August 3, 2023
Summary of 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.

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 carbon dioxide gas wasadded to this.
As a result, for the current first quarter consolidated cumulative period, the group’s revenue was ¥230,039million(102.4% that of the corresponding period of the previous year), operating profit was ¥11,263million (86.7%), and profit
attributable to owners of parent was ¥7,141million (88.3%).

3

2) Consolidated results by segment for this period
Effective from the first quarter of the current fiscal year, the domestic engineering business and overseas engineering(Indian industrial gas, etc.) business, which were previously classified under "Digital & Industry," moved to "Other
Businesses," and the carbon dioxide and hydrogen business, which was previously classified under "Energy Solutions,"
has been moved to "Digital & Industry.
Segment information for the first quarter of the previous fiscal year is disclosed based on the reporting segmentclassification after the change.
（Million yen）

Revenue
FY 2023.1Q
YoY Growth

Operating profit
FY2023.1Q
YoY Growth

Digital & Industry

81,316108.2％

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.

4

2.Condensed Quarterly Consolidated Financial Statements(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

5

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

6

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

7

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
21,5638

(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

9

(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, 202210

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

11

(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

460,84612

(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

13

620

706

3,335

(13,317)841

157

59,55465,94463,73152,785