Iwatani: Overview of Business Results for FY24

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2025 [Japanese GAAP]

May 14, 2025

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 Annual General Meeting of Shareholders: June 18, 2025 Scheduled date of commencing dividend payments: June 19, 2025 Scheduled date of filing annual securities report: June 17, 2025

Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 01, 2024 to March 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
      Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      March 31, 2025	883,011	4.1	46,228	(8.7)	61,487	(1.3)	40,448	(6.9)
      March 31, 2024	847,888	(6.4)	50,635	26.5	62,307	32.5	43,468	35.7

      (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	36,352million[(42.4)%]
      	Fiscal year ended March 31, 2024:	¥	63,066million[ 66.0 %]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	175.76	-	10.9	7.2	5.2
      March 31, 2024	188.90	-	13.2	8.4	6.0

      (Reference) Equity in earnings (losses) of affiliated companies:	Fiscal year ended March 31, 2025:	¥	10,099million
      	Fiscal year ended March 31, 2024:	¥	6,210million

   2. Consolidated Financial Position

      	Total assets	Net assets	Capital adequacy ratio	Net assets per share
      As of	Million yen	Million yen	%	Yen
      March 31, 2025	872,194	397,191	44.3	1,677.41
      March 31, 2024	830,495	369,034	43.2	1,557.64

      (Reference) Equity: As of March 31, 2025: ¥ 386,036million

      As of March 31, 2024: ¥ 358,432million

   3. Consolidated Cash Flows

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
      Fiscal year ended	Million yen	Million yen	Million yen	Million yen
      March 31, 2025	52,419	(58,414)	(2,016)	27,588
      March 31, 2024	54,854	(161,266)	105,433	33,614

      (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 fiscal year ended March 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 and net assets per share have been calculated as if this share split were carried out at the beginning of the previous fiscal year.

2. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
   March 31, 2024	-	-	-	130.00	130.00	7,485	17.2	2.3
   March 31, 2025	-	-	-	47.00	47.00	10,826	26.7	2.9
   Fiscal year ending March 31, 2026 (Forecast)	-	23.50	-	23.50	47.00		22.2

   (Notes) 1 The Company carried out a 4-for-1 share split of its common share as of October 1, 2024. Dividends for the fiscal year ended March 31, 2024 represent the actual dividend amount before this share split.

   2 For details regarding the status of dividends, please see the “Notice Concerning Dividends from Surplus (Dividend Increase)” released today (May 14, 2025).

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 01, 2025 to March 31, 2026)

(% indicates changes from the previous corresponding period.)

* Notes:

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

   New: 3 Companies (Company name: ISG, Inc. and 2 other companies)

   Exclusion: 3 Companies

   (Note) For details, please refer to “Consolidated Financial Statements and Notes (5) Explanatory Notes to Consolidated Financial Statement (Notes on Business Combinations, Etc.)” on page 20 of the attached document.

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

   1. Changes in accounting policies due to the revision of accounting standards: Yes

   2. Changes in accounting policies other than 1) above: No

   3. Changes in accounting estimates: No

   4. Retrospective restatement: No

      (Note) For details, please refer to “Consolidated Financial Statements and Notes (5) Explanatory Notes to Consolidated Financial Statement (Notes to Changes in Accounting Policies)” on page 16 of the attached document.

3. Total number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 234,246,596 shares

      March 31, 2024: 234,246,596 shares

   2. Number of treasury shares at the end of the period: March 31, 2025: 4,107,871 shares

      March 31, 2024: 4,133,300 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 230,134,109 shares

Fiscal Year ended March 31, 2024: 230,114,164 shares

(Note) The Company carried out a 4-for-1 share split of its common share as of October 1, 2024. Total number of issued shares (common shares) has been calculated as if this share split were carried out at the beginning of the previous fiscal year.

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 01, 2024 to March 31, 2025)

   1. Non-consolidated Operating Results (% indicates changes from the previous corresponding period.)

      	Net sales		Operating profit		Ordinary profit		Net income
      Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      March 31, 2025	538,061	3.6	15,578	(15.4)	35,296	(2.1)	24,516	(15.6)
      March 31, 2024	519,195	(11.6)	18,409	54.0	36,039	37.0	29,042	42.4

      	Basic earnings per share	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2025	106.43	-
      March 31, 2024	126.09	-

   2. Non-consolidated Financial Position

      	Total assets	Net assets	Capital adequacy ratio	Net assets per share
      As of	Million yen	Million yen	%	Yen
      March 31, 2025	618,045	254,089	41.1	1,103.01
      March 31, 2024	602,291	244,937	40.7	1,063.39

      (Reference) Equity: As of March 31, 2025: ¥ 254,089million

      As of March 31, 2024: ¥ 244,937million

      (Note) The Company carried out a 4-for-1 share split of its common share as of October 1, 2024. Basic earnings per share and net assets per share have been calculated as if this share split were carried out at the beginning of the previous fiscal year.

      *1. This document is unaudited by certified public accountants or audit firms.

      *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. (5) Future Outlook” on page 5. (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

      1. Overview of Operating Results for the Fiscal Year under Review……………………………………… 2

      2. Segment Information …………………………………………………………………………………….. 2

      3. Overview of Financial Position for the Fiscal Year under Review……………………………………… 3

      4. Overview of Cash Flows for the Fiscal Year under Review…………………………………………….. 4

      5. Future Outlook 5

      6. Basic Policy on Earnings Distribution and Dividend for FY2024 and FY2025 …………….................... 6

      Basic Policy on Selection of Accounting Standards ………………………………………………………….... 6

      Consolidated Financial Statements and Notes 7

      1. Consolidated Balance Sheets …………………………………………………………………………….. 7

      2. Consolidated Statements of Income and Comprehensive Income ………………………………………. 9

      3. Consolidated Statements of Changes in Net Assets 12

      4. Consolidated Statements of Cash Flows 14

      5. Explanatory Notes to Consolidated Financial Statements 16

      (Notes on the Assumption of a Going Concern) 16

      (Notes to Changes in Accounting Policies) 16

      (Notes to Additional Information) 16

      (Notes to Segment Information, Etc.) 17

      (Notes on Business Combinations, Etc.) 20

      (Notes to Per Share Information) 22

      (Notes to Significant Subsequent Events) 22

      Additional Information 23

      Results for FY2024 and Forecasts for FY2025 23

      1. Consolidated Statements of Income 23

      2. Operating Profit Except for Impact of LPG Import Price Fluctuation 23

      3. LPG Import Price (CP) 23

      4. Segment Information 23

      5. LPG and Industrial Gases Net Sales -Sales Volume 23

      6. PLAN27 Management Targets 24

      7. Financial Position 24

      8. Capital Expenditure 24

      9. Cash Flows 24

      10. Forecast for FY2025 24

      11. Forecast for FY2025 by Segment 24

      12. Dividend Policy 24

      Overview of Operating Results, Etc.

