Iwatani: Overview of Business Results for FY25

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2026 [Japanese GAAP]

May 14, 2026

Company name: IWATANI CORPORATION Stock exchange listing: Tokyo

Code number: 8088

URL: https://www.iwatani.co.jp/

Representative: Hiroshi Majima President and CEO

Contact: Yasutoshi Ueda General Manager Accounting Dept. Phone: 06-7637-3325

Scheduled date of Annual General Meeting of Shareholders: June 17, 2026 Scheduled date of commencing dividend payments: June 18, 2026 Scheduled date of filing annual securities report: June 16, 2026

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, 2026 (April 01, 2025 to March 31, 2026)

   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, 2026	908,522	2.9	38,318	(17.1)	55,220	(10.2)	47,666	17.8
      March 31, 2025	883,011	4.1	46,222	(8.7)	61,481	(1.3)	40,465	(6.9)

      (Note) Comprehensive income:	Fiscal year ended March 31, 2026:	¥	68,232million[ 87.6 %]
      	Fiscal year ended March 31, 2025:	¥	36,369million[ (42.3) %]

      	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, 2026	207.10	-	11.6	6.2	4.2
      March 31, 2025	175.84	-	10.9	7.2	5.2

      (Reference) Equity in earnings (losses) of affiliated companies:	Fiscal year ended March 31, 2026:	¥	12,198million
      	Fiscal year ended March 31, 2025:	¥	10,099million

   2. Consolidated Financial Position

      	Total assets	Net assets	Capital adequacy ratio	Net assets per share
      As of	Million yen	Million yen	%	Yen
      March 31, 2026	899,772	448,995	48.6	1,898.97
      March 31, 2025	873,044	397,209	44.2	1,677.48

      (Reference) Equity: As of March 31, 2026: ¥ 437,098million

      As of March 31, 2025: ¥ 386,053million

   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, 2026	59,132	(23,784)	(37,067)	27,660
      March 31, 2025	52,419	(58,414)	(2,016)	27,588

      (Notes) 1 The Company finalized the provisional accounting treatment for the business combination in the fiscal year ended March 31, 2026. As a result, figures for the fiscal year ended March 31, 2025 reflect the finalization of the provisional accounting treatment.

      2 The Company carried out a 4-for-1 share split of its common share as of October 1, 2024.

      Basic earnings per share has been calculated as if this share split were carried out at the beginning of the previous fiscal year.

2. 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, 2025	-	-	-	47.00	47.00	10,826	26.7	2.9
   March 31, 2026	-	23.50	-	23.50	47.00	10,828	22.7	2.6
   Fiscal year ending March 31, 2027 (Forecast)	-	23.50	-	23.50	47.00		23.8

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (April 01, 2026 to March 31, 2027)

(% indicates changes from the previous corresponding period.)

* Notes:

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

   Exclusion: 8 Companies

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

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

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

   3. Changes in accounting estimates: No

   4. Retrospective restatement: No

      (Note) For details, please refer to “Consolidated Financial Statements and Notes (5) Explanatory Notes to Consolidated Financial Statements (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, 2026: 234,246,596 shares

      March 31, 2025: 234,246,596 shares

   2. Number of treasury shares at the end of the period: March 31, 2026: 4,070,547 shares

      March 31, 2025: 4,107,871 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2026: 230,168,100 shares

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

(Note) The Company carried out a 4-for-1 share split of its common share as of October 1, 2024.

Average number of shares outstanding during the period has been calculated as if this share split were carried out at the beginning of the previous fiscal year.

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 01, 2025 to March 31, 2026)

   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, 2026	538,003	(0.0)	5,554	(64.3)	27,569	(21.9)	34,403	40.3
      March 31, 2025	538,061	3.6	15,578	(15.4)	35,296	(2.1)	24,516	(15.6)

      	Basic earnings per share	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2026	149.33	-
      March 31, 2025	106.43	-

   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, 2026	618,039	282,464	45.7	1,225.99
      March 31, 2025	618,045	254,089	41.1	1,103.01

      (Reference) Equity: As of March 31, 2026: ¥ 282,464million

      As of March 31, 2025: ¥ 254,089million (Note) The Company carried out a 4-for-1 share split of its common share as of October 1, 2024.

      Basic earnings per share has been calculated as if this share split were carried out at the beginning of the previous fiscal year.

