May 9, 2024
FY 2023 Consolidated Financial Results (Under IFRS)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 FY 2023 (The year ended March 31, 2024)(1) Consolidated operating results(% of change from previous year)
Revenue

FY2023
FY2022Millionyen
1,024,540
1,004,914

%
2.0
13.1

Operating profit

Profit before
tax

Millionyen
68,272
62,181Millionyen
66,71260,978%9.8-4.6

ProfitMillionyen
46,13542,649

%
9.4
-5.1

%
8.2
-7.8

ProfitTotal
attributable to comprehensive
owners ofincomeparentMillionMillion%%yen
yen
44,360 10.5 82,347 60.8
40,137-7.1
51,206-5.4

Yen

Ratio of profit toequity attributableto owners of parent%

Ratio of profit
before tax to total
assets
%194.69194.52

9.7

5.8

6.7

176.84176.66

9.7

5.8

6.2

Ratio of equity
attributableto owners of parent
to total assets
%
40.0
39.4

Equity attributableto owners of parent
per share

Basic earnings
per share

Diluted earnings
per shareYen
FY2023
FY2022

Ratio of operating
profit to revenue%(Reference) Share of profit of investments accounted for using the equity method:
2,056 million yen for FY2023, 2,502 million yen for FY2022(2) Consolidated financial position

FY2023
FY2022

Total assets

Total equity

Equity attributableto owners of parent

Million yen
1,222,696
1,091,645

Million yen
508,485
446,482

Million yen
488,557
430,232

Yen
2,140.68
1,892.36(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

FY2023

Million yen
79,625

Million yen-97,966

Million yen
14,723

Cash and cash
equivalents at end ofyear
Million yen
64,975

FY2022

56,953-71,135

19,25765,9441

2. Dividends
Dividend per share

FY2022Total
amount ofdividends

Dividend
payout ratio

Ratio ofdividends toequityattributable toowners ofparentEnd offirstquarterYen－

End ofsecondquarterYen
28.00

End ofthird
quarter
Yen－

YearendAnnual

Yen
32.00

Yen
60.00

Million yen
13,736

%
33.9

%
3.3

－

30.00

－

34.00

64.00

14,659

32.9

3.2

－

32.00

－

32.00

64.00

FY2023
FY2024(Forecasts)

29.2

3. Forecast of consolidated operating results for FY2024 (The year ending March 31, 2025)(% 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

FY2024(1st half)

510,000

6.9

33,00016.3

32,00015.0

21,000

21.3

92.01

FY2024(Full year)

1,100,000

7.4

78,00014.2

76,00013.9

50,00012.7

219.08Notes(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 March 31, 2024:
229,755,057 shares
As of March 31, 2023:
229,755,057 sharesb. Number of shares of treasury shares
As of March 31, 2024:
1,529,317 shares
As of March 31, 2023:
2,402,613 sharesc. Average number of shares during the term
Year ended March 31, 2024:
227,856,414 sharesYear ended March 31, 2023:
226,972,674 shares

2

(Reference) Non-consolidated financial results
1. Results of non-consolidated operations for FY2023 (The year ended March 31, 2024)(1) Non-consolidated operating results(% of change from previous year)
Net sales

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

FY2023

145,511-13.9-6,248－16,88865.3

19,41818.0

FY2022

169,01419.2-7,904－

10,219-29.3

16,453

27.1

Yen

Fully diluted net
income per shareYen

FY2023

85.22

85.16

FY2022

72.49

72.42

Net income per share(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

FY2023622,669

223,10535.8

976.72

FY2022568,827

216,20938.0

949.74(Reference) Shareholder’s equity: 222,911 million yen for FY2023, 215,925 million yen for FY2022* This report is exempt from 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 theinformation available to AIR WATER INC. (hereinafter “the Company”) at the time of theannouncement and on certain assumptions considered reasonable. Actual results may differ
materially from the forecast depending on a range of factors. For matters relating to the forecasts,
please, refer to “4-(4) Outlook for the next fiscal year”.

