Date: August 4, 2022

Consolidated Financial Results (Under IFRS)

For the First Quarter of the March 31, 2023 Fiscal Year

AIR WATER INC.

Head Office: 12-8, Minami semba 2-chome,

Chuo-ku, Osaka, Japan

Qualitative Information relating to First Quarter Settlement of Accounts

(1) Explanation of Operating Results

1) Operating results for the current period

During the cumulative first quarter of the current consolidated fiscal year under review, there was a recovery of economic activity in Japan centered around service consumption as social activity gradually moved toward normalization while the number of people newly infected with the COVID- 19 coronavirus decreased.

However, inflationary pressure increased due to supply chain stagnation caused by Russia's invasion of Ukraine, China's zero COVID-19 policy, the rising prices of resources, energy, foods, etc., which is partially the result of the rapidly weakening yen, and other factors This inflation accelerated by the rising raw materials prices impacted companies' earnings, especially in domestic demand-related industries, which resulted in the continued uncertainty for the future prospects.

In these circumstances, AIR WATER INC. (hereinafter the "Company") contributed to solutions to social issues through its business activities in line with its growth axes, Global Environment and Wellness (Healthy Life) to be promoted as the Company moves toward FY2030, formulated its "terrAWell 30" long-term vision, and prepared its "terrAWell 30 1st stage" medium-term management plan, which focuses on the three years up to FY2024.

In addition, as a strategic move for the realization of the long-term vision, the Company's Group (hereinafter the "Group") implemented a major organizational reform in April 2022 to establish a management system that has unified the Company's headquarters organization and the Group companies to integrate the management resources of the Group's diverse businesses, human resources, and technologies for the creation of synergy through the optimization of the Group as a whole.

During the cumulative first quarter of the current consolidated fiscal year under review, the Group endeavored to expand in the electronics field and in the North American industrial gas business while taking initiatives to increase profitability by increasing efficiency in the production and distribution phases and endeavored to create new businesses such as the collection and utilization of CO2. The Group also promoted a thorough overall revision of prices in its businesses to mitigate the impact of a rapid increase in the costs of energy and raw materials on business results.

As a result, revenue increased in all business segments due to the price revisions to address increasing costs and due to business expansion in the electronics field and medical service field. In terms of profit, the Health & Safety and Agriculture & Foods segments posted a year-on-year increase partly due to increased earnings power in an environment with continuing steady demand. At the same time, the Digital & Industry segment was affected by the exclusion of a subsidiary from consolidation, and the Energy Solutions segment was affected by a rise in costs of the maritime transport of fuel for power generation and unscheduled suspension due to equipment issues in the electricity field.

As a result, for the current first quarter consolidated cumulative period, the group's revenue was ¥224,720 million (108.9% that of the corresponding period of the previous year), operating profit was ¥12,984 million (80.6%), and profit attributable to owners of parent was ¥8,089 million (75.9%).

2) Consolidated results by segment for this period.

Million yen

Revenue

Operating profit

FY 2022.1Q

YoY Growth

FY 2022.1Q

YoY Growth

Digital & Industry

75,790

112.6

6,155

85.1

Energy Solutions

26,784

108.3

1,285

56.1

Health & Safety

53,668

104.9

2,767

100.7

Agriculture & Foods

36,917

108.1

1,376

122.7

Other Business

31,559

108.7

609

44.7

Adjustment

-

-

789

58.3

Total

224,720

108.9

12,984

80.6

(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.

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AIR WATER Inc. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 07:56:20 UTC.