Iwatani Corporation TSE:8088

Iwatani : Supplementary Explanation for 1st Half FY24

Published

Source: MarketScreener

FY2024 1st Half Financial Results

(Results for the Six Months Ended September 30, 2024)

(Forward-Looking Statements)

This material contains forward-looking statements based on expectations and are not guarantees or assurances of future performance. Accordingly, please be fully aware that results may differ materially from those expectations.

Copyright © Iwatani Corporation. All rights reserved.

November 20, 2024 Iwatani Corporation

[Securities code 8088]

Contents

  1. FY2024 1st Half Overview -Highlights
    -Consolidated Operating Results
    -Consolidated Operating Results (Segment Analysis) -Operating Profit Analysis of Each Segment -Consolidated Balance Sheet
    -Consolidated Statements of Cash Flows
  2. FY2024 Forecasts

-Forecasts for the year ending March 31, 2025 -Forecasts of Each Segment

-Returns to Shareholders

  1. Progress of Medium-Term Management Plan: “PLAN27”
    -Progress of Priority Measures
  2. Capital and Business Alliance with Cosmo Energy Holdings Co., Ltd.

Copyright © Iwatani Corporation. All rights reserved.

1

FY2024 1st Half Overview

Copyright © Iwatani Corporation. All rights reserved.

2

Highlights

Increase in net sales and operating profit. Achieved record-high in all profit categories.

Summary of Financial Results for the 1st Half of FY2024

  • Despite the sluggish sales of rechargeable battery materials for next-generation vehicles, the high import prices of LPG led to increase in net sales.
  • Despite a decline in profits in the Industrial Gases & Machinery business and the Materials business, the Integrated Energy business achieved increased profits due to growth in the sales of portable gas cooking stoves and cassette gas canisters, as well as an improvement in the negative impact of LPG import price fluctuation on profits (+4billion yen year-on-year).
  • Full-yearfinancial forecasts: no change

■Operating profit quarterly trends (100 million yen)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

400.0

16.1

22.2

15.0

billion yen

YoY

+5.7 billion yen

+1.5%

173

187

billion yen

YoY

+1.5

billion yen

+10.6%

85

84

60

77

billion yen

YoY

+4.0

billion yen

+22.5%

billion yen

YoY +3.0

billion yen

+25.1%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2023

FY2024

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3

Consolidated Operating Results

(100 million yen)

FY24 1H

FY23 1H

YoY

FY24

Results

Results

(A)-(B)

Progress

Forecasts

(A)

(B)

(A)/(B)

Net Sales

4,000

3,942

+57

9,020

44.3%

+1.5%

Gross profit

1,066

1,009

+57

-

-

+5.7%

Operating profit

161

145

+15

527

30.6%

+10.6%

Operating profit

(25)

excluding

171

197

527

32.6%

impact of LPG

(12.8)%

import price

fluctuation

Non-operating

61

35

+25

-

-

profit

+70.8%

Equity gains of

+35

affiliated

35

-

159

-

companies

-

related to Cosmo

Energy HD

Ordinary profit

222

181

+40

728

30.6%

+22.5%

Profit

+30

attributable

150

120

540

27.9%

+25.1%

to owners of

parent

■Net sales

139

17

Materials

Others

3,942

4,000

Industrial

Integrated

(93)

(5)

Gases &

Energy

Machinery

FY23 1H

FY24 1H

■Operating profit

Industrial

Gases &

44 Machinery

145

Materials

0

161

(28)

(1)

Others

Integrated

Energy

FY23 1H

FY24 1H

4

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All rights reserved.

Consolidated Operating Results (Segment Analysis)

(100 million yen)

FY24 1H

FY23 1H

YoY

YoY

FY24

Progress

Results (A)

Results (B)

(A)-(B)

(A)/(B)

Forecasts

Net sales

4,000

3,942

+57

+1.5%

9,020

44.3%

■Integrated Energy

1,572

1,433

+139

+9.7%

3,840

41.0%

■Industrial Gases & Machinery

1,285

1,268

+17

+1.4%

2,750

46.8%

■Materials

991

1,085

(93)

(8.6)%

2,105

47.1%

■Others

150

155

(5)

(3.2)%

325

46.2%

Operating profit

161

145

+15

+10.6%

527

30.6%

■Integrated Energy

32

(11)

+44

-

210

15.6%

■Industrial Gases & Machinery

79

108

(28)

(26.4)%

220

36.3%

■Materials

61

62

(1)

(2.0)%

128

47.9%

■Others, Adjustments

(12)

(13)

+0

-

(31)

-

Operating profit excluding impact of LPG

171

197

(25)

(12.8)%

527

32.6%

import price fluctuation

Equity gains of affiliated companies

35

-

+35

-

159

-

related to Cosmo Energy HD

Ordinary profit

222

181

+40

+22.5%

728

30.6%

Profit attributable to owners of parent

150

120

+30

+25.1%

540

27.9%

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5

Impact of LPG Import Price Fluctuations

Assumption

Wholesale price is linked to LPG import price.