      1. Overview of Operating Results for the Fiscal Year under Review

         During the fiscal year ended March 31, 2025 (hereinafter referred to as the “fiscal year under review”), the Japanese economy continued to recover gradually, supported by a pick-up in personal consumption due to an improvement of the income environment and an increase in capital investment against the backdrop of expanding corporate earnings, despite the uncertainty about the outlook due to the stagnation of the Chinese economy and geopolitical risks such as the situations in the Middle East.

         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 five-year medium-term management plan, “PLAN27,” which started in the fiscal year ended March 31, 2024.

         In order to realize a hydrogen energy-based society, the Company opened the Iwatani Cosmo Hydrogen Station Ariake Bus Depot, a hydrogen station dedicated to fuel cell buses, located on the premises of a bus depot of the Tokyo Metropolitan Bureau of Transportation. In addition, we promoted the use of hydrogen for mobility applications with the commencement of passenger ship operations of the hydrogen fuel cell ship Mahoroba at Expo 2025 Osaka, Kansai, Japan.

         Under our carbon-free strategies, we launched sales of carbon-offset cassette gas canisters. This marked the first initiative of its kind in the portable gas cooking stove cassette gas canister industry enlisting a product that offsets CO2 emissions using J-Credits generated in-house based on calculations of the carbon footprint of cartridge gas sold by the Company. In addition, we promoted initiatives toward giving rise to a decarbonized society, such that included supplying carbon offset LPG to the Osaka Healthcare Pavilion at Expo 2025 Osaka, Kansai, Japan.

         In seeking stable procurement of critical mineral resources, we established the joint venture company Japan France Rare Earths Co., Ltd. with Japan Organization for Metals and Energy Security (JOGMEC), and entered into an investment agreement with a French company engaged in production of scarce rare earth resources. This will enable us to procure 50% of the heavy rare earths produced by that company over the long term. The Company has been importing and selling rare earths since the 1990s and will continue to contribute to building Japan’s critical mineral supply chain going forward, while expanding its business by enhancing its ability to ensure stable supply of such resources.

         As a result, for the fiscal year under review, net sales were 883.011 billion yen (+35.123 billion yen year-on-year), operating profit was 46.228 billion yen (-4.407 billion yen year-on-year), ordinary profit was 61.487 billion yen

         (-0.819 billion yen year-on-year), and profit attributable to owners of parent was 40.448 billion yen (-3.019 billion yen year-on-year).

      2. Segment Information Integrated Energy

         In the Integrated Energy Business, LPG import prices remained high and sales of industrial LPG remained strong, resulting in an increase in revenue. As for profits, sales of energy-related equipment remained strong. On the other hand, LPG sales volume decreased in the wholesale sector, and despite sales volume increasing in the retail sector due to new consolidation, profitability declined due to rising costs. In addition, profits decreased due to the contraction in the positive impact of LPG import price fluctuation (-0.540 billion yen year-on-year).

         As a result, net sales in this segment were 378.782 billion yen (+21.649 billion yen year-on-year), and operating profit was 19.526 billion yen (-0.646 billion yen year-on-year).

         Industrial Gases & Machinery

         In the Industrial Gases & Machinery Business, sales volume of air separation gases remained strong mainly for the electronic components industries. In the hydrogen business, the sales volume of liquid hydrogen for space development and decarbonization increased. The profitability of specialty gases declined due to the weakening of helium markets, mainly in China, despite the expansion of the refrigerant business in Japan and overseas. In machinery and equipment, the segment encountered growth in sales of ammonia supply facilities for decarbonization and denitration, as well as sales of electronic components.

         As a result, net sales in this segment were 271.449 billion yen (+9.279 billion yen year-on-year) and operating profit was 17.572 billion yen (-4.133 billion yen year-on-year).

         Materials

         In the Materials Business, sales of molded products for air conditioners and consumer resin products remained strong. In addition, the segment encountered growth in sales of biomass fuels and aluminum foil for food packaging. On the other hand, the sales price of stainless steel declined, and sales of rechargeable battery materials for next-generation automobiles were weak. With regard to mineral sands, the profitability of our own mining sites in Australia declined.

         As a result, net sales in this segment were 201.685 billion yen (+3.442 billion yen year-on-year) and operating profit was 11.748 billion yen (-0.557 billion yen year-on-year).

         Others

         Net sales were 31.093 billion yen (+0.751 billion yen year-on-year), and operating profit was 3.306 billion yen (+0.530 billion yen year-on-year).

      3. Overview of Financial Position for the Fiscal Year under Review Total Assets

         Total assets at the end of the fiscal year under review increased by 41.698 billion yen from the end of the previous fiscal year to 872.194 billion yen. This was mainly due to increases of 16.274 billion yen in notes and accounts receivable - trade, and contract assets, 14.794 billion yen in property, plant and equipment, and 11.254 billion yen in intangible assets, respectively, despite a decrease of 9.593 billion yen in investment securities.

         Total Liabilities

         Total liabilities at the end of the fiscal year under review increased by 13.540 billion yen from the end of the previous fiscal year to 475.002 billion yen. This was mainly due to increases of 41.519 billion yen in long-term borrowings, 30.000 billion yen in bonds payable, 27.766 billion yen in “Other” under “Current liabilities,” including commercial paper, 10.229 billion yen in current portion of long-term borrowings, and 10.035 billion yen in notes and accounts payable - trade, respectively, despite a decrease of 104.740 billion yen in short-term borrowings.