      *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 …………………………………………………………………………………….. 3

      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 FY2025 and FY2026 …………….................... 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 Segment Information, Etc.) 16

      (Notes on Business Combinations, Etc.) 18

      (Notes to Per Share Information) 19

      (Notes to Significant Subsequent Events) 19

      Additional Information 20

      Results for FY2025 and Forecasts for FY2026 20

      1. Consolidated Statements of Income 20

      2. Operating Profit Except for Impact of LPG Import Price Fluctuation 20

      3. LPG Import Price (CP) 20

      4. Segment Information 20

      5. LPG and Industrial Gases Net Sales -Sales Volume 20

      6. PLAN27 Management Targets 21

      7. Financial Position 21

      8. Capital Expenditure 21

      9. Cash Flows 21

      10. Forecast for FY2026 21

      11. Forecast for FY2026 by Segment 21

      12. Dividends 21

      Overview of Operating Results, Etc.

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

         1. Economic Environment and Initiatives

            During the fiscal year ended March 31, 2026 (hereinafter referred to as the “fiscal year under review”), the Japanese economy continued its recovery trend with a pick-up in personal consumption due to an improvement in the income environment, and an increase in capital investment against the backdrop of robust corporate earnings and other factors. However, the outlook remained uncertain due to geopolitical risks arising from the escalating tension in the Middle East and the stalemate in Japan-China relations.

            Under these circumstances, Iwatani (hereinafter referred to as the “Company”) expanded its business to achieve its basic policies of “solutions to social issues” and “sustained growth” in accordance with its five-year medium-term management plan, “PLAN27,” which started in the fiscal year ended March 31, 2024.

            Amid the escalating tension in the Middle East, we worked to ensure stable supply for our customers such as by utilizing diversified procurement sources for LPG, while using storage facilities in Japan and overseas for helium.

            In order to realize a hydrogen energy-based society, Japan Suiso Energy, Ltd., an investee of the Company, signed a ship building contract with Kawasaki Heavy Industries, Ltd. to build a 40,000m3 liquefied hydrogen carrier, which will be the largest in the world. We continue to work on initiatives to build a system able to steadily supply large volumes of hydrogen. In addition, jointly with OBAYASHI CORPORATION and Komatsu Ltd., we have conducted Japan’s first on-site proof-of-concept test for a medium-sized hydraulic excavator equipped with a fuel cell system. We will further develop equipment towards practical application and contribute to the expanded use of hydrogen in areas including construction sites, such as by giving consideration to large capacity and fast filling mobile hydrogen refueling systems.

            In our carbon-free strategies, for the cutting gas “Hydrocut” that mixes hydrogen and ethylene, we used hydrogen derived from renewable energy manufactured at the Fukushima Hydrogen Energy Research Field and supplied the demolition work of welded tanks inside the Fukushima Daiichi Nuclear Power Station. This promotes the use of hydrogen through local production for local consumption and contributes to decarbonization of the manufacturing process stage.

            In our overseas strategies, Coburn Resources Pty Ltd, which the Company acquired in Australia, started producing mineral sands, while Nordic Mining ASA, an investee of the Company in Norway, also made progress in preparations to produce and ship green titanium ore. In addition, the Company is working to diversify the supply chain for critical mineral resources and to build a stable supply system for the future such as by investing in Caremag SAS of France and proceeding with the construction of a plant to refine rare earths.

         2. Earnings

         During the fiscal year under review, despite the negative impact of LPG import price fluctuations and the weakening of the helium market, the recording of a gain on sale of non-current assets resulted in net sales of

         908.522 billion yen (+25.510 billion yen year-on-year), operating profit of 38.318 billion yen (-7.903 billion yen year-on-year), ordinary profit of 55.220 billion yen (-6.260 billion yen year-on-year), and profit attributable to owners of parent of 47.666 billion yen (+7.2 billion yen year-on-year).

      2. Segment Information Integrated Energy

         In the Integrated Energy Business, LPG import prices remained low, resulting in a decrease in revenue. As for profits, as LPG sales volume decreased in the wholesale sector despite improved profitability in the retail sector, and there was a negative impact of LPG import price fluctuations (-5.927 billion yen year-on-year), profit declined. Furthermore, despite the strong sales of energy-related equipment, sales of portable gas cooking stoves and cassette gas canisters remained sluggish in Japan and overseas.

         As a result, net sales in this segment were 367.732 billion yen (-11.050 billion yen year-on-year) and operating profit was 13.498 billion yen (-6.021 billion yen year-on-year).