34. Summary of operating results(1) Explanation of Operating Results1) Operating results for the current period
Consolidated fiscal year, the Group’s revenue was ¥1,024,540 million (102.0％ that of the previous year), operating
profit was ¥68,272 million (109.8％), and profit attributable to owners of parent was ¥44,360 million (110.5％). The
Company achieved a new record high.
During the consolidated fiscal year, the Japanese economy was gently on a recovery track. Socioeconomic activities
steadily returned to normal after the COVID-19 pandemic and capital expenditure associated with semiconductor field
for the future, labor saving and reductions in CO2 emissions remained solid. However, the future remained uncertain,
mainly due to growing tension in Ukraine and in the Middle East, inflation in the West and the resulting continuationof monetary tightening, in addition to weakness in the current semiconductor market, ongoing depreciation of the yen in
the foreign exchange market.
In these circumstances, the Group improved profitability to support groupwide performance, mainly after pricerevisions, particularly in the industrial gas business in Japan. A significant turnaround in the woody biomass power
generation business and other factors produced positive effects on performance.
(Main activities)
The Group bolstered the profitability of existing businesses in Japan through integrated Group management based on
business units. It also accelerated efforts to build a foundation for the overseas business as a future growth area and toaddress issues in carbon neutrality and agriculture, with a view to solving social issues.
For existing businesses in Japan, the Group advanced the integration and reorganization of Group companies in orderto establish core companies that would achieve autonomous growth in separate business units. In addition, the Group
implemented thorough price management, including reviews of low-profit projects, in order to ensure a profit levelappropriate for the value of products and services. It also worked on profit growth measures, including those for raisingproductivity.
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 on-site gas plant in New York, which would be the Group’s firstown gas manufacturing based in North America, and entered a helium gas business. In India, the Group received neworders for large onsite gas supply project 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.
With respect to carbon neutrality-related activities, the Group worked on "VERPA," a vertical solar power generation
system, and build a bio-methane supply chain in a bid for business creation through resolution of social issues. Serving
as an alternative fuel to liquefied natural gas (LNG), the bio-methane is produced from livestock excreta. In expectationof diverse demands for CO2 emission reduction such as CO2 collection and reuse, low-carbon hydrogen, and ammonia,
the Group worked to build a group-wide system of business promotion. In the agriculture segment, food security andimprovement in self-sufficiency in food products are now social issues. The Group restructured its agriculture production
and processing business structure in Hokkaido. It formed capital and business alliances among the industry's four major
companies to strengthen the platform for distribution and processing of fruit and vegetables.

