1.Results for the Three Months Ended June 30, 2014 (1) Results of Operation (% of change from previous year)

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1 August 8, 2014 Consolidated Financial Results (Japanese Accounting Standards) For the First Quarter of the March 31,2015 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, 2014 (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, 2014: 6,702 millions of yen (15.8 %) Three months ended June 30, 2013: 5,786 millions of yen (107.5 %) June 30, 2014 June 30, 2013 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, 2014: 206,902 millions of yen, as of March 31, 2014: 203,500 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: Yes 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, 2014: 198,705,057 shares As of March 31, 2014: 198,705,057 shares b. Number of shares of treasury stock As of June 30, 2014: As of March 31, 2014: c. Average number of shares during the term First three months of the fiscal year ending March 31, 2015: First three months of the fiscal year ending March 31, 2014: 2,987,067 shares 3,073,336 shares 195,681,889 shares 195,460,200 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 quarterly review procedure for quarterly consolidated financial statements based on the Financial Instruments and Exchange Act is in progress 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 the overseas business environment surrounding our corporate group, business growth continued to be sluggish in many countries including emerging economies of Asia, and new geopolitical risks arose. However, a moderate recovery continued in the U.S., and signs of a pick-up were also seen in Europe. In Japan, although the decline in demand in some sectors in reaction to the consumption tax hike had an impact, business subsequently improved to exhibit a moderate recovery, with increases seen in capital investment. In our industrial gas business under these circumstances, sales of industrial gas got back on track for a gradual but steady recovery as the manufacturing sector, led by the automobile industry, recovered quickly from temporary drops in production activities in and after April. Our medical business improved to exhibit strong performance despite the impact of the consumption tax hike. However, our chemical business and agriculture and food products business faced difficult conditions. In particular, our daily life-related businesses were severely affected by the consumption tax increase and unseasonal weather. As a result, for this year s first quarter consolidated cumulative period, sales were 157,006 million (106.5% that of the corresponding period of the previous year), operating profit was 7,613 million (98.7%), ordinary profit was 8,428 (100.1%) and quarterly net income was 5,599 million (116.1%). 2) Consolidated results by segment for this period Due to changes in the structure of our group s organization, the business results management segments were changed effective this first quarter consolidated cumulative accounting period, so that AW-Water Business, Nichinoki Seiko Co., Ltd. and Nichinoki Co., Ltd., which previously were classified under Other Businesses, have been moved into Agriculture and Food Products Business; our Welfare and Home Care Business, which was also under Other Businesses, has been re-classified into Medical Business; and Hokkaido Air Water Engineering K.K., which belonged to Industrial Gas Business, has been re-classified into Other Businesses. Also, the segment information for the first quarter cumulative period of the previous consolidated fiscal year has been revised in accordance with the above new reporting segment classification, and this revision has been released. Three months ended June 30, 2014 Net Sales % compared with the corresponding period of the previous year Three months ended June 30, 2014 Ordinary income (Millions of yen) % compared with the corresponding period of the previous year Industrial Gas Business 47, % 2, % Chemical Business 25, % % Medical Business 25, % 1, % Energy Business 11, % % Agriculture and Food Products Business 19, % % Other Businesses 28, % 2, % (adjustment) 726 (Note) Total 157, % 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. Although the impact of the decline in demand in reaction to the consumption tax hike were seen particularly in the automobiles sector, our industrial gas business saw a moderate but continued recovery in gas supply across the overall domestic manufacturers, including gas supply for blast furnaces whose operation has been brisk, for electronic applications led by strong mobile-related demand, for chemical manufacturers that are seeing recovery in production capacity, as well as gas supply for shipbuilding companies that are shifting to a production increase as orders recover. Sales of carbon dioxide, whose supply and demand has been tight, expanded as a result of the increase of production 3