         Industrial Gases & Machinery

         In the Industrial Gases & Machinery Business, sales of hydrogen and hydrogen-related equipment increased. In addition, sales volume of air separation gases remained strong for the electronic component and optical fiber industries. Meanwhile, the profitability of specialty gases declined due to the weakening of helium markets, and in the gas-related equipment, shipments of equipment for the automobile industry decreased.

         As a result, net sales in this segment were 288.730 billion yen (+17.280 billion yen year-on-year) and operating profit was 15.414 billion yen (-2.158 billion yen year-on-year).

         Materials

         In the Materials Business, sales grew as a result of efforts to ensure stable supply amid continued export restrictions from China on rare earths and other items. The sales of eco-friendly PET resin and food packaging resin products, in addition to biomass fuels and rechargeable battery materials, remained strong. In addition, sales of stainless steel increased due to the impact of new consolidation. On the other hand, the mineral sands business saw declining profitability of our mining sites in Australia, and sales volume of high-performance film materials decreased.

         As a result, net sales in this segment were 218.377 billion yen (+16.691 billion yen year-on-year) and operating profit was 11.613 billion yen (-0.134 billion yen year-on-year).

         Others

         Net sales were 33.681 billion yen (+2.588 billion yen year-on-year), and operating profit was 3.517 billion yen (+0.210 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 26.728 billion yen from the end of the previous fiscal year to 899.772 billion yen. This was mainly due to increases of 25.647 billion yen in investment securities and 7.570 billion yen in property, plant and equipment, respectively, despite a decrease of 11.390 billion yen in notes and accounts receivable - trade, and contract assets.

         Total Liabilities

         Total liabilities at the end of the fiscal year under review decreased by 25.058 billion yen from the end of the previous fiscal year to 450.777 billion yen. This was mainly due to decreases of 35.632 billion yen in “Other” under “Current liabilities,” including commercial papers, 7.086 billion yen in electronically recorded obligations -operating, 6.564 billion yen in notes and accounts payable - trade, and 6.388 billion yen in current portion of longterm borrowings, respectively, despite increases of 13.615 billion yen in short-term borrowings, 8.676 billion yen in deferred tax liabilities, and 8.634 billion yen in long-term borrowings, respectively.

         Interest-bearing debt, including lease liabilities, etc., at the end of the fiscal year under review decreased by 17.088 billion yen from the end of the previous fiscal year to 247.358 billion yen.

         Total Net Assets

         Total net assets at the end of the fiscal year under review increased by 51.786 billion yen from the end of the previous fiscal year to 448.995 billion yen. This was mainly due to increases of 32.188 billion yen in retained earnings, 12.5 billion yen in valuation difference on available-for-sale securities, and 4.096 billion yen in foreign currency translation adjustment, 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 increased by

         0.072 billion yen from the end of the previous fiscal year to 27.660 billion yen.

         (Operating Activities)

         Net cash provided by operating activities in the fiscal year under review increased in revenue by 6.712 billion yen from the previous fiscal year to 59.132 billion yen. This was mainly due to an increase in cash resulting from profit before income taxes of 70.712 billion yen, depreciation of 30.667 billion yen and a decrease in accounts receivable

         - trade, and contract assets of 12.683 billion yen, and a decrease in cash resulting from income taxes paid of 20.782 billion yen, a decrease in trade payables of 15.222 billion yen, share of profit of entities accounted for using equity method of 12.198 billion yen, and a gain on sale and retirement of non-current assets of 11.141 billion yen.

         (Investing Activities)

         Net cash used in investing activities in the fiscal year under review decreased in expenditure by 34.629 billion yen from the previous fiscal year to 23.784 billion yen. This was mainly due to an increase in cash resulting from the sale of property, plant and equipment of 23.389 billion yen, and a decrease in cash resulting from the purchase of property, plant and equipment of 38.380 billion yen and the purchase of intangible assets of 7.430 billion yen.

         (Financing Activities)

         Net cash used in financing activities in the fiscal year under review increased in expenditure by 35.050 billion yen from the previous fiscal year to 37.067 billion yen. This was mainly due to an increase in cash resulting from a net increase in borrowings of 14.812 billion yen, and a decrease in cash resulting from a net decrease in commercial papers of 33.0 billion yen and dividends paid of 16.204 billion yen.

