Iwatani : Overview of Business Results for 3Q FY25

About this update from Iwatani Corporation

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Consolidated Financial Results for the Nine Months Ended December 31, 2025 [Japanese GAAP] February 10, 2026 Company name: IWATANI CORPORATION Stock exchange listing: Tokyo Code number: 8088 URL: https://www.iwatani.co.jp/ Representative: Hiroshi Majima President Contact: Tetsuo Matsuo General Manager Accounting Dept. Phone: 06-7637-3325 Scheduled date of commencing dividend payments: - Availability of supplementary briefing material on financial results: Yes Schedule of financial results briefing session: Yes (Amounts of less than one million yen are rounded down) Consolidated Financial Results for the Nine Months Ended December 31, 2025 (April 1, 2025 to December 31, 2025) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Nine months ended Million yen % Million yen % Million yen % Million yen % December 31, 2025 641,130 2.7 20,497 (24.4) 29,527 (21.0) 26,772 0.9 December 31, 2024 624,374 1.1 27,119 (15.0) 37,366 1.6 26,526 9.8 (Note) Comprehensive income: Nine months ended December 31, 2025: ¥ 41,017 million [ 61.1 %] Nine months ended December 31, 2024: ¥ 25,460 million [(23.1)%] Basic earnings per share Diluted earnings per share Nine months ended Yen Yen December 31, 2025 116.32 - December 31, 2024 115.27 - (Notes) 1 The Company finalized the provisional accounting treatment for the application of equity method in the fiscal year ended March 31, 2025. As a result, figures for the nine months ended December 31, 2024 reflect the finalization of the provisional accounting treatment. 2 The Company carried out a 4-for-1 share split of its common share as of October 1, 2024. Basic earnings per share has been calculated as if this share split were carried out at the beginning of the previous fiscal year. Consolidated Financial Position Total assets Net assets Capital adequacy ratio As of Million yen Million yen % December 31, 2025 902,993 422,543 45.5 March 31, 2025 873,044 397,209 44.2 (Reference) Equity: As of December 31, 2025: ¥ 410,413 million As of March 31, 2025: ¥ 386,053 million (Note) The Company finalized the provisional accounting treatment for the business combination in the first half of the fiscal year ending March 31, 2026. As a result, figures as of March 31, 2025 reflect the finalization of the provisional accounting treatment. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - - - 47.00 47.00 Fiscal year ending March 31, 2026 - 23.50 - Fiscal year ending March 31, 2026 (Forecast) 23.50 47.00 (Note) Revision to the forecast for dividends announced most recently: No Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026(April 1, 2025 to March 31, 2026) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Full year Million yen 888,000 % 0.6 Million yen 35,800 % (22.5) Million yen 48,200 % (21.6) Million yen 40,500 % 0.1 Yen 175.96 (Note) Revision to the financial results forecast announced most recently: Yes * Notes: Significant changes in the scope of consolidation during the period: Yes New 3 Companies Exclusion: 8 Companies Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No Changes in accounting policies, changes in accounting estimates and retrospective restatement Changes in accounting policies due to the revision of accounting standards: No Changes in accounting policies other than 1) above: Yes Changes in accounting estimates: No Retrospective restatement: No (Note) For details, please refer to "Quarterly Consolidated Financial Statements and Notes (3) Explanatory Notes to Quarterly Consolidated Financial Statement (Notes to Changes in Accounting Policies)" on page 8 of the attached document. Total number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares): December 31, 2025: 234,246,596 shares March 31, 2025: 234,246,596 shares Number of treasury shares at the end of the period: December 31, 2025: 4,068,470 shares March 31, 2025: 4,107,871 shares Average number of shares outstanding during the period: Nine months ended December 31, 2025: 230,165,154 shares Nine months ended December 31, 2024: 230,131,824 shares (Note) The Company carried out a 4-for-1 share split of its common share as of October 1, 2024. Average number of shares outstanding during the period has been calculated as if this share split were carried out at the beginning of the previous fiscal year. *1. Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary) *2. Cautionary Statement with Respect to Forward-Looking Statements, and Other Information (Caution regarding forward-looking statements) The forward-looking statements, such as results forecasts, included in this document are based on information currently available to the Company and assumptions considered reasonable, and do not purport to be a promise by the Company to achieve such results. Actual results may differ materially, depending on a range of factors. For the assumptions prerequisite to the results forecasts and the points to be noted in the use of the results forecasts, please see "Overview of Operating Results, Etc. (4) Consolidated Financial Results Forecasts" on page 3. (How to obtain supplementary briefing material on financial results) The briefing material on financial results is scheduled to be posted on the company's website. Contents Overview of Operating Results, Etc. 2 Overview of Operating Results for the Nine Months Ended December 31, 2025 2 Segment Information 2 Overview of Financial Position for the Nine Months Ended December 31, 2025 3 Consolidated Financial Results Forecasts 3 Quarterly Consolidated Financial Statements and Notes 4 Quarterly Consolidated Balance Sheets 4 Quarterly Consolidated Statements of Income and Comprehensive Income 6 Explanatory Notes to Quarterly Consolidated Financial Statements 8 (Notes to Changes in Accounting Policies) 8 (Notes to Segment Information, Etc.) 8 (Notes in the Event of Significant Changes in Shareholders' Equity) 9 (Notes on the Assumption of a Going Concern) 9 (Notes to Quarterly Consolidated Statements of Cash Flows) 9 (Notes on Business Combinations, Etc.) 10 Additional Information 11 Results for 3Q FY2025 11 Consolidated Statements of Income 11 Operating Profit Except for Impact of LPG Import Price Fluctuation 11 LPG Import Price (CP) 11 Segment Information 11 LPG and Industrial Gases Net Sales -Sales Volume 12 Financial Position 12 Capital Expenditure 12 Amount of share of profit or loss of Cosmo accounted for using equity method 12 Non-consolidated 12 Overview of Operating Results, Etc. Overview of Operating Results for the Nine Months Ended December 31, 2025 Economic Environment and Initiatives During the cumulative third quarter of the current fiscal year, the Japanese economy showed a recovery trend due to a pickup in personal consumption backed by a solid income environment and steady corporate earnings. However, the outlook remained uncertain due to geopolitical risks such as the direction of trade and foreign policies in the U.S. and the deterioration in Japan-China relations. Under these circumstances, Iwatani (hereinafter referred to as the "Company") expanded its business to achieve its basic policies of "solutions to social issues" and "sustained growth" in accordance with its medium-term management plan, "PLAN27," which ends in the fiscal year ending March 31, 2028. In order to realize a hydrogen energy-based society, Japan Suiso Energy, Ltd., an investee of the Company, began construction of "Kawasaki LH2 Terminal," which will serve as the principal facility for receiving liquid hydrogen procured from overseas. This facility will be equipped with one of the world's largest liquid hydrogen storage tanks, along with marine loading and unloading facilities, liquefaction facilities, and more, and is expected to become the world's first commercial-scale receiving terminal. From 2030 onward, it will strive to provide hydrogen to domestic customers. As part of its overseas strategies, the Company acquired Coburn Resources Pty Ltd, which owns mineral sands mining sites in Australia capable of long-term operation. Combined with the existing mining sites operated by Iwatani Australia Pty. Ltd., a wholly-owned subsidiary of the Company, our supply capacity will be more than doubled. By leveraging the extensive operational experience and know-how of Iwatani Australia Pty. Ltd. in mineral sands mining, we will further strengthen the foundation of our mineral sands business, which we position as a critical mineral resource, and work towards establishing a stable supply system. Earnings As a result of the negative impact of LPG import price fluctuations, the weakening of the helium market, and a decrease in share of profit of entities accounted for using the equity method, for the cumulative third quarter of the current fiscal year, net sales were 641.130 billion yen (+16.755 billion yen