year.
The safety services business was affected by increases in the prices of construction materials and personnel expenses,
however sales from the renovation of hospitals and the construction of gas-based fire extinguishing systems for data
centers remained firm. In addition, sales from the construction of hospital facilities in Singapore were trending toward a
recovery.
In the medical service business, the Group succeeded in acquiring new customers by proposing measures to improvethe efficiency of hospital management, but the business was affected by the termination of a contracts with some large
hospitals.
In the consumer health business, sales of hygiene materials were affected by a decline in demand for infection control
products such as masks and hand sanitizer. Even so, the business remained solid and achieved a year-on-year increase insales, reflecting the growth of the contract manufacturing of liquid filling products due to a rise in the number ofopportunities consumers have to go out and the implementation of active sales to cosmetics manufacturers, coupled witha rise in sales of cosmetic acupuncture and dental needles.
<Agriculture & Foods>
Revenue in this segment was ¥ 80,060 million (105.6％), and operating profit was ¥ 3,852 million (112.0％).
In the business as a whole, the Group proceeded with initiatives to enhance profitability, such as price revisions andthe improvement of production efficiency, amid the prices of materials such as pork and eggs were rising. there was adelay in the price pass-through in the ham and delicatessen sector. Nevertheless, both sales and profit increased overall,driven by an increase in the contract manufacturing of tea beverages and fruit drinks and the effect of the opening of new
farm stands.
In the foods business, sales remained firm, reflecting the broader adoption by expand sales of frozen foods for home
use and prepared foods at convenience stores. However, on the profit front, the sector was affected by the delay in the5timing of price revisions attributable to rising raw materials costs. The performance of the sweets sector was poor mainlyin the first quarter, reflecting the suspension of the sale of mainstay products due to the shortage of eggs.
The natural food business performed strongly, due to investments for the augment of production lines for beverage
filling equipment, as well as the results of a range of initiatives such as the expansion of products with in-house brands
coupled with an increase in the contract manufacturing of tea beverages and fruit drinks attributable to a recovery in theflow of people and the continued high temperatures during summer.
The agriculture business was affected by losses due to the excess inventory of agricultural products harvested in theprevious year in the agriculture and processing sector which is operated mainly in Hokkaido. Nevertheless, the businessas a whole remained at the level of the previous year, aided by the effect of the opening of new farm stands promoted, as
well as profitability improvement measures, chiefly the review of unprofitable stores in the fruit and vegetable sector.
<Other business>
Revenue in this segment was ¥ 97,529 million (105.3％), and operating profit was ¥ 3,916 million (202.1％).
In the logistics business, demand for trunk transportation continued to steady progress to handle EC related transactions.
However, the business was a decline in the volume of infectious waste transactions which had been strong in the previous
year. The Group moved forward steadily with price revisions commensurate with the increasing personnel expenses andthe rising cost of energy. However, the business was affected by costs incurred up until the newly constructed lowtemperature logistics center fully started operations.
NIHON KAISUI CO., LTD. overcame the impact of the coal prices that had increased due to effect of the revision of
the prices of salt for industrial use, thereby securing stable profits. Also, progress was steady reflecting a decline in marinetransportation costs for power generation fuels, coupled with the Kanda biomass power generation plant (Kanda-machi,
Fukuoka) starting commercial operation in August 2023.
In the global & engineering business, the industrial gas business in India performed strongly for both on-site gas
supply services for steel manufacturers and off-site gas supply services. In the industrial gas sector in North America,
sales of liquefied hydrogen tanks and carbon dioxide-related equipment continued to trend toward a recovery due to theresolution of production stagnation attributed mainly to materials procurement. In addition, sales of industrial gas
remained strong in New York in the United States. The Group implemented several M&A activities to expand theindustrial gas business, and the effects of consolidation are expected to be seen in the third quarter and beyond.
In the electric power business, results improved sharply due to the continuous stable operation of the Onahama woody
biomass power generation plant and a downward trend in marine transportation costs for power generation fuels, coupledwith the progress in measures to reduce demurrage at port unloading facilities.
(2) Explanation of financial position for the current period
Total assets at the end of the current second quarter consolidated fiscal year stood at ¥1,169,398 million, an increaseof ¥77,753 million from the end of the previous consolidated fiscal year due mainly to an increase in property, plant andequipment and other financial assets. Liabilities stood at ¥694,076 million, an increase of ¥48,914 million from the endof the previous consolidated fiscal year due mainly to an increase in bonds and borrowings. Equity stood at ¥475,321
million, an increase of ¥28,839 million from the end of the previous consolidated fiscal year, due mainly to an increasein other components of equity and an accumulation of profit attributable to owners of the parent.
Equity attributable to owners of parent per share grew from ¥1,892.36 at the end of the previous consolidated fiscal
year to ¥2,007.88, and ratio of equity attributable to owners of parent to total assets changed to 39.1％ from 39.4％ at
the end of the previous consolidated fiscal year.
Cash flows from operating activities for the second quarter of the current fiscal year was an inflow of ¥34,595 million,
reflecting an increase of ¥6,105 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 second quarter of the current fiscal year was an outflow of ¥64,235 million,
reflecting an increase in outflow by ¥30,019 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.
Cash flows from financing activities for the second quarter of the current fiscal year was an inflow of ¥24,374
million, reflecting an increase of ¥20,307 million from the same period of the previous fiscal year, due mainly to anincrease proceeds from issuance of bonds.
As a result, cash and cash equivalents at the end of the second quarter of the current fiscal year stood at ¥63,250 million,6