         (Reference) Trends in cash flow indicators

         	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
         Capital adequacy ratio	48.4%	46.0%	43.2%	44.2%	48.6%
         Capital adequacy ratio based on fair value	53.2%	50.8%	59.2%	39.4%	51.3%
         Interest-bearing debt to cash flow ratio	8.5 years	2.7 years	4.6 years	5.0 years	4.2 years
         Interest coverage ratio	16.3 times	47.4 times	31.6 times	20.3 times	19.8 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. The Company finalized the provisional accounting treatment for business combination in the fiscal year ended March 31, 2026. Indicators for the fiscal year ended March 31, 2025 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

   The future outlook is uncertain with ongoing concerns about the impact of the escalating tensions in the Middle East, despite projections that a gradual recovery will persist due to robust capital investment in addition to rising personal consumption accompanying improvement in the income environment.

   In the Integrated Energy Business, we continue to work on stable supply of LPG, which is an important part of the energy infrastructure. Moreover, we will work to increase the number of LPG direct sales customers through M&A and other such initiatives, and will strive to improve profitability by streamlining logistics. With regard to the transition to low-carbon energy, we will promote the development of green LPG, in addition to the encouragement of fuel conversion and sale of carbon offset LPG. For portable gas cooking stoves and cassette gas canisters, we aim to expand our business in Japan and overseas through the development of new products and other measures.

   In the Industrial Gases & Machinery Business, we will strengthen measures to cope with the rising procurement and logistics cost and enhance the establishment of a stable supply system of air separation gases and specialty gases, and focus our efforts on expanding sales to the optical fiber and electronic component industries, which are expected to grow. In addition, in order to realize a hydrogen energy-based society, we will promote business development of low-carbon hydrogen supply chains in addition to reinforcing our sales of hydrogen and ammonia in relation to decarbonization.

   In the Materials Business, we will commence sales of green titanium ore produced in Norway and promote the recycled PET business. In the stainless steel business, we will seek to expand the business scale by leveraging our processing locations in Japan. In the Australian mineral sands business, we will work on improving stable operation and increasing productivity, including newly acquired mining areas. In Europe, the United States, and Asia, we will strengthen efforts to ensure stability of 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 960.0 billion yen (up 5.7% year-on-year), operating profit of 48.8 billion yen (up 27.4% year-on-year), ordinary profit of 59.0 billion yen (up 6.8% year-on-year), and profit attributable to owners of parent of 45.5 billion yen (down 4.5% year-on-year).

2. Basic Policy on Earnings Distribution and Dividend for FY2025 and FY2026

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” targets a payout ratio of 20% or higher in FY2027, which is the final fiscal year of the Plan, based on profit* excluding impact of LPG import price fluctuations, and strives for progressive dividend payout without any dividend rollbacks.

Based on the policy presented above, the Company plans to pay a dividend of 23.50 yen per share with respect to the year-end dividend for the fiscal year under review. As a result, the annual dividend will be 47 yen per share, including the interim dividend of 23.50 yen.

For the next fiscal year, the Company plans to pay a dividend of 47 yen per share (consisting of an interim dividend and a year-end dividend, each amounting to 23.50 yen per share).

Note: *Profit attributable to owners of parent

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, 2025 As of March 31, 2026

   Assets

   Current assets
   Cash and deposits	27,759	27,670
   Notes and accounts receivable - trade, and contract assets	162,256	150,865
   Electronically recorded monetary claims - operating	26,368	27,596
   Merchandise and finished goods	65,786	65,454
   Work in process	7,375	8,710
   Raw materials and supplies	11,391	12,057
   Other	27,733	25,892
   Allowance for doubtful accounts	(212)	(300)
   Total current assets	328,458	317,947
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	59,544	59,722
   Storage tanks and cylinders, net	12,417	13,937
   Machinery, equipment and vehicles, net	55,011	61,485
   Tools, furniture and fixtures, net	20,541	21,664
   Land	79,287	73,702
   Leased assets, net	3,086	3,291
   Construction in progress	10,318	13,972
   Total property, plant and equipment	240,206	247,776
   Intangible assets
   Goodwill	21,090	20,020
   Other	27,515	15,534
   Total intangible assets	48,606	35,555
   Investments and other assets
   Investment securities	211,938	237,585
   Long-term loans receivable	1,683	273
   Retirement benefit asset	7,342	9,202
   Deferred tax assets	3,921	3,405
   Other	31,432	48,549
   Allowance for doubtful accounts	(545)	(522)
   Total investments and other assets	255,772	298,493
   Total non-current assets	544,585	581,825
   Total assets	873,044	899,772