         Interest-bearing debt, including lease liabilities, etc., at the end of the fiscal year under review increased by 9.926 billion yen from the end of the previous fiscal year to 264.447 billion yen.

         Total Net Assets

         Total net assets at the end of the fiscal year under review increased by 28.157 billion yen from the end of the previous fiscal year to 397.191 billion yen. This was mainly due to increases of 33.092 billion yen in retained earnings and 3.638 billion yen in foreign currency translation adjustment, respectively, despite decreases of 8.040 billion yen in valuation difference on available-for-sale securities and 2.046 billion yen in deferred gains or losses on hedges, respectively.

      4. Overview of Cash Flows for the Fiscal Year under Review

         Cash and cash equivalents (hereinafter referred to as “cash”) at the end of the fiscal year under review decreased by

         6.026 billion yen from the end of the previous fiscal year to 27.588 billion yen.

         (Operating Activities)

         Net cash provided by operating activities in the fiscal year under review decreased in revenue by 2.435 billion yen from the previous fiscal year to 52.419 billion yen. This was mainly due to an increase in cash resulting from profit before income taxes of 62.838 billion yen and depreciation of 27.877 billion yen, and a decrease in cash resulting from income taxes paid of 22.938 billion yen, an increase in trade receivables and contract assets of 11.614 billion yen, and share of profit of entities accounted for using equity method of 10.099 billion yen.

         (Investing Activities)

         Net cash used in investing activities in the fiscal year under review decreased in expenditure by 102.852 billion yen from the previous fiscal year to 58.414 billion yen. This was mainly due to a decrease in cash resulting from purchase of property, plant and equipment of 43.432 billion yen and purchase of intangible assets of 11.204 billion yen.

         (Financing Activities)

         Net cash used in financing activities in the fiscal year under review increased in expenditure by 107.494 billion yen from the previous fiscal year to 2.016 billion yen. This was mainly due to an increase in cash resulting from a net increase in commercial paper of 33.000 billion yen and proceeds from issuance of bonds of 29.839 billion yen, and a decrease in cash resulting from a net decrease in borrowings of 55.240 billion yen, dividends paid of 7.469 billion yen and repayments of lease liabilities of 1.284 billion yen

         (Reference) Trends in cash flow indicators

         	Fiscal year ended March 31, 2021	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
         Capital adequacy ratio	47.7%	48.4%	46.0%	43.2%	44.3%
         Capital adequacy ratio based on fair value	76.7%	53.2%	50.8%	59.2%	39.4%
         Interest-bearing debt to cash flow ratio	2.0 years	8.5 years	2.7 years	4.6 years	5.0 years
         Interest coverage ratio	54.0 times	16.3 times	47.4 times	31.6 times	20.3 times

         Capital adequacy ratio: Equity / Total assets

         Capital adequacy ratio based on fair value: Market capitalization / Total assets

         Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows from operating activities Interest coverage ratio: Cash flows from operating activities / Interest payments

         (Notes) 1. All indicators are calculated using financial figures on a consolidated basis.

2. Market capitalization is calculated in the following formula:

   Closing stock price at the end of the period × total number of issued shares at the end of the period (excluding treasury shares)

3. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheets on which interest is paid.Interest payments are based on the amount of interest paid on the consolidated statements of cash flows.

4. Changes in accounting policies were made at the beginning of the fiscal year ended March 31, 2022. Consequently, the indicator figures presented for the fiscal year ended March 31, 2021 are figures after retrospective application to reflect the changes in accounting policies.

5. The Company finalized the provisional accounting treatment for the application of equity method in the fiscal year ended March 31, 2025. Indicators for the fiscal year ended March 31, 2024 are presented retroactively, reflecting significant revisions to the initial allocation of the acquisition cost due to the finalization of provisional accounting treatment.

1. Future Outlook

   As for the future outlook, there has been a mounting sense of uncertainty regarding the future of the global economy triggered by U.S. trade policies, despite projections that gradual recovery will persist amid rising personal consumption accompanying improvement in the employment and income environment, as well as expansion in capital investment against the backdrop of robust corporate performance and labor shortages.

   In the Integrated Energy Business, we will continue working to increase the number of LPG direct sales customers through M&A and other such initiatives, and sales volume by expanding sales of energy-related equipment, while also striving to improve profitability by streamlining logistics. With regard to initiatives to facilitate the transition to low-carbon energy, we will encourage fuel conversion, strengthen sales of carbon offset LPG, and promote the development of green LPG. In the cartridge gas business, we will strive to expand our international business in seeking to develop new products tailored to local market needs primarily in Southeast Asia.

   In the Industrial Gases & Machinery Business, we will strengthen measures to cope with the rising procurement and logistics cost of air separation gases and specialty gases and focus our efforts on expanding sales to data center and AI markets, which are expected to grow. Additionally, we will reinforce our sales of equipment for hydrogen, ammonia, and other gases in relation to decarbonization. In order to realize a hydrogen energy-based society, we will steadily capture decarbonization-related demand and promote business development of CO2-free hydrogen supply chains.

   In the Materials Business, we will commence sales of green titanium ore produced in Norway, expand sales of biomass fuels, and promote recycled PET business. In stainless steel, we will seek to increase sales volume by leveraging our processing locations in Japan. In addition, we will persist with initiatives to secure critical mineral resources.

   As a result, regarding the consolidated financial results forecast for the next fiscal year, we are expected to achieve net sales of 936.4 billion yen (up 6.0% year-on-year), operating profit of 49.1 billion yen (up 6.2% year-on-year), ordinary profit of 63.1 billion yen (up 2.6% year-on-year), and profit attributable to owners of parent of 48.8 billion yen (up 20.6% year-on-year).

