Iwatani : Overview of Business Results for FY24

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 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) Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 01, 2024 to March 31, 2025) 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 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 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. 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). 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.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Full year Million yen 936,400 % 6.0 Million yen 49,100 % 6.2 Million yen 63,100 % 2.6 Million yen 48,800 % 20.6 Yen 212.05 * Notes: 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. Changes in accounting policies, changes in accounting estimates and retrospective restatement Changes in accounting policies due to the revision of accounting standards: Yes Changes in accounting policies other than 1) above: No Changes in accounting estimates: No 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. Total number of issued shares (common shares) 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 Number of treasury shares at the end of the period: March 31, 2025: 4,107,871 shares March 31, 2024: 4,133,300 shares 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 Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 01, 2024 to March 31, 2025) 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 - 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 Overview of Operating Results for the Fiscal Year under Review……………………………………… 2 Segment Information …………………………………………………………………………………….. 2 Overview of Financial Position for the Fiscal Year under Review……………………………………… 3 Overview of Cash Flows for the Fiscal Year under Review…………………………………………….. 4 Future Outlook 5 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 Consolidated Balance Sheets …………………………………………………………………………….. 7 Consolidated Statements of Income and Comprehensive Income ………………………………………. 9 Consolidated Statements of Changes in Net Assets 12 Consolidated Statements of Cash Flows 14 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 Consolidated Statements of Income 23 Operating Profit Except for Impact of LPG Import Price Fluctuation 23 LPG Import Price (CP) 23 Segment Information 23 LPG and Industrial Gases Net Sales -Sales Volume 23 PLAN27 Management Targets 24 Financial Position 24 Capital Expenditure 24 Cash Flows 24 Forecast for FY2025 24 Forecast for FY2025 by Segment 24 Dividend Policy 24 Overview of Operating Results, Etc. 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). 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). 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. 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. 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) 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. 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. 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. 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). 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* 1 excluding 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: Dividend on profit* 1 excluding the impact of accounting for Cosmo Energy HD using the equity method 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* 1 of 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* 1 excluding 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 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 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 Consolidated Statements of Changes in Net Assets For the fiscal year ended March 31, 2024 (Million yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 35,096 31,904 203,801 (1,530) 269,271 Changes during period Dividends of surplus (5,470) (5,470) Profit attributable to owners of parent 43,468 43,468 Purchase of treasury shares (25) (25) Disposal of treasury shares 45 9 55 Purchase of shares of consolidated subsidiaries 93 93 Change in ownership interest of parent due to transactions with non-controlling interests – Change in treasury shares arising from change in equity in entities accounted for using equity method 0 0 Net changes in items other than shareholders’ equity Total changes during period – 139 37,998 (15) 38,121 Balance at end of period 35,096 32,043 241,799 (1,546) 307,393 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 24,148 2,730 5,764 61 32,704 10,254 312,230 Changes during period Dividends of surplus (5,470) Profit attributable to owners of parent 43,468 Purchase of treasury shares (25) Disposal of treasury shares 55 Purchase of shares of consolidated subsidiaries 93 Change in ownership interest of parent due to transactions with non-controlling interests – Change in treasury shares arising from change in equity in entities accounted for using equity method 0 Net changes in items other than shareholders’ equity 13,227 1,587 2,437 1,083 18,334 347 18,682 Total changes during period 13,227 1,587 2,437 1,083 18,334 347 56,804 Balance at end of period 37,375 4,317 8,201 1,145 51,039 10,601 369,034 For the fiscal year ended March 31, 2025 (Million yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 35,096 32,043 241,799 (1,546) 307,393 Cumulative effects of changes in accounting policies 130 130 Restated balance 35,096 32,043 241,929 (1,546) 307,523 Changes during period Dividends of surplus (7,485) (7,485) Profit attributable to owners of parent 40,448 40,448 Purchase of treasury shares (23) (23) Disposal of treasury shares 60 11 71 Purchase of shares of consolidated subsidiaries 23 23 Change in ownership interest of parent due to transactions with non-controlling interests 0 0 Change in treasury shares arising from change in equity in entities accounted for using equity method 0 0 Net changes in items other than shareholders’ equity Total changes during period - 84 32,962 (11) 33,035 Balance at end of period 35,096 32,128 274,892 (1,558) 340,559 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 37,375 4,317 8,201 1,145 51,039 10,601 369,034 Cumulative effects of changes in accounting policies 130 Restated balance 37,375 4,317 8,201 1,145 51,039 10,601 369,164 Changes during period Dividends of surplus (7,485) Profit attributable to owners of parent 40,448 Purchase of treasury shares (23) Disposal of treasury shares 71 Purchase of shares of consolidated subsidiaries 23 Change in ownership interest of parent due to transactions with non-controlling interests 0 Change in treasury shares arising from change in equity in entities accounted for using equity method 0 Net changes in items other than shareholders’ equity (8,040) (2,046) 3,638 886 (5,562) 554 (5,008) Total changes during period (8,040) (2,046) 3,638 886 (5,562) 554 28,027 Balance at end of period 29,334 2,270 11,839 2,031 45,476 11,155 397,191 (4) Consolidated Statements of Cash Flows (Million yen) Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025 Cash flows from operating activities Profit before income taxes 63,315 62,838 Depreciation 26,032 27,877 Impairment losses 1,028 3,520 Loss on tax purpose reduction entry of non-current assets 153 775 Amortization of goodwill 3,285 3,301 Gain on receipt of donated non-current assets (49) — Increase (decrease) in allowance for doubtful accounts 26 (30) Increase (decrease) in provision for bonuses 330 247 Increase (decrease) in retirement benefit liability (1,016) (310) Decrease (increase) in retirement benefit asset (1,983) (1,718) Increase (decrease) in provision for retirement benefits for directors (and other officers) 104 40 Interest and dividend income (1,948) (2,077) Interest expenses 1,843 2,761 Foreign exchange losses (gains) (243) (17) Share of loss (profit) of entities accounted for using equity method (6,210) (10,099) Loss (gain) on sale and retirement of non-current assets (452) 395 Loss (gain) on sale of investment securities (1,612) (7,154) Loss (gain) on valuation of investment securities 95 71 Loss (gain) on liquidation of subsidiaries and associates – 1 Loss on liquidation of subsidiaries and associates 68 — Decrease (increase) in accounts receivable - trade, and contract assets 2,425 (11,614) Decrease (increase) in inventories (3,935) (7,665) Increase (decrease) in trade payables (13,755) 7,341 Decrease (increase) in advance payments to suppliers 2,224 1,134 Increase (decrease) in contract liabilities (3,352) 855 Other, net 2,564 (485) Subtotal 68,939 69,990 Interest and dividends received 2,155 2,263 Dividends received from entities accounted for using equity method 242 5,689 Interest paid (1,736) (2,585) Income taxes refund (paid) (14,745) (22,938) Net cash provided by (used in) operating activities 54,854 52,419 (Million yen) Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025 Cash flows from investing activities Purchase of property, plant and equipment (34,453) (43,432) Proceeds from sale of property, plant and equipment 2,645 2,126 Purchase of intangible assets (6,487) (11,204) Purchase of investment securities (112,288) (1,717) Proceeds from sale and redemption of investment securities 2,383 9,992 Purchase of shares of subsidiaries resulting in change in scope of consolidation – (9,929) Proceeds from sale of investments in capital 5 2 Loan advances (3,968) (15,998) Proceeds from collection of loans receivable 2,496 14,472 Other, net (11,600) (2,724) Net cash provided by (used in) investing activities (161,266) (58,414) Cash flows from financing activities Net increase (decrease) in short-term borrowings 102,757 (106,008) Proceeds from long-term borrowings 13,067 64,746 Repayments of long-term borrowings (12,291) (13,978) Proceeds from issuance of bonds 10,000 29,839 Net increase (decrease) in commercial papers – 33,000 Net decrease (increase) in treasury shares (24) (29) Repayments of lease liabilities (1,308) (1,284) Dividends paid (5,458) (7,469) Dividends paid to non-controlling interests (1,027) (513) Purchase of shares of subsidiaries not resulting in change in scope of consolidation (281) (319) Net cash provided by (used in) financing activities 105,433 (2,016) Effect of exchange rate change on cash and cash equivalents 1,247 1,569 Net increase (decrease) in cash and cash equivalents 269 (6,442) Cash and cash equivalents at beginning of period 33,256 33,614 Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation 87 175 Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries 1 239 Cash and cash equivalents at end of period 33,614 27,588 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.) 