year-on-year), operating profit was 20.497 billion yen (-6.622 billion yen year-on-year), ordinary profit was 29.527 billion yen (-7.838 billion yen year-on-year), and profit attributable to owners of parent was 26.772 billion yen (+0.245 billion yen year-on-year). Segment Information Integrated Energy In the Integrated Energy Business, revenue decreased due to the import price of LPG falling below the previous year, leading to a decline in sales prices. As for profits, in the retail sector, LPG sales volume increased, and profitability improved. Meanwhile, sales volume decreased in the wholesale sector, and due to a negative impact of LPG import price fluctuations (-4.867 billion yen year-on-year), profits declined. Furthermore, the slowdown in the Chinese economy led to low sales of portable gas cooking stoves and cassette gas canisters. As a result, net sales in this segment were 251.991 billion yen (-3.820 billion yen year-on-year), and operating profit was 2.957 billion yen (-4.715 billion yen year-on-year). Industrial Gases & Machinery In the Industrial Gases & Machinery Business, while sales of hydrogen and hydrogen-related equipment grew, the profitability of air separation gases declined due to sluggish demand in China, and the profitability of specialty gases also declined as a result of the weakening of the helium market. In the gas-related equipment, shipments of equipment for the automotive industry decreased. As a result, net sales in this segment were 205.395 billion yen (+9.598 billion yen year-on-year) and operating profit was 9.368 billion yen (-2.864 billion yen year-on-year). Materials In the Materials Business, sales grew due to efforts to ensure stable supply amid continued export restrictions from China on rare earths and other items. In addition, sales of food packaging resin products and eco-friendly PET resin were solid, and sales of stainless steel increased due to the impact of new consolidation. On the other hand, the mineral sands business saw declining profitability of our mining sites in Australia, and the sales volume of high-performance film materials for China decreased. As a result, net sales in this segment were 159.072 billion yen (+10.005 billion yen year-on-year) and operating profit was 8.576 billion yen (-0.180 billion yen year-on-year). Others, Adjustments Net sales were 24.670 billion yen (+0.972 billion yen year-on-year), and operating profit was 2.627 billion yen (-0.115 billion yen year-on-year). Overview of Financial Position for the Nine Months Ended December 31, 2025 Total Assets Total assets at the end of the third quarter of the current fiscal year increased by 29.948 billion yen from the end of the previous fiscal year to 902.993 billion yen. This was mainly due to increases of 19.317 billion yen in investment securities, 8.686 billion yen in merchandise and finished goods, 5.824 billion yen in "Other" under property, plant and equipment, including construction in progress, 3.578 billion yen in work in process, and 3.238 billion yen in electronically recorded monetary claims - operating, despite decreases of 8.309 billion yen in notes and accounts receivable - trade, and contract assets and 5.748 billion yen in land. Total Liabilities Total liabilities at the end of the third quarter of the current fiscal year increased by 4.614 billion yen from the end of the previous fiscal year to 480.449 billion yen. This was mainly due to an increase of 18.729 billion yen in short-term borrowings, despite decreases of 7.832 billion yen in income taxes payable and 6.314 billion yen in long-term borrowings. Interest-bearing debt, including lease liabilities, etc., at the end of the third quarter of the current fiscal year increased by 9.041 billion yen to 273.489 billion yen from the end of the previous fiscal year. Total Net Assets Total net assets at the end of the third quarter of the current fiscal year increased by 25.334 billion yen from the end of the previous fiscal year to 422.543 billion yen. This was mainly due to increases of 13.008 billion yen in valuation difference on available-for-sale securities and 11.293 billion yen in retained earnings. Consolidated Financial Results Forecasts We have revised our consolidated financial results forecast announced on May 14, 2025. For details, please see the "Notice Concerning Revisions to Financial Results Forecasts" announced today (February 10, 2026). Quarterly Consolidated Financial Statements