   (Million yen)

   As of March 31, 2025 As of March 31, 2026

   Liabilities

   Current liabilities

   Notes and accounts payable - trade	76,102	69,538
   Electronically recorded obligations - operating	34,367	27,281
   Short-term borrowings	24,421	38,036
   Current portion of long-term borrowings	22,964	16,576
   Lease liabilities	809	863
   Income taxes payable	10,882	9,220
   Contract liabilities	8,330	8,007
   Provision for bonuses	7,194	7,336
   Other	69,921	34,288
   Total current liabilities	254,993	211,149
   Non-current liabilities
   Bonds payable	70,000	70,000
   Long-term borrowings	111,619	120,254
   Lease liabilities	1,469	1,512
   Deferred tax liabilities	21,146	29,822
   Provision for retirement benefits for directors (and other officers)	1,522	1,246
   Retirement benefit liability	6,082	6,110
   Other	9,000	10,680
   Total non-current liabilities	220,841	239,627
   Total liabilities	475,835	450,777
   Net assets
   Shareholders’ equity
   Share capital	35,096	35,096
   Capital surplus	32,128	32,323
   Retained earnings	274,909	307,098
   Treasury shares	(1,558)	(1,559)
   Total shareholders’ equity	340,576	372,957
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	29,334	41,835
   Deferred gains or losses on hedges	2,270	3,094
   Foreign currency translation adjustment	11,839	15,936
   Remeasurements of defined benefit plans	2,031	3,274
   Total accumulated other comprehensive income	45,476	64,140
   Non-controlling interests	11,155	11,897
   Total net assets	397,209	448,995
   Total liabilities and net assets	873,044	899,772

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statements of Income
   		(Million yen)
   	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
   Net sales	883,011	908,522
   Cost of sales	648,699	672,646
   Gross profit	234,311	235,875
   Selling, general and administrative expenses
   Transportation costs	33,188	33,668
   Provision of allowance for doubtful accounts	28	172
   Salaries, allowances and bonuses	49,953	51,977
   Provision for bonuses	6,436	6,674
   Retirement benefit expenses	2,031	1,693
   Provision for retirement benefits for directors (and other officers)	165	153
   Depreciation	18,941	21,485
   Rent expenses	11,825	12,853
   Commission expenses	13,766	16,046
   Amortization of goodwill	3,211	3,178
   Other	48,542	49,652
   Total selling, general and administrative expenses	188,089	197,557
   Operating profit	46,222	38,318
   Non-operating income
   Interest income	340	308
   Dividend income	1,736	1,951
   Foreign exchange gains	—	412
   Share of profit of entities accounted for using equity method	10,099	12,198
   Subsidy income	1,938	1,957
   Outsourcing service income	606	540
   Other	4,773	3,866
   Total non-operating income	19,495	21,235
   Non-operating expenses
   Interest expenses	2,761	3,127
   Foreign exchange losses	5	—
   Other	1,469	1,206
   Total non-operating expenses	4,236	4,333
   Ordinary profit	61,481	55,220

   (Million yen)

   	Fiscal year ended	Fiscal year ended
   	March 31, 2025	March 31, 2026
   Extraordinary income
   Gain on sale of non-current assets	533	11,993
   Gain on sale of investment securities	7,157	4,853
   Gain on liquidation of subsidiaries and associates	—	409
   Subsidy income	775	1,154
   Gain on liquidation of project	—	568
   Total extraordinary income	8,466	18,979
   Extraordinary losses
   Loss on sale of non-current assets	208	206
   Loss on retirement of non-current assets	719	645
   Impairment losses	3,520	1,548
   Loss on sale of investment securities	3	2
   Loss on valuation of investment securities	71	19
   Loss on sale of investments in capital of subsidiaries and associates	—	11
   Loss on liquidation of subsidiaries and associates	1	18
   Loss on tax purpose reduction entry of non-current assets	775	1,034
   Loss on withdrawal from project	1,814	—
   Total extraordinary losses	7,115	3,487
   Profit before income taxes	62,831	70,712
   Income taxes - current	19,739	18,399
   Income taxes - deferred	1,301	3,169
   Total income taxes	21,040	21,568
   Profit	41,790	49,143
   Profit attributable to non-controlling interests	1,325	1,476
   Profit attributable to owners of parent	40,465	47,666

