Iwatani: Overview of Business Results for 3Q FY25

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)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2025 (April 1, 2025 to December 31, 2025)

   1. 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.

   2. 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.

2. 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

3. 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.)

(Note) Revision to the financial results forecast announced most recently: Yes

* Notes:

1. Significant changes in the scope of consolidation during the period: Yes New 3 Companies

   Exclusion: 8 Companies

2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No

3. Changes in accounting policies, changes in accounting estimates and retrospective restatement

   1. Changes in accounting policies due to the revision of accounting standards: No

   2. Changes in accounting policies other than 1) above: Yes

   3. Changes in accounting estimates: No

   4. 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.

4. Total number of issued shares (common shares)

   1. 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

   2. Number of treasury shares at the end of the period: December 31, 2025: 4,068,470 shares

      March 31, 2025: 4,107,871 shares

   3. 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.

Overview of Operating Results, Etc. 2

1. Overview of Operating Results for the Nine Months Ended December 31, 2025 2

2. Segment Information 2

3. Overview of Financial Position for the Nine Months Ended December 31, 2025 3

4. Consolidated Financial Results Forecasts 3

Quarterly Consolidated Financial Statements and Notes 4

1. Quarterly Consolidated Balance Sheets 4

2. Quarterly Consolidated Statements of Income and Comprehensive Income 6

3. 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

1. Consolidated Statements of Income 11

2. Operating Profit Except for Impact of LPG Import Price Fluctuation 11

3. LPG Import Price (CP) 11

4. Segment Information 11

5. LPG and Industrial Gases Net Sales -Sales Volume 12

6. Financial Position 12

7. Capital Expenditure 12

8. Amount of share of profit or loss of Cosmo accounted for using equity method 12

9. Non-consolidated 12

Overview of Operating Results, Etc.

1. Overview of Operating Results for the Nine Months Ended December 31, 2025

   1. 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.

   2. 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).

2. 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).

3. 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.

4. 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

1. 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

2. 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

3. 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.)

1. Third Quarter of FY2024 (April 1, 2024 - December 31, 2024)

   1. 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.

   2. 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.

2. Third Quarter of FY2025 (April 1, 2025 - December 31, 2025)

   1. 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.

   2. 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.

1. 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.

2. 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

3. 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

   
   
   
4. 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."

5. 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

6. 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

1. Capital Expenditure

(Unit: 100 million yen)

(Unit: 100 million yen)

* 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."