Iwatani : Supplementary Explanation for 1st Half FY25 (with scripts)

Published November 27, 2025 at 7:13 a.m. UTC

Source: MarketScreener

FY2025 1st Half Financial Results

(Results for the Six Months Ended September 30, 2025)

November 20, 2025

(Forward-Looking Statements) Iwatani Corporation

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. [Securities code 8088]

Contents

FY2025 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
FY2025 Forecasts
-Forecasts for the fiscal year ending March 31, 2026
-Forecasts of Each Segment
-Returns to Shareholders
Progress of Medium-Term Management Plan: “PLAN27”

-Progress of Priority Measures

FY2025 1st Half Overview

Summary of Financial Results for the 1st Half of FY2025

Net sales increased, driven by strong sales of products for the industrial field, mainly in the
Materials business, despite the decrease in LPG sales price due to lower import prices.
Operating profit declined due to lower profitability in helium and the negative impact of
LPG import price fluctuation
Full-year financial forecasts: no change

Due to the finalization of the amount of “negative goodwill” related to the additional acquisition of Cosmo Energy

Holdings, the ordinary profit and profit attributable to owners of parent for the 1st Half of FY2024 have decreased by

1.645 billion yen each from the amounts announced last year.

All data for 1st Half of FY2024 presented in this document reflect the above-mentioned information.

Highlights

Net sales increased. Operating profit and ordinary profit decreased; however, profit attributable to owners of parent increased.

Operating profit quarterly trends (100 million yen)

409.1 billion yen YoY +9.1 billion yen +2.3%

191

10.7 billion yen YoY (5.3) billion yen (33.3)%

18.0 billion yen YoY (2.6) billion yen (12.8)%

20.3 billion yen YoY +6.8 billion yen +51.1%

109

FY2024

FY2025

1Q 2Q 3Q 4Q

Profit attributable to owners of parent

Ordinary profit

Operating profit

Net sales

Due to the finalization of the amount of negative goodwill related to the additional acquisition of Cosmo Energy Holdings (hereinafter Cosmo Energy HD), the ordinary profit and profit attributable to owners of parent for H1 of FY2024 have decreased by JPY1.645 billion each from the amounts announced last year.

In this interim financial result, sales increased YoY, while operating profit and ordinary profit decreased YoY.

However, profit attributable to owner of parent increased.

-	-		Machinery
491	21.9%

491	28.3%	FY24 1H	FY25 1H
- - ■Operating profit Integrated 161 Energy Industrial 106 - Gases & Machinery (34) Materials 3 107 631 28.5% (21) (0) Others 488 41.6% FY24 1H FY25 1H

Consolidated Operating Results

(100 million yen)

FY25 1H FY24 1H

Results Results

(A) (B)

Net sales

YoY

(A) - (B)

(A) / (B)

+91

+2.3%

(0)

(0.1)%

(53)

(33.3)%

Net sales

FY25

Forecasts

Progress

58 2

Others

Materials

4,091

4,000

4,091 4,000

9,364 43.7%

Integrated

Energy

(7)

Industrial

Gases &

Gross profit 1,065 1,066

Operating

profit

Operating profit excluding impact of LPG import price fluctuation

Non-operating profit

Equity gains of affiliated companies related to Cosmo Energy HD

Ordinary

profit

Profit attributable to owners of parent

107

161

138

171

(33)

(19.3)%

+27

+61.0%

+28

+146.3%

180

206

(26)

(12.8)%

203

134

+68

+51.1%

Driven by strong performance of industrial products primarily in the Materials business and the impact of newly consolidated subsidiaries, net sales increased by JPY9.1 billion, or 2.3%, to JPY409.1 billion.

Gross profit decreased by JPY78 million or 0.1% YoY to JPY106.5 billion due to lower profitability of helium and a decline of JPY2.066 billion YoY caused by impact of LPG import price fluctuations.

SG&A expenses increased by JPY5.3 billion due to an increase in depreciation and personnel expenses, resulting in a decrease of JPY5.3 billion, or 33.3% in operating profit to JPY10.7 billion.