   Consolidated Statements of Comprehensive Income
   		(Million yen)
   	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
   Profit	41,790	49,143
   Other comprehensive income
   Valuation difference on available-for-sale securities	(7,707)	11,419
   Deferred gains or losses on hedges	(2,173)	688
   Foreign currency translation adjustment	5,592	2,417
   Remeasurements of defined benefit plans, net of tax	1,050	662
   Share of other comprehensive income of entities accounted for using equity method	(2,182)	3,901
   Total other comprehensive income	(5,421)	19,088
   Comprehensive income	36,369	68,232
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	34,903	66,330
   Comprehensive income attributable to non-controlling interests	1,466	1,901

3. Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2025

(Million yen)

For the fiscal year ended March 31, 2026

(Million yen)

(Notes on the Assumption of a Going Concern)

None

(Notes to Changes in Accounting Policies) (Changes in method of valuating inventories)

Previously, the Company principally used the first-in first-out method for valuation of products related to the Integrated Energy Business. From the third quarter of the current fiscal year, however, the Company has changed the principal method to the gross average method. This change was made with the purpose of more appropriately calculating the valuation of inventories and periodic profit or loss on the occasion of changes to the core system. Furthermore, since a portion of the required data for previous fiscal years is not available and the principle-based treatment pertaining to the retrospective application is not practically possible, the carrying amount at the end of the previous fiscal year is calculated as the balance at the beginning of the current fiscal year.

Additionally, this change has been applied since the third quarter of the current fiscal year, when the core system began operation. The impact of this change is immaterial.

(Notes to Segment Information, Etc.)

1. 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 metals, rare earths, electronic and 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, 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	19,520	17,572	11,748	48,841	3,306	52,148	(5,925)	46,222
   Segment assets	241,377	234,178	117,875	593,431	86,551	679,983	193,061	873,044
   Other items:
   Depreciation and amotization Impairment loss on fixed assets	6,560 38	10,200 3,478	2,272 -	19,034 3,517	6,709 -	25,743 3,517	2,209 3	27,953 3,520
   Amortization of goodwill	2,340	842	-	3,183	48	3,231	-	3,231
   Increase in fixed assets and intangible assets	18,176	14,763	1,835	34,775	9,559	44,334	17,839	62,174

2. Fiscal Year under Review (April 1, 2025 - March 31, 2026)

   (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	367,732 4,655	288,730 2,708	218,377 2,130	874,840 9,494	33,681 27,473	908,522 36,967	-(36,967)	908,522 -
   Outside customers Intersegment
   Total	372,388	291,438	220,507	884,334	61,155	945,490	(36,967)	908,522
   Segment income	13,498	15,414	11,613	40,526	3,517	44,044	(5,725)	38,318
   Segment assets	232,517	253,495	133,055	619,068	101,396	720,465	179,307	899,772
   Other items:
   Depreciation and amotization Impairment loss on fixed assets	7,525 39	10,534 903	2,187 -	20,247 943	6,876 -	27,124 943	3,542 605	30,667 1,548
   Amortization of goodwill	2,280	843	35	3,159	48	3,207	-	3,207
   Increase in fixed assets and intangible assets	10,425	20,683	8,157	39,265	9,065	48,331	8,056	56,387

   (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 business combination 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.)

(Significant revision of the initial allocation of acquisition costs in comparative information)

Although the Company applied provisional accounting treatment for the business combination with ISG, Inc. conducted on November 29, 2024, in the previous fiscal year, it finalized the provisional accounting treatment in the 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.

Consequently, the provisionally calculated amount of goodwill, initially 4,082 million yen, has decreased by 1,872 million yen due to the finalization of the accounting treatment, resulting in a revised amount of 2,210 million yen. The decrease in goodwill was due to increases of 2,729 million yen in other intangible assets (customer-related intangible assets) and 856 million yen in deferred tax liabilities.

In addition, on the consolidated balance sheet for the previous fiscal year, goodwill decreased by 1,802 million yen, while other intangible assets (customer-related intangible assets), deferred tax liabilities, and retained earnings increased by 2,653 million yen, 833 million yen, and 17 million yen, respectively.

The impact on the consolidated statements of income for the previous fiscal year is immaterial.

(Notes to Per Share Information)

(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 business combination.