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: 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. 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. Materials: PET resins, biomass fuels, battery-related materials, mineral sands, rare earths, ceramics materials, semiconductor materials, stainless steel, aluminum, electronic display film, etc. 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. Information related to sales, operating income (loss), assets, liabilities and other items by reportable segment 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 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: Adjustments for segment income or loss include companywide expenses not allocated to each segment and the elimination of intersegment transactions. 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. Adjustments for depreciation and amortization are mainly depreciation and amortization for general and administrative departments of the Company. Adjustments for impairment loss on fixed assets are mainly impairment loss within the general and administrative departments of the Company. 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. “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. Overview of the business combination 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. 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. Date of the business combination November 29, 2024 Legal form of the business combination Acquisition of shares in exchange for cash The acquired company’s name after the business combination The names of the companies will not change subsequent to the business combination. Share of voting rights acquired 100% Reason for determining the acquired company The Company acquired ISG’s shares in exchange for cash. Period of the acquired company’s business results included in the consolidated financial statements From December 1, 2024 to March 31, 2025 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 Description and amount of major acquisition-related expenses Fees and commissions related to advisory services: 190 million yen Amount of goodwill accrued, reason for accrual, amortization method and amortization period Amount of goodwill accrued 4,082 million yen 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. Amortization method and period Straight-line amortization over 9 years 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 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. 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. 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. The basis for calculation of net assets per share and basic earnings per share is as follows: 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 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 Results for FY2024 and Forecasts for FY2025 Provisional accounting treatment related to application of the equity method was finalized in the fiscal year ended March 31, 2025. Accordingly, the respective figures associated with the previous fiscal year and the end of previous fiscal year have been adjusted to reflect the finalized provisional accounting treatment. (Unit: 100 million yen) 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. 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 [ 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 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." LPG and Industrial Gases Net Sales ･ Sales Volume Sales volume (thousand tons) Net sales (100 million yen) FY2023 FY2024 Change Rate FY2023 FY2024 Change Rate Domestic residential use 1,187 1,169 (17) (1.5%) 1,758 1,880 122 6.9% Domestic industrial use 324 336 12 3.7% 352 400 48 13.7% LPG sub total (except for overseas) 1,511 1,506 (5) (0.4%) 2,110 2,280 170 8.1% LPG total 1,526 1,520 (6) (0.4%) 2,127 2,298 171 8.1% Various industrial gases - - - - 1,512 1,596 84 5.6% Operating profit Profit attributable to ROE (%) ROIC (%) (100 million yen) owners of parent (100 million yen) 13.2% 650 11.2% 10.9% 506 462 10% or 400 6.7% 434 404 higher 6.8% 320 5.1% 6% or higher FY2022 FY2023 FY2024 PLAN27 Targets Operating profit: 65.0 billion yen ROE: 10% or higher ROIC: 6% or higher 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) - 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.” 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. 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 . 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.” Cash Flows (Unit: 100 million yen) FY2023 FY2024 Change Cash and cash equivalents at beginning of period 332 336 3 Cash flows from operating activities 548 524 (24) Cash flows from investing activities (1,612) (584) 1,028 Free cash flow (1,064) (59) 1,004 Cash flows from financing activities 1,054 (20) (1,074) Effect of exchange rate change on cash and cash equivalents 12 15 3 Net increase (decrease) in cash and cash equivalents 2 (64) (67) Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation 0 1 0 Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries 0 2 2 Cash and cash equivalents at end of period 336 275 (60) In this document, “Cosmo Energy Holdings Co., Ltd.” is abbreviated to “Cosmo.”

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