4 capacity carried out last year. In response to the continued increase in production costs due to the rise in electricity prices, we put much effort into revising our gas prices along with various streamlining efforts so as to absorb this cost impact. As a result of the above, sales of this segment were 47,060 million (105.8% that of the corresponding period of the previous year) and ordinary income was 2,751 million (105.3%). In our chemical business, our coal chemical business saw a decline in sales of crude benzene, which is the mainstay of our basic chemical products, due to the decline in the volume of coke furnace gas processing. Our fine chemicals business improved to exhibit strong performance as a result of the streamlining of the production bases for functional chemicals, rationalization of the procurement of raw materials for fine chemicals and an increase in sales of quinolines. However, the business remained difficult as a whole, due to delays in recovery of our tar distillation business. As a result of the above, sales of this segment were 25,356 million (113.6% that of the corresponding period of the previous year) and ordinary income was 618 million (63.9%). Our medical business grew to good levels as a whole, despite no prospect of increase in demand for medical gases including medical oxygen. Our hospital facility construction and sales of our medical equipment were affected by the decline in demand in reaction to the consumption tax hike. Our contract sterilization services improved to exhibit satisfactory performance thanks to the increase in orders received and improvements in earnings. As just described, our medical business continues to grow to have a business structure that can withstand changes in the economic environment through the steady development of the five pillars of business, namely medical gases, hospital facilities, medical equipment, medical services and home medical care. As a result of the above, sales of this segment were 25,121 million (98.0% that of the corresponding period of the previous year) and ordinary income was 1,005 million (101.3%). In our energy business, sales of LP gas faced difficult conditions with a continued decline in household consumption due to the higher-than-average temperature at the beginning of spring which had a serious impact, despite our efforts made to strengthen sales including the acquisition of new customers and promotion of fuel shift for industrial users. Sales of kerosene was also affected by the temperature, as was the case with LP gas, and saw a significant decline in volume, although efforts were made to increase customers through the promotion to strengthen sales to LP gas customers as a supplementary service for them. As a result of the above, sales of this segment were 11,557 million (96.8% that of the corresponding period of the previous year) and ordinary income was 651 million (87.3%). In our agriculture and food products business, our ham/delicatessen and frozen food business saw an increase in sales of our mainstay livestock products and a steady growth in the adoption of our commercial-use sauces and Hokkaido sweets by restaurant chains. Sales of our frozen farm products was affected by the rise in raw materials costs and the effects of exchange rates, but grew to good levels overall. Our beverage business fell into difficult straits due to a significant decline in production and sales of fruit and vegetable beverages, affected by the consumption tax increase and weather. Our agriculture and processed food business faced difficult conditions, because the procurement of some raw materials in the food processing segment was affected by delays in shipment and the rise in prices due to the weather impact. As a result of the above, sales of this segment were 19,368 million (108.2% that of the corresponding period of the previous year) and ordinary income was 577 million (58.8%). In our seawater business among other businesses, our salt manufacturing business fell into difficult straits due to the rise in energy costs, however, sales of our products in new fields, such as potassium chloride, grew to satisfactory levels. In our magnesia business, sales of magnesia for high-grade electromagnetic steel plates improved to exhibit good performance. Although the volume of shipments including those related to construction remained steady, our logistics business faced difficult conditions due to the effects of increases in costs, including the response to the light oil prices and vehicle shortages. As a result of the above, sales of this segment were 28,543 million (113.5% that of the corresponding period of the previous year) and ordinary income was 2,096 million (113.7%). 4

5 (2) Explanation regarding financial position Total assets at the end of the current first quarter consolidated accounting period stood at 518,967 million, a decrease of 9,125 million compared to the end of the previous consolidated fiscal year, due primarily to a decrease in notes and accounts receivable. Liabilities stood at 295,667 million, a decrease of 12,942 million compared to the end of the previous consolidated fiscal year, due primarily to a decrease in notes and accounts payable and income taxes payable. Net assets stood at 223,299 million, an increase of 3,817 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 1, from 1, at the end of the previous consolidated fiscal year, and the equity ratio changed to 39.9% from 38.5% 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,

6 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 (Application of Accounting Standards, etc. for Retirement Benefits) The Company has applied the Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ) Statement No. 26, May 17, 2012) and the Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012, hereinafter the Guidance on Retirement Benefits ) from the first quarter of the current fiscal year with regard to the provisions stipulated in the text from Item 35 of the Accounting Standard for Retirement Benefits and the text from Item 67 of the Guidance on Retirement Benefits. With this application, the Company reviewed the calculation method of retirement benefit obligations and service costs, changed the method of attributing expected benefit to periods from straight-line basis to benefit formula basis, and changed the method of determining the discount rate from the use of the period approximate to the expected average remaining working lives of employees to the use of a single weighted average discount rate reflecting the estimated timing and amount of benefit payment. In accordance with the transitional treatment stipulated in Item 37 of the Accounting Standard for Retirement Benefits, the Company applied this accounting standard at the beginning of the first quarter of the current fiscal year, and the effect of the accounting change in retirement benefit obligations and service costs is adjusted in retained earnings. As a result, net defined benefit assets and net defined liabilities decreased by 262 million and 647 million, and minority equity and retained earnings increased by 51 million and 197 million at the beginning of the first quarter of the current fiscal year. The impact on profits and segment information of this change is immaterial. (Application of Practical Solution on Transactions of Delivering the Company s Own Stock to Employees etc. through Trusts) The Company has applied the Practical Solution on Transactions of Delivering the Company s Own Stock to Employees etc. through Trusts (ASBJ Practical Issues Task Force No. 30, December 25, 2013) from the first quarter of the current fiscal year. Accordingly, the Company recognized as liabilities both of net amount of profit or loss for sales of shares sold by the trust to the employee stock ownership plan and dividends paid by the Company for the shares held by the trust and expenses related to the trust. The Company has retroactively applied this change to the financial statements of the corresponding period of the previous year and the end of the previous consolidated fiscal year. As a result, with this retroactive application, Noncurrent liabilities increased by 140 million and capital surplus and retained earning decreased by 96 million and 43 million. The impact on profits and segment information of this change is immaterial. 6