Air Water : Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2019

Date: August 9, 2019

Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2019

(Under IFRS)

AIR WATER INC.

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

Chuo-ku, Osaka, Japan

Qualitative Information relating to First Quarter Earnings

(1) Explanation of Operating Results

1) Operating results for the current period

The Japanese economy in the cumulative first quarter of the current consolidated fiscal year was on a moderate recovery trend thanks mainly to improvement in the employment environment and recovery in consumer spending; however, the sense of uncertainty about the future continued to grow, with export remaining stagnant due to the protracted U.S. China trade dispute and slowdown in the Chinese economy, which also affected the production and investment activities of the domestic manufacturing industry.

Under these circumstances, the results of our corporate group showed a strong start toward achieving our fiscal year business results forecast, thanks to the steady progress made in the improvement of the overall business profitability, and also due to the effect of new consolidation through M&As implemented in the previous fiscal year, although there were impacts of changes in the external business environment on some of our businesses.

As a result, for the current first quarter consolidated cumulative period, the group's revenue was ¥183,313 million (7.2% that of the corresponding period of the previous year), operating profit was ¥10,971 million (13.2%), and net profit attributable to owners of parent was ¥7,143 million (5.5%).

Effective the current consolidated fiscal year, the classification of reporting segments has been changed. The segment information for the first quarter cumulative period of the previous consolidated fiscal year has been revised in accordance with the new reporting segment classification.

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2) Consolidated results by segment for this period

					（Million	yen）
		Revenue	Operating profit
	FY 2019.1Q		YoY Growth	FY 2019.1Q	YoY Growth
Industrial Gas Business	42,914		107.5％	4,755	130.5％
Chemical Business	4,744		87.3％	△29	- ％
Medical Business	41,816		110.1％	1,086	107.6％
Energy Business	11,352		104.4％	638	121.3％
Agriculture and	34,495		99.4％	864	79.7％
Food Products Business
Logistics Business	12,271		106.4％	588	116.5％
Seawater Business	8,744		104.6％	508	144.2％
Other Business	26,972		121.8％	1,366	120.5％
（Adjustment）	-		- ％	1,193	103.2％
Total	183,313		107.2％	10,971	113.2％

(Note) The adjustments to operating income are due to costs incurred at the company's headquarters division and R&D division, and profit/loss from financial operations, which were not allocated to any reporting segment.

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