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

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1 November 11, 2014 Consolidated Financial Results (Japanese Accounting Standards) For the Second 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 September 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 % September 30, , , , , September 30, , , , , Note: Comprehensive income: Six months ended September 30, 2014: 13,268 millions of yen (-5.1 %) Six months ended September 30, 2013: 13,975 millions of yen (90.5 %) September 30, 2014 September 30, 2013 Net Income per Share Fully Diluted Net Income per Share Yen Yen (2) Financial Position As of September 30, 2014 Total Assets Net Assets Equity Ratio Net Assets per Share Millions of yen Millions of yen % Yen 521, , , As of March 31, , , , Reference: Equity as of September 30, 2014: 213,173 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 September 30, 2014: 198,705,057 shares As of March 31, 2014: 198,705,057 shares b. Number of shares of treasury stock As of September 30, 2014: As of March 31, 2014: c. Average number of shares during the term First Six months of the fiscal year ending March 31, 2015: First Six months of the fiscal year ending March 31, 2014: 2,934,990 shares 3,073,336 shares 195,721,501 shares 195,492,884 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 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 Second Quarter Earnings (1) Explanation of Operating Results 1) Operating results for the current period The business environment surrounding our corporate group has gradually improved backed by a trend of moderate economic recovery. However, downturn in production, slow growth in consumer spending and sluggish investment in housing continued, due to the consumption tax hike combined with inclement weather in summer and more savings-oriented consumers. Under these circumstances, our industrial gas business saw a moderate but continued growth in overall gas sales, thanks to robust public investment and an increase in capital investment led by the manufacturing industry, although the level of operation varies among sectors. In our medical business, our five business pillars improved to exhibit satisfactory performance through the steady implementation of their growth strategies. Also, our business groups, the key players of our Order Rodentia Style of Business, maximized each of their strength in expanding business. In contrast, our agriculture and food products business was affected more than anticipated by bad weather and lower-than-average temperature in summer. Our chemical business also faced difficult conditions. As a result, for this year s second quarter consolidated cumulative period, sales were 320,369 million (105.5% that of the corresponding period of the previous year), operating profit was 15,385 million (103.9%), ordinary profit was 16,587 million (104.8%) and quarterly net income was 10,158 million (113.1%). 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 previous year s second quarter consolidated cumulative period has been revised in accordance with the above new reporting segment classification, and this revision has been released. (Millions of yen) Six months ended September 30, 2014 Net Sales % compared with the corresponding period of the previous year Six months ended September 30, 2014 Ordinary income % compared with the corresponding period of the previous year Industrial Gas Business 97, % 5, % Chemical Business 51, % 1, % Medical Business 54, % 2, % Energy Business 21, % % Agriculture and Food Products Business 38, % 1, % Other Businesses 56, % 3, % (adjustment) 972 (Note) Total 320, % 16, % 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. <Industrial Gas Business> Although there were weaknesses in some sectors due to the impact of the consumption tax hike, our industrial gas supply business grew to satisfactory levels as a whole, led by sales of air separation gases, and helped by our on-site gas supply business to blast furnaces which grew steadily thanks to strong production of crude steel and our gas supply business for electronics, electric and chemical companies, shipbuilding firms, construction equipment manufacturers, and steel frame and bridge construction companies, as their capability for recovery in production gradually improved. In our information electronic materials business, sales of our electronic materials for electric and semiconductor components grew due to the increased operation level of our customers. However, with increases in production costs due to the rise in electricity prices and the continued impact of 3

4 procurement costs for helium gas whose supply and demand fluctuate greatly, the environment surrounding the industrial gas business still remains severe. As a result of the above, sales of this segment were 97,096 million (105.1% that of the corresponding period of the previous year) and ordinary profit was 5,416 million (101.6%). <Chemical Business> Our coal chemical business saw a decline in sales and production of crude benzene, which is the mainstay of our basic chemical products business, due to the decline in the volume of coke oven gas processing. Sales of our carbon materials expanded, led by high-value-added materials used for building. Our fine chemicals business improved to exhibit strong performance as a result of the restructuring of production bases for functional chemicals for higher efficiency, changes in the procurement of raw materials, and an increase in sales of quinolines. Our tar distillation business fell into difficult straits as a whole, due to the rise in raw materials prices and deterioration of market conditions for needle coke. As a result of the above, sales of this segment were 51,286 million (109.1% that of the corresponding period of the previous year) and ordinary profit was 1,105 million (83.3%). <Medical Business> Sales of our medical oxygen improved to exhibit strong performance overall through our efforts to acquire new client hospitals and revise our gas prices. Our hospital facility construction has improved to exhibit satisfactory performance as a result of our efforts to offer proposals for the construction of high-value-added operating rooms and ICU facilities and expand new orders for medical gas piping facilities construction. Sales of our medical treatment devices suffered from the decline in demand in reaction to the consumption tax hike, but still grew to good levels due to the sales of our medical treatment nitric monoxide formulation INOflow used for the treatment of pulmonary hypertension in newborn infants which grew because of the increase in the number of these cases. The earnings of our medical treatment services have improved steadily, through the acquisition of new client hospitals to which we provide SPD services, increase of new outsourcing orders for sterilization services, and revision of sterilization service contract terms. Our home medical services business saw expansion in the rentals of home oxygen concentrators and in the use of home infusion pumps in which our company has an overwhelming market share, due to the accelerating shift from hospital to home medical care. As just described, these five pillars of our medical treatment business steadily implemented their growth strategies. As a result of the above, sales of this segment were 54,823 million (102.7% that of the corresponding period of the previous year) and ordinary profit was 2,872 million (108.6%). <Energy Business> Although we made efforts to expand sales of LP gas through the acquisition of new customers and promotion of fuel shift in industry, our LP gas business fell into difficult straits due to a decline in sales volume resulting from the decrease in per capita household consumption caused by the higher-than-average temperature that continued since the beginning of spring. There was a considerable decrease in the volume of kerosene sold due to the impact of the temperature, increase in savings-oriented consumers, and selling prices that remained elevated. On the other hand, our hybrid hot water supply and heating system, which serves both to save heating costs and to increase the consumption of LP gas of households, has been adopted in steadily increasing numbers, and thereby significantly contributed to the increase in sales of LP gas. As a result of the above, sales of this segment were 21,613 million (101.6% that of the corresponding period of the previous year) and ordinary profit was 881million (92.8%). <Agriculture and Food Products Business> In our ham/delicatessen and frozen food businesses, sales of our mainstay dry-cured ham series for major convenience store chains expanded. Also, a system has been established to accommodate increased production of sweets with the start of operation of a new factory in Otaru City, Hokkaido. In contrast, our frozen farm products business faced difficult conditions as a whole, due to the rise in raw materials costs and exchange rates that had a strong negative impact. In our beverage businesses, sales of fruit and vegetable beverages remained severe due to the impact of unseasonal weather during the summer peak demand period which followed the consumption tax hike. In our farm products and food processing businesses, inclement weather had a strong impact on the procurement of raw materials, which resulted in decrease in the production volume of processed vegetables. 4