42) Consolidated results by segment for this period
Effective from the first quarter of the current fiscal year, the domestic engineering business andIndian 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 previous fiscal year is disclosed based on the reporting segment classification after thechange.
(Unit：Million yen)
Revenue
Operating profit
FY 2023
YoY Growth
FY 2023
YoY Growth
Digital & Industry
339,410100.4％
33,563128.5％
Energy Solutions
66,588
96.2％
4,042
94.9％
Health & Safety
230,865
97.8％
15,07897.4％
Agriculture & Foods
162,610106.4％
6,917
125.4％
Other Businesses
225,067
107.8％
10,802210.3％（Adjustment）－－％△2,132－％
Total
1,024,540
102.0％
68,272109.8％(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 ¥339,410 million (100.4％ that of the corresponding period of the previous year), andoperating profit was ¥33,563 million (128.5％).
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 of industrial
gas, resulted in a significant increase in earnings strength.
In the industrial gas business, Amid generally weak demand for industrial gas, the company acquiring new projects,
mainly from major companies. Efforts to improve productivity in response to rising energy and logistics costs and prices
revision of industrial gas also contributed to the significant increase in profits. The carbon dioxide gas business had been
recovering since the previous fiscal year, when the result had been severely affected by a shortage of raw material gas.
In the electronics business, Although the stagnant semiconductor market has had a negative affect on demand, the onsite supply of gas for large semiconductor factories maintained certain operating rates and growth in sales of products
such as high-purity chemicals, which useing in the front-end process of semiconductor manufacturing supported theperformance. In response to the successive establishment and extension of semiconductor factories in Japan, growth insales of special chemical materials offset a decrease in sales of thermal control-related equipment for semiconductor
manufacturing equipment.
In the functional materials business, electronics-related products including O-rings (sealing materials) for
semiconductor manufacturing facilities and precision polishing pads was affected by inventory adjustment and sales ofnaphthoquinone remained sluggish because of production adjustments of agrochemical products at customers. This
resulted in a year-on-year decline.
<Energy solutions>
Revenue in this segment was ¥66,588 million (96.2％), and operating profit was ¥4,042 million (94.9％).
In the energy business, sales of LNG tank trucks and small LNG satellite facilities remained strong as a result of
aggressive fuel conversion from heavy oil to LNG customers in response to growing demand for low-carbon anddecarbonized products. In the LP gas supply for households largely in Hokkaido, efforts to increase earning power weremade through measures to improve delivery efficiency and the ratio of direct sales using IoT techniques. However, theselling price for LP gas dropped year on year in tandem with import prices, causing revenue to decrease, and profit
declined due to the valuation of inventory conducted in the first half of the fiscal year.
5<Health & Safety>
Revenue in this segment was ¥230,865 million (97.8％), and operating profit was ¥15,078 million (97.4％).
In the business as a whole, the company executed the integration and restructuring of the group companies to meetdemand at clinical sites, which had changed through the COVID-19 pandemic, and also worked on production
streamlining and price revision to cope with increasing raw material cost and labor expenses. The safety services business,
which saw an increase in contracts for gas fire extinguishing systems for data centers, was generally strong. However,Impacted by reduced demand for COVID-19 -related products. As a result, both sales and profit were down year on year.
In the medical products business, the profitability of medical gases improved with price revisions and a reduction in
low-margin projects. Meanwhile, the number of nitric oxide inhalation therapy cases increased and sales of Biami, ashower bathing system for nursing care facilities, grew steadily. However, the business was affected by the terminationof contracts for leasing oxygen concentrators to local governments at the end of the previous fiscal year.
The safety services business remained strong thanks to the recovery trend of hospital renewals in Japan and Singapore,an increase in the construction of gas fire extinguishing systems for data centers, and a recovery in sales of inhalers forfire fighting.
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 neworders in the SPD (supply, processing, and distribution in hospital logistics management) and the termination of contracts
with some large hospitals.
In the consumer health business, while contract manufacturing of cosmetics grew thanks to aggressive proposal-based
sales activities in the aerosol and cosmetics segments, the business was affected by a fall in demand for infection control
products such as masks and hand sanitizer and demand for vaccine needles.
<Agriculture & Foods>
Revenue in this segment was ¥162,260 million (106.4％), and operating profit was ¥6,917 million (125.4％).
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, the ham and delicatessen segment made progress in the new adoption of prepared food forconvenience stores, in which the company focused on product development, and the shortage of eggs was eased in thesweets segment. However, sales of certain products were affected by a fall in purchases due to inflation, and sales
remained generally unchanged from the previous fiscal year.
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 products such as vegetable and fruit
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 of vegetables
and fruits in Kyushu.
<Other Businesses>
Revenue in this segment was ¥225,067 million (107.8％), and operating profit was ¥1,082million (210.3％).
The logistics business made progress in acquiring new customers by expanding the low-temperature distribution
network, revision of contract fees, work-style reforms, and the use of digital technologies that contributed to an increasein operational efficiency. However, a decline in the volume of infectious waste transactions that had previously enjoyedspecial demand in COVID-19 pandemic and temporary expenses incurred before the full-scale operation of a new lowtemperature distribution center resulted in a year-on-year fall.

