Air Water : Result Presentation For the FY2022

Fiscal Year 2022 Full Year

Financial Results

Explanatory Materials

May 10, 2023

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Contents

Main points of the full-year financial results for fiscal year 2022 and the full-year financial forecast for fiscal year 2023

Financial results for the full year of fiscal year 2022

■Consolidated income statement ・・・・・・・・・・・・・・・・ ・・・ 5

■Revenue by segment ・・・・・・・・・・・・・・・・・ ・・・・・・・・・・6

■Operating profit by segment ・・・・・・・・・・・・・・・・・ ・・・・・・7

■Revenue and operating profit of each segment ・・・・・・・・・・・・・・・8

■Consolidated statement of financial position ・・・・・・・・・・・・・・・13

■Cash flow status ・・・・・・・・・・・・・・・・・ ・・・・・・・・・・ 14

■Capital investment, Depreciation, R&D expenses ・・・・・・・・・・15

Fiscal Year 2023 Full-Year Financial Results Forecast

■Full-year financial results forecast ・・・・・・・・・・・・・・・・・ ・・・17

■Full-year financial results forecast by segment ・・・・・・・・・・・・・・18

■Full-year results forecast and main measures by segment ・・・・・・・・・19

■Cash flow forecast ・・・・・・・・・・・・・・・・・ ・・・・・・・・・・ 24

■Capital investment plan・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・25

■Year-end dividend forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 26

Supplementary materials

• Disclosure Comparison Chart for FY2022 ・・・・・・・・・・・・・・・・・28

■Number of major consolidated companies/major newly consolidated companies・・29 ■Revenue by product in the Digital & Industry and Energy Solutions (in Japan)・・・30 ■Business profit by segment・・・・・・・・・・・・・・・・・・・・・・・・・・・ 31

■Revenue of Regional business companies ・・・・・・・・・・・・・・・・・・・・32

■Revenue of main group companies （old sub-segment）・・・・・・・・・・・・・33

Notes

• The numerical targets and forecasts presented in this document reflect the judgment of our company based on information currently available and involve potential risks and uncertainties. Therefore, the reader should note that actual business performance may differ significantly from the projections made herein due to changes in various factors.
• Air Water Inc.'s financial statements are prepared in accordance with "IFRS"(International
  Financial Reporting Standards).

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Main points of the full-year financial results for fiscal year 2022 and the full-year financial forecast for fiscal year 2023

Main points of the full-year financial results for fiscal year 2022

●Revenue 1,004.9 billion yen (113.1% year-on-year) Operating profit 62.2 billion yen (95.4% year-on-year)

Revenue of 1 trillion yen was achieved.

Operating profit also exceeded the forecast.

• Revenue increased in all segments after the expansion of electronics and medical services as well as the increase of sales prices due to price revisions and market fluctuations, and consequently, the published value of 1 trillion yen was achieved.
• Operating profit exceeded the forecast revised in November 2022 thanks to the strong performance of electronics and medical services and gain on sale of land posted in 4Q which offset the negative impact of soaring costs (for power generation fuels and marine transportation) in the woody biomass power generation business.

●Year-end dividend	Revenue of 1 trillion yen achieved	Total annual dividend
28 yen（interim dividend 28 yen) ＋	60 yen
Commemorative dividend 4 yen
		（Payout Ratio : 33.9%）

Main points of the full-year financial forecast for fiscal year 2023

●Revenue 1,080.0 billion yen (107.5% year-on-year) Operating profit 72.0 billion yen (115.8% year-on-year)

Strengthen earning power

• Aim for growth with an emphasis on strengthening earning power based on the continued revision of prices to ensure thorough price management, reforming the business structure centered on the integration and reorganization of group companies, reducing the impact of the cost of woody biomass power generation and other means.

© AIR WATER INC. | 3

Full-year Financial Results

for Fiscal Year 2022

© AIR WATER INC | 4

FY2022 Full Year Results

Consolidated income statement

		FY2021	FY2022	Increase/decrease
(Unit: Billion yen)
Amount		YoY
Revenue		888.7	1,004.9	＋116.2		113.1%
Cost of sales		▲689.6	▲804.8	▲115.3
Gross profit		199.1	200.1	+1.0		100.5%
Selling, general and administrative expenses	▲139.7	▲150.4	▲10.7
Other operating income and expenses ＊1	3.8	10.0	+6.2
Share of profit of investments accounted for using		1.9	2.5	＋0.6
the equity method
Operating profit		65.2	62.2	▲3.0		95.4%
Finance income and costs		▲0.9	▲1.2	▲0.3
Profit before income taxes		64.2	61.0	▲3.3		94.9%
Income taxes		▲17.8	▲18.0	▲0.2
Profit from discontinued operations (▲:loss)	▲0.1	▲0.3	▲0.2
Profit		46.3	42.6	▲3.6		92.2%
Owners of parent		43.2	40.1	▲3.1		92.9%
Non-controlling interests		3.0	2.5	▲0.5
				*1 Other operating income and expenses in FY2022 includes gain on sale of
Operating profit margin		7.3％	6.2%
	site of a former office building in Sapporo and gain on transfer of shares of
ROE *2		11.5%	9.7%	Air Water & Energia Power Yamaguchi to Chugoku Electric Power Co., Inc.
	*2 "Profit for the period attributable to owners of the parent" ÷"Equity
Basic earnings per share for the period ＊3		191.06yen	176.84yen	attributable to owners of the parent" (The average between the beginning
				and the end of the period.)
※	*2			*3 Basic earnings per share for the period are calculated based on
				the average number of issued shares during the period.

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