November 9, 2023
Consolidated Financial Results (Under IFRS)For the Second Quarter of the March 31, 2024 Fiscal Year
AIR WATER INC.
Head Office: 12-8, Minami semba 2-chome,
Chuo-ku, Osaka, Japan(Note: All amounts are rounded down to the nearest million yen.)
1. Results for the Six Months Ended September 30, 2023
(1) Consolidated operating results(% of change from previous year)

Millionyen%

Millionyen%

Millionyen%

Millionyen%

Profitattributable toowners of parent
Million%yen

476,975

2.9

28,3759.5

27,822

9.9

17,9107.6

17,312

6.0

41,08723.3

463,666

10.5

25,925-18.1

25,322-18.8

16,646-25.1

16,336-20.7

33,32927.0

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

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

Operating profit

Profit before tax

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

76.05

75.99

72.05

71.97

ProfitTotal
comprehensive
incomeMillion%yen(2) Consolidated financial position

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

Total assets

Total equity

Equity attributableto owners of parent

Million yen

Million yen

Million yen

Ratio of equity
attributableto owners of parent
to total assets%

1,169,398

475,321457,484

39.1

1,091,645

446,482

430,232

39.4

2. Dividends

The fiscal year
ended March 31, 2023
The fiscal year
ending March 31, 2024
The fiscal year
ending March 31, 2024
(Forecasts)

End of firstquarterYen

End of second
quarter
Yen

Dividend per share
End of third
quarter
Yen

Year-end

Annual

Yen

Yen

－

28.00

－

32.00

60.00

－

30.00
－

30.00

60.00

(Note) Changes in forecast of dividends for the fiscal year ending March 31, 2024, from the latest disclosure: No
1

3. Forecast of consolidated operating results for the fiscal year ending March 31, 2024(% of change from previous year)
Revenue

The fiscal year

Operating profit

Profit before tax

Profit attributable toowners of parent

Basic earnings
per share

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

1,080,000

7.5

72,00015.8

70,00014.8

44,0009.6

193.20(Note) Changes in forecast of consolidated operating results for the fiscal year ending March 31, 2024, from the latest
disclosure: No

Notes(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries with changes in the scope of
consolidation): None
(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRS:
Noneb. Changes in accounting policies other than (a):Nonec. Changes in accounting estimates:
None(3) Number of shares outstanding (ordinary shares)
a. Total number of shares outstanding (including treasury shares)
As of September 30, 2023:
229,755,057 shares
As of March 31, 2023:
229,755,057 sharesb. Number of shares of treasury shares
As of September 30, 2023:
1,910,564 shares
As of March 31, 2023:
2,402,613 sharesc. Average number of shares during the term
Six months of the fiscal year ending March 31, 2024:
227,634,448 shares
Six months of the fiscal year ended March 31, 2023:
226,756,043 shares* This report is exempt from quarterly review procedure based on the Financial Instruments and Exchange Act.
* Explanations and other special notes concerning the appropriate use of business performance forecasts
・The forward-looking statements such as result forecasts included in this document are based on the information
available to AIR WATER INC. (hereinafter “the Company”) at the time of the announcement and on certain
assumptions considered reasonable. Actual results may differ materially from the forecast depending on a range offactors.

2

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

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

2) Consolidated results by segment for this period
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 second quarter of the previous fiscal year is disclosed based on the reporting segmentclassification after the change.
（Million yen）

Revenue
FY 2023.2Q
YoY Growth

Operating profit
FY2023.2Q
YoY Growth

Digital & Industry

166,251105.3%

13,525116.7%

Energy Solutions

25,266

91.0%

533

45.7%

Health & Safety

107,866

98.4%

5,750

98.4%

Agriculture & Foods

80,060105.6%

3,852

112.0%

Other Business

97,529105.3%

3,916

202.1%（Adjustment）

-

- ％

797

41.0％

476,975
102.9%
28,375109.5%
Total(Note) The adjustment to operating profit is due to costs incurred at the company’s headquarters division which was
not allocated to any reporting segment.

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

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

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

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

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

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

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

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

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

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

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

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

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and 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 second quarter of the consolidated fiscal year
(Unit：Million yen)Six months ended September 30,
2022

Six months ended September 30,
2023

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

1,145

1,237

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

17,312597
17,910Continuing operations
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Share of profit of investments accounted
for using equity method
Operating profit
Finance income
Finance costs
Profit before tax
Income tax expense
Profit from continuing operations
Discontinued operations
Profit (loss) from discontinued operations
ProfitProfit attributable to
Owners of parent
Non-controlling interests
Profit(Unit：Yen)

Earnings per share
Basic earnings (loss) per share
Continuing operations
Discontinued operations
Basic earnings per share
Diluted earnings (loss) per share
Continuing operations
Discontinued operations
Diluted earnings per share

7

72.06
(0.01)
72.05

76.06(0.01)
76.05

71.98(0.01)
71.97

76.00(0.01)
75.99

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

Six months ended September 30,
2023

16,646

17,910

362

4,664

(12)

43

349

4,708

11,987

10,854

4,111

7,419

234

194

16,333

18,468

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

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of financial assets
measured through other comprehensive
incomeShare of other comprehensive income ofinvestments accounted for using equity method
Total of items that will not be reclassified to
profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Effective portion of gains and losses on
hedging instruments in a cash flow hedge
Share of other comprehensive income ofinvestments accounted for using equity method
Total of items that may be reclassified to profit
or loss
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income8(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Six months ended September 30, 2022
(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
Capital