6

Nihonkaisui Co., Ltd. worked on selling at prices appropriate for the products and reducing costs in response to anincrease in the prices of coal and materials. Both sales and profit in the electric power segment exceeded those in thesame period of the previous fiscal year as a result of the start of the operation of Kanda Biomass Power Plant (Kanda,
Fukuoka) in August 2023, in addition to a downward 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 segment in North
America, foreign sales grew steadily through local gas distributors. Meanwhile, against the background of full-scale
development of hydrogen supply infrastructure, particularly in California, the U.S., sales of hydrogen-related equipment
remained steady. In North America, American Gas Products, LLC., operating a helium gas supply business, was newly
consolidated in the fourth quarter. The power supply system (UPS) sector remained strong thanks to orders received
projects for large data centers in Southeast Asia, along with growth in the market through an increase in the use ofgenerative AI, in addition to the resolution of construction delays in Asia and Europe.
The performance of the electric power business improved significantly year on year thanks to a decrease in marinetransportation costs for power generation fuel and efforts to reduce the number of days in demurrage taken at unloading
port facilities.
(2) Summary of financial position for the current period
Total assets at the end of the consolidated fiscal year stood at ¥1,222,696 million, an increase of ¥131,050 million fromthe end of the previous consolidated fiscal year, due primarily to increases in property, plant and equipment and also tradeand other receivables. Liabilities stood at ¥714,210 million, an increase of ¥69,047 million from the end of the previous
consolidated fiscal year due mainly to increases in bonds and borrowings. Equity stood at ¥508,485 million, an increaseof ¥62,003 million from the end of the previous consolidated fiscal year, due mainly to 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 ¥2,140.68, and ratio of equity attributable to owners of parent to total assets changed to 40.0％ from 39.4％ at theend of the previous consolidated fiscal year.
(3) Summary of cash flows for the current period
Cash flows from operating activities was an inflow of ¥79,625 million after deducting payments including corporate
income taxes from profit before tax and depreciation, which was an increase of ¥22,672 million from the previous
consolidated fiscal year.
Cash flows from investing activities was an outflow of ¥97,966 million, which was an increase in expenditures of¥26,831 million from the previous consolidated fiscal year, due mainly to an increase in expenditures resulting frompayments for acquisition of businesses and payments for loans, despite a decrease in expenditures resulting from purchaseof property, plant and equipment.
Cash flows from financing activities was an inflow of ¥14,723 million, which was a decrease of ¥4,533 million fromthe previous consolidated fiscal year, due mainly to a decrease in proceeds from borrowings.
As a result, cash and cash equivalents at the end of the consolidated fiscal year stood at ¥64,975 million, a decrease of¥969 million from the end of the previous consolidated fiscal year.
(4) Outlook for the next fiscal year
We forecast revenue of ¥1,100,000 million, operating profit of ¥78,000 million, profit before tax of ¥76,000 million,
and profit attributable to owners of parent of ¥50,000 million for the next fiscal year. We expect to see a rise in revenue
and profit in all the segments.

With a view towards the terrAWell30 vision for FY2030, we are endeavoring to bolster our growth potential, tostrengthen profitability and to incubate new business. We have a policy of maximizing value created from synergies
among diverse businesses, human resources, and technologies, which constitute the Group's management resources. In
7line with this, we have defined two growth axes, specifically the global environment and wellness.
For overseas expansion, we define India and North America as priority strategic areas, given that demand is expected
to grow in these two regions in terms of market size and potential. With the use of equipment and engineering technologies
that we have cultivated in the Japanese market, we will build a supply chain that will firmly capture gas demand in a bid
to speed up business expansion.
For existing businesses in Japan, we will continue with structural reforms, including the integration and reorganizationof Group companies. We will also strive to boost profitability and earnings capacity by means of price management,
optimal staff assignment, streamlining of distribution and procurement, digital transformation (DX) and other measures.
We will also work to establish new business models that will be helpful to technology development to realize adecarbonized society and solve local problems.
We understand that continuous investment in growth is essential for a medium- and long-term increase in the Group's
corporate value. The industrial gas business in India and North America is expected to enjoy continued market growth.
Not only in this business but also in the semiconductor and digital industry, decarbonization and green transformation(GX) and the agricultural business for stable food supply, positive efforts are being made to improve the environment for
reinforcing Japan's industrial foundations. Mainly in these areas, we will make capital investment for building grounds
for business growth and M&A investment for expanding business domains. Meanwhile, we will strengthen balance sheet
management to improve capital efficiency.
In the future, we will continue to promote human capital investment, considering business strategy and humanresources strategy to be the two pillars of management. Specifically, we will train 150 employees who can thrive in global
business situations, and we will reform the personnel system to encourage autonomous career development.
We will address carbon neutrality from two perspectives. First, we will fulfill our responsibility to reduce ourgreenhouse gas (GHG) emissions. And second, we will make a contribution to reducing GHG emissions in society
through our business activities.
(5) Basic Principles of Profit Distribution and Dividends for the Fiscal Year and for the Next Fiscal Year
The Company has positioned returning profits to shareholders as one of the most important management issues, while
it works to enhance its management foundation to sustainably increase corporate value. The Company’s basic policy is
to ensure the stable distribution of dividends from surplus in line with its business results while taking into consideration
the enhancement of internal reserves that are needed for strategic investment and other purposes for medium- to longterm growth. Accordingly, we have set a standard of a dividend payout ratio of 30% of profit attributable to owners ofparent.
For the current fiscal year, the Company plans to pay an interim dividend of ¥30 and a year-end dividend of ¥34.
In total, the annual dividend will be ¥64 per share.
With regard to dividends for the next fiscal year, the Company expects to pay interim and year-end dividends of ¥32
per share, which will bring the annual dividend to ¥64 per share.