2. Basic Policy on Earnings Distribution and Dividend for FY2024 and FY2025

   The Company’s basic policy on earnings distribution calls for meeting shareholders expectations by maximizing corporate value in various ways, including investing to support growth strategies while returning earnings to shareholders through stable and uninterrupted dividend payments. The Medium-Term Management Plan “PLAN27” aims to increase dividends steadily in line with profit growth, targets a payout ratio of 20% or higher in FY2027, which is the final fiscal year of the Plan, based on profit*1excluding impact of LPG import price fluctuation, and strives for progressive dividend payout without any dividend rollbacks.

   In addition, Cosmo Energy Holdings Co., Ltd. (hereinafter referred to as “Cosmo Energy HD”) was included in the scope of entities accounted for using the equity method. Accordingly, the dividend will be paid out in accordance with the following dividend policy:

   1. Dividend on profit*1excluding the impact of accounting for Cosmo Energy HD using the equity method

   2. Dividend on the impact of accounting for Cosmo Energy HD using the equity method.

Dividend Policy (i) is the same as the target outlined in the “PLAN27.” Dividend Policy (ii) is to distribute 20% of profit*1of Cosmo Energy HD, excluding the impact of inventory valuation factors and multiplied by the shareholding ratio*2.

Based on the policy presented above, the Company plans to pay a dividend of 47 yen per share (of which, the dividend associated with (i) above: 32.50 yen, and the dividend associated with (ii) above: 14.50 yen) with respect to the year-end dividend for the fiscal year under review.

As for the dividend for the next fiscal year, we will seek to ensure more stable dividends for our shareholders by unifying category (i) and category (ii) of the Dividend Policy above, striving for progressive dividend payout, and targeting a payout ratio of 20% or higher in FY2027 (based on profit*1excluding impact of LPG import price fluctuation).

In addition, we seek to enhance opportunities for distributing profits to our shareholders and will accordingly submit a proposal for amendment to the Articles of Incorporation allowing for interim dividends per resolution of the Board of Directors, which will be presented at the 82nd Annual General Meeting of Shareholders to be held on June 18, 2025.

Dividends planned for the next fiscal year are to consist of an interim dividend amounting to 23.50 yen per share and a year-end dividend amounting to 23.50 yen per share.

(Notes) *1. Profit attributable to owners of parent.

*2. The ratio used to calculate share of profit or loss of entities accounted for using equity method.

Basic Policy on Selection of Accounting Standards

For the time being, the Group’s policy is to prepare its consolidated financial statements in accordance with Japanese GAAP, taking into consideration the comparability of consolidated financial statements from period to period and the comparability among companies. The Group’s policy is to adopt IFRS (International Financial Reporting Standards) as appropriate, taking into consideration various conditions in Japan and overseas.

Consolidated Financial Statements and Notes

1. Consolidated Balance Sheets

   (Million yen)

   As of March 31, 2024 As of March 31, 2025

   Assets

   Current assets
   Cash and deposits	33,937	27,759
   Notes and accounts receivable - trade, and contract assets	145,981	162,256
   Electronically recorded monetary claims - operating	26,852	26,368
   Merchandise and finished goods	58,510	65,786
   Work in process	5,204	7,375
   Raw materials and supplies	10,749	11,391
   Other	28,515	27,733
   Allowance for doubtful accounts	(177)	(212)
   Total current assets	309,573	328,458
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	46,620	59,544
   Storage tanks and cylinders, net	10,444	12,417
   Machinery, equipment and vehicles, net	50,174	55,011
   Tools, furniture and fixtures, net	19,273	20,541
   Land	73,937	79,287
   Leased assets, net	2,158	3,086
   Construction in progress	22,802	10,318
   Total property, plant and equipment	225,412	240,206
   Intangible assets
   Goodwill	19,569	22,893
   Other	16,932	24,862
   Total intangible assets	36,502	47,756
   Investments and other assets
   Investment securities	221,532	211,938
   Long-term loans receivable	474	1,683
   Retirement benefit asset	5,624	7,342
   Deferred tax assets	3,666	3,921
   Other	28,252	31,432
   Allowance for doubtful accounts	(541)	(545)
   Total investments and other assets	259,008	255,772
   Total non-current assets	520,922	543,735
   Total assets	830,495	872,194

   (Million yen)

   As of March 31, 2024 As of March 31, 2025

   Liabilities

   Current liabilities

   Notes and accounts payable - trade	66,067	76,102
   Electronically recorded obligations - operating	34,935	34,367
   Short-term borrowings	129,161	24,421
   Current portion of long-term borrowings	12,734	22,964
   Lease liabilities	881	809
   Income taxes payable	12,542	10,882
   Contract liabilities	7,201	8,330
   Provision for bonuses	6,765	7,194
   Provision for loss on liquidation of subsidiaries and associates	68	—
   Other	42,154	69,921
   Total current liabilities	312,513	254,993
   Non-current liabilities
   Bonds payable	40,000	70,000
   Long-term borrowings	70,100	111,619
   Lease liabilities	1,389	1,469
   Deferred tax liabilities	21,836	20,312
   Provision for retirement benefits for directors (and other officers)	1,385	1,522
   Retirement benefit liability	5,884	6,082
   Other	8,351	9,000
   Total non-current liabilities	148,947	220,008
   Total liabilities	461,461	475,002
   Net assets
   Shareholders’ equity
   Share capital	35,096	35,096
   Capital surplus	32,043	32,128
   Retained earnings	241,799	274,892
   Treasury shares	(1,546)	(1,558)
   Total shareholders’ equity	307,393	340,559
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	37,375	29,334
   Deferred gains or losses on hedges	4,317	2,270
   Foreign currency translation adjustment	8,201	11,839
   Remeasurements of defined benefit plans	1,145	2,031
   Total accumulated other comprehensive income	51,039	45,476
   Non-controlling interests	10,601	11,155
   Total net assets	369,034	397,191
   Total liabilities and net assets	830,495	872,194

