February 9, 2024
Summary of 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.

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
Group management 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 forbio-methane 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 aresocial 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 allianceswith the industry's two major companies. Moreover, the Group built a new "Gas Technology Development Center" tospecialize in gas technologies that will serve as both the foundation for all businesses and as a source of synergies. The
Group began conducting testing use gas technologies to transport and maintain the freshness of agricultural products.
Looking at the consolidated results for the nine months of the current consolidated fiscal year, negative effects such as
the sluggish semiconductor market and an economic slowdown in China were offset by progress in the improvement of
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 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 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
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 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 equity6(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 share7

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 income8(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
CapitalRemeasurementsof defined benefit
plans

Exchangedifferences ontranslation offoreign operations

275,158

－

4,614

－

26,492

－

－

－

－

－

8,410

Capital surplus

Treasury shares

55,85552,638(4,838)

Profit－－Other comprehensive income－－

Balance as of April 1, 2022

Retainedearnings

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, 20229

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

10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

11

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 earnings

12(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

13

449

(525)

7,035

(5,018)

841

1,986

59,55465,944(229)－

67,201

62,912