85. Consolidated Financial Statements and Significant Notes(1) Consolidated Statement of Financial Position (As of March 31, 2023 and March 31, 2024)(Unit：Million yen)

FY2022(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

9

FY2023(March 31, 2024)

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

64,975240,584
92,643
11,7502,465
36,953449,372

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

497,708
81,85946,24034,507
5,640
100,6212,705
4,038
773,323
1,222,696

FY2022(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

10

FY2023(March 31, 2024)

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

167,685
85,933
13,865
11,4181,049
37,528317,481

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

332,786
22,951
6,478
3,559
23,845
7,107
396,729714,21055,85549,962(3,532)
303,680
24,266430,232
16,249446,482
1,091,645

55,85549,097(2,217)335,11350,707
488,557
19,927508,485
1,222,696

(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income
Consolidated Statement of Profit or Loss
(April 1 to March 31, 2023 and 2024)(Unit：Million yen)

FY2022(April 1, 2022
to March 31, 2023)
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
ProfitEarnings 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

11

FY2023(April 1, 2023
to March 31, 2024)

1,004,914(804,830)
200,084(150,379)
15,049(5,075)

1,024,540(804,271)
220,268(158,411)
7,882(3,523)

2,502

2,056

62,181
2,051(3,253)60,978(18,023)
42,954

68,272
2,878(4,438)66,712(20,565)
46,146(305)
42,649(11)
46,135

40,1372,512
42,64944,3601,774
46,135178.18Yen(1.34)Yen
176.84Yen

194.74Yen(0.05)Yen
194.69Yen

178.00Yen(1.34)Yen
176.66Yen

194.57Yen(0.05)Yen
194.52Yen

Consolidated Statement of Comprehensive Income(April 1 to March 31, 2023 and 2024)(Unit：Million yen)

FY2022(April 1, 2022
to March 31, 2023)
ProfitOther comprehensive income
Items that will not be reclassified to profit orloss
Net change in fair value of financial assets
measured through other comprehensive
incomeRemeasurements of defined benefit plans
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that will not be reclassified to
profit or loss

FY2023(April 1, 2023
to March 31, 2024)

42,64946,135

3,237

8,222

972

1,435

27

109

4,237

9,768

6,630

13,757(2,408)12,594

97

91

4,319

26,443

8,557
51,20636,212
82,34749,671
1,535
51,20677,991
4,356
82,347

Items that may be reclassified to profit or loss
Exchange differences on translation offoreign 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
methodTotal 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 income12(3) Consolidated Statement of Changes in Equity
FY2022 (April 1, 2022 to March 31, 2023)(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
CapitalRetainedearnings

Exchangedifferences ontranslation offoreign operations

Capital surplus

Treasury shares

55,85552,638(4,838)275,158

Profit－－－40,137－－

Other comprehensive income

－

－

－

－

960

6,636

Comprehensive income

－

－

－

40,137960

6,636

Purchase of treasury shares

－

－

(2)

－

－

－

Disposal of treasury shares

－

24

1,309

－

－

－

Dividends－－－(13,047)－－

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

－

－

－

－

－

－

－

(1,851)