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statements of Income
   		(Million yen)
   	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
   Net sales	847,888	883,011
   Cost of sales	618,413	648,699
   Gross profit	229,475	234,311
   Selling, general and administrative expenses
   Transportation costs	30,894	33,188
   Provision of allowance for doubtful accounts	69	28
   Salaries, allowances and bonuses	46,887	49,953
   Provision for bonuses	6,175	6,436
   Retirement benefit expenses	1,845	2,031
   Provision for retirement benefits for directors (and other officers)	172	165
   Depreciation	17,031	18,865
   Rent expenses	11,293	11,825
   Commission expenses	13,463	13,766
   Amortization of goodwill	3,279	3,280
   Other	47,726	48,542
   Total selling, general and administrative expenses	178,839	188,083
   Operating profit	50,635	46,228
   Non-operating income
   Interest income	409	340
   Dividend income	1,539	1,736
   Foreign exchange gains	658	—
   Share of profit of entities accounted for using equity method	6,210	10,099
   Subsidy income	1,966	1,938
   Outsourcing service income	824	606
   Other	2,833	4,773
   Total non-operating income	14,441	19,495
   Non-operating expenses
   Interest expenses	1,843	2,761
   Foreign exchange losses	–	5
   Other	926	1,469
   Total non-operating expenses	2,769	4,236
   Ordinary profit	62,307	61,487

   (Million yen)

   	Fiscal year ended	Fiscal year ended
   	March 31, 2024	March 31, 2025
   Extraordinary income
   Gain on sale of non-current assets	1,256	533
   Gain on receipt of donated non-current assets	49	—
   Gain on sale of investment securities	1,617	7,157
   Subsidy income	111	775
   Gain on revision of retirement benefit plan	128	—
   Total extraordinary income	3,162	8,466
   Extraordinary losses
   Loss on sale of non-current assets	361	208
   Loss on retirement of non-current assets	442	719
   Impairment losses	1,028	3,520
   Loss on sale of investment securities	5	3
   Loss on valuation of investment securities	95	71
   Loss on liquidation of subsidiaries and associates	68	1
   Loss on tax purpose reduction entry of non-current assets	153	775
   Loss on withdrawal from project	–	1,814
   Total extraordinary losses	2,154	7,115
   Profit before income taxes	63,315	62,838
   Income taxes - current	18,764	19,739
   Income taxes - deferred	92	1,325
   Total income taxes	18,856	21,064
   Profit	44,458	41,773
   Profit attributable to non-controlling interests	990	1,325
   Profit attributable to owners of parent	43,468	40,448

   Consolidated Statements of Comprehensive Income
   		(Million yen)
   	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
   Profit	44,458	41,773
   Other comprehensive income
   Valuation difference on available-for-sale securities	13,039	(7,707)
   Deferred gains or losses on hedges	1,583	(2,173)
   Foreign currency translation adjustment	2,434	5,592
   Remeasurements of defined benefit plans, net of tax	1,049	1,050
   Share of other comprehensive income of entities accounted for using equity method	501	(2,182)
   Total other comprehensive income	18,607	(5,421)
   Comprehensive income	63,066	36,352
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	61,803	34,885
   Comprehensive income attributable to non-controlling interests	1,263	1,466

3. Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2024

(Million yen)

For the fiscal year ended March 31, 2025

(Million yen)

1. Explanatory Notes to Consolidated Financial Statements

   (Notes on the Assumption of a Going Concern)

   None

   (Notes to Changes in Accounting Policies)

   (Application of “Accounting Standard for Current Income Taxes” and other relevant ASBJ regulations)

   The Company has applied the “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022; hereafter referred to as the “Revised Accounting Standard of 2022”) and other relevant ASBJ regulations from the beginning of the fiscal year under review.

   Revisions to categories for recording current income taxes (taxation on other comprehensive income) conform to the transitional treatment in the provision of paragraph 20-3 of the Revised Accounting Standard of 2022 and the transitional treatment in the provision of paragraph 65-2 (2) of the “Implementation Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022; hereafter referred to as the “Revised Implementation Guidance of 2022”). These changes in the accounting policies do not affect the consolidated financial statements.

   Since the beginning of the fiscal year under review, the Revised Implementation Guidance of 2022 has also been applied to the amendments related to the review of the accounting treatment for consolidated financial statements when profits or losses arising from the sale of subsidiary shares, etc. between consolidated companies are deferred for tax purposes. The cumulative impact of these changes in the accounting policies has been reflected in net assets at the beginning of the previous fiscal year at Cosmo Energy Holdings Co., Ltd., an affiliate accounted for using the equity method, through retrospective application, resulting in a change in retained earnings. Cosmo Energy Holdings Co., Ltd. has been an affiliate accounted for using the equity method since the end of the previous fiscal year, and the impact of the changes in the accounting policies for that company has been reflected from the beginning of the fiscal year under review.

   As a result, at the beginning of the fiscal year under review, investment securities and retained earnings increased by 130 million yen and 130 million yen, respectively.

   (Notes to Additional Information)

   (Finalization of provisional accounting treatment for application of the equity method)

   The Company included Cosmo Energy Holdings Co., Ltd. in the scope of entities accounted for using the equity method from the end of the previous fiscal year. Although the Company applied provisional accounting treatment without completing allocation of acquisition cost in the previous fiscal year, it finalized the provisional accounting treatment in the fiscal year under review.

   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 consolidated financial statements for the fiscal year under review. As such, the provisionally calculated amount equivalent to gain on bargain purchase has decreased from 9,378 million yen to 5,482 million yen, a decrease of 3,895 million yen.

   As a result, the comparative information for the previous fiscal year reflects a reduction of 3,895 million yen in both investment securities and share of profit of entities accounted for using equity method.

   (Loss on withdrawal from project)

   The Company decided to effectively withdraw from a green hydrogen project using renewable energy in Queensland, Australia, etc. upon it having been halted, and has accordingly recorded 1,814 million yen in expenses associated with the withdrawal as loss on withdrawal from project under extraordinary losses.

   (Notes to Segment Information, Etc.)

   1. General information about reportable segments

      The Company’s reportable segments are regularly reviewed by the Board of Corporate Officers using the financial information available within each segment to determine the allocation of management resources and evaluate business results.

      The Company maintains in the Head Offices commercial divisions classified by merchandise and products. Each commercial division develops comprehensive business strategies for Japan and the world regarding its merchandise and products and performs business activities.

