Iwatani : Overview of Business Results for FY25

About this update from Iwatani Corporation

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Consolidated Financial Results for the 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) Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 01, 2025 to March 31, 2026) 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 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 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. 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 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.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Full year Million yen 960,000 % 5.7 Million yen 48,800 % 27.4 Million yen 59,000 % 6.8 Million yen 45,500 % (4.5) Yen 197.67 * Notes: Significant changes in the scope of consolidation during the period: Yes New: 3 Companies Exclusion: 8 Companies Changes in accounting policies, changes in accounting estimates and retrospective restatement Changes in accounting policies due to the revision of accounting standards: No Changes in accounting policies other than 1) above: Yes Changes in accounting estimates: No Retrospective restatement: No (Note) For details, please refer to “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. Total number of issued shares (common shares) 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 Number of treasury shares at the end of the period: March 31, 2026: 4,070,547 shares March 31, 2025: 4,107,871 shares 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 Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 01, 2025 to March 31, 2026) 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 - 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 Overview of Operating Results for the Fiscal Year under Review……………………………………… 2 Segment Information …………………………………………………………………………………….. 3 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 FY2025 and FY2026 …………….................... 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 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 Consolidated Statements of Income 20 Operating Profit Except for Impact of LPG Import Price Fluctuation 20 LPG Import Price (CP) 20 Segment Information 20 LPG and Industrial Gases Net Sales -Sales Volume 20 PLAN27 Management Targets 21 Financial Position 21 Capital Expenditure 21 Cash Flows 21 Forecast for FY2026 21 Forecast for FY2026 by Segment 21 Dividends 21 Overview of Operating Results, Etc. Overview of Operating Results for the Fiscal Year under Review 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 40,000m 3 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. 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). 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). 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. 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. 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. 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. 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). 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 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 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 Consolidated Statements of Changes in Net Assets 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 40,465 40,465 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 32,980 (11) 33,053 Balance at end of period 35,096 32,128 274,909 (1,558) 340,576 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 40,465 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 28,044 Balance at end of period 29,334 2,270 11,839 2,031 45,476 11,155 397,209 For the fiscal year ended March 31, 2026 (Million yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 35,096 32,128 274,909 (1,558) 340,576 Changes during period Dividends of surplus (16,241) (16,241) Profit attributable to owners of parent 47,666 47,666 Purchase of treasury shares (15) (15) Disposal of treasury shares 52 13 65 Purchase of shares of consolidated subsidiaries 142 142 Change in treasury shares arising from change in equity in entities accounted for using equity method (0) (0) Change in scope of equity method 762 762 Net changes in items other than shareholders’ equity Total changes during period - 194 32,188 (1) 32,380 Balance at end of period 35,096 32,323 307,098 (1,559) 372,957 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 29,334 2,270 11,839 2,031 45,476 11,155 397,209 Changes during period Dividends of surplus (16,241) Profit attributable to owners of parent 47,666 Purchase of treasury shares (15) Disposal of treasury shares 65 Purchase of shares of consolidated subsidiaries 142 Change in treasury shares arising from change in equity in entities accounted for using equity method (0) Change in scope of equity method 762 Net changes in items other than shareholders’ equity 12,500 823 4,096 1,243 18,663 741 19,405 Total changes during period 12,500 823 4,096 1,243 18,663 741 51,786 Balance at end of period 41,835 3,094 15,936 3,274 64,140 11,897 448,995 (4) Consolidated Statements of Cash Flows (Million yen) Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Cash flows from operating activities Profit before income taxes 62,831 70,712 Depreciation 27,953 30,667 Impairment losses 3,520 1,548 Loss on tax purpose reduction entry of non-current assets 775 1,034 Amortization of goodwill 3,231 3,207 Increase (decrease) in allowance for doubtful accounts (30) 52 Increase (decrease) in provision for bonuses 247 68 Increase (decrease) in retirement benefit liability (310) (40) Decrease (increase) in retirement benefit asset (1,718) (1,859) Increase (decrease) in provision for retirement benefits for directors (and other officers) 40 (311) Interest and dividend income (2,077) (2,259) Interest