Air Water : Result Presentation For the First Quarter of the March 31, 2023 Fiscal Year

Fiscal year 2022 First Quarter

Financial Results

Explanatory Materials

August 4, 2022

Contents

First Quarter Financial Results for Fiscal Year 2022

Supplementary materials

■Main points of the first quarter financial results・・・・・・・・・・・・・・ 4

• 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

■Disclosure Comparison Chart for FY2022 (Old Segment Disclosure/New Group /Unit Disclosure)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・19

■Number of consolidated companies・・・・・・・・・・・・・・・・・・・・・・・20

■Revenue by product in the Digital & Industry and Energy Solutions (in Japan)・・・21 ■Business profit by segment・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22

■Revenue and operating profit of Regional business companies ・・・・・・・・・23

■Revenue of main group companies （old sub-segment）・・・・・・・・・・・・・24

Fiscal Year 2022 Full-Year Financial Results forecast	■Fiscal Year 2021 Full-Year Financial Results （1H/2H/Full Year）by segment・・・・25
■Fiscal Year 2022 Full-Year Financial Results forecast ・・・・・・・・・・・・・・・・・・・・・ 16
■Full-year financial results forecast by segment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17

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).

© AIR WATER INC | 2

First Quarter Financial Results

for Fiscal Year 2022

© AIR WATER INC | 3

Fiscal year 2022 First Quarter

Main points of the first quarter financial results

(Unit: Billion yen)	2022.1Q	YoY
Revenue	224.7	108.9%
Operating profit	13.0	80.6%
Profit attributable to owners of parent	8.1	75.9%

Despite rigid price revisions following rises in fuel and material prices, the swelling costs in the electric power business had a major adverse impact.

■Revenue

・Revenue surged in all segments, after expansion of the electronics business and medical services business and price changes in response to surging fuel and material prices.

■Operating profit

・Operating profit grew in Health & Safety and in Agriculture & Foods on the basis of solid demand. ・However, the electric power business was heavily hit by the rise in marine transport costs of

palm kernel shells (PKS) used as power generation fuel.

・In total, operating profit was downdue to temporary factors, such as the exclusion of the subsidiary in India after cancellation of the joint venture agreement and the unscheduled Suspension of a woody biomass power plant.

© AIR WATER INC | 4

Fiscal year 2022 First Quarter

Consolidated income statement

	2021.1Q	2022.1Q	Increase/decrease
(Unit: Billion yen)
Amount	YoY
Revenue	206.4	224.7	+18.3	108.9%
Cost of sales	▲158.5	▲177.1	▲18.7
Gross profit	47.9	47.6	▲0.3	99.3%
Selling, general and administrative expenses	▲33.7	▲35.9	▲2.2
Other operating income and expenses	1.2	0.6	▲0.6
Share of profit of investments accounted for using the	0.6	0.6	+0.0
equity method
Operating profit	16.1	13.0	▲3.1	80.6%
Finance income and costs	▲0.0	▲0.3	▲0.3
Quarterly profit before income taxes	16.1	12.7	▲3.4	78.7%
Income taxes	▲4.6	▲4.2	+0.4
Quarterly loss from discontinued operations	▲0.0	▲0.0	+0.0
Quarterly profit	11.5	8.5	▲3.1	73.4%
Owners of parent	10.7	8.1	▲2.6	75.9%
Non-controlling interests	0.9	0.4	▲0.5
Operating profit margin	7.8％	5.8%	*1 "Profit for the period attributable to owners of the parent" ÷"Equity
			attributable to owners of the parent" (The average between the beginning and
ROE *1	3.0%	2.0%	the end of the quarter)
			*2 Basic earnings per share for the period are calculated based on the
Basic net earnings per share for the quarter *2	47.18 yen	35.69 yen
average number of issued shares during the period.

© AIR WATER INC | 5