February 9, 2024
Consolidated Financial Results (Under IFRS)For the Third 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 Nine Months Ended December 31, 2023
(1) Consolidated operating results(% of change from previous year)
Revenue

Nine months
ended
December 31,
2023
Nine months
ended
December 31,
2022

Operating profit

Profit before tax

ProfitProfitattributable toowners of parent
Million
%
yen

Total
comprehensive
incomeMillion%yen

Millionyen%

Millionyen%

Millionyen%

Millionyen%

744,668

2.7

49,832

20.3

49,29020.0

32,41621.4

31,04617.2

52,53942.5

724,769

12.0

41,429-16.4

41,060-16.2

26,705-21.9

26,492-17.6

36,877-7.2

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022

Basic earnings
per share
Yen

Diluted earnings
per shareYen

136.32

136.21116.78116.66(2) Consolidated financial position

As of December 31,
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%

1,192,514

478,987

460,204

38.6

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

193.12(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 December 31, 2023:
229,755,057 shares
As of March 31, 2023:
229,755,057 sharesb. Number of shares of treasury shares
As of December 31, 2023:
1,651,412 shares
As of March 31, 2023:
2,402,613 sharesc. Average number of shares during the termFirst Nine months of the fiscal year ending March 31, 2024:
227,746,017 sharesFirst Nine months of the fiscal year ended March 31, 2023:
226,860,794 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 Third Quarter Settlement of Accounts(1) Explanation of Operating Results1) Operating results for the current period
During the cumulative third quarter of the current consolidated fiscal year, socioeconomic activities in the Japanese
economy steadily returned to normal after the COVID-19 pandemic. In the manufacturing sector, auto production related
to a wide range of industries recovered to normal levels, and capital investment associated with labor saving an reductions
in CO2 emissions remained steady. In general, the economy remained on a recovery track. However, the outlook remained
uncertain, reflecting the risk of a downturn in overseas economies caused by a slowdown in the Chinese economy andthe geopolitical risk caused by the intensifying conflicts in the Middle East region.
In this business environment, the Group bolster the profitability of existing businesses in Japan through integrated Groupmanagement based on business units. It also accelerated efforts to build a foundation for the industrial gas businessoverseas, a future growth area, and to create new carbon neutral and agriculture businesses, which will contribute tosolving social issues.
For its existing businesses in Japan, the Group continued to integrate and reorganize Group companies to establish acore company, in which each business unit would achieve autonomous growth. In addition, the Group implemented
thorough value management to ensure a profit level appropriate for the value of products and services and engaged in
profit growth measures, including an increase in productivity and improvements to low-profit projects through total
inspections of businesses.
Among its overseas businesses, the Group carried out active investment in North America and India, which are key
strategic areas, and expanded infrastructure for the industrial gas business. In North America, the Group purchased
multiple gas dealerships, launched the construction of a large gas plant in New York, which would be the Group’s firstmanufacturing based in North America, and entered a helium gas business. In India, the Group received new orders foran onsite gas supply project for steelworks from Steel Authority of India Limited (SAIL), a state-run steel company. In
addition, the construction of a liquefied gas production plant in southern India and gas filling stations in the northern
region progressed as planned.
In the creation of new businesses through the solution of social issues, the Group worked to build a supply chain for biomethane created from livestock excreta, which could be a fuel alternative to LNG, using gas refining and separation
technologies and the Group’s business base in Hokkaido with the aim of establishing a carbon neutral society. In
expectation of diverse demands for CO2 emission reduction such as CO2 collection and reuse, low-carbon hydrogen, andammonia, the Group worked to build a group-wide system of business promotion.
In the agriculture business, recognizing that ensuring food security and higher self-sufficiency in food products are social
issues, the Group restructured the business in Hokkaido in the agriculture and processing sectors and focused on setting
up a new distribution and processing business for fruits and vegetables based on capital and business alliances with theindustry's two major companies. Moreover, the Group built a new Gas Technology Development Center to specialize ingas technologies that will serve as both the foundation for all businesses and as a source of synergies. We began
conducting testing use gas technologies to transport and maintain the freshness of agricultural products.
Looking at the consolidated results for the first nine months of the current consolidated fiscal year, negative effects suchas the sluggish semiconductor market and an economic slowdown in China were offset by progress in the improvementof the earnings structure in response to rises in various costs. This resulted in further growth from the first half of the
fiscal year under review, in which profit increased substantially, maintaining a pace of steady growth.
In particular, in the businesses of industrial gas and commercial salt, the cost of which began to rise in the previous fiscal
year, the effect of cost reductions and price revisions, including increased efficiency in production and logistics, began toemerge. In the Global & Engineering business, orders for new projects involving liquid hydrogen tanks, demand forwhich is high, and large data centers helped maintain the growth trend. Moreover, growth of the beverage business andthe effect of new consolidation of vegetable and fruit wholesale in the Agriculture & Foods segment were part of thecontribution. The woody biomass power generation business, which had a significant impact on the results in the previous
fiscal year, achieved a considerable recovery thanks to a decrease in the cost of shipping of power generation fuel.