      Therefore, the Company is organized by operating segments which are classified by merchandise, products and sales channels based on commercial divisions. The Integrated Energy Business, the Industrial Gases & Machinery Business, and the Materials Business are the three reportable segments.

      The main merchandise and products of each reportable segment are as follows:

      1. Integrated Energy: LPG for household, commercial and industrial use, LPG supply equipment

         and facilities, LNG, petroleum products, household kitchen appliances, home energy components, Ene-Farm, GHP, daily necessities, portable gas cooking stoves & cassette gas canisters, mineral water, detergent, health foods, electricity, etc.

      2. Industrial Gases & Machinery: Air-separation gases, hydrogen, helium, other specialty gases, gas supply

         facilities, welding materials, welding and cutting equipment, industrial robots, pumps and compressors, facilities for hydrogen-refueling stations, disaster prevention equipment, high pressure gas containers, semiconductor manufacturing equipment, electronic component manufacturing equipment, machine tools and sheet metal machinery, pharmaceutical and environmental equipment, etc.

      3. Materials: PET resins, biomass fuels, battery-related materials, mineral sands,

         rare earths, ceramics materials, semiconductor materials, stainless steel, aluminum, electronic display film, etc.

   2. Calculation method for sales, profit or loss, assets, liabilities, and other items by reportable segment

      The accounting methods for reportable segments are in accordance with the accounting policies adopted for the preparation of the consolidated financial statements.

      Reportable segment profit is equivalent to operating profit. Inter-segment sales and transfers are based on market value.

   3. Information related to sales, operating income (loss), assets, liabilities and other items by reportable segment

   1. Previous Fiscal Year (April 1, 2023 - March 31, 2024)

      (million yen)

      	Reportable segment				Others *1	Total	Adjustments *2	Recorded amount on consolidated financial statements *3
      	Integrated Energy	Industrial Gases & Machinery	Materials	Total reportable segment
      Net Sales	357,133 4,396	262,169 5,319	198,243 1,943	817,546 11,659	30,341 25,572	847,888 37,232	-(37,232)	847,888 -
      Outside customers Intersegment
      Total	361,529	267,489	200,187	829,206	55,914	885,120	(37,232)	847,888
      Segment income	20,173	21,705	12,305	54,184	2,776	56,961	(6,325)	50,635
      Segment assets	212,718	224,861	110,290	547,870	84,948	632,819	197,676	830,495
      Other items:
      Depreciation and amotization Impairment loss on fixed assets	6,070 898	9,774 39	2,256 40	18,101 978	6,296 39	24,398 1,018	1,634 9	26,032 1,028
      Amortization of goodwill	2,313	926	-	3,239	45	3,285	-	3,285
      Increase in fixed assets and intangible assets	8,790	18,680	2,170	29,641	7,853	37,494	10,745	48,239

   2. Fiscal Year under Review (April 1, 2024 - March 31, 2025)

      (million yen)

      	Reportable segment				Others *1	Total	Adjustments *2	Recorded amount on consolidated financial statements *3
      	Integrated Energy	Industrial Gases & Machinery	Materials	Total reportable segment
      Net Sales	378,782 4,934	271,449 3,213	201,685 2,081	851,918 10,230	31,093 27,413	883,011 37,643	-(37,643)	883,011 -
      Outside customers Intersegment
      Total	383,717	274,663	203,767	862,148	58,506	920,655	(37,643)	883,011
      Segment income	19,526	17,572	11,748	48,847	3,306	52,154	(5,925)	46,228
      Segment assets	240,527	234,178	117,875	592,581	86,551	679,132	193,061	872,194
      Other items:
      Depreciation and amotization Impairment loss on fixed assets	6,485 38	10,200 3,478	2,272 -	18,958 3,517	6,709 -	25,668 3,517	2,209 3	27,877 3,520
      Amortization of goodwill	2,409	842	-	3,252	48	3,301	-	3,301
      Increase in fixed assets and intangible assets	17,319	14,763	1,835	33,918	9,559	43,477	17,839	61,317

      (Notes) *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 are as follows:

      1. Adjustments for segment income or loss include companywide expenses not allocated to each segment and the elimination of intersegment transactions.

      2. Adjustments for segment assets is mainly assets in cash, deposits and investments in securities of the Company along with general and administrative departments of the Company.

      3. Adjustments for depreciation and amortization are mainly depreciation and amortization for general and administrative departments of the Company.

      4. Adjustments for impairment loss on fixed assets are mainly impairment loss within the general and administrative departments of the Company.

      5. Adjustments for increases in fixed assets and intangible assets are increases in fixed assets and intangible assets for general and administrative departments of the Company.

      6. “Depreciation and amortization” and “Increase in fixed assets and intangible assets” include long-term prepaid expenses and their amortization.

   *3. Segment income is adjusted with operating profit of the consolidated statements of income.

   *4. The Company finalized the provisional accounting treatment for the application of equity method in the fiscal year under review. As a result, figures for the previous fiscal year reflect the finalization of the provisional accounting treatment.

   (Notes on Business Combinations, Etc.) Business combination by acquisition

   At the Board of Directors meeting held on September 25, 2024, the Company resolved to acquire all shares of ISG, Inc. Based on this resolution, the Company concluded a share purchase agreement on September 30, 2024 and acquired all shares on November 29, 2024.

   1. Overview of the business combination

      1. Name and main business of the acquired company Name of the acquired company

         ISG, Inc.

         Main business LPG retail

         Inspection of LPG containers

         Sale and installation of gas and home appliances Design and construction of gas piping facilities Home renovation business

         Environmental business, etc.

      2. Main reasons for the business combination

         Founded in 1884 as Ishii Shoten, ISG, Inc. made its full-scale entry into the LPG business in 1967, supplying LPG to residential and commercial customers mainly in Chiba and Ibaraki prefectures. Although ISG’s main business is LPG, it is also engaged in a wide range of other businesses, including home renovations.