an increase of ¥3,143 million from the end of the second 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 second quarterof fiscal year
(As of September 30, 2023)

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

63,250214,199
103,757
7,329
2,194
35,541
426,273443,443
65,13032,56832,6303,836
78,182
2,184
2,528
660,505
1,091,645

478,423
69,48433,223
33,832
3,856
117,6882,285
4,330
743,125
1,169,398

End of the previous fiscal year
(As of March 31, 2023)

End of the second quarterof fiscal year
(As of September 30, 2023)

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

155,023
82,121
13,613
9,615
919
37,254
298,548

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

334,018
23,848
6,668
3,533
20,5706,890
395,528
694,076

55,85549,962(3,532)
303,680
24,266430,232
16,249446,482
1,091,645

55,85549,662(2,799)312,968
41,797457,484
17,836475,321
1,169,398

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 equity9(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 second quarter of the consolidated fiscal year
(Unit：Million yen)Six months ended September 30,
2022

Six months ended September 30,
2023

463,666(367,746)
95,919(72,939)
3,892(2,093)476,975(374,800)
102,174(76,447)
3,035(1,623)

1,145

1,237

25,925858(1,461)
25,322(8,672)
16,64928,375
1,406(1,959)27,822(9,910)17,912(3)
16,646(2)
17,91016,336309
16,646

17,312597
17,910Continuing 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

72.06
(0.01)
72.05

76.06(0.01)
76.05

71.98(0.01)
71.97

76.00(0.01)
75.99

Condensed quarterly consolidated statement of comprehensive income
Cumulative second quarter of the consolidated fiscal year
(Unit：Million yen)Six months ended September 30,
2022

Six months ended September 30,
2023

16,646

17,910

362

4,664

(12)

43

349

4,708

11,987

10,854

4,111

7,419

234

194

16,333

18,468

16,68333,32923,17741,08730,8762,453
33,32939,0602,027
41,087

ProfitOther 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
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income11(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Six months ended September 30, 2022
(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
Capital

Exchangedifferences ontranslation offoreign operations

275,158

－

4,614

－

16,336

－

－

－

－

－

12,052

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

－

－

－

16,336－

12,052

Purchase of treasury shares

－

－

(1)

－

－

－

Disposal of treasury shares

－

22

669

－

－

－

Dividends－－－(6,637)－－

Share-based payment transactions
Increase (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings

－

－

－

－

－

－

－

(441)

－

－

－

－

－

－

－

575

－

176

－

－

－

(8)

－

－

Put option provided to non-controllingshareholders

－

(188)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

Total transactions with owners
Balance as of September 30, 2022

－

(607)

668

(6,070)－176

55,85552,031(4,170)285,425－

16,84412

(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

Profit－－－－16,336309

16,646

Other comprehensive income

369

2,118

－

14,53914,5392,143

16,683Comprehensive income

369

2,118

－

14,53930,8762,453

33,329Purchase of treasury shares

－

－

－

－

(1)

－

(1)

Disposal of treasury shares

－

－

－

－

692

－

692

Dividends

－

－

－

－

(6,637)(444)(7,082)

Share-based payment transactions

－

－

－

－

－

－

－

－

－

－

－

(441)

(79)

(521)

－

－

－

176

752

1

754

8

－

－

8

－

－

－

Put option provided to non-controllingshareholders

－

－

－

－

(188)

－

(188)

Transfer to non-financial assets

－

(426)

－

(426)

(426)

(409)

(835)

8

(426)

－

(241)

(6,250)(932)(7,182)

7,793

5,687

291

30,616

419,757

26,246446,004

Increase (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 September 30, 202213

Six months ended September 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－－－17,312－－Other comprehensive income

－

－

－

－

－

10,933Comprehensive income

－

－

－

17,312－

10,933Purchase of treasury shares

－

－

(2)

－

－

－

Disposal of treasury shares

－

6

735

－

－

－

Dividends－－－(7,326)－－

Share-based payment transactions
Increase (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings

－

－

－

－

－

－

－

(13)

－

－

－

－

－

(4)

