1. Results for the Three Months Ended June 30, 2013 (1) Results of Operation (% of change from previous year)

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1 August 14, 2013 Consolidated Financial Results (Japanese Accounting Standards) For the First Quarter of the March 31,2014 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 June 30, 2013 (1) Results of Operation (% of change from previous year) Net Sales Operating Ordinary Income Income Net Income Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, , , , , June 30, , , , , Note: Comprehensive income: Three months ended June 30, 2013: 5,785 millions of yen (107.5%) Three months ended June 30, 2012: 2,788 millions of yen (12.1 %) June 30, 2013 June 30, 2012 Net Income per Share Fully Diluted Net Income per Share Yen Yen (2) Financial Position Total Assets Net Assets Equity Ratio Net Assets per Share Millions of yen Millions of yen % Yen As of June 30, , , As of March 31, , , Reference: Equity: As of June 30, 2013: 188,398 millions of yen, As of March 31, 2013: 185,599 millions of yen 1

2 2. Other (1) Significant changes in subsidiaries during the period (changes in specified subsidiaries with changes in the scope of consolidation): None (2) Application of specific accounting procedures for preparing the quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates and restatement a. Changes in accounting policies arising from revisions of accounting standard: None b. Changes in accounting policies other than (a): None c. Changes in accounting estimates: None d. Restatement: None (4) Number of shares outstanding (ordinary shares) a. Total number of shares outstanding (including treasury stock) As of June 30, 2013: As of March 31, 2013: b. Number of shares of treasury stock As of June 30, 2013: As of March 31, 2013: c. Average number of shares during the term First three months of the fiscal year ending March 31, 2014: First three months of the fiscal year ending March 31, 2013: 198,705,057 shares 198,705,057 shares 3,223,274 shares 3,262,169 shares 195,460,200 shares 195,128,999 shares *Indication of quarterly review procedure implementation status This quarterly earnings report is exempt from quarterly review procedure based on the Financial Instruments and Exchange Act. The review procedure for quarterly consolidated financial statements based on the Financial Instruments and Exchange Act has been completed at the time of disclosure of this report. *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 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 of factors. For matters relating to the forecasts, please, refer to 3-(3) Explanation regarding future forecast information such as consolidated results forecasts 2

3 3. Qualitative Information relating to First Quarter Earnings (1) Explanation of Operating Results 1)Operating results for the current period In regard to the managerial environment surrounding the Air Water Group: While the overall business climate seems to have improved recently due to the correction of the strong yen, stock price rise, reinforced monetary easing by the BOJ, etc., only a limited number of businesses were actually able to realize the benefits of these changes and the majority of businesses failed to experience the positive effects of Japan s economic recovery. Under these circumstances, the sales volume of our Industrial Gas Business segment remained stagnant because gas supply levels had not quite returned to normal and profit margins decreased due to increases in manufacturing costs created by electricity supply issues. However, our other businesses targeting general consumers expanded via the promotion of the All-Weather Management System which helped to minimize the impact of changes in the business climate. Also, our new Agriculture and Food Products Business segment has rapidly increased its sales. Thanks to both of these factors, we achieved sales results that exceeded those of the corresponding period of the previous year. As a result, in the current first quarter consolidated cumulative period, net sales were 147,425 million (119.0% that of the corresponding period of the previous year), operating income was 7,710 million (106.3%), ordinary income was 8,416 million (105.9%), and a quarterly net income was 4,821 million (131.4%). 2) Consolidated results by segment for this period Due to changes in organization structure, the segments classification was changed effective the second quarter of the previous year. The previous Electronics Business segment was integrated into the Industrial Gas Business segment. At the same time, with the expansion of our agricultural business, a new field for us, we have established the new business segment Agriculture and Food Products Business segment, by combining our agriculture business with our food products operations which previously were classified under Other businesses. As a result, results of the previous year were also rearranged under the new segment classification and comparisons with this year were made. Three months ended June 30, 2013 Net Sales % compared with the same period of the previous year Three months ended June 30, 2013 Ordinary income (Millions of yen) % compared with the same period of the previous year Industrial Gas Business 44, % 2, % Chemical Business 22, % % Medical Business 25, % 1, % Energy Business 11, % % Agriculture and Food Products Business 17, % 1, % Other Business 25, % 1, % (adjustment) 271 (Note) Total 147, % 8, % The adjustments to ordinary income are costs incurred at the company s headquarters division and research and development division which were not allocated to each reporting segment, financial profit and loss and others. With regard to our Industrial Gas Business, gas sales to blast furnaces grew to satisfactory levels in response to the highest levels of crude steel production since the first quarter of FY2010 backed by a moderate recovery in domestic demand and an increase in export resulting from the correction of the strong yen. However, the business as a whole failed to show recovery in gas demand, since there was limited recovery in domestic manufacturers except steel manufacturers using blast furnaces, and the upward trend in building demand have not reached regional production sites. Revision of gas prices corresponding to the rise in electricity rates is in steady progress. In our information electronics materials business, Abe Denzai Co., Ltd., a trading company specializing in electric and electronic materials, has been added to the scope of consolidation starting from April

