Iwatani : Supplementary Explanation for FY25

(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.

May 22, 2026

Iwatani Corporation

〔Security Code 8088〕

Copyright © Iwatani Corporation. All rights reserved.

Contents

1. FY2025 Overview

   -Highlights

   -Consolidated Operating Results

   -Consolidated Operating Results (Segment Analysis)

   -Operating Profit Analysis of Each Segment

   -Balance Sheet (Consolidated)

2. FY2026 Forecasts

   -Forecasts for the Year ending March 31, 2027

   -Forecasts of Each Segment

3. Topics

   -Response to the situation in the Middle East

   -Progress of Medium-Term Management Plan: "PLAN27"

   1

   FY2025 Overview Highlights

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

   • Net sales increased, driven by strong sales of products for the industrial field, mainly in the

     Materials business and the Industrial gases & machinery business.

   • Operating profit declined due to lower profitability in helium and the negative impact of LPG import price fluctuations.

   • Profit attributable to owners of parent increased partly due to a gain on the sale of fixed assets.

   Summary of Financial Results for FY2025

191

178

109

84

97

77

64

43

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

908.5 billion yen YoY +25.5 billion yen +2.9%

38.3 billion yen YoY (7.9) billion yen (17.1)%

55.2 billion yen YoY (6.2) billion yen (10.2)%

47.6 billion yen

YoY +7.2 billion yen +17.8%

Copyright © Iwatani Corporation. All rights reserved.

FY2024 FY2025 3

166

8,830

Integrated

Energy

172

25

Others

9,085

Materials

Industrial

Gases & Machinery

(110)

• Net sales

  (100 million yen)

  		FY25	FY24	YoY
  		Results	Results	(A) - (B)
  		(A)	(B) (A) / (B)
  Net sales		9,085	8,830	+255 +2.9%	8,880
  Gross profit		2,358	2,343	+15 +0.7%	-
  Operating profit		383	462	(79) (17.1)%	358
  Operating profit
  excluding impact of LPG import price		440	460	(19) (4.3)%	417
  fluctuation
  Non-operating profit		169	152	+16 +10.8%	-
  	Equity gains of affiliated companies related to Cosmo Energy HD	109	91	+18 +20.2%	79
  Ordinary profit		552	614	(62) (10.2)%	482
  Profit attributable to owners of parent		476	404	+72 +17.8%	405

  FY24 FY25

  • Operating profit

Integrated

462 Energy

(60)

Industrial Gases & Machinery

(21)

Materials

(1)

4

Others, Adjustments

383

*Announced on Feb.10th 2026

FY24 FY25

Assumption

①

Wholesale price is linked to LPG import price.

[LPG from Middle East(CP), LPG from the US(MB)]

Assumption

②

Term from import to sale is approx. three months.

(Legally required reserves:40 days)

Cost basis

Earnings

booster effect

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

⇒If LPG import prices return to original levels, the impact will be zero.

*Actual impact on performance varies depending on inventory volume, time of sale, sales volume, etc.

Cost basis

Earnings

depressor effects

Basis for

selling price

First-In, First-Out method (until FY2025 2Q)

Current Month

Price

Price

1. Month Ago Price

2. Months Ago

   Price

3. Months Ago

Cost basis :

the oldest inventory

Weighted Average method (from FY2025 3Q)

Current Month Inventory

Current Month

Price

Inventory

Procured up to the Prev. Month

Avg. Price at

Prev. Month End

Cost basis :

weighted average of current month import price and prior month-end average inventory cost.

Results

Main factors

• Impact of LPG import price fluctuation (5,930)

  (100 million yen)	1Q	2Q	1H	3Q	4Q	Full year
  FY25 1Q	(11.8)	(19.4)	(31.2)	(24.4)	(1.4)	(57.1)
  FY24 1Q	(0.7)	(9.8)	(10.5)	+3.6	+9.1	+2.1
  Changes	(11.1)	(9.6)	(20.7)	(28.0)	(10.6)	(59.3)

  Analysis of changes in operating profit

19,520

1,330

10 310

*Announced on Feb.10th2026

13,498

canister (940)

-decrease in sales in Japan and China

FY24 Impact ofLPG

importprice

fluctuation

Retail Wholesale Industrial Energy-related

equipment

Portablegas

cookingstove, cassettegas canisters

FY25

Results

Main factors

17,572

4,050

80

Announced on Feb.10th2026

15,414

• Air separation gases +80

  	FY25 Results (A)	FY24 Results (B)	YoY (A) - (B)	YoY (A) / (B)	FY25 Forecasts (C)	Achievement rate (A) / (C)
  Net sales Operating profit	288,730	271,449	+17,280	+6.4%	269,400	107.2%
  	15,414	17,572	(2,158)	(12.3)%	13,800	111.7%

  -solid sales of air separation gases mainly for the electronic component and optical fiber industries

• Hydrogen business +4,050

  -increase in sales of hydrogen and hydrogen-

  related equipment

• Specialty gases (5,750)

  -decline in the profitability due to weakening in helium markets

• Gas-related equipment (540)

-decrease in sales of equipment for the automotive industries

(5,750)

(540)

FY24 Airseparation gases

Hydrogen business

Speciality gases

Gas-related equipment

FY25

Results

Main factors

11,748

290

*Announced on Feb.10th2026

50 11,613

(360) (110)

• Functional plastics products +290

  -solid sales of resin products for food packaging

  -increase in sales volume of eco-friendly PET

  resins

• Resources & advanced materials (360)

  -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 + 50

  -increase in sales of stainless steel due to the impact of new consolidation

• Electronic materials (110)

-sluggish sales of high-performance film materials

FY24 Functional plastics

Resources& advances

Metals Electronic materials

FY25

products

materials

Copyright © Iwatani Corporation. All rights reserved. 9

Total assets increased due to trade receivables and capital investment.