Non-operating income/expense improved by JPY2.7 billion YoY due to

equity in earnings of Cosmo Energy HD of JPY4.7 billion.

As a result, ordinary profit decreased by JPY2.6 billion, or 12.8%, to JPY18 billion.

Profit attributable to owners of parent increased JPY6.8 billion, or 51.1%, to JPY20.3 billion partly due to a gain on sales of fixed assets from the sale of the former Tokyo headquarters.

		FY25 1H Results (A)	FY24 1H Results (B)	YoY (A) - (B)	YoY (A) / (B)	FY25 Forecasts	Progress
Net sales		4,091	4,000	+91	+2.3%	9,364	43.7%
	Integrated Energy	1,564	1,572	(7)	(0.5)%	4,060	38.5%
	Industrial Gases & Machinery	1,324	1,285	+38	+3.0%	2,759	48.0%
	Materials	1,049	991	+58	+5.8%	2,235	47.0%
	Others	152	150	+2	+1.5%	310	49.1%
Operating profit		107	161	(53)	(33.3)%	491	21.9%
	Integrated Energy	(2)	32	(34)	-	219	-
	Industrial Gases & Machinery	58	79	(21)	(27.1)%	188	31.0%
	Materials	60	61	(0)	(1.0)%	129	47.1%
	Others, Adjustments	(9)	(12)	+3	-	(45)	-
Operating profit excluding impact of LPG import price fluctuation		138	171	(33)	(19.3)%	491	28.3%
Equity gains of affiliated companies related to Cosmo Energy HD		47	19	+28	+146.3%	106	-
Ordinary profit		180	206	(26)	(12.8)%	631	28.5%
Profit attributable to owners of parent		203	134	+68	+51.1%	488	41.6%

Consolidated Operating Results (Segment Analysis)

(100 million yen)

Rising phase Cheap inventory sold at high price

Basis for selling price

Earnings

depressor effect

Cost basis

Earnings

booster effect

Cost basis

Basis for selling price

Falling phase Expensive inventory sold at low price

Impact of LPG Import Price Fluctuations

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

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

LPG import

price fluctuation

LPG users

Iwatani's LPG

Gas-producing country import & storage terminal

Wholesale price

linked to

LPG import price

-LPG from Middle East(CP)

-LPG from the US(MB)

Assumption Term from import to sale is

② approx. three months.

Wholesale price is linked to LPG import price.

Assumption

①

Legally required reserves:40 days

Approx. three months

Let me explain the impact of LPG import price fluctuations on our

business performance.

We import LPG from the Middle East and the US, and in order to level the impact of import price fluctuations on our earnings, we have the price structure with many of wholesalers that the selling price is linked to the current import price.

On the other hand, the first-in/first-out method is used for inventory valuation. However, since it takes approximately three months from importation of LPG to sale, including the legal stockpiling period of 40 days, at the time of sale, the inventory, which was purchased approximately three months ago, will be sold.

This results in selling low-cost inventory at a higher price when LP gas import prices rise. On the other hand, during a decline, the higher cost inventory is sold at a lower price.

These effects are referred to as impact of LPG import price fluctuations.

	FY25 1H Results (A)	FY24 1H Results (B)	YoY (A) - (B)	YoY (A) / (B)	FY25 Forecasts (C)	Progress (A) / (C)
Net sales Operating profit Operating profit excluding impact of LPG import price fluctuation	156,492	157,263	(770)	(0.5)%	406,000	38.5%
	(211)	3,270	(3,482)	-	21,900	-
	2,911	4,327	(1,416)	(32.7)%	21,900	13.3%
Analysis of changes in operating profit

(100 million yen)	1Q	2Q	1H	3Q	4Q	Full year
FY25 1Q	(11.8)	(19.4)	(31.2)	-	-	-
FY24 1Q	(0.7)	(9.8)	(10.5)	+3.6	+9.1	+2.1
Changes	(11.1)	(9.6)	(20.7)	-	-	-

Operating Profit Analysis of Integrated Energy

Results

Impact of LPG import price fluctuation (2,070)

(million yen)

3,270

(2,070)

(780)

(110)

(630) (211)

Retail +80
-increase in sales volume, partly due to the impact
of new consolidation
Wholesale (780)
-decrease in sales volume of LPG
Industrial (110)
-increase in sales volume due to new customer acquisitions, whereas costs rose
Energy-related equipment +30
-solid sales of water heaters, installation works,
etc.
Portable gas cooking stove, cassette gas canister (630)

-decrease in sales in Japan and China

Main factors

In the integrated energy business, sales of energy-related

equipment and other products remained strong.