3As a result, for cumulative third quarter of the current fiscal year, the group’s revenue was ¥744,668million (102.7%
that of the corresponding period of the previous year), operating profit was ¥49,832million (120.3%), and profit
attributable to owners of parent was ¥31,046million (117.2%).

2) Consolidated results by segment for this period
Effective from the first quarter of the current fiscal year, the domestic engineering business andoverseas 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 Third quarter of the previous fiscal year is disclosed based on the reporting segmentclassification after the change.
（Million yen）
Revenue
FY 2023.3Q
YoY Growth

Operating profit
FY2023.3Q
YoY Growth

Digital & Industry

251,561

102.1%

22,735120.6%

Energy Solutions

42,869

94.7%

1,567

73.9%

Health & Safety

165,731

98.1%

8,967

92.4%

Agriculture & Foods

125,020

107.7%

6,668

128.1%

Other Business

159,486

107.7%

8,136

223.4%（Adjustment）

-

-％

1,756

91.7％

744,668
102.7%
49,832120.3%
Total(Note) The adjustment to operating profit is due to costs incurred at the company’s headquarters division which was notallocated to any reporting segment.

<Digital & Industry>
Revenue in this segment was ¥251,561million (102.1％ that of the corresponding period of the previous year), andoperating profit was ¥ 22,735million (120.6％).
In the business as a whole, while the functional materials business was impacted mainly by sluggish semiconductor
market, efforts to increase operational efficiency and productivity, in addition to price revisions, particularly ofindustrial gas, resulted in a significant increase in earnings strength, despite an environment in which demand fordomestic industrial gas remains generally weak.
In the industrial gas business, efforts were made to improve logistical efficiency and reduce costs in response torising energy costs. While demand for domestic industrial gas remained generally weak, continuous progress in therevision of industrial gas prices and the acquisition of new customers contributed to strong sales. In the supply ofcarbon dioxide gas, the shortage of raw material gas, which has had an impact since the previous fiscal year, began
improving in the second quarter and remained on a recovery track.
In the electronics business, sales of gas-related devices and thermal control-related equipment for semiconductor
manufacturing equipment slowed due to the impact of stock adjustments in response to the sluggish semiconductor
market. However, the impact of this was offset as the operating rate of onsite gas supply to large semiconductor
factories remained at a certain level and the new extension of large semiconductor factories contributed to an increase insales of high purity chemicals, coating materials, equipment for supplying special chemical materials, and otherproducts. The result was a strong performance.

