Iwatani : Supplementary Explanation for 1st Half FY22 (with scripts)

FY2022 1st Half Financial Results

(Results for the Six Months Ended September 30, 2022)

(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.

November 16, 2022 Iwatani Corporation

[Securities code 8088]

Copyright © Iwatani Corporation. All rights reserved.

Contents

1.FY 2022 1st Half Overview	3.Growth Strategy
-Highlights	-Progress of Medium-Term Management Plan "PLAN23"
-Consolidated Operating Results (Analysis of Net Sales)	-Investment Results in PLAN23
-ConsolidatedOperating Results (Analysis of Operating Profit) -Initiatives to Realize a Decarbonized Society
-Consolidated Operating Results (Segment Analysis)
-Operating Profit Analysis of Each Segment
-Balance Sheet (Consolidated)
-Statement of Cash Flows
2.FY 2022 Forecasts	※Iwatani's Integrated Report
-Forecasts for the year ending March 31, 2023

-Forecasts of Each Segment -Returns to Shareholders

Copyright © Iwatani Corporation. All rights reserved.

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1

FY 2022 1st Half Overview

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2

Highlights

Both sales and profits increased from the previous year, achieving record high net sales and all profit items.

Summary of Financial Results for the 1st Half of FY 2022

• Net sales increased in all segments due to high LPG import prices and steady progress in adjusting sales prices to various market increases.
• Profit increased due to strong sales of mainstay products, despite the negative impact of LPG import price fluctuation compared to the previous year.
• Acquired shares of Tokico System Solutions, Ltd. and Tokyo Gas Energy Co., Ltd., and issued 20 billion yen in bonds payable for the funding.
• Upward revision of full-year financial forecasts. (Announced on 11/9)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

413.2

14.4

18.4

12.3

			■ Operating profit quarterly trends（100 million yen）
billion yen	YoY	+116.2 billion yen (+39.1%)	142
billion yen	YoY	+0.8 billion yen (+6.0%)	121		89
78
billion yen	YoY	+1.9 billion yen (+11.6%)	58			55
billion yen	YoY	+2.0 billion yen (+19.5%)
1Q 2Q 3Q 4Q	1Q 2Q 3Q 4Q
Copyright © Iwatani Corporation. All rights reserved.	FY2021	FY2022	3

The interim financial results for 1H of this fiscal year showed an increase in both net sales and profit YoY, with record-high net sales and profit for Q2.

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Consolidated Operating Results (Analysis of Net Sales)

（100 million yen）

	FY22 1H	FY21 1H	YoY
	Results	Results	(A)-(B)
	(A)	(B)	((A)/(B))

	Net sales	4,132	2,970	+1,162
	(39.1％)
				+110
	Gross profit	981	870
	(12.7％)
	Operating profit	144	136	+8
	(6.0％)
	Non-operating	39	28	+11
	profit	(38.5％)
				+19
	Ordinary profit	184	165
	(11.6％)
	Ordinary profit			+35
	except for impact of	179	143
	LPG import price	(25.1％)
	fluctuation
	Profit attributable	123	102	+20
	to owners of parent	(19.5％)

Increase factors

■ High LPG import prices

■ Adjusting sales prices to increased production costs and increasing market prices of raw materials

*Record high sales for 1st half of a fiscal year

■ Net sales		26	5	4,132
	491
	195	Agri-bio	Others
	& Foods
443
Materials
2,970
Industrial
	Gases &
Integrated	Machinery
Energy

FY21	FY22
1H	1H

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Sales of LPG for consumer and industrial use grew amid high LPG import prices, while unit sales prices rose in the industrial gases and raw materials fields against a backdrop of soaring prices for electricity and natural resources.

Sales increased in all segments, increasing by JPY116.2 billion, or 39.1% YoY, to JPY413.2 billion, due in part to the effect of three new consolidated subsidiaries.

Gross profit increased by JPY11 billion, or 12.7% YoY, to JPY98.1 billion due to increased sales of mainstay products and the addition of new consolidated subsidiaries despite the negative impact of LPG import price fluctuation of minus JPY1.6 billion YoY.

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