Interim report
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Iwatani Note : This document is a translation of a part of the original Japanese version and provided for reference purposes only . In the event of any discrepancy between the Japanese original and this English translation , the Japanese original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 FASF MEMBERSHIP Company name : IWATANI CORPORATION [ Japanese GAAP ] Stock exchange listing : Tokyo Code number : 8088 URL : https://www.iwatani.co.jp/ Representative : Hiroshi Majima President and CEO Contact : Yasutoshi Ueda General Manager Accounting Dept. Phone : 06-7637-3325 Scheduled date of commencing dividend payments : - Availability of supplementary briefing material on financial results : Yes Schedule of financial results briefing session : Yes August 6 , 2026 ( Amounts of less than one million yen are rounded down ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( % indicates changes from the previous corresponding period . ) Net sales Operating profit Ordinary profit Three months ended June 30 , 2026 June 30 , 2025 Million yen 233,357 206,353 % Million yen 13.1 4.5 13,410 6,416 % 109.0 Million yen % Profit attributable to owners of parent Million yen % 34,295 361.3 31,721 569.6 ( 23.8 ) 7,435 ( 45.2 ) 4,737 ( 53.3 ) ( Note ) Comprehensive income : Three months ended June 30 , 2026 : Three months ended June 30 , 2025 : ¥ 44,043 million [ - % ] ¥ 2,898 million [ ( 82.0 ) % ] Basic earnings per share Three months ended Yen June 30 , 2026 Diluted earnings per share Yen June 30 , 2025 137.82 20.59 ( Notes ) The Company finalized the provisional accounting treatment for the business combination in the previous interim consolidated accounting period of the fiscal year ended March 31 , 2026. As a result , figures for the three months ended June 30 , 2025 reflect the finalization of the provisional accounting treatment . ( 2 ) Consolidated Financial Position Total assets Net assets Capital adequacy ratio As of June 30 , 2026 March 31 , 2026 Million yen 927,359 899,772 Million yen 488,043 % 51.3 448,995 48.6 ( Reference ) Equity : As of June 30 , 2026 : ¥ 475,911 million As of March 31 , 2026 : ¥ 437,098 million
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Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 - 23.50 - 23.50 47.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 23.50 - 23.50 47.00 (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 960,000 5.7 48,800 27.4 59,000 6.8 45,500 (4.5) 197.67 June 30, 2026: 234,246,596 shares March 31, 2026: 234,246,596 shares June 30, 2026: 4,071,337 shares March 31, 2026: 4,070,547 shares Three months ended June 30, 2026: 230,175,591 shares Three months ended June 30, 2025: 230,138,154 shares 2. Dividends (Note) Revision to the forecast for dividends announced most recently: No 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027(April 1, 2026 to March 31, 2027) (Note) Revision to the financial results forecast announced most recently: No * Notes: (1) Significant changes in the scope of consolidation during the period: No (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): 2) Number of treasury shares at the end of the period: 3) Average number of shares outstanding during the period: *1. Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary) *2. Cautionary Statement with Respect to Forward-Looking Statements, and Other Information (Caution regarding forward-looking statements) The forward-looking statements, such as results forecasts, included in this document are based on information currently available to the Company and assumptions considered reasonable, and do not purport to be a promise by the Company to achieve such results. Actual results may differ materially, depending on a range of factors. For the assumptions prerequisite to the results forecasts and the points to be noted in the use of the results forecasts, please see “Overview of Operating Results, Etc. (4) Consolidated Financial Results Forecasts” on page 4. (How to obtain supplementary briefing material on financial results) The briefing material on financial results is scheduled to be posted on the company’s website.
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Overview of Operating Results, Etc. …………………………………………………………………………… 2 (1) Overview of Operating Results for the Three Months Ended June 30, 2026 ……………………………. 2 (2) Segment Information …………………………….……………….……………….……………….……. 3 (3) Overview of Financial Position for the Three Months Ended June 30, 2026 …………………………… 4 (4) Consolidated Financial Results Forecasts ………………………………………………………………... 4 Quarterly Consolidated Financial Statements and Notes ..……………………………………………………… 5 (1) Quarterly Consolidated Balance Sheets ………………………………………………………………….. 5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income …………………………….. 7 (3) Explanatory Notes to Quarterly Consolidated Financial Statements …………………………………….. 9 (Notes to Segment Information, Etc.) .…………………………………………………………………… 9 (Notes in the Event of Significant Changes in Shareholders’ Equity) …………………………………… 10 (Notes on the Assumption of a Going Concern) ………………………………………………………… 10 (Notes to Additional Information) ………………………………………………………………………… 10 (Notes to Quarterly Consolidated Statements of Cash Flows) …………………………………………… 10 (Notes on Business Combinations, Etc.) ………………………………………………………………….. 10 Additional Information …………………………………………………………………………………………. 11 Results for 1Q FY2026 ………………………………………………………………………………………... 11 (1) Consolidated Statements of Income ……………………………………………………………………… 11 (2) Operating Profit Except for Impact of LPG Import Price Fluctuation …………………………………… 11 (3) LPG Import Price (CP) …………………………………………………………………………………… 11 (4) Segment Information ……………………………………………………………………………………... 11 (5) LPG and Industrial Gases Net Sales -Sales Volume ……………………………………………………... 12 (6) Financial Position ………………………………………………………………………………………… 12 (7) Capital Expenditure ………………………………………………………………………………………. 12 (8) Amount of share of profit or loss of Cosmo accounted for using equity method ………………………... 12 (9) Non-consolidated …………………………………………………………………………….…………… 12 Contents - 1 -