4

In the functional materials business, semiconductor-related products including precision polishing pads was affectedby the sluggish market, and sales of naphthoquinone for agricultural chemicals remained weak given the slowdown of
the Chinese economy. This resulted in a decline.
<Energy solutions>
Revenue in this segment was ¥42,869 million (94.7％), and operating profit was ¥1,567 million (73.9％).
In the energy business, the unit selling price linked to import prices continued to fall despite an increase in the sales
volume of LP gas due to progress in fuel conversion among industrial customers. As a result, revenue decreased. Profit
decreased year on year due to the persistent impact of the inventory valuation of LP gas in the first half of the fiscal
year and sluggish sales of kerosene distributed to households incidental to LP gas as a result of a mild winter in the third
quarter. Meanwhile, sales of LNG tank trucks and small LNG satellite facilities remained strong amid growing demand
for low-carbon and decarbonized products.
In the green innovation business, progress was made in the verification of the ReCO2 STATION small CO2
collection device and liquefied biomethane, which is a clean energy source usable as an alternative to LNG, for thecreation of new businesses that will contribute to the realization of a carbon-neutral society.
<Health & Safety>
Revenue in this segment was ¥165,731 million (98.1％), and operating profit was ¥8,967 million (92.4％).
In the business as a whole, the safety services business generally remained strong and the streamlining of production
and price revisions that were undertaken in each business domain helped offset the impact of higher raw material andpersonnel expenses. Meanwhile, sales decreased year on year with 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.
In the medical products business, sales fell year on year owing to the termination of contracts for leasing oxygen
concentrators to local governments at the end of the previous fiscal year, which offset an increase in profitability
associated with price revisions in the medical gas market and the adjustment of low-profit projects and steady growth in
the number of nitric oxide inhalation therapy cases.
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, and construction of hospital facilities in Singapore was on a growth path.
In the medical service business, while the Group made progress in the acquisition of new customers by proposing
measures to improve the efficiency of hospital management, the business was affected by the initial cost of receiving
new orders in the SPD (supply, processing, and distribution in hospital logistics management) and the termination ofcontracts with some large hospitals.
In the consumer health business, while contract manufacturing of liquid fillings grew thanks to proposals actively
made to cosmetics manufacturers in the aerosol segment, the business was affected by a reactionary fall from a gain on
bargain purchase posted in the same period of the previous year in the hygiene material segment and a fall in demandfor infection control products such as masks and hand sanitizer and demand for vaccine needles.
<Agriculture & Foods>
Revenue in this segment was ¥12,502 million (107.7％), and operating profit was ¥6,668 million (128.1％).
In the business as a whole, earnings strength was improved through price revisions and an increase in production
efficiency. In addition, an increase in the volume of contract manufacturing of beverages, growth of the retail vegetableand fruit segment, and new consolidation through M&A contributed to strong results.
In the foods business, while the ham and delicatessen segment made progress in the new adoption of prepared foodand other products for convenience stores, demand for some products fell due to price revisions, while a shortage of hen
eggs that had arose mainly in the first quarter in the sweets segment had a persistent impact. These resulted in a slight
year-on-year decrease in sales.