4 In our Chemical Business, the operation of our coal chemical business became steady and the production of basic chemicals led by crude benzene improved to exhibit satisfactory performance. Our fine chemicals business saw further improvement in earnings due to streamlining in production and revision in prices. In our tar distillation business, markets for phthalic anhydride and naphthalene continued to be stable, however, sales of needle coke fell into difficult straits due to the fall in prices. In our Medical Business, sales of medical oxygen secured sales volume which exceeded that of the previous year through the acquisition of new client hospitals. Sales of medical treatment devices exhibited strong performance led by new born baby and infant ventilators and Hyperbaric Oxygen Chambers. As for perinatal devices in particular, the product lineup was enhanced to further strengthen this area. Our medical treatment services strengthened its SPD and home oxygen services through M&As implemented in the previous quarter and launched home infusion pump business. As remodeling and renovation of hospitals continue, our hospital facility construction business improved to exhibit satisfactory performance due to new orders received for the construction of operating rooms and the expansion in sales of operating room-related equipment. However, there has been an influence of a large-scale piping work which will be delayed until the second quarter. In our Energy Business, the LP gas business secured sales that surpassed the level of the previous year through the promotion of fuel shift for industrial customers and others. Further, sales volume of kerosene significantly increased due to the low temperature in early spring and through the promotion to strengthen sales to LP gas customers as a supplementary service for them. In addition, sales of the hybrid hot water and heating system which is our company s unique energy-saving equipment, has been expanding steadily since its launch in 2010, contributing to expansion in LP gas sales volume. In our Agriculture and Food Products Business, sales of our ham and delicatessen products improved to exhibit good performance thanks primarily to expanded use of our mainstay uncured ham and sauces for commercial use by restaurant chains. Gold-Pak Co., Ltd., a beverage company which was added to our consolidated results in October 2012, performed satisfactorily due to an increase in production. Among Other Businesses, our seawater business exhibited strong performance due to expansion in sales of salt for restaurant chains. In our logistics business, the food products distribution and manufacturing of special vehicles grew to satisfactory levels. Starting from the current first quarter, gain on equity method investment in Kanto Natural Gas Development Co., Ltd. has been added to the results of this business segment. (2) Explanation regarding financial position Total assets at the end of the current first quarter consolidated accounting period stood at 502,025 million, an increase of 17,696 million compared to the end of the previous consolidated fiscal year, due primarily to an increase in cash and deposits and fixed assets. Liabilities stood at 298,898 million, an increase of 13,782 million compared to the end of the previous consolidated fiscal year, due primarily to an increase in interest-bearing debt. Net assets stood at 203,126 million, an increase of 3,914 million compared to the end of the previous consolidated fiscal year, due primarily to accumulation of the quarterly net income. Net assets per share grew to from at the end of the previous consolidated fiscal year, and the equity ratio changed to 37.5% from 38.3% at the end of the previous consolidated fiscal year. (3) Explanation regarding future forecast information such as consolidated results forecasts The business forecasts for the second quarter consolidated cumulative period and for the full fiscal year are unchanged from the business forecasts announced on May 14,

5 4. Matters Relating to Summary Information (Other) (1) Significant changes in subsidiaries during the period (changes in specified subsidiaries with changes in the scope of consolidation) None (2) Application of specific accounting procedures for preparing the quarterly consolidated financial statements Calculation of income taxes Income taxes for the majority of consolidated subsidiaries are computed first by reasonably estimating the effective tax rate after applying tax effect accounting against income before income taxes and minority interests for the fiscal year including the first quarter under review, and next by multiplying the quarterly net income before income taxes and minority interests by such estimated effective tax rate. (3) Changes in accounting policies, changes in accounting estimates and restatement None 5