and Notes Quarterly Consolidated Balance Sheets (Million yen) As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash and deposits 27,759 26,584 Notes and accounts receivable - trade, and contract assets 162,256 153,946 Electronically recorded monetary claims - operating 26,368 29,607 Merchandise and finished goods 65,786 74,472 Work in process 7,375 10,954 Raw materials and supplies 11,391 12,398 Other 27,733 30,399 Allowance for doubtful accounts (212) (253) Total current assets 328,458 338,110 Non-current assets Property, plant and equipment Land 79,287 73,538 Other, net 160,918 166,743 Total property, plant and equipment 240,206 240,282 Intangible assets Goodwill 21,090 20,210 Other 27,515 16,655 Total intangible assets 48,606 36,865 Investments and other assets Investment securities 211,938 231,255 Other 44,380 57,031 Allowance for doubtful accounts (545) (551) Total investments and other assets 255,772 287,735 Total non-current assets 544,585 564,882 Total assets 873,044 902,993 (Million yen) As of March 31, 2025 As of December 31, 2025 Liabilities Current liabilities Notes and accounts payable - trade 76,102 72,695 Electronically recorded obligations - operating 34,367 35,199 Short-term borrowings 24,421 43,150 Income taxes payable 10,882 3,049 Contract liabilities 8,330 10,850 Provision for bonuses 7,194 3,613 Other 93,695 91,440 Total current liabilities 254,993 259,999 Non-current liabilities Bonds payable 70,000 70,000 Long-term borrowings 111,619 105,305 Provision for retirement benefits for directors (and other officers) 1,522 1,209 Retirement benefit liability 6,082 6,253 Other 31,616 37,682 Total non-current liabilities 220,841 220,450 Total liabilities 475,835 480,449 Net assets Shareholders' equity Share capital 35,096 35,096 Capital surplus 32,128 32,179 Retained earnings 274,909 286,203 Treasury shares (1,558) (1,549) Total shareholders' equity 340,576 351,930 Accumulated other comprehensive income Valuation difference on available-for-sale securities 29,334 42,342 Deferred gains or losses on hedges 2,270 3,185 Foreign currency translation adjustment 11,839 11,512 Remeasurements of defined benefit plans 2,031 1,441 Total accumulated other comprehensive income 45,476 58,483 Non-controlling interests 11,155 12,129 Total net assets 397,209 422,543 Total liabilities and net assets 873,044 902,993 Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income (For the nine months) (Million yen) Nine months ended Nine months ended December 31, 2024 December 31, 2025 Net sales 624,374 641,130 Cost of sales 459,551 475,593 Gross profit 164,823 165,536 Selling, general and administrative expenses Transportation costs 24,003 24,142 Provision of allowance for doubtful accounts 8 63 Salaries, allowances and bonuses 38,519 40,230 Provision for bonuses 3,383 3,730 Retirement benefit expenses 1,471 1,262 Provision for retirement benefits for directors (and other officers) 125 115 Other 70,191 75,494 Total selling, general and administrative expenses 137,703 145,038 Operating profit 27,119 20,497 Non-operating income Interest income 277 230 Dividend income 1,641 1,832 Foreign exchange gains 185 145 Share of profit of entities accounted for using equity method 6,846 5,101 Subsidy income 1,556 1,507 Other 2,685 3,328 Total non-operating income 13,193 12,145 Non-operating expenses Interest expenses 2,007 2,279 Other 938 835 Total non-operating expenses 2,946 3,115 Ordinary profit 37,366 29,527 Extraordinary income Gain on sale of non-current assets 462 11,946 Gain on sale of investment securities 3,415 807 Gain on liquidation of subsidiaries and associates - 409 Subsidy income 196 52 Gain on liquidation of project - 332 Total extraordinary income 4,074 13,549 Extraordinary losses Loss on sale of non-current assets 177 65 Loss on retirement of non-current assets 311 494 Impairment losses 3 1,283 Loss on sale of investment securities 1 2 Loss on liquidation of subsidiaries and associates 1 - Loss on tax purpose reduction entry of non-current assets 196 52 Total extraordinary losses 692 1,898 Profit before income taxes 40,748 41,178 Income taxes 13,394 13,321 Profit 27,354 27,857 Profit attributable to non-controlling interests 827 1,084 Profit attributable to owners of parent 26,526 26,772 Quarterly Consolidated Statements of Comprehensive Income (For the nine months) (Million yen) Nine months ended Nine months ended December 31, 2024 December 31, 2025 Profit 27,354 27,857 Other comprehensive