Air Water : Briefing Script For the Fisical Year Ended March 31, 2024

Air Water Inc.

FY2023 Full Year Financial Results Briefing Script

Presenters:

Ryosuke Matsubayashi: Corporate Director, Senior Managing, COO

Aya Uesugi: Executive Officer, General Manager, Corporate Communications Office Thursday, May 9, 2024

1

Presenter: Ryosuke Matsubayashi: Corporate Director, Senior Managing, COO

Thank you very much for attending this results briefing today.

I would like to begin with an overview of our financial results. Looking at the full-year results for FY2023, revenue was ¥1,024.5 billion (102.0% that of the previous year) , operating profit was ¥68.3 billion (109.8%）and profit attributable to owners of parent was ¥44.4 billion (110.5%)

The business environment was difficult, affected by stagnant semiconductor market conditions and rising costs, including foreign exchange fluctuations. However, we achieved its best ever business performance. This was a result of progress in price revisions for various products, particularly industrial gas and industrial salt, mitigation of the cost impact of the wood biomass power generation business, expansion of the overseas industrial gas business as well as the beverage business, and the effects of the newly consolidated fruit and vegetable wholesale business.

For FY2024, we plan to increase both sales and profit.

We will promote growth investments in areas that we consider growth areas, such as the electronics business and the overseas industrial gas business, where demand for semiconductors is expected to recover. In addition, we will promote business restructuring, including reorganization and integration of group companies and review of underperforming businesses, to strengthen profitability.

2

I would like to reiterate the Group's growth strategy.

Given the social structure of Japan, including the declining birthrate and aging population, we believe that it is unlikely that the market environment surrounding existing businesses in Japan will expand significantly in the future.

Under these circumstances, we will strengthen the profitability of existing domestic businesses, mainly industrial gas, to provide a foundation for stable cash flow. In addition, we are expanding our business overseas, where market growth is expected, and investing in growth in Japan related to demand for electronics, especially semiconductors for generative AI.

We are also focused on creating new businesses through solutions to social issues such as carbon neutrality and future food shortages.

In addition, the core companies of the Group will work together to promote "integrated group management" to optimize management resources such as people, products, capital, and technology. And we are working to improve and enhance capital efficiency.

3

Since 2010, we have achieved our goal of ¥1 trillion in revenue, and since FY2023, management has shifted to full-scale efforts to improve profitability.

Last year, we revised our medium- to long-term ROE target upward from 10% to 12%, and in addition to improving profitability, we are strengthening our efforts to enhance balance sheet control.

Specifically, we will work to streamline and improve the efficiency of our business operations through the use of DX and labor-saving technologies, as well as to increase the added value of our products and services and adjust prices to a level commensurate with their value.

In addition, we will pursue initiatives such as a review of underperforming businesses.

We will also work to improve capital efficiency through inventory reductions and other measures to increase operating cash flow.

To achieve these goals, we intend to strengthen the Group's business management system, centered on our 20 core operating companies in Japan.

4

In an environment where labor shortages are becoming more serious, we need to become a more attractive corporate group entity that is also chosen by employees in order to realize our future medium- and long-term growth strategies.

For this reason, we will continuously focus on human capital investment.

As a key measure, we have set overseas as the center of our future growth investment and are strengthening the development of global human resources who will be responsible for promoting the business.

Starting this year, we will also begin an overseas training program for new employees.

In addition, as a diversity, equity & inclusion measure, we are promoting the appointment of young employees, female managers, and female corporate officers.

As a way to strengthen employee engagement, and for the second consecutive fiscal year, we have raised wages, and are focusing on DX and recurrent education related to new businesses.

5

Next, I will explain the three businesses we are focusing on as growth areas.

First is our overseas expansion. In our overseas operations, we are focusing on three businesses that we believe can grow and become highly profitable as the market expands and that can generate new demand through synergies with existing businesses, aiming to make them new growth engines.

First of these is the industrial gas business in India. In India, which has a broad industrial base and a population of over 1.4 billion people, we are aiming for dramatic growth by acquiring the on-site gas supply for steel mills while following a base strategy of expanding area-wide industrial gas production and supply infrastructure in response to strong industrial gas demand driven by domestic demand. In September last year, we received an order for the on-site gas supply to the Durgapur Steel Plant operated by SAIL, a state-run steelmaker in India. As a result, we have been awarded on-site supply projects from three of the four major blast furnace manufacturers in India. We are still working on securing even more new projects.