5The natural food business remained strong thanks to investment in the enhancement of beverage filling lines, theexpansion of house brand products, and growth of contract manufacturing of paper-pack products such as vegetable andfruit beverages, which are the Group’s strengths, and plastic bottle beverages for major accounts.
The agriculture business remained steady thanks to a recovery in nationwide consumption in the vegetable and fruit
retail sector after the COVID-19 pandemic and the opening of new direct-sale stores for farm products, despite theinsufficient growth and unstable prices of farm products that continued in the agricultural product and processing
segment, mostly in Hokkaido. Meanwhile, the Group newly consolidated Marushin Seika co., Ltd, a middle trader ofvegetables and fruits in Kyushu, in the third quarter.
<Other Businesses>
Revenue in this segment was ¥1,59,486 million (107.7％), and operating profit was ¥8,136 million (223.4％).
The logistics business made progress in acquiring new shippers by expanding the Groups’ own low-temperature
distribution network and in revising prices to accommodate an increase in personnel and energy expenses. However, adecline in the volume of infectious waste transactions, which was strong in the same period of the previous year, andthe impact of costs incurred before the full-scale operation of a new low-temperature distribution center resulted in a
year-on-year fall.
NIHON KAISUI Co., Ltd. remained strong following a price revision for commercial salt and magnesium hydroxide,
on which the company had been working since the previous fiscal year, in response to an increase in coal and othermaterial prices. Sales in the electric power segment exceeded those in the same period of the previous fiscal year as aresult of the start of the operation of Kanda Biomass Power Plant (Kanda, Fukuoka) in August 2023, in addition to adownward trend in marine transportation cost for power generation fuel.
In the global and engineering business, both on-site and off-site gas supply services for steel manufacturers in theindustrial gas business in India performed strongly thanks to strong demand. In the industrial gas business in North
America, sales of liquefied hydrogen tanks increased with growth in investments related to CO2 reduction andindustrial gas sales in the U.S. states of New York and Arizona remained steady. The effect of the new consolidation ofAmerican Gas Products, LLC., operating a helium gas supply business in North America, in which M&A was
conducted in the second quarter, is expected to be recognized in the fourth quarter. The power supply system (UPS)
sector remained strong thanks to orders received for new projects for large data centers in Southeast Asia, the market for
which is growing through an increase in the use of generative AI, in addition to the resolution of construction delays in
Asia and Europe.
In the electric power business, The performance of the electric power business improved significantly year on year
thanks to a downward trend in marine transportation costs for power generation fuel and measures for easing demurrage
taken at unloading port facilities.
(2) Explanation of financial position for the current period
Total assets at the end of the current third quarter consolidated fiscal year stood at ¥1,192,514 million, an
increase of ¥100,868 million from the end of the previous consolidated fiscal year due mainly to an increase in property,
plant and equipment and other financial assets. Liabilities stood at ¥713,526 million, an increase of ¥68,363 million fromthe end of the previous consolidated fiscal year due mainly to an increase in bonds and borrowings. Equity stood at¥478,987 million, an increase of ¥32,505 million from the end of the previous consolidated fiscal year, due mainly to anincrease in 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 yearto ¥2,017.53, and ratio of equity attributable to owners of parent to total assets changed to 38.6％ from 39.4％ at the endof the previous consolidated fiscal year.
Cash flows from operating activities for the third quarter of the current fiscal year was an inflow of ¥49,373 million,
reflecting an increase of ¥13,414 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 third quarter of the current fiscal year was an outflow of ¥82,209 million,
reflecting an increase in outflow by ¥27,603 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Cash flows from financing activities for the third quarter of the current fiscal year was an inflow of ¥28,342 million,
reflecting an increase of ¥3,109 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 third quarter of the current fiscal year stood at ¥62,912 million,a decrease of ¥4,289 million from the end of the third 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(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 third quarter offiscal year
(As of December 31, 2023)

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

62,912
225,563
105,035
6,419
2,498
42,004444,434

443,443
65,13032,56832,6303,836
78,182
2,184
2,528
660,505
1,091,645

483,495
72,89933,552
34,458
3,822
113,336
2,285
4,228
748,079
1,192,514

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

End of the third quarter offiscal year
(As of December 31, 2023)

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

158,422
77,694
13,5738,559
1,024
42,405
301,678

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

351,334
22,741
6,748
3,567
20,532
6,923
411,847
713,526

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

55,85549,011(2,401)
319,90237,837460,204
18,782478,987
1,192,514

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 third quarter of the consolidated fiscal year
(Unit：Million yen)

Nine months ended
December 31, 2022
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
ProfitNine months ended
December 31, 2023

724,769(577,774)
146,995(109,548)
5,138(2,955)

744,668(583,795)
160,872(115,350)
4,636(2,255)

1,801

1,929

41,4291,601(1,971)
41,060(14,365)
26,694

49,832
2,646(3,188)49,290(16,887)
32,403

10
26,70513
32,416

26,492
212
26,70531,0461,370
32,416(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 share10

116.730.05
116.78136.260.06
136.32116.61
0.05
116.66136.150.06
136.21

Condensed quarterly consolidated statement of comprehensive income
Cumulative third quarter of the consolidated fiscal year
(Unit：Million yen)

Nine months ended
December 31, 2022
ProfitNine months ended
December 31, 2023

26,70532,416

52

5,285

(23)

102

29

5,387

8,347

6,454

1,550

8,053

245

228

10,142

14,736

10,17236,877

20,12352,53935,6691,207
36,87749,453
3,086
52,539Other 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
Nine months ended December 31, 2022
(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
CapitalBalance as of April 1, 2022

Capital surplus

Treasury shares

Retainedearnings

Remeasurementsof defined benefit
plans

Exchangedifferences ontranslation offoreign operations

55,85552,638(4,838)275,158－

4,614

Profit－－－26,492－－Other comprehensive income

－

－

－

－

－

8,410

Comprehensive income

－

－

－

26,492－

8,410

Purchase of treasury shares

－

－

(2)