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

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, 2025)	Fiscal year under review (As of March 31, 2026)
   Total net assets (million yen)	397,209	448,995
   Amount deducted from total net assets (million yen)	11,155	11,897
   [Of which non-controlling interests (million yen)]	[11,155]	[11,897]
   Net assets pertaining to common shares at the end of the period (million yen)	386,053	437,098
   Number of common shares at the end of the period used to calculate net assets per share (thousand shares)	230,138	230,176

2. Basic earnings per share

   Item	Previous fiscal year (From April 1, 2024 to March 31, 2025)	Fiscal year under review (From April 1, 2025 to March 31, 2026)
   Basic earnings per share
   Profit attributable to owners of parent (million yen)	40,465	47,666
   Amount not attributable to common shareholders (million yen)	-	-
   Profit attributable to owners of parent pertaining to common shares (million yen)	40,465	47,666
   Average number of common shares during the period (thousand shares)	230,134	230,168

   (Notes to Significant Subsequent Events) None

   Additional Information

1. Consolidated Statements of Income

   (Unit: 100 million yen)

   (Figures are rounded down to the nearest 100 million yen)

   	FY2024	FY2025	Change	Rate	FY2025 (Forecast)	Change	Rate	Overview (comparison with the previous fiscal year)
   Net sales	8,830	9,085	255	2.9%	8,880	205	2.3%	Net sales increased mainly due to robust sales of products for industrial sectors in the Materials Business and the Industrial Gases & Machinery Business. As for profits, operating profit and ordinary profit decreased mainly due to a decline in helium profitability, the negative impact on profits of LPG import price fluctuations and an increase in selling, general and administrative expenses. Profit increased mainly due to the recording of a gain on sale of non-current assets, etc.
   Gross profit	2,343	2,358	15	0.7%	-	-	-
   Operating profit	462	383	(79)	(17.1)%	358	25	7.0%
   Ordinary profit	614	552	(62)	(10.2)%	482	70	14.6%
   Profit attributable to owners of parent	404	476	72	17.8%	405	71	17.7%

   *Figures for fiscal year ended March 31, 2026 (forecast) were announced on February 10, 2026.

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

   	FY2024	FY2025	Change	Rate	FY2025 (Forecast)	Change	Rate	Overview (comparison with the previous fiscal year)
   Operating profit	462	383	(79)	(17.1)%	358	25	7.0%	・Impact of LPG import price fluctuation led to a decrease in profit by 5.9 billion yen year-on-year. ・Operating profit except for the impact of LPG import price fluctuation was 44.0 billion yen, a decrease of 1.9 billion yen.
   Impact of LPG import price fluctuation	2	(57)	(59)	-	(59)	2	-
   Operating profit except for impact of LPG import price fluctuation	460	440	(19)	(4.3)%	417	22	5.5%

   * For more detailed information, please see a slide of "Impact of LPG Import Prices" in Iwatani Corporation Business Overview. (https://www.iwatani.co.jp/eng/ir/pdf/about_iwatani.pdf)

   0

   [

3. LPG Import Price (CP)

   900

   Propane($/t)

   800

   750

   700

   630

   Ave. 612$/t

   635

   635

   600

   Ave. 569$/t

   625

   Ave. 549$/t

   580

   500

   555

   475

   400

   400

   300

   2023.4

   2024.4

   2025.4

   2026.4 2026.5

4. Segment Information (Unit: 100 million yen)

   		FY2024	FY2025	Change	Rate	Overview (comparison with the previous fiscal year)
   Integrated Energy	Net sales	3,787	3,677	(110)	(2.9)%	・Profit decreased due to negative impact of LPG import price fluctuation. ・Sales volume in the LPG retail sector increased, and profitability also improved. ・Sales volume in the LPG wholesale sector decreased. ・Decrease in sales of portable gas cooking stoves and cassette gas canisters.
   	Operating profit	195	134	(60)	(30.8)%
   Industrial Gases & Machinery	Net sales	2,714	2,887	172	6.4%	・Increase in sales volume of hydrogen and hydrogen-related equipment. ・Sales volume of air separation gases remained strong for the electronic component and optical fiber industries. ・Decline in the profitability of specialty gases due to weakening in helium markets. ・Decrease in shipments of equipment for the automotive industry.
   	Operating profit	175	154	(21)	(12.3)%
   Materials	Net sales	2,016	2,183	166	8.3%	・Increase in sales of high-performance materials and biomass fuels. ・Increase in sales of stainless steel due to the impact of new consolidation. ・Increase in sales of rechargeable battery materials for next-generation automobiles. ・In mineral sands, the profitability of our own mining sites in Australia declined.
   	Operating profit	117	116	(1)	(1.1)%
   Others, Adjustments	Net sales	310	336	25	8.3%
   	Operating profit	(26)	(22)	4	-

   • Net sales represent sales to third parties.