The second is the industrial gas and related equipment business in North America. The North American industrial gas market is the largest in the world, about five times the size of the Japanese market (about ¥3 trillion). The business is based on a U.S. version of the "VSU strategy," in which the company acquires gas sales functions in each area through M&A actions targeting gas distributors while establishing its own gas production facilities in the vicinity. In addition, American Gas Products, which supplies the increasingly scarce commodity of helium, has been made a Group subsidiary, with a view to supplying helium to the semiconductor industry in the future.

Furthermore, in North America, initiatives related to carbon neutrality are rapidly developing, especially in California. We possess a full lineup of handling technologies for hydrogen production, storage, and transportation, as well as carbon dioxide recovery and liquefaction technologies. Based on these technologies, we are working to establish a hydrogen value chain in the U.S., and will take on the

6

challenge of the gas and equipment market related to hydrogen and decarbonization.

The third is the high-output uninterruptible power supply (UPS) business. With a focus on rotary uninterruptible power supplies, we provide backup power solutions essential for BCP in data centers and semiconductor plants. The Company entered this business with the acquisitions of Power Partners in Singapore and Hitec in the Netherlands, which were made Group subsidiaries in 2018 and 2019 respectively. We intend to accelerate growth by differentiating ourselves from competing battery products through our technological strengths and by acquiring new customers on the back of growing demand.

Our goal is to increase sales in these three businesses to ¥250 billion in fiscal 2030.

7

Next is the agriculture and food sector. On March 22, we formed a capital and business alliance with Shinmei Holdings Co., Ltd., which is Japan's largest rice wholesaler.

The total volume of agricultural products handled by Air Water and the three companies with whom we collaborate, including our existing collaborations with Vegetech, a trading company specializing in fruits and vegetables and Delica Foods Holdings, a commercial-use vegetable distributor, and the new addition of Shinmei HD, will amount to approximately 1.4 million tons annually. Sales will total ¥700 billion, making it one of the largest federations in Japan.

The flow diagram on the slide above is an illustration of the rice, fruit and vegetable distribution and processing platform."

The areas highlighted in blue are areas where the Group can leverage its unique technologies and infrastructure to our advantage.

For example, in terms of cultivation and procurement, we will expand our agri-support business nationwide, providing harvesting and other services on behalf of our customers. We will scale up 810 ha in FY2023 to 4,000 ha in FY2030, covering the production areas contracted by each company.

In terms of logistics, we will utilize our logistics network for trunk line transportation from production areas to consumption areas, and our low-temperature and freshness preservation technologies will help reduce food loss.

8

In line with the GX (Green Transformation) strategy promoted by the Japanese government, the Air Water Group is aiming for early social implementation while planting seeds through technology development. We intend to make maximum use of our industrial gas and energy business infrastructure and technologies, and target leading environmentally conscious companies to start using low-carbon energy.

Here is a brief overview of our most recent decarbonization-related initiatives.

The Ministry of the Environment's demonstration project to establish a supply chain for biomethane derived from cow manure, which is being undertaken in the Tokachi region of Hokkaido, will be completed at the end of FY2023, and commercial production will begin this fiscal year. First, sales will begin in May to local dairy manufacturers. Going forward, we will work to build a stable supply system, increase volume, and create a market.

With regard to hydrogen supply, we established a new hydrogen production facility in Nagoya in April of this year. This approach takes into account not only the increasing demand from the industrial sector, but also the expected future increase in demand for hydrogen energy. The company is also developing and verifying technologies to produce "CO2-free hydrogen," and today held a groundbreaking ceremony for a demonstration plant in the town of Toyotomi, Hokkaido.

In addition, we are actively involved in various other energy solutions, including the promotion of fuel conversion from heavy oil to LNG, the manufacture and sale of associated supply equipment (especially for ships and commercial vehicles), and the sale of vertical solar power generation systems. With regard to CO2 emitted during energy use, we will develop decarbonization solutions centered on CO2 capture technologies to recycle the CO2 as methanation and chemical raw materials, or to utilize it as carbon dioxide gas and dry ice. AW Green Design, a company established by integrating the carbon dioxide and hydrogen businesses, will take the lead in building a decarbonized business model.

9

Presenter:

Aya Uesugi: Executive Officer, General Manager, Corporate Communications Office

Aya Uesugi from Corporate Communications Office will continue with the briefing including segment details.

As explained earlier by President Matsubayashi, overall revenue increased by ¥19.6 billion and operating profit increased by ¥6.1 billion.

The operating profit margin increased 0.5 percentage points from 6.2% in the previous year to 6.7%, and ROE remained at the same level as the previous year, at 9.7%.

10