         The Company resolved to acquire ISG’s shares based on its judgment that this acquisition of shares would not only expand the scale of ISG’s business in the Chiba and Ibaraki areas where ISG operates, but also generate various synergies such as streamlining and improving sales efficiency by strengthening collaboration between the logistics functions of ISG and the Company.

      3. Date of the business combination November 29, 2024

      4. Legal form of the business combination Acquisition of shares in exchange for cash

      5. The acquired company’s name after the business combination

         The names of the companies will not change subsequent to the business combination.

      6. Share of voting rights acquired 100%

      7. Reason for determining the acquired company

      The Company acquired ISG’s shares in exchange for cash.

   2. Period of the acquired company’s business results included in the consolidated financial statements From December 1, 2024 to March 31, 2025

   3. Acquisition cost of the acquired company and breakdown thereof by consideration type Consideration for acquisition Cash (including accounts payable) 11,815 million yen Acquisition cost 11,815 million yen

   4. Description and amount of major acquisition-related expenses

      Fees and commissions related to advisory services: 190 million yen

   5. Amount of goodwill accrued, reason for accrual, amortization method and amortization period

      1. Amount of goodwill accrued 4,082 million yen

      2. Reason for accrual

         Since the acquisition cost exceeded the net amount allocated to the assets received and liabilities assumed, the difference was recorded as goodwill. As of the end of the fiscal year under review, the allocation of the acquisition cost has not been completed. The amount of goodwill is therefore the provisionally allocated amount.

      3. Amortization method and period Straight-line amortization over 9 years

   6. Amounts of the assets acquired and liabilities assumed on the date of the business combination and major breakdown thereof

      Current assets 4,045 million yen

      Non-current assets 6,537 million yen

      Total assets 10,582 million yen

      Current liabilities 1,604 million yen

      Non-current liabilities 1,246 million yen

      Total liabilities 2,850 million yen

   7. Estimated amount and calculation method of the impact on the consolidated statements of income for the fiscal year under review assuming that the business combination had been completed on the beginning date of the fiscal year

      Omitted as the impact is immaterial.

      These explanatory notes have not been audited.

      (Notes to Per Share Information)

      Item	Previous fiscal year (From April 1, 2023 to March 31, 2024)	Fiscal year under review (From April 1, 2024 to March 31, 2025)
      Net assets per share	1,557.64yen	1,677.41yen
      Basic earnings per share	188.90yen	175.76yen

      (Notes) 1 Diluted earnings per share is not presented as the Company has no dilutive shares.

      1. Net assets per share and basic earnings per share for the previous fiscal year have been calculated based on the amounts after reflecting significant revisions to the initial allocation of acquisition cost due to the finalization of provisional accounting treatment for the application of equity method.

      2. The Company carried out a 4-for-1 share split of its common share as of October 1, 2024. Net assets per share and basic earnings per share have been calculated as if this share split were carried out at the beginning of the previous fiscal year.

      3. The basis for calculation of net assets per share and basic earnings per share is as follows:

   1. Net assets per share

      Item	Previous fiscal year (As of March 31, 2024)	Fiscal year under review (As of March 31, 2025)
      Total net assets (million yen)	369,034	397,191
      Amount deducted from total net assets (million yen)	10,601	11,155
      [Of which non-controlling interests (million yen)]	[10,601]	[11,155]
      Net assets pertaining to common shares at the end of the period (million yen)	358,432	386,036
      Number of common shares at the end of the period used to calculate net assets per share (thousand shares)	230,113	230,138

   2. Basic earnings per share

      Item	Previous fiscal year (From April 1, 2023 to March 31, 2024)	Fiscal year under review (From April 1, 2024 to March 31, 2025)
      Basic earnings per share
      Profit attributable to owners of parent (million yen)	43,468	40,448
      Amount not attributable to common shareholders (million yen)	-	-
      Profit attributable to owners of parent pertaining to common shares (million yen)	43,468	40,448
      Average number of common shares during the period (thousand shares)	230,114	230,134

      (Notes to Significant Subsequent Events) None

      Additional Information

(Unit: 100 million yen)

1. Consolidated Statements of Income (Figures are rounded down to the nearest 100 million yen)

   	FY2023	FY2024	Change	Rate	FY2024 (Forecast)	Change	Rate	Overview (comparison with the previous fiscal year)
   Net sales	8,478	8,830	351	4.1%	9,020	(189)	(2.1%)	Net sales increased due to high LPG import prices and robust sales of products for industrial sectors, etc. As for profits, operating profit and below decreased due to factors such as the weakening of helium markets in the Industrial Gases & Machinery Business and increases in selling, general and administrative expenses such as personnel costs and logistics costs.
   Gross profit	2,294	2,343	48	2.1%	-	-	-
   Operating profit	506	462	(44)	(8.7%)	527	(64)	(12.3%)
   Ordinary profit	623	614	(8)	(1.3%)	728	(113)	(15.5%)
   Profit attributable to owners of parent	434	404	(30)	(6.9%)	540	(135)	(25.1%)

   *Figures for fiscal year ended March 31, 2025 (forecast) were announced on May 13, 2024.

2. Operating Profit Except for Impact of LPG Import Price Fluctuation (Unit: 100 million yen)

   	FY2023	FY2024	Change	Rate	FY2024 (Forecast)	Change	Rate	Overview (comparison with the previous fiscal year)
   Operating profit	506	462	(44)	(8.7%)	527	(64)	(12.3%)	・Impact of LPG import price fluctuation led to a decrease in profit by 0.5 billion yen year-on-year. ・Operating profit except for the impact of LPG import price fluctuation was 46.0 billion yen, a decrease of 3.8 billion yen.
   Impact of LPG import price fluctuation	7	2	(5)	(71.2%)	-	2	-
   Operating profit except for impact of LPG import price fluctuation	498	460	(38)	(7.8%)	527	(66)	(12.7%)

   * 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)

   Propane($/t)