－

－

－

－

－

－

－

500

－

176

－

－

－

－

－

－

－

－

－

931

(960)

－

Put option provided to non-controllingshareholders

－

(849)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

Total transactions with owners－(2,676)

1,306(11,615)

(960)

176

Balance as of March 31, 2023

55,85549,962(3,532)

303,680－

11,427

Balance as of April 1, 2022

13

Remeasurementsof defined benefit
plans
－

4,614

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

Shareacquisitionrights

Noncontrollinginterests

Total

Total
equity

Total

7,416

3,995

291

16,317395,131

24,725419,857

－

－

－

－

40,1372,512

42,649Other comprehensive income

3,263(1,326)

－

9,533

9,533

(976)

8,557

ProfitComprehensive income

3,263(1,326)－

9,533

49,671

1,535

51,206

Purchase of treasury shares

－

－

－

－

(2)

－

(2)

Disposal of treasury shares

－

－

－

－

1,333

－

1,333

Dividends

－

－

－

－

(13,047)(602)(13,650)

Share-based payment transactions

－

－

(7)

(7)

(7)

－

(7)

－

－

－

－

(1,851)(4,264)(6,115)

－

－

－

176

677

769

1,446

－

－

－

－

－

(5,283)(5,283)

28

－

－

(931)

－

－

－

Put option provided to non-controllingshareholders

－

－

－

－

(849)

－

(849)

Transfer to non-financial assets

－

(822)

－

(822)

(822)

(629)

(1,452)

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

Total transactions with owners

28

(822)

(7)

(1,585)(14,570)(10,011)(24,581)

Balance as of March 31, 2023

10,7081,846

284

24,266430,232

16,249446,482

14

FY2023 (April 1, 2023 to March 31, 2024)(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
CapitalRetainedearnings

Exchangedifferences ontranslation offoreign operations

Capital surplus

Treasury shares

55,85549,962(3,532)

303,680

Profit－－－44,360－－

Other comprehensive income

－

－

－

－

1,410

13,731

Balance as of April 1, 2023

Remeasurementsof defined benefit
plans－

11,427

Comprehensive income

－

－

－

44,3601,410

13,731

Purchase of treasury shares

－

－

(4)

－

－

－

Disposal of treasury shares

－

0

1,319

－

－

－

Dividends－－－(14,197)－－

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

－

－

－

－

－

－

－

(670)

－

－

－

－

－

(4)

－

(891)

－

－

－

－

－

－

－

－

－

－

－

2,161

(1,410)－Put option provided to non-controllingshareholders

－

(190)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

Total transactions with owners

－

(864)

1,314

(12,927)(1,410)－

Balance as of March 31, 2024

55,85549,097(2,217)335,113－

25,15915

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

Shareacquisitionrights

NonControllinginterests

Total

Total
equityTotal

10,7081,846

284

24,266430,232

16,249446,482

－

－

－

－

44,3601,774

46,135

Other comprehensive income

8,296

10,191－

33,63033,6302,581

36,212

ProfitComprehensive income

8,296

10,191－

33,63077,991

4,356

82,347Purchase of treasury shares

－

－

－

－

(4)

－

(4)

Disposal of treasury shares

－

－

－

－

1,319

－

1,319

Dividends

－

－

－

－

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

Share-based payment transactions

－

－

(90)

(90)

(90)

－

(90)

－

－

－

－

(670)

(334)

(1,004)－(3,281)－(3,281)(4,177)420(3,757)

－

－

－

－

－

－

－

(750)

－

－

(2,161)－－－

Put option provided to non-controllingshareholders

－

－

－

－

(190)

－

(190)

Transfer to non-financial assets－(1,655)－(1,655)(1,655)(194)(1,849)Total transactions with owners(750)(4,936)(90)(7,189)(19,666)(678)(20,344)

Balance as of March 31, 2024

18,2537,100

193

50,707

488,557

19,927508,485

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

16

(4) Consolidated Statement of Cash Flow
(Unit：Million yen)

FY2022(April 1, 2022
to March 31, 2023)

FY2023(April 1, 2023
to March 31, 2024)