   • "Others, Adjustments" represents the sum of the "Other" business segment and "Adjustments."

5. LPG and Industrial Gases Net Sales ･ Sales Volume

   	Sales volume (thousand tons)				Net sales (100 million yen)
   	FY2024	FY2025	Change	Rate	FY2024	FY2025	Change	Rate
   Domestic residential use	1,169	1,166	(3)	(0.3)%	1,880	1,788	(92)	(4.9)%
   Domestic industrial use	336	350	13	4.1%	400	378	(21)	(5.5)%
   LPG sub total (except for overseas)	1,506	1,516	10	0.7%	2,280	2,166	(114)	(5.0)%
   LPG total	1,520	1,527	7	0.5%	2,298	2,179	(118)	(5.2)%
   Various industrial gases	-	-	-	-	1,596	1,682	86	5.4%

   Operating profit Profit attributable to ROE (%) ROIC (%) (100 million yen) owners of parent (100 million yen)
   13.2% 650 11.2% 10.9% 11.6% 506 434 462 476 10% or 400 404 383 higher 6.8% 320 6.7% 6% or 5.1% higher 4.0% FY2022 FY2023 FY2024 FY2025 PLAN27 Targets
   Operating profit: 65.0 billion yen		ROE: 10% or higher		ROIC: 6% or higher

6. PLAN27 Management Targets (10) Forecast for FY2026 (Unit: 100 million yen)

   	FY2025	FY2026 (Forecast)	Change	Rate
   Net sales	9,085	9,600	514	5.7%
   Operating profit	383	488	104	27.4%
   Ordinary profit	552	590	37	6.8%
   Profit attributable to owners of parent	476	455	(21)	(4.5)%
   Impact of LPG import price fluctuation	(57)	-	57	-

   Operating profit

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

   (Unit: 100 million yen)

   	FY2025	FY2026 (Forecast)
   Amount of share of profit or loss of Cosmo accounted for using equity method	109	88

   *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)

7. Financial Position(11) Forecast for FY2026 by Segment

   		FY2025	FY2026 (Forecast)	Change	Rate
   Integrated Energy	Net sales	3,964	4,047	82	2.1%
   	Operating profit	150	231	80	53.2%
   Industrial Gases & Machinery	Net sales	2,887	2,927	39	1.4%
   	Operating profit	154	185	30	20.0%
   Materials	Net sales	2,183	2,573	389	17.8%
   	Operating profit	116	130	13	11.9%
   Others, Adjustments	Net sales	49	53	3	7.4%
   	Operating profit	(37)	(58)	(20)	-

   (Unit: 100 million yen)

   (Unit: 100 million yen)

   	FY2024 end	FY2025 end	Change
   Total assets	8,730	8,997	267
   Equity	3,860	4,370	510
   Interest-bearing debt, gross	2,644	2,473	(170)
   Interest-bearing debt, net	2,366	2,196	(170)
   Equity ratio	44.2%	48.6%	4.4pt
   Ratio of interest-bearing debt to total assets	30.3%	27.5%	(2.8)pt
   Debt-to-equity ratio, gross	0.68	0.56	(0.12)pt
   Debt-to-equity ratio, net	0.61	0.50	(0.11)pt

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

   • Due to a change in organization, figures were reclassified according to the business segments after the change, and comparisons have been made using the reclassified figures.

8. Capital Expenditure

   (Unit: 100 million yen)

   (12) Dividends

   	FY2025	FY2026 (Forecast)
   Integrated Energy	172	190
   Industrial Gases & Machinery	220	310
   Materials	74	133
   Others, Adjustments	105	67
   Capital expenditure	573	700
   Depreciation	315	323

   In this document, “Cosmo Energy Holdings Co., Ltd.” is abbreviated to “Cosmo.”

• Presented here are figures for property, plant and equipment, intangible assets (including goodwill), and investments securities, etc. (which include 40.7 billion yen invested in property, plant and equipment in the current period.)

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

• Due to a change in organization, the plan for the next fiscal year is presented according to the business segments after the change.

1. Cash Flows (Unit: 100 million yen)