income Valuation difference on available-for-sale securities (2,174) 11,980 Deferred gains or losses on hedges (164) 791 Foreign currency translation adjustment 2,263 (1,957) Remeasurements of defined benefit plans, net of tax (110) (558) Share of other comprehensive income of entities accounted for using equity method (1,708) 2,903 Total other comprehensive income (1,894) 13,160 Comprehensive income 25,460 41,017 Comprehensive income attributable to Comprehensive income attributable to owners of parent 24,573 39,779 Comprehensive income attributable to non-controlling interests 887 1,238 Explanatory Notes to Quarterly Consolidated Financial Statements (Notes to Changes in Accounting Policies) (Changes in method of valuating inventories) Previously, the Company principally used the first-in first-out method for valuation of products related to the Integrated Energy Business. From the third quarter of the current fiscal year, however, the Company has changed the principal method to the gross average method. This change was made with the purpose of more appropriately calculating the valuation of inventories and periodic profit or loss on the occasion of changes to the core system. Furthermore, since a portion of the required data for previous fiscal years is not available and the principle-based treatment pertaining to the retrospective application is not practically possible, the carrying amount at the end of the previous fiscal year is calculated as the balance at the beginning of the current fiscal year. Additionally, this change has been applied since the third quarter of the current fiscal year, when the core system began operation. The impact of this change is immaterial. (Notes to Segment Information, Etc.) Third Quarter of FY2024 (April 1, 2024 - December 31, 2024) Information related to sales, operating income (loss) by reportable segment (million yen) Reportable Segments Others *1 Total Adjustments *2 Quarterly Consolidated Statements of Income *3 Integrated Energy Industrial Gases & Machinery Materials Subtotal Net sales Outside customers Intersegment 255,811 3,602 195,797 2,151 149,067 1,594 600,676 7,348 23,698 20,370 624,374 27,719 -(27,719) 624,374 - Total 259,414 197,949 150,661 608,025 44,068 652,093 (27,719) 624,374 Segment income (loss) 7,673 12,232 8,757 28,663 2,743 31,406 (4,286) 27,119 (Note) *1. "Others" is an operating segment not included in reportable segments. "Others" represents businesses in foods, livestock industry, finance, insurance, transportation, safety, information processing, etc. *2. Adjustments for segment income (loss) include companywide expenses not allocated to each segment and the elimination of intersegment transactions. *3. Segment income (loss) is adjusted with operating income of the quarterly consolidated statements of income. Information on impairment loss on fixed assets and goodwill by reportable segment (Significant impairment loss on fixed assets) In the Integrated Energy Business segment, we acquired all shares of ISG, Inc. and made it a consolidated subsidiary. The increase in goodwill as a result of this event was 2,210 million yen for the third quarter of FY2024. The amount of goodwill reflects significant revisions to the initial allocation of the acquisition cost due to the finalization of provisional accounting treatment for business combinations. Third Quarter of FY2025 (April 1, 2025 - December 31, 2025) Information related to sales, operating income (loss) by reportable segment (million yen) Reportable Segments Others *1 Total Adjustments *2 Quarterly Consolidated Statements of Income *3 Integrated Energy Industrial Gases & Machinery Materials Subtotal Net sales Outside customers Intersegment 251,991 3,319 205,395 2,086 159,072 1,534 616,459 6,940 24,670 20,247 641,130 27,188 -(27,188) 641,130 - Total 255,310 207,482 160,607 623,400 44,918 668,318 (27,188) 641,130 Segment income (loss) 2,957 9,368 8,576 20,902 2,627 23,530 (3,033) 20,497 (Note) *1. "Others" is an operating segment not included in reportable segments. "Others" represents businesses in foods, livestock industry, finance, insurance, transportation, safety, information processing, etc. *2. Adjustments for segment income (loss) include companywide expenses not allocated to each segment and the elimination of intersegment transactions. *3. Segment income (loss) is adjusted with operating income of the quarterly consolidated statements of income. Information