Iwatani : Supplementary Explanation for FY24 (with scripts)NEW

About this update from Iwatani Corporation

Financial Results for FY2024 (Results for the Fiscal Year Ended March 31, 2025) May 21, 2025 (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. Iwatani Corporation 〔 Security Code 8088 〕 Contents FY2024 Overview -Highlights -Consolidated Operating Results -Consolidated Operating Results (Segment Analysis) -Operating Profit Analysis of Each Segment -Balance Sheet (Consolidated) FY2025 Forecasts -Forecasts for the Year ending March 31, 2026 -Forecasts of Each Segment Progress of Medium-Term Management Plan: "PLAN27" -Management Targets (Management that is conscious of cost of capital and stock price) -Capital Policies -Progress of Priority Measures Capital and Business Alliance with Cosmo Energy Holdings Co., Ltd. Copyright © Iwatani Corporation. All rights reserved. 1 FY2024 Overview Copyright © Iwatani Corporation. All rights reserved. 2 Summary of Financial Results for FY2024 High import prices compared to the previous year and higher selling prices of LPG, as well as strong sales of industry fields led to increase in net sales for all segments. (FY2024 average CP in yen: 93,749 yen/t (CP: $612/t USD Exchange rate: ¥153.36/$) (FY2023 average CP in yen: 81,774 yen/t (CP: $569/t USD Exchange rate: ¥143.50/$) Operating income in the Industrial Gases & Machinery business decreased primarily due to weakening of helium market mainly in China. Due to the finalization of the amount of "negative goodwill" related to the additional acquisition of Cosmo Energy Holdings shares made in FY2023, the ordinary profit and profit attributable to owners of parent for FY2023 have decreased by 3.895 billion yen each from the amounts announced last year. All data for FY2023 presented in this document reflect the above-mentioned information. 173 187 191 109 85 84 77 60 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Highlights Net sales increased. Operating profit, ordinary profit, and profit attributable to owners of parent decreased. 883.0 billion yen YoY +35.1 billion yen +4.1% 46.2 billion yen YoY (4.4) billion yen (8.7)% 61.4 billion yen YoY (0.8) billion yen (1.3)% Operating profit quarterly trends (100 million yen) 40.4 billion yen YoY (3.0) billion yen (6.9)% Copyright © Iwatani Corporation. All rights reserved. FY2023 FY2024 3 Profit attributable to owners of parent Ordinary profit Operating profit Net sales First, we have revised some of our financial results for the fiscal year ended March 2024, which is the previous fiscal year, and I will explain about it. "Negative goodwill" was generated upon the acquisition of additional shares of Cosmo Energy HD conducted in the previous fiscal year, and a provisional amount was recorded, but the amount has been finalized. Therefore, ordinary income and net income for the previous fiscal year announced last year decreased by JPY3.895 billion, respectively. Although the financial summary for the fiscal year ending March 31, 2025, showed an increase in net sales compared to the previous year, operating profit, ordinary profit, and net income all declined. FY24 Results (A) FY23 YoY Results (A)-(B) FY24 (B) (A)/(B) Forecasts et sales 8,830 8,478 +351 9,020 +4.1% Gross profit 2,343 2,294 +48 - +2.1% Operating profit 462 506 (44) 527 (8.7)% Operating profit xcluding impact of PG import price luctuation 460 498 (38) 527 (7.8)% Non-operating profit 152 116 +35 - +30.7% Equity gains of affiliated companies related to Cosmo Energy HD 91 54 +36 159 +66.2% Ordinary profit 614 623 (8) 728 (1.3)% rofit attributable o owners of parent 404 434 (30) 540 (6.9)% Consolidated Operating Results (100 million yen) Net sales 8,478 216 92 34 7 8,830 Gases & Energy Machinery e L f FY23 Operating profit Industrial FY24 506 Integrated Energy (6) Gases & Machinery (41) Materials (5) 9 Others 462 P t FY23 FY24 Copyright © Iwatani Corporation. All rights reserved. 4 Net sales increased JPY35.1 billion, or 4.1%, from the previous year to JPY883 billion, mainly due to the result of LPG import prices, which were higher than the previous year, higher sales prices of LPG, and solid performance of the product for the industrial sectors. Gross operating profit increased JPY4.8 billion, or 2.1%, to JPY234.3 billion due to solid sales of air-separated gas and hydrogen as well as the impact of new consolidation and the growth in sales of energy-related equipment. SG&A expenses increased JPY9.2 billion due to labor costs and depreciation as well as an increase in logistics expenses, etc. As a result, operating profit decreased by JPY4.4 billion, or 8.7%, to JPY46.2 billion. Non-operating income increased JPY3.5 billion from the previous year due to an increase of JPY3.6 billion in equity in earnings of Cosmo Energy HD from the previous year. Ordinary profit decreased by JPY0.8 billion, or 1.3%, to JPY61.4 billion. In addition, extraordinary losses include a loss on withdrawal from a hydrogen-related project in Australia and an impairment loss on hydrogen-refueling stations-related facilities in the US. As a result, net income decreased by JPY3 billion, or 6.9%, to JPY40.4 billion.

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