Cash flows from operating activities
Profit before tax

60,978

Profit (loss) before tax from discontinued operations(275)

66,712(11)

Depreciation and amortization

44,987

46,590Interest and dividend income(1,435)(1,913)

Interest expenses

2,411

3,592

Share of loss (profit) of investments accounted for using equity method(2,502)(2,056)

Loss (gain) on sale and retirement of fixed assets(3,266)(379)

Decrease (increase) in trade and other receivables(26,422)(5,172)

Decrease (increase) in inventories(14,689)

2,619

Increase (decrease) in trade and other payables

20,177(6,289)Decrease (increase) in contract assets

(942)

1,756

Increase (decrease) in contract liabilities(55)(1,624)(8,746)(6,203)70,217

97,619Other
SubtotalInterest received

480

503

Dividends received

1,492

1,700

Interest paid

(2,280)(3,488)

Income taxes paid

(12,956)(16,709)

Net cash provided by (used in) operating activities

56,953

79,625(64,549)(63,469)

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

6,321

2,327

Purchase of intangible assets(2,120)(2,999)Purchase of investment securities(3,934)(6,226)

447

1,491

(5,284)(7,322)(231)(4,657)

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

907

1,594

(2,094)(20,133)

(595)

1,430

(71,135)(97,966)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings

6,080

(245)

Proceeds from long-term borrowings

52,176

41,128

Repayments of long-term borrowings(30,521)(37,180)

Proceeds from issuance of bonds

10,00030,000Additional purchase of shares of subsidiaries(1,302)(1,004)

Proceeds from sale and leaseback transactions

776

950

Repayments of lease liabilities(5,515)(5,422)

Dividends paid

(13,041)(14,193)

Dividends paid to non-controlling interests

(602)

(569)

Other

1,206

1,260

Net cash provided by (used in) financing activities

19,257

14,723

Impact of exchange fluctuations for cash and cash equivalents

47

661

5,122

(2,956)

Net increase (decrease) in cash and cash equivalents
Net increase (decrease) in cash and cash equivalents due to a change in the scopeof consolidation
Cash and cash equivalents at beginning of period

1,267

1,986

59,55465,944

Cash and cash equivalents at end of period

65,94464,97517

(5) Notes to 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 consolidated financial statement of the Company and its subsidiaries (the “Group”) closes on December 31 andconsists 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 consolidated financial statement of the Group satisfies the requirements of a Specified Company engaging ininternational financing activities in Article 1-2 of the Ordinance on Consolidated Financial Statements and have been
prepared in accordance with IFRS as prescribed in Article 93 of the Ordinance.
(2) Basis of Measurement
The 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 consolidated financial statement are presented in units of yen, the functional 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 consolidated financial statement, the business manager must make decisions,estimates, and assumptions that affect the application of accounting policies and reported amounts of assets, 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 consolidated financial statement are thesame 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 consolidated financial statement are the same as the accounting
principles applied to the consolidated financial statement for the consolidated fiscal year ending March 31, 2023.

18

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

19

FY 2022 (April 1, 2022 to March 31, 2023)（Unit：Million yen）
Reportable Segment
Digital& Industry

Energy Solutions

Health& Safety

Agriculture &Foods

Other Business

Adjustments(Note)

Total

Consolidated

Revenue
Revenue fromexternal customers

338,039

69,210235,992

152,815

208,855

1,004,914－

1,004,914

Intersegment
revenue or transfers

9,535

4,844

516

743

36,03851,679(51,679)－

Total

347,575

74,055236,509

153,559

244,893

1,056,593(51,679)

1,004,914

26,1284,259

15,482

5,516

5,135

56,521

5,659

62,181

Segment profit
Finance income

2,051

Finance costs(3,253)