－

－

－

Disposal of treasury shares

－

22

1,102

－

－

－

Dividends－－－(13,047)－－

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

－

－

－

－

－

－

－

(258)

－

－

－

－

－

－

－

575

－

176

－

－

－

64

－

－

－

(196)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(432)

1,100

(12,407)－176

55,85552,206(3,738)289,243－

13,202

Put option provided to non-controllingshareholders
Transfer to non-financial assets
Transfer to other components ofequity related to disposal group held
for sale
Total transactions with owners
Balance as of December 31, 202212

Equity attributable to owners of parent
Other components of equity
Effective
Net change inportion offair value ofgains andfinancial assets
losses on
measuredhedging
through other
instruments incomprehensivea cash flow
incomehedge
Balance as of April 1, 2022

ShareacquisitionrightsOther
componentsofequityrelated todisposal
groupheld for sale

Total

Noncontrollinginterests

Total

Total
equity

7,416

3,995

291

16,317－395,131

24,725419,857

Profit

－

－

－

－

－

26,492

212

26,705

Other comprehensive income

34

732

－

9,177

－

9,177

994

10,172Comprehensive income

34

732

－

9,177

－

35,6691,207

36,877Purchase of treasury shares

－

－

－

－

－

(2)

－

(2)

Disposal of treasury shares

－

－

－

－

－

1,125

－

1,125

Dividends

－

－

－

－

－

(13,047)(601)(13,649)

Share-based payment transactions

－

－

－

－

－

－

－

－

－

－

－

－

－

(258)

(204)

(463)

－

－

－

176

－

752

603

1,355

(64)

－

－

(64)

－

－

－

－

－

－

－

－

－

(196)

－

(196)

Transfer to non-financial assets

－

(655)

－

(655)

－

(655)

(629)

(1,285)

Transfer to other components ofequity related to disposal group held
for sale－(2,243)－(2,243)

2,243

－

－

－

Total transactions with owners(64)(2,899)－(2,787)2,243(12,282)(833)(13,115)

Balance as of December 31, 2022

7,385

1,828

291

22,707

2,243

418,519

25,099443,619

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

13

Nine months ended December 31, 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－－－31,046－－

Other comprehensive income

－

－

－

－

－

6,560

Comprehensive income

－

－

－

31,046－

6,560

Purchase of treasury shares

－

－

(3)

－

－

－

Disposal of treasury shares

－

6

1,133

－

－

－

Dividends－－－(14,197)－－

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

－

－

－

－

－

－

－

(637)

－

－

－

－

－

(4)

－

(891)

－

－

－

－

－

264

－

－

－

(314)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(950)

1,130

(14,824)－－

55,85549,011(2,401)

319,902－

17,988

Put option provided to non-controllingshareholders
Transfer to non-financial assets
Transfer to other components ofequity related to disposal group held
for sale
Total transactions with owners
Balance as of December 31, 2023

14

Equity attributable to owners of parent
Other components of equity
Effective
Net change inportion offair value ofgains andfinancial assets
losses on
measuredhedging
through other
instruments incomprehensivea cash flow
incomehedge
Balance as of April 1, 2023
Profit10,708

Shareacquisitionrights

1,846

284

Other
componentsofequityrelated todisposal
groupheld for sale

Total

Noncontrollinginterests

Total

Total
equity24,266－430,232

16,249446,482

－

－

－

－

－

31,0461,370

32,416

Other comprehensive income

5,341

6,505

－

18,407－

18,407

1,715

20,123Comprehensive income

5,341

6,505

－

18,407－49,453

3,086

52,539Purchase of treasury shares

－

－

－

－

－

(3)

－

(3)

Disposal of treasury shares

－

－

－

－

－

1,140

－

1,140

Dividends

－

－

－

－

－

(14,197)(569)(14,767)

Share-based payment transactions

－

－

(79)

(79)

－

(79)

－

(79)

－

－

－

－

－

(637)

(196)

(834)

－

(3,281)－(3,281)－(4,177)324(3,853)

(264)

－

－

(264)