on impairment loss on fixed assets and goodwill by reportable segment (Significant impairment loss on fixed assets) In the Industrial Gases & Machinery Business segment, the carrying amount of non-current assets at overseas bases, which we decided to close, was reduced to the recoverable amount, and the reduction amount was recorded as impairment losses. The amount of the impairment loss recorded was 708 million yen for the third quarter of FY2025. (Notes in the Event of Significant Changes in Shareholders' Equity) None (Notes on the Assumption of a Going Concern) None (Notes to Quarterly Consolidated Statements of Cash Flows) The Company has not prepared a quarterly consolidated statement of cash flows for the third quarter of the current fiscal year. Depreciation, including amortization related to intangible assets except goodwill, and amortization of goodwill for the third quarter of the current fiscal year are as shown below. For the nine months ended December 31, 2024 (April 1, 2024 to December 31 2024) (million yen) For the nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025) Depreciation 20,588 22,693 Amortization of goodwill 2,377 2,409 (Notes on Business Combinations, Etc.) (Significant revision of the initial allocation of acquisition costs in comparative information) Although the Company applied provisional accounting treatment for the business combination with ISG, Inc. conducted on November 29, 2024, in the previous fiscal year, it finalized the provisional accounting treatment in the first half of the current fiscal year. As a result of accordingly having finalized the provisional accounting treatment, significant revisions to the amount initially allocated to acquisition cost have been reflected in the comparative information included in the quarterly consolidated financial statements for the third quarter of the current fiscal year. Consequently, the provisionally calculated amount of goodwill, initially 4,082 million yen, has decreased by 1,872 million yen due to the finalization of the accounting treatment, resulting in a revised amount of 2,210 million yen. The decrease in goodwill was due to increases of 2,729 million yen in other intangible assets (customer-related intangible assets) and 856 million yen in deferred tax liabilities. In addition, on the consolidated balance sheet for the previous fiscal year, goodwill decreased by 1,802 million yen, while other intangible assets (customer-related intangible assets), deferred tax liabilities, and retained earnings increased by 2,653 million yen, 833 million yen, and 17 million yen, respectively. Additional Information Results for 3Q FY2025 The Company finalized the provisional accounting treatments for the application of equity method in the fiscal year ended March 31, 2025, and for the business combination in the six months ended September 30, 2025. As a result, the figures for "3Q FY2024 Apr-Dec 2024" and "FY2024 end" reflect the finalization of the provisional accounting treatments. Consolidated Statements of Income (Unit: 100 million yen) (Figures are rounded down to the nearest 100 million yen) 3Q FY2024 Apr-Dec 2024 3Q FY2025 Apr-Dec 2025 Change Rate FY2025 (Forecast) Overview Net sales 6,243 6,411 167 2.7% 8,880 Net sales increased mainly due to robust sales of products for industrial sectors in the Materials Business and Industrial Gases & Machinery Business, as well as the impact of new consolidations. As for profits, operating profit and ordinary profit decreased mainly due to a decline in helium profitability, the negative impact on profits of LPG import price fluctuations and an increase in selling, general and administrative expenses. Profit increased mainly due to the recording of a gain on sale of non-current assets, etc. Gross profit 1,648 1,655 7 0.4% - Operating profit 271 204 (66) (24.4)% 358 Ordinary profit 373 295 (78) (21.0)% 482 Profit attributable to owners of parent 265 267 2 0.9% 405 * Figures for fiscal year ending March 31, 2026 (forecast) were announced on February 10, 2026. Operating Profit Except for Impact of LPG Import Price Fluctuation (Unit: 100 million yen) 3Q FY2024 Apr-Dec 2024 3Q FY2025 Apr-Dec 2025 Change Rate FY2025 (Forecast) Overview Operating profit 271 204 (66) (24.4)% 358 ・Impact of LPG import price fluctuation led to a decrease in profit by 4.8 billion yen year-on-year. ・Operating profit except for the impact of LPG import price fluctuation was 26.0 billion yen, a