Interest-bearing debt decreased due to gains from the sale of the former Tokyo head office and other factors.

(100 million yen)

*During the interim consolidated accounting period of FY2025, the provisional accounting treatment related to the acquisition of all shares of ISG, Inc. was finalized. Figures for the fiscal year ended Mar. 31, 2025, reflect the finalized content of this provisional accounting treatment.

(FY25 results)

Exchange rate 151.14 JPY/$LPG import price 549 $/t

Exchange rate 150 JPY/$

LPG import price 550 $/t

Fiscal Year Ending Mar. 31, 2027

-interim dividend : 23.5 JPY (forecast)

-year-end dividend: 23.5 JPY (forecast)

-annual dividend : 47.0 JPY (forecast)

*Due to the reclassification of two consolidated subsidiaries from "Others" to the Integrated Energy business starting from FY2026,

(100 million yen)

-Expanding residential LPG business

• increase in sales volume by expanding the number of LPG direct sales customers, mainly through M&A

• create LPG demand through the expansion of sales of energy-related equipment

• improve profitability by streamlining logistics

  -Increasing sales of industrial LPG

• promote fuel conversion tailored to customer needs

• strengthen efforts for low-carbon energy through the expansion of carbon offset gas sales and related initiatives

  -Expanding cartridge gas business

• expand sales by creating demand through developing new product

• expand sales of carbon offset cassette gas

  -Expanding overseas business

• expand sales of LPG and low-/decarbonization-related equipment, primarily in Southeast Asia

• enter the market of gas safety equipment in the U.S.

Forecasts

• Net sales ■ Operating profit

  404,700

  396,477

  20,784*

  15,075

  23,100

  FY25 result FY26 forecast FY25 result FY26 forecast

  *excluding impact of LPG import price fluctuation

  Forecasts of changes in operating profit

  -Trends in LPG import price, exchange rate fluctuations

  -Effect of LPG sales volume due to higher temperature

  Main factors causing changes in business performance

  FY26

  forecasts

  ssette gas caniste

  cooking stoves, ca rs

  Portable gas

  Energy-related equipment

  LPG

  Impact of LPG import price fluctuation

  FY25

  15,075

  23,100

  920

  440

  960

  5,710

  -Appropriate price adjustment and expanding sales of air separation gases

  • focus on expanding sales primarily to optical fiber and electronic component

    industries

  • appropriate price adjustment to rising procurement and logistics cost

    -Capturing new demand for liquid hydrogen

  • strengthen sales of liquid hydrogen and related equipment to meet decarbonization demand

    -Expanding specialty gases business

  • appropriate price adjustment to rising procurement and logistics costs

  • focus on stable procurement and supply of helium and carbon dioxide

    -Expanding sales of machinery and equipment

  • enhance sales in growing fields such as decarbonization

  • construct a new plant for cryogenic equipment for business expansion

  Measures toward achievement of FY2026 forecasts

Forecasts

288,730

292,700

• Net sales ■ Operating profit

  15,414

  18,500

  FY25 result FY26 forecast FY25 result FY26 forecast

  Forecasts of changes in operating profit

  Main factors causing changes in business performance

-Rising manufacturing and logistics costs

-Production trends in the manufacturing sector

FY26

forecasts

Specialty Gas-related gases equipment

Hydrogen business

Air separation gases

FY25

▲350

390

210

15,414

18,500

2,840

Forecasts

• Net sales ■ Operating profit

257,300

218,377

11,613

-Strengthening value-added business through

environment-friendly products

• expand sales of eco-friendly PET resins (biomass PET, aluminum catalyst PET)

• expand sales of biomass fuels (PKS and wood pellets)

13,000

- Strengthening resource business

• sell green titanium ore from Norway

• expand earnings of the Australian mineral sands business by utilizing

  multiple mining sites.

• establish a supply system for critical mineral resources, including rare earths, through supply chain diversification

  -Expanding metal business

• expand sales of stainless steel by leveraging domestic processing locations

• expand business through enhancement of production capacity in overseas metal

processing operations

FY25 result FY26 forecast FY25 result FY26 forecast

Forecasts of changes in operating profit

-Price fluctuations in resource markets

-Exchange rate fluctuations

Main factors causing changes in business performance

FY26

forecasts

Electronic Materials

Metals

Resources & advanced materials

cts

astics produ

pl

Functional

FY25

340

11,613

330

13,000

140

580

payout ratio (%)

Dividend

Over 20%

Dividend per share (yen)

21.25 23.75

32.50

47.00

47.00

year-end dividend

47.00

23.50

23.50

23.50

interim

dividend

23.50

FY21 FY22 FY23 FY24 FY25 FY26 FY27

*A 4-for-1 share split of common share was conducted with a reference date of September 30, 2024 and an effective date of October 1, 2024. The amount shown is the amount after the stock split.

Procurement from multiple sources, primarily in the Middle East and the United States

Sourcing from the Middle East

⇒ Suspended

Private-sector stockpiling

(legally required reserves:40 days)

LPG LPG

Sourcing from the U.S.

Sourcing from the Southeast Asia

Ensure a stable supply of LPG, an energy infrastructure, by leveraging diversified procurement sources

Procurement from Qatar and the United States

Sourcing from Qatar

⇒ Suspended

Utilize domestic and overseas storage capabilities

Sourcing from the U.S.

Maintained stable supply, primarily to existing customers, even after the suspension of supply from Qatar