However, LPG import prices were lower than the previous year, resulting in lower sales prices.

As a result, net sales decreased by JPY700 million to JPY156.4 billion.

On the profit side, the LPG wholesale division saw a decline in sales volume, and the impact of LPG import price fluctuations was a decline of JPY2.066 billion YoY.

In addition, sales of portable gas cooking stoves and cassette gas canisters were weak due to the economic slowdown in China. As a result, operating profit decreased by JPY3.4 billion to a loss of JPY200 million.

Operating profit excluding market fluctuations was JPY2.9 billion, a decrease of JPY1.4 billion.

FY25 1H

Results (A)

FY24 1H

Results (B)

YoY

(A) - (B)

YoY

(A) / (B)

FY25

Forecasts (C)

Progress

(A) / (C)

Net sales

Operating profit

132,447

128,583

+3,864

+3.0%

275,900

48.0%

5,823

7,988

(2,165)

(27.1)%

18,800

31.0%

Operating Profit Analysis of Industrial Gases & Machinery (million yen)

Results

Analysis of changes in operating profit

1,650

7,988

(220)

(2,890)

5,823

(700)

Air separation gases (220)
-decrease in the profitability due to sluggish demand in China
Hydrogen business +1,650
-increase in sales of hydrogen and hydrogen-related equipment
Specialty gases (2,890)
-decline in the profitability due to weakening in helium markets
Gas-related equipment (700)

-decrease in sales of equipment for the automotive and semiconductor industries

Main factors

In the industrial gases and machinery business, sales of hydrogen gas and related equipment increased, while in China, profitability declined due to sluggish demand for air separation gases.

As for specialty gases, the oversupply of helium has continued since last year.

Profitability declined as the deteriorating Chinese economy led to softening market conditions that spread to neighboring countries.

As for gas-related equipment, shipments of equipment for the automobile and semiconductor industries declined.

As a result, net sales increased JPY3.8 billion to JPY132.4 billion, and operating profit decreased JPY2.1 billion, or 27.1%, to JPY5.8 billion.

FY25 1H

Results (A)

FY24 1H

Results (B)

YoY

(A) - (B)

YoY

(A) / (B)

FY25

Forecasts (C)

Progress

(A) / (C)

Net sales

Operating profit

104,955

99,155

+5,800

+5.8%

223,500

47.0%

6,074

6,133

(59)

(1.0)%

12,900

47.1%

Operating Profit Analysis of Materials

Results

(million yen)

Analysis of changes in operating profit

6,133

100

230

6,074

(350)

(40)

Functional plastics products +100
-increase in sales volume of eco-friendly PET resins
-solid sales of resin products
Resources & advanced materials (350)
-increase in sales of rare earths and other items due to the efforts to ensure stable supply
-decline in the profitability of our own mining sites of mineral sands in Australia
Metals + 230
-increase in sales of stainless steel due to the impact of new consolidation
Electronic materials (40)

-sluggish sales of high-performance film materials

Main factors

In the materials business, sales of rare earths increased as a result of our efforts to ensure a stable supply amid ongoing export restrictions in China.

In addition, sales volume of eco-friendly PET resin increased and sales of stainless steel remain strong due to the impact of the new consolidation.

On the other hand, in the mineral sands business, profitability of company's own mining operations in Australia deteriorated, and sales of high-performance film materials were weak, especially for smartphones.

As a result, net sales increased JPY5.8 billion to JPY104.9 billion, and operating profit decreased JPY59 million, or 1%, to JPY6 billion.