－

(891)

－

－

－

－

－

193

－

－

Put option provided to non-controllingshareholders

－

(289)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

Total transactions with owners
Balance as of September 30, 2023

－

(300)

733

(8,024)－－55,85549,662(2,799)312,968－

22,36114

(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

－

－

－

－

17,312597

17,910

Other comprehensive income

4,693

6,121

－

21,74821,748

1,429

23,177

Comprehensive income

4,693

6,121

－

21,74839,0602,027

41,087Purchase of treasury shares

－

－

－

－

(2)

－

(2)

Disposal of treasury shares

－

－

－

－

742

－

742

Dividends

－

－

－

－

(7,326)(324)(7,650)Share-based payment transactions

－

－

(79)

(79)

(79)

－

(79)

－

－

－

－

(13)

7

(6)

－

(3,281)－(3,281)(4,177)(94)(4,271)

(193)

－

－

(193)

－

－

－

－

－

－

－

(289)

－

(289)

ProfitIncrease (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings
Put option provided to non-controllingshareholders

－

(662)

－

(662)

(662)

(28)

(691)

Total transactions with owners

Transfer to non-financial assets(193)(3,944)(79)(4,217)(11,808)(439)(12,248)

Balance as of September 30, 2023

15,2084,022

204

41,797457,484

17,836475,32115

(4) Condensed quarterly Consolidated Statement of Cash Flows(Unit：Million yen)Six months ended September 30, Six months ended September 30,
2022
2023
Cash flows from operating activities
Profit before tax

25,322

Profit (loss) before tax from discontinued operations

27,822(3)(2)

Depreciation and amortization

22,054

22,484

Interest and dividend income(749)(1,009)Interest expenses
Share of loss (profit) of investments accounted for using equity method

987

1,636

(1,145)(1,237)

Loss (gain) on sale and retirement of fixed assets

(32)

(98)

Decrease (increase) in trade and other receivables

3,914

16,882

Decrease (increase) in inventories(13,965)(10,089)

Increase (decrease) in trade and other payables(1,250)(14,275)

Decrease (increase) in contract assets

(453)

1,785

Increase (decrease) in contract liabilities

563

1,371

(5,362)(2,787)

Other

29,87942,482

Interest received

Subtotal

172

356

Dividends received

952

988

(993)

(1,640)

Income taxes paid

Interest paid

(1,521)(7,591)

Net cash provided by (used in) operating activities

28,48934,595(27,773)(34,333)

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

1,814

736

Purchase of intangible assets(767)(1,074)(1,261)(19,129)4

196(4,703)

－

684

1,322

Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Collection of loans receivable
Payments for acquisition of businesses
Other
Net cash provided by (used in) investing activities(2,094)

(8)

(118)

(11,945)(34,216)(64,235)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

4,850

2,468

Proceeds from long-term borrowings

8,712

17,651

Repayments of long-term borrowings(10,336)(16,702)

Proceeds from issuance of bonds

10,00030,000Additional purchase of shares of subsidiaries

(551)

(6)

Proceeds from sale and leaseback transactions

520

593

Repayments of lease liabilities(2,725)(2,667)

Dividends paid

(6,633)(7,324)

Dividends paid to non-controlling interests

(444)

(324)

Other

675

685

Net cash provided by (used in) financing activities

4,067

24,374

Impact of exchange fluctuations for cash and cash equivalents

1,369

584

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(288)(4,680)

841

1,986

59,55465,944

Cash and cash equivalents at end of period

60,107

63,25016

(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
September 30 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, NIHON KAISUI CO., LTD. which manufactures and sells commercialuse 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 second 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.
Six months ended Nine 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

157,826

27,773

109,637

75,821

92,607

463,666－

463,666

Inter-segment revenue

4,792

2,191

187

380

9,183

16,735(16,735)－

Total

162,618

29,965

109,824

76,202

101,791

480,402(16,735)

463,666

Revenue by segment

11,586

1,167

5,845

3,440

1,938

23,978

1,946

25,925

Finance income

858

Finance costs(1,461)

Operating profit

25,322(Note) 1. The reconciling item of -16,735 million yen of intersegment revenue and transfers is elimination ofintersegment transactions.
2. The reconciling item of 1,946 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.

Six months ended Nine 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

166,251

25,266

107,866

80,06097,529476,975－

476,975

Inter-segment revenue

4,861

2,049

267

398

8,577

16,153(16,153)－

Total

171,11327,316108,133

80,458106,106

493,128(16,153)

476,975

Revenue by segment

13,525

533

5,750

3,852

3,916

27,578797

28,375

Finance income

1,406

Finance costs(1,959)Operating profit

27,822(Note) 1. The reconciling item of -16,153 million yen of intersegment revenue and transfers is elimination ofintersegment transactions.
2. The reconciling item of 797 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