①

LPG import price

linked to

Wholesale price

Assumption Term from import to sale is

  • approx. three months.

Approx. three months

-LPG from Middle East(CP) -LPG from the US(MB)

Gas-producing country

Iwatani's LPG

LPG users

import & storage terminal

Legally required reserves:40 days

LPG import

price

fluctuation

Produces short-term impact on performance(due to market fluctuations)

(If LPG import prices return to original levels, impact will be zero.)

Rising phase

Cheap inventory sold at high price

Falling phase Expensive inventory sold at low price

Basis for selling price

Cost basis

Earnings

Earnings

booster effect

depressor effect

Cost basis

Basis for selling price

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6

Operating Profit Analysis of Integrated Energy

Results

(100 million yen)

FY24 1H

FY23 1H

YoY

YoY

FY24

Progress

Results (A)

Results (B)

(A)-(B)

(A)/(B)

Forecasts

Net Sales

1,572

1,433

+139

+9.7%

3,840

41.0%

Operating

32

(11)

+44

-

210

15.6%

Profit

Operating profit

43

39

+3

+9.9%

210

20.6%

excluding impact

of LPG import

price fluctuation

(million yen)

Analysis of Changes in Operating Profit

680

3,270

4,080

330

200

(820)

(1,199)

Impact of LPG

FY23 1H import price

Retail

Wholesale Industrial

Others

FY24 1H

fluctuation

Main factors

(million yen)

■Impact of LPG import price fluctuation +4,080

(100 million

1Q

2Q

1H

3Q

4Q

Full year

yen)

FY24

(0.7)

(9.8)

(10.5)

-

-

-

FY23

(17.3)

(34.0)

(51.3)

+32.6

+26.3

+7.5

Changes

+16.6

+24.2

+40.8

-

-

-

■Retail (820)

-decline in profitability due to rising LPG import prices

■Wholesale +330

-improved profitability of LPG through logistics optimization and other measures

■Industrial +200

-increase in LPG demand for calorific adjustment for city gas

■Others +680

-steady sales of portable gas cooking stoves, cassette gas canisters in Japan and overseas

-increase in sales of energy-related equipment

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7

Operating Profit Analysis of Industrial Gases & Machinery

Results

(100 million yen)

FY24 1H

FY23 1H

YoY

YoY

FY24

Progress

Results (A)

Results (B)

(A)-(B)

(A)/(B)

Forecasts

Net Sales

1,285

1,268

+17

+1.4%

2,750

46.8%

Operating

79

108

(28)

(26.4)%

220

36.3%

Profit

Analysis of Changes in Operating Profit

(million yen)

10,852 490 120

7,988

(3,400) (70)

Main factors

(million yen)

■Air separation gases

+490

-increase in sales volume mainly for the electronic component industry

■Hydrogen Business +120

-steady sales of liquid hydrogen, mainly for the space development industry

■Specialty gases (3,400)

-expansion of the refrigerant business resulting from the acquisition of a business company in Malaysia

-helium market weakened mainly in China, resulting in lower profitability

-increase in procurement costs for carbon dioxide

■Gas-related equipment (70)

-despite sales of disaster prevention gas equipment increased, sales of automobile-related equipment decreased

FY23 1H

Air separation

Hydrogen

Specialty

Gas-related

FY24 1H

gases

Business

gases

equipment

8

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Operating Profit Analysis of Materials

Results

(100 million yen)

FY24 1H

FY23 1H

YoY

YoY

FY24

Progress

Results (A)

Results (B)

(A)-(B)

(A)/(B)

Forecasts

Net Sales

991

1,085

(93)

(8.6)%

2,105

47.1%

Operating

61

62

(1)

(2.0)%

128

47.9%

Profit

Analysis of Changes in Operating Profit

(million yen)

120 260

6,259

(200)

6,133

(300)

Main factors(million yen)

■Functional Plastics Products +260

-increase in sales of molded products for air- conditioners and resin products for consumer

■Resources & Advanced Materials +120

-Production of mineral sands at our own mining sites in Australia remained steady and sales volumes increased in Japan and overseas

■Metals (200)

-decline in sales price of stainless steel

■Electronic Materials (300)

-sluggish sales of battery-related materials for next-generation vehicles due in part to inventory adjustments at sales destinations

FY23 1H

Functional

Resources &

Metals

Electronic

FY24 1H

Plastics

Advanced

Materials

Products

Materials

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9