Profit before income
tax

60,978Segment assets

326,304

41,210161,51292,568

303,705925,301

166,343

1,091,645

Depreciation andamortization

19,183

3,079

4,212

4,982

13,53044,987－44,987

Impairment loss

19

－

－

－

－

19

－

19

Gains on equitymethod investments

526

－

896

44

1,035

2,502

－

2,502

Investments
accounted for using
equity method

4,264

－

12,764212

15,38832,630－32,630Capital expenditures

33,943

3,559

2,701

5,100

17,04862,352

4,014

66,367

Other items(Note) 1: Adjustments of intersegment revenue or transfers of -51,679 million yen are elimination of intersegment
transactions.
2: Adjustments of segment profit of 5,659 million yen are related to the elimination of intersegment transactions
and profit or loss of the Company’s corporate divisions not allocated to reportable segments.
3: Adjustments of segment assets of 166,343 million yen are related to the elimination of intersegment assets andcorporate assets not allocated to reportable segments. Corporate assets are mainly cash and deposits, financial
assets and shared corporate facilities not attributable to reportable segments.
4: Adjustments of capital expenditures of 4,014 million yen are mainly corporate assets not attributable toreportable segments.

20

FY 2023 (April 1, 2023 to March 31, 2024)（Unit：Million yen）
Reportable Segment
Digital& Industry

Energy Solutions

Health& Safety

Agriculture &Foods

Other Business

Adjustments(Note)

Total

Consolidated

Revenue
Revenue fromexternal customers

339,410

66,588230,865

162,610225,067

1,024,540－

1,024,540

Intersegment
revenue or transfers

10,808

4,515

709

775

34,69651,503(51,503)－

Total

350,218

71,103

231,574

163,385259,763

1,076,044(51,503)

1,024,540

33,563

4,042

15,078

6,917

10,80270,405(2,132)

68,272

Segment profit
Finance income

2,878

Finance costs(4,438)

Profit before income
tax

66,712

Segment assets

355,896

42,543

156,505

105,868

381,3121,042,125

180,570

1,222,696

Depreciation andamortization

19,790

3,409

4,396

5,128

13,86546,590－46,590

Impairment loss

Other items

0

0

－

－

－

1

－

1

Gains on equitymethod investments

678

－

731

(34)

681

2,056

－

2,056

Investments
accounted for using
equity method

4,875

－

13,402

17

16,21234,507－34,507

Capital expenditures

34,817

3,545

7,315

4,535

20,74070,9552,348

73,303(Note) 1: Adjustments of intersegment revenue or transfers of -51,503 million yen are elimination of intersegment
transactions.
2: Adjustments of segment profit of -2,132 million yen are related to the elimination of intersegment
transactions and profit or loss of the Company’s corporate divisions not allocated to reportable segments.
3: Adjustments of segment assets of 180,570 million yen are related to the elimination of intersegment assets
and corporate assets not allocated to reportable segments. Corporate assets are mainly cash and deposits,
financial assets and shared corporate facilities not attributable to reportable segments.
4: Adjustments of capital expenditures of 2,348 million yen are mainly corporate assets not attributable toreportable segments.

21

(Earning per share)(1) Basic and diluted earnings per share
FY 2022(April 1, 2022 to March
31, 2023)
176.84(Unit：Yen)
FY 2023(April 1, 2023 to March
31, 2024)
194.69Continuing operations

178.18194.74

Discontinued operations(1.34)(0.05)

Diluted earnings (loss) per share

176.66194.52

Continuing operations

178.00194.57

Discontinued operations(1.34)(0.05)FY 2022(April 1, 2022 to March
31, 2023)
40,137(Unit：Million yen)
FY 2023(April 1, 2023 to March
31, 2024)
44,36040,442

44,372

(305)

(11)

40,13744,36040,442

44,372

(305)

(11)

Basic earnings (loss) per share(2) Bases for calculating basic and diluted earnings per share
1) Profit attributable to common shareholders

Profit (loss) attributable to owners of parent
Continuing operations
Discontinued operations
Diluted profit (loss) attributable to commonshareholders
Continuing operations
Discontinued operations
2) Average number of common shares during the year

Average number of common shares during the year

(Unit：Thousands of shares)
FY 2022
FY 2023(April 1, 2022 to March(April 1, 2023 to March
31, 2023)
31, 2024)
226,972
227,856

Increases in common shares due to stock options
Average number of diluted common shares during
the year(Significant subsequent events)
Not applicable

22

236

194

227,208

228,050