－

－

－

－

Put option provided to non-controllingshareholders

－

－

－

－

－

(314)

－

(314)

Transfer to non-financial assets－(1,211)－(1,211)－(1,211)(111)(1,322)

Transfer to other components of equity
related to disposal group held for sale

－

－

－

－

－

－

－

－

Total transactions with owners(264)(4,492)(79)(4,837)－(19,481)(552)(20,034)

Balance as of December 31, 2023

15,7853,858

204

37,837－460,204

18,782478,987

Increase (decrease) due tochanges in equity
Increase (decrease) due to newconsolidation
Transfer from other components ofequity to retained earnings15(4) Condensed quarterly Consolidated Statement of Cash Flows(Unit：Million yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

Cash flows from operating activities
Profit before tax

41,060

Profit (loss) before tax from discontinued operations

49,2901013Depreciation and amortization

33,462

34,299Interest and dividend income(1,256)(1,902)

Interest expenses

1,565

2,525

Share of loss (profit) of investments accounted for using equity method(1,801)(1,929)Loss (gain) on sale and retirement of fixed assets

10

(6)

Decrease (increase) in trade and other receivables(23,496)

7,159

Decrease (increase) in inventories(18,247)(10,812)

Increase (decrease) in trade and other payables

22,448(11,195)

Decrease (increase) in contract assets(4,222)(2,702)

Increase (decrease) in contract liabilities

5,749

7,778

Other

(6,597)(6,359)48,684

66,159SubtotalInterest received

249

536

Dividends received

1,368

1,417

Interest paid

(1,471)(2,344)

Income taxes paid

(12,871)(16,394)

Net cash provided by (used in) operating activities

35,95949,373(46,402)(48,337)

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

2,083

872

Purchase of intangible assets(1,179)(1,652)

Purchase of investment securities(2,330)(10,982)

Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Collection of loans receivable

102

676

(5,147)(7,322)

837

1,515

Payments for acquisition of businesses(2,094)

(8)

(476)

(16,971)(54,606)(82,209)

Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

26,105

7,142

Proceeds from long-term borrowings

22,92837,870

Repayments of long-term borrowings(17,755)(29,533)

Proceeds from issuance of bonds

10,00030,000Additional purchase of shares of subsidiaries

(691)

(834)

Proceeds from sale and leaseback transactions

541

802

Repayments of lease liabilities(3,734)(3,828)Dividends paid

(12,662)(13,789)

Dividends paid to non-controlling interests

(601)

(569)

Other

1,103

1,082

Net cash provided by (used in) financing activities

25,233

28,342

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
Net increase (decrease) in cash and cash equivalents contained in assets
held for sale
Cash and cash equivalents at end of period

16

449

(525)

7,035

(5,018)

841

1,986

59,55465,944(229)－

67,201

62,912

(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, 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 third quarter of the previous consolidated fiscal year shown here was prepared basedon the revised reporting segments.
(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.

18

Nine months ended December 31, 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

246,370

45,277

168,954

116,041

148,124

724,769－

724,769

Inter-segment revenue

7,080

3,480

290

548

16,63428,034(28,034)－

Total

253,451

48,758169,244

116,590

164,759

752,804(28,034)

724,769

Revenue by segment

18,846

2,120

9,700

5,205

3,642

39,514

1,915

41,429Finance income

1,601

Finance costs(1,971)

Operating profit

41,060(Note) 1. The reconciling item of -28,034 million yen of intersegment revenue and transfers is elimination ofintersegment transactions.
2. The reconciling item of 1,915 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.

Nine months ended December 31, 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

251,561

42,869165,731125,020

159,486

744,668－

744,668

Inter-segment revenue

7,551

3,167

419

598

14,16825,904(25,904)－

Total

259,11246,036

166,150

125,618

173,655

770,572(25,904)

744,668

Revenue by segment

22,735

1,567

8,967

6,668

8,136

48,075

1,756

49,832Finance income

2,646

Finance costs(3,188)Operating profit

49,290(Note) 1. The reconciling item of -25,904 million yen of intersegment revenue and transfers is elimination ofintersegment transactions.
2. The reconciling item of 1,756 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.
(Significant subsequent events)
Not applicable.

19