5 As a result of the above, sales of this segment were 38,733 million (102.4% that of the corresponding period of the previous year) and ordinary profit was 1,595million (80.7%). <Other Businesses> Among our seawater businesses, our salt manufacturing business faced difficult conditions due to a decline in the sales volume of general-use salt and commercial use salt manufactured using a special method, due to higher energy costs and the impact of the consumption tax increase. On the other hand, in our environmental business, production and sales of our independently-developed adsorbent agent and of potassium chloride improved steadily. In our magnesia business, sales of magnesia for high-quality electromagnetic steel sheets and magnesia for heaters grew to satisfactory levels. Our logistics business performed strongly overall, thanks to the increase in the volume of shipments of construction materials such as steel frames and lumber and the expansion of contract manufacturing of trailer bodies by our special vehicle manufacturing section, which absorbed the rise in costs of light oil etc. and our having to deal with an insufficient number of company vehicles. As a result of the above, sales of this segment were 56,816 million (109.9% that of the corresponding period of the previous year) and ordinary profit was 3,742 million (100.0%). (2) Explanation of financial state Total assets at the end of the current second quarter consolidated accounting period stood at 521,319 million, a decrease of 6,772 million compared to the end of the previous consolidated fiscal year, due primarily to a decrease in notes and accounts receivable. Liabilities stood at 291,433 million, a decrease of 17,177 million compared to the end of the previous consolidated fiscal year, due primarily to a decrease in notes and accounts payable. Net assets stood at 229,886 million, an increase of 10,404 million compared to the end of the previous consolidated fiscal year, due primarily to accumulation of the quarterly net profit. Net assets per share grew to 1, from 1, at the end of the previous consolidated fiscal year, and the equity ratio changed to 40.9% from 38.5% at the end of the previous consolidated fiscal year. Cash flow from operating activities for the current second quarter consolidated cumulative period was an inflow of 23,046 million, a decrease of 2,121 million compared to that in the previous second quarter consolidated cumulative period, as a result of deducting payments including corporate taxes from net profit before taxes, depreciation costs, etc. Cash flow from investing activities for the current second quarter consolidated cumulative period was an outflow of 14,354 million, which was a decrease of 14,779 million in outflow compared to the previous second quarter consolidated cumulative period, due mainly to a decrease in expenditure for the acquisition of tangible fixed assets. Cash flow from financial activities for the current second quarter consolidated cumulative period was an outflow of 6, 981 million, compared to an inflow of 9,097 million in the previous second quarter consolidated cumulative period, as a result of efforts to reduce borrowing. As a result of the above, deposits of cash and cash equivalents at the end of the current second quarter consolidated cumulative period stood at 22,398 million, a decrease of 2,733 million compared to the end of the previous second quarter consolidated cumulative period. (3) Explanation of future prediction information such as consolidated results predictions As the adverse impact resulting from the consumption tax hike has almost run a full course, the current business environment continues to maintain a moderate recovery trend. However, there are still a number of uncertain factors, including the rise of crude oil prices and drastic exchange rate fluctuations arising from geopolitical risks, as well as further rise in electricity prices and delay in construction caused by insufficient labor and resources. Under these circumstances, our industrial gas business will steadily implement revision of gas prices, and will plan measures to strengthen gas supply and sales systems in local regions, which is a key strategy of our industrial gas business, e.g. by the installation of filling stations. In our medical business, we will strengthen the cooperation between our operations, forming a highly competitive organizational system in order to offer high-value-added proposals and expand our business with large-scale hospitals. For our energy, agriculture, and food-related businesses, we will make efforts to realize businesses that are largely insusceptible to climate changes. Our company received a partial refund of fines paid for violations to the Antimonopoly Law and additional payments in the second half of the fiscal year, amounting to 3,302 million. However, we are considering making environmental improvements to strengthen our corporate structure during this period, measures which had not been originally planned, and therefore, our business predictions for the full fiscal year remain unchanged. 5

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 second 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 cumulative second 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 cumulative second 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