decrease of 1.7 billion yen. Impact of LPG import price fluctuation (6) (55) (48) - (59) Operating profit except for impact of LPG import price fluctuation 278 260 (17) (6.3)% 417 * For more detailed information, please see a slide of "Impact of LPG Import Prices" in Iwatani Corporation Business Overview. ( https://www.iwatani.co.jp/eng/ir/pdf/about_iwatani.pdf ) 0 LPG Import Price (CP) 900 ＜Propane( $ /t)＞ 800 700 630 3Q Ave. 608$/t 635 635 600 3Q Ave. 552$/t 625 3Q Ave. 552$/t 580 545 500 555 475 400 400 Ave. 569$/t Ave. 612$/t 300 2023.4 2024.4 2025.4 2026.2 Segment Information (Unit: 100 million yen) 3Q FY2024 Apr-Dec 2024 3Q FY2025 Apr-Dec 2025 Change Rate Overview Integrated Energy Net sales 2,558 2,519 (38) (1.5)% ・Profit decreased due to negative impact of LPG import price fluctuation. ・Sales volume in the LPG retail sector increased, and profitability also improved. ・Sales volume in the LPG wholesale sector decreased. ・Decrease in sales of portable gas cooking stoves and cassette gas canisters. Operating profit 76 29 (47) (61.5)% Industrial Gases & Machinery Net sales 1,957 2,053 95 4.9% ・Growth in sales volume of hydrogen and hydrogen-related equipment. ・Decline in the profitability of air separation gases due to sluggish demand in China. ・Decline in the profitability of specialty gases due to weakening in helium markets. ・Decrease in shipments of equipment for the automotive industry. Operating profit 122 93 (28) (23.4)% Materials Net sales 1,490 1,590 100 6.7% ・Increase in sales of rare earths and other items due to the efforts to ensure stable supply. ・Increase in sales volume of food packaging resin products and eco-friendly PET resin. ・Increase in sales of stainless steel due to the impact of new consolidation. ・Decline in the profitability of our own mining sites of mineral sands. ・Sluggish sales of high-performance film materials. Operating profit 87 85 (1) (2.1)% Others, Adjustments Net sales 236 246 9 4.1% Operating profit (15) (4) 11 - Net sales represent sales to third parties. "Others, Adjustments" represents the sum of the "Other" business segment and "Adjustments." LPG and Industrial Gases Net Sales ･ Sales Volume Sales volume (thousand tons) Net sales (100 million yen) 3Q FY2024 Apr-Dec 2024 3Q FY2025 Apr-Dec 2025 Change Rate 3Q FY2024 Apr-Dec 2024 3Q FY2025 Apr-Dec 2025 Change Rate Domestic residential use 782 777 (5) (0.8)% 1,235 1,204 (30) (2.5)% Domestic industrial use 234 246 11 5.0% 277 265 (12) (4.5)% LPG sub total (except for overseas) 1,017 1,023 5 0.6% 1,512 1,469 (43) (2.8)% LPG total 1,028 1,032 4 0.4% 1,525 1,480 (45) (3.0)% Various industrial gases - - - - 1,178 1,228 49 4.2% FY2024 end 3Q FY2025 end Change Total assets 8,730 9,029 299 Equity 3,860 4,104 243 Interest-bearing debt, gross 2,644 2,734 90 Interest-bearing debt, net 2,366 2,469 102 Equity ratio 44.2% 45.5% 1.3pt Ratio of interest-bearing debt to total assets 30.3% 30.3% - Debt-to-equity ratio, gross 0.68 0.66 (0.02) pt Debt-to-equity ratio, net 0.61 0.60 (0.01) pt Financial Position (Unit: 100 million yen) (8) Amount of share of profit or loss of Cosmo accounted for using equity method (Unit: 100 million yen) 3Q FY2024 Apr-Dec 2024 3Q FY2025 Apr-Dec 2025 FY2025 (Forecast) Amount of share of profit or loss of Cosmo accounted for using equity method 61 43 79 (9) Non-consolidated 3Q FY2024 Apr-Dec 2024 3Q FY2025 Apr-Dec 2025 Change Rate Net sales 3,820 3,842 21 0.6% Operating profit 90 15 (75) (83.1)% Ordinary profit 241 196 (45) (19.0)% Profit 206 248 42 20.7% Non-consolidated Statements of Income (Unit: 100 million yen) Capital Expenditure 3Q FY2025 Apr-Dec 2025 FY2025 (Forecast) Integrated Energy 138 153 Industrial Gases & Machinery 154 298 Materials 46 70 Others, Adjustments 87 129 Capital expenditure 426 650 Depreciation 235 320 (Unit: 100 million yen) Financial Position (Unit: 100 million yen) FY2024 end 3Q FY2025 end Change Total assets 6,180 6,456 275 Equity capital 2,540 2,740 199 Equity capital ratio 41.1% 42.4% 1.3 pt In this document, "Cosmo Energy Holdings Co., Ltd." is abbreviated to "Cosmo." * Presented here are figures for property, plant and equipment, intangible assets (including goodwill), and investments securities, etc. (which include ¥30.7 billion yen invested in property, plant and equipment in the current period.) *"Others, Adjustments" represents the total of the "Others" business segment and "Adjustments."

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