   1,000

   940

   900

   800

   790

   Ave. 725$/t

   700

   630

   635

   635

   600

   Ave. 569$/t

   Ave. 612$/t

   610

   590

   625

   500

   555

   580

   400

   400

   300

   2022.4

   2023.4

   2024.4

   2025.4 2025.5

4. Segment Information (Unit: 100 million yen)

   		FY2023	FY2024	Change	Rate	Overview (comparison with the previous fiscal year)
   Integrated Energy	Net sales	3,571	3,787	216	6.1%	・High LPG import prices and an increase in sales of industrial LPG resulted in an increase in revenue. ・Sales volume in the wholesale sector decreased. Sales volume in the retail sector increased, but profitability declined due to rising costs. ・Positive impact of LPG import price fluctuation contracted. ・Sales of energy-related equipment were robust.
   	Operating profit	201	195	(6)	(3.2%)
   Industrial Gases & Machinery	Net sales	2,621	2,714	92	3.5%	・Sales volume of air separation gas remained strong, mainly aimed at the electronic components industry. ・Sales volume of liquid hydrogen for space development and decarbonization increased. ・The helium market weakened, mainly in China. ・In machinery and equipment, there was growth in sales of ammonia supply facilities for decarbonization and denitration, as well as electronic components.
   	Operating profit	217	175	(41)	(19.0%)
   Materials	Net sales	1,982	2,016	34	1.7%	・Sales of molded products for air conditioners and resin products for consumers were robust. ・There was growth in sales of biomass fuels and aluminum foil for food packaging. ・Sales of stainless steel and rechargeable battery materials for next-generation automobiles were weak. ・In mineral sands, the profitability of our own mining sites in Australia declined.
   	Operating profit	123	117	(5)	(4.5%)
   Others, Adjustments	Net sales	303	310	7	2.5%
   	Operating profit	(35)	(26)	9	-

   • 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

1. PLAN27 Management Targets (10) Forecast for FY2025 (Unit: 100 million yen)

   	FY2024	FY2025 (Forecast)	Change	Rate
   Net sales	8,830	9,364	533	6.0%
   Operating profit	462	491	28	6.2%
   Ordinary profit	614	631	16	2.6%
   Profit attributable to owners of parent	404	488	83	20.6%
   Impact of LPG import price fluctuation	2	-	(2)	-

   Operating profit

   (Reference)

   2023.3…

   2024.3…

   2025.3…

   ＰＬＡＮ２７…

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

   (Unit: 100 million yen)

   	FY2024	FY2025 (Forecast)
   Amount of share of profit or loss of Cosmo accounted for using equity method	91	106

   *ROE : Profit attributable to owners of parent / Average of the equity at the beginning and the end of the period

   *ROIC: Operating profit after tax /Average of the invested capital at the beginning and the end of the period (Invested capital: Equity + Interest-bearing debt)

   		FY2024	FY2025 (Forecast)	Change	Rate
   Integrated Energy	Net sales	3,787	4,060	272	7.2%
   	Operating profit	195	219	23	12.2%
   Industrial Gases & Machinery	Net sales	2,714	2,759	44	1.6%
   	Operating profit	175	188	12	7.0%
   Materials	Net sales	2,016	2,235	218	10.8%
   	Operating profit	117	129	11	9.8%
   Others, Adjustments	Net sales	310	310	(0)	(0.3%)
   	Operating profit	(26)	(45)	(18)	-

2. Financial Position(11) Forecast for FY2025 by Segment

   (Unit: 100 million yen)

   	FY2023 end	FY2024 end	Change
   Total assets	8,304	8,721	416
   Equity	3,584	3,860	276
   Interest-bearing debt, gross	2,545	2,644	99
   Interest-bearing debt, net	2,205	2,366	161
   Equity ratio	43.2%	44.3%	1.1pt
   Ratio of interest-bearing debt to total assets	30.6%	30.3%	(0.3pt)
   Debt-to-equity ratio, gross	0.71	0.68	(0.03pt)
   Debt-to-equity ratio, net	0.61	0.61	-

   (Unit: 100 million yen)

   *“Others, Adjustments” represents the total of the “Others” business segment and “Adjustments.”

3. Capital Expenditure

   (Unit: 100 million yen)

   (12) Dividend Policy

   	FY2024	FY2025 (Forecast)
   Integrated Energy	262	153
   Industrial Gases & Machinery	231	298
   Materials	30	70
   Others, Adjustments	161	129
   Capital expenditure	687	650
   Depreciation	296	320

   		FY2023	FY2024	FY2025 (Forecast)
   Annual dividend (Yen)		32.50	47.00	47.00
   	(i)Dividend on profit excluding the impact of accounting for Cosmo using the equity method	32.50	32.50
   	(ii)Dividend on the impact of accounting for Cosmo using the equity method	-	14.50
   Dividend payout ratio (consolidated) (%)		17.2%	26.7%	22.2%
   ・Payout ratio of 20% or higher in the final fiscal year (FY2027), based on profit* excluding impact of LPG import price fluctuation ・Progressive dividend payout without any dividend rollbacks The company will pay out dividends based on the following two methods: The Company will distribute 20% of profit* of Cosmo, excluding the impact of inventory valuation factors and multiplied by the shareholding ratio. The above policy categories (i) and (ii) will be unified as “progressive dividend” and “target dividend payout ratio of 20% or more by FY2027 (based on profit* excluding market factors).” Interim dividends will be paid starting from FY2025 (interim dividend: 23.50 yen, year-end dividend: 23.50 yen). * Profit attributable to owners of parent (Regarding dividends for FY2023) The Company carried out a 4-for-1 share split of its common share as of October 1, 2024. The amount of dividends for the previous fiscal year has been calculated as if this share split were carried out. The actual dividend amount was 130.00 yen.

   1. Dividend on profit* excluding the impact of accounting for Cosmo using the equity method The Company will pay out the dividend according to the target outlined in .

   2. Dividend on the impact of accounting for Cosmo using the equity method

   * Presented here are figures for property, plant and equipment, intangible assets (including goodwill), and investments securities, etc. (which include 39.7 billion yen invested in property, plant and equipment in the current period.)

   *“Others, Adjustments” represents the total of the “Others” business segment and “Adjustments.”

4. Cash Flows (Unit: 100 million yen)