Exchangedifferences ontranslation offoreign operations

275,158

－

4,614

－

16,336

－

－

－

－

－

12,052

Treasury shares

55,85552,638(4,838)

Profit－－Other comprehensive income－－

Balance as of April 1, 2022

Retainedearnings

Remeasurementsof defined benefit
plans

Capital surplus

Comprehensive income

－

－

－

16,336－

12,052

Purchase of treasury shares

－

－

(1)

－

－

－

Disposal of treasury shares

－

22

669

－

－

－

Dividends－－－(6,637)－－

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

－

－

－

－

－

－

－

(441)

－

－

－

－

－

－

－

575

－

176

－

－

－

(8)

－

－

Put option provided to non-controllingshareholders

－

(188)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

Total transactions with owners
Balance as of September 30, 2022

－

(607)

668

(6,070)－176

55,85552,031(4,170)285,425－

16,8449

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

ShareacquisitionrightsNon-controllinginterests

Total

Total
equity

Total

7,416

3,995

291

16,317395,131

24,725419,857

Profit－－－－16,336309

16,646

Other comprehensive income

369

2,118

－

14,53914,5392,143

16,683Comprehensive income

369

2,118

－

14,53930,8762,453

33,329Purchase of treasury shares

－

－

－

－

(1)

－

(1)

Disposal of treasury shares

－

－

－

－

692

－

692

Dividends

－

－

－

－

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

Share-based payment transactions

－

－

－

－

－

－

－

－

－

－

－

(441)

(79)

(521)

－

－

－

176

752

1

754

8

－

－

8

－

－

－

Put option provided to non-controllingshareholders

－

－

－

－

(188)

－

(188)

Transfer to non-financial assets

－

(426)

－

(426)

(426)

(409)

(835)

8

(426)

－

(241)

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

7,793

5,687

291

30,616

419,757

26,246446,004

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

Total transactions with owners
Balance as of September 30, 202210

Six months ended September 30, 2023
(Unit：Million yen)
Equity attributable to owners of parent
Other components of equity
CapitalBalance as of April 1, 2023

Capital surplus

Treasury shares

Retainedearnings

Remeasurementsof defined benefit
plans

Exchangedifferences ontranslation offoreign operations

55,85549,962(3,532)

303,680－

11,427

Profit－－－17,312－－Other comprehensive income

－

－

－

－

－

10,933Comprehensive income

－

－

－

17,312－

10,933Purchase of treasury shares

－

－

(2)

－

－

－

Disposal of treasury shares

－

6

735

－

－

－

Dividends－－－(7,326)－－

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

－

－

－

－

－

－

－

(13)

－

－

－

－

－

(4)

－

(891)

－

－

－

－

－

193

－

－

Put option provided to non-controllingshareholders

－

(289)

－

－

－

－

Transfer to non-financial assets

－

－

－

－

－

－

Total transactions with owners
Balance as of September 30, 2023

－

(300)

733

(8,024)－－55,85549,662(2,799)312,968－

22,36111

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

ShareacquisitionrightsNon-controllinginterests

Total

Total
equityTotal

10,7081,846

284

24,266430,232

16,249446,482

－

－

－

－

17,312597

17,910

Other comprehensive income

4,693

6,121

－

21,74821,748

1,429

23,177

Comprehensive income

4,693

6,121

－

21,74839,0602,027

41,087Purchase of treasury shares

－

－

－

－

(2)

－

(2)

Disposal of treasury shares

－

－

－

－

742

－

742

Dividends

－

－

－

－

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

－

－

(79)

(79)

(79)

－

(79)

－

－

－

－

(13)

7

(6)

－

(3,281)－(3,281)(4,177)(94)(4,271)

(193)

－

－

(193)

－

－

－

－

－

－

－

(289)

－

(289)

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

－

(662)

－

(662)

(662)

(28)

(691)

Total transactions with owners

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

Balance as of September 30, 2023

15,2084,022

204

41,797457,484

17,836475,32112

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

25,322

Profit (loss) before tax from discontinued operations

27,822(3)(2)

Depreciation and amortization

22,054

22,484

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

987

1,636

(1,145)(1,237)

Loss (gain) on sale and retirement of fixed assets

(32)

(98)

Decrease (increase) in trade and other receivables

3,914

16,882

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

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

Decrease (increase) in contract assets

(453)

1,785

Increase (decrease) in contract liabilities

563

1,371

(5,362)(2,787)

Other

29,87942,482

Interest received

Subtotal

172

356

Dividends received

952

988

(993)

(1,640)

Income taxes paid

Interest paid

(1,521)(7,591)

Net cash provided by (used in) operating activities

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

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

1,814

736

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

196(4,703)

－

684

1,322

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

(8)

(118)

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

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

4,850

2,468

Proceeds from long-term borrowings

8,712

17,651

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

Proceeds from issuance of bonds

10,00030,000Additional purchase of shares of subsidiaries

(551)

(6)

Proceeds from sale and leaseback transactions

520

593

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

Dividends paid

(6,633)(7,324)

Dividends paid to non-controlling interests

(444)

(324)

Other

675

685

Net cash provided by (used in) financing activities

4,067

24,374

Impact of exchange fluctuations for cash and cash equivalents

1,369

584

Net increase (decrease) in cash and cash equivalents
Net increase (decrease) in cash and cash equivalents due to a change
in the scope of consolidation
Cash and cash equivalents at beginning of period(288)(4,680)

841

1,986

59,55465,944

Cash and cash equivalents at end of period

60,107

63,25013