expenses 2,761 3,127 Foreign exchange losses (gains) (17) 370 Share of loss (profit) of entities accounted for using equity method (10,099) (12,198) Loss (gain) on sale and retirement of non-current assets 395 (11,141) Loss (gain) on sale of investment securities (7,154) (4,851) Loss (gain) on valuation of investment securities 71 19 Loss (gain) on liquidation of subsidiaries and associates 1 (409) Loss (gain) on sale of investments in capital of subsidiaries and associates — 11 Decrease (increase) in accounts receivable - trade, and contract assets (11,614) 12,683 Decrease (increase) in inventories (7,665) (199) Increase (decrease) in trade payables 7,341 (15,222) Decrease (increase) in advance payments to suppliers 1,134 1,264 Increase (decrease) in contract liabilities 855 (385) Other, net (485) (1,553) Subtotal 69,990 74,336 Interest and dividends received 2,263 2,266 Dividends received from entities accounted for using equity method 5,689 6,306 Interest paid (2,585) (2,993) Income taxes refund (paid) (22,938) (20,782) Net cash provided by (used in) operating activities 52,419 59,132 (Million yen) Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Cash flows from investing activities Purchase of property, plant and equipment (43,432) (38,380) Proceeds from sale of property, plant and equipment 2,126 23,389 Purchase of intangible assets (11,204) (7,430) Proceeds from sale of intangible assets — 8 Purchase of investment securities (1,717) (3,710) Proceeds from sale and redemption of investment securities 9,992 5,845 Purchase of shares of subsidiaries resulting in change in scope of consolidation (9,929) (1,572) Proceeds from liquidation of subsidiaries and associates — 652 Proceeds from sale of investments in capital 2 7 Proceeds from sale of investments in capital of subsidiaries and associates — 33 Loan advances (15,998) (19,954) Proceeds from collection of loans receivable 14,472 19,008 Other, net (2,724) (1,682) Net cash provided by (used in) investing activities (58,414) (23,784) Cash flows from financing activities Net increase (decrease) in short-term borrowings (106,008) 13,123 Proceeds from long-term borrowings 64,746 18,852 Repayments of long-term borrowings (13,978) (17,164) Proceeds from issuance of bonds 29,839 — Net increase (decrease) in commercial papers 33,000 (33,000) Net decrease (increase) in treasury shares (29) (6) Repayments of lease liabilities (1,284) (1,578) Dividends paid (7,469) (16,204) Dividends paid to non-controlling interests (513) (587) Purchase of shares of subsidiaries not resulting in change in scope of consolidation (319) (503) Net cash provided by (used in) financing activities (2,016) (37,067) Effect of exchange rate change on cash and cash equivalents 1,569 884 Net increase (decrease) in cash and cash equivalents (6,442) (834) Cash and cash equivalents at beginning of period 33,614 27,588 Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation 175 592 Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries 239 326 Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation — (11) Cash and cash equivalents at end of period 27,588 27,660 (5) Explanatory Notes to Consolidated Financial Statements (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.) 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 metals, rare earths, electronic and 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, 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 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: 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 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) Item Previous fiscal year (From April 1, 2024 to March 31, 2025) Fiscal year under review (From April 1, 2025 to March 31, 2026) Net assets per share 1,677.48yen 1,898.97yen Basic earnings per share 175.84yen 207.10yen (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 business combination. 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. 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, 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 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 Results for FY2025 and Forecasts for FY2026 Provisional accounting treatment related to business combination was finalized in the fiscal year ended March 31, 2026. 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. 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. 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 [ 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 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." 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 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) 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. 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.” FY2024 FY2025 FY2026 (Forecast) Annual dividend (Yen) 47.00 47.00 47.00 (i) Interim dividend - 23.50 23.50 (ii) Year-end dividend 47.00 23.50 23.50 Dividend payout ratio (consolidated) (%) 26.7% 22.7% 23.8% 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. Cash Flows (Unit: 100 million yen) FY2024 FY2025 Change Cash and cash equivalents at beginning of period 336 275 (60) Cash flows from operating activities 524 591 67 Cash flows from investing activities (584) (237) 346 Free cash flow (59) 353 413 Cash flows from financing activities (20) (370) (350) Effect of exchange rate change on cash and cash equivalents 15 8 (6) Net increase (decrease) in cash and cash equivalents (64) (8) 56 Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation 1 5 4 Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries 2 3 0 Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation - (0) (0) Cash and cash equivalents at end of period 275 276 0

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