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Overview of Operating Results, Etc. (1) Overview of Operating Results for the Three Months Ended June 30, 2026 1) Economic Environment and Initiatives During the cumulative first quarter of the current fiscal year, the Japanese economy continued its gradual recovery trend with solid personal consumption due to improvements in the employment and income environment, and robust corporate earnings against the backdrop of AI and semiconductor-related demand. However, the outlook remained uncertain due to the persistently high fuel and raw material prices arising from the escalating tension in the Middle East. Under these circumstances, Iwatani (hereinafter referred to as the “Company”) expanded its business to achieve its basic policies of “solutions to social issues” and “sustained growth” in accordance with its medium-term management plan, “PLAN27,” which ends in the fiscal year ending March 31, 2028. Amid the escalating tension in the Middle East, we worked to ensure stable supply for our customers by utilizing storage facilities in Japan and overseas for helium, while diversifying procurement sources for LPG. In order to realize a hydrogen energy-based society, jointly with OBAYASHI CORPORATION, we have started a demonstration at our research institute to utilize the cold energy of liquid hydrogen for building air conditioning and other purposes, marking the first such initiative in Japan. This demonstration aims to reduce electricity consumption by effectively utilizing the cold energy that was previously dissipated into the atmosphere. We will also explore applications for industrial use in the future. The Company has also participated in the “1% Hydrogen Procurement Declaration ” announced by the Japan Hydrogen Association. This declaration states an aim to achieve 1% procurement of hydrogen and other sources in the fields of transportation, fuel, and raw materials. The Company will continue to promote the utilization of hydrogen. As part of our overseas strategies, we established a joint venture with NEW COSMOS ELECTRIC CO., LTD. to expand the residential gas alarm business in the United States. In the U.S., where demand for residential gas alarms is expected to grow due to mandatory installation requirements, the joint venture will oversee production for the U.S. market. Through the establishment of a stable supply system, we aim to strengthen the foundation of our energy-related business. The Company also participated in the foreign investment promotion summit hosted by the President of France. The Company was invited following our joint investment and financing with the Japan Organization for Metals and Energy Security (JOGMEC) in a French rare earth refining company, where we engaged in discussions on strengthening the supply chain for critical mineral resources and reducing dependence on specific countries. Amid rising geopolitical risks, we will continue to work on diversifying sources of rare earths and other critical mineral resources while strengthening our stable supply system. 2) Earnings During the cumulative first quarter of the current fiscal year, as a result of high LPG import prices leading to the positive impact of LPG import price fluctuations, and improved profitability of helium, net sales were 233.357 billion yen (+27.003 billion yen year-on-year), operating profit was 13.410 billion yen (+6.994 billion yen year-on- year), ordinary profit was 34.295 billion yen (+26.860 billion yen year-on-year), and profit attributable to owners of parent was 31.721 billion yen (+26.984 billion yen year-on-year). - 2 -
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(2) Segment Information Effective from the first quarter of the current fiscal year, the two consolidated subsidiaries that were previously included in ‘Others’ have been reclassified to ‘Integrated Energy,’ and the comparisons and analyses for the cumulative first quarter of the current fiscal year are based on the revised classification method. Integrated Energy In the Integrated Energy Business, revenue increased due to higher LPG import prices. As for profits, although sales of portable gas cooking stoves and cassette gas canisters decreased mainly in China, profitability improvement in the LPG wholesale sector, as well as LPG import price fluctuations (+4.787 billion yen year-on-year), led to an increase in profits. As a result, net sales in this segment were 99.809 billion yen (+8.333 billion yen year-on-year) and operating profit was 7.671 billion yen (+5.608 billion yen year-on-year). Industrial Gases & Machinery In the Industrial Gases & Machinery Business, sales volume of air separation gases increased mainly for the electronic component industry. In the hydrogen business, shipments of liquid hydrogen remained strong for space development and decarbonization applications. As for specialty gases, profitability of helium improved due to higher market prices, and gases for the semiconductor industry remained strong. In the gas-related equipment, sales of ammonia supply equipment for decarbonization applications increased. As a result, net sales in this segment were 69.024 billion yen (+6.990 billion yen year-on-year) and operating profit was 4.842 billion yen (+2.735 billion yen year-on-year). Materials In the Materials Business, sales of resin raw materials and resin products remained strong. Additionally, sales of rechargeable battery materials grew, and the sales of rare earths and other items increased due to efforts to ensure stable supply. On the other hand, profitability in the mineral sands business declined as a new mining site in Australia had not yet reached stable operations, and sales volume of stainless steel decreased. As a result, net sales in this segment were 62.825 billion yen (+11.307 billion yen year-on-year) and operating profit was 2.301 billion yen (-0.690 billion yen year-on-year). Others Net sales were 1.698 billion yen (+0.371 billion yen year-on-year), and operating profit was 0.433 billion yen (-0.029 billion yen year-on-year). - 3 -
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(3) Overview of Financial Position for the Three Months Ended June 30, 2026 1) Total Assets Total assets at the end of the first quarter of the current fiscal year increased by 27.587 billion yen from the end of the previous fiscal year to 927.359 billion yen. This was mainly due to increases of 31.484 billion yen in investment securities, 8.691 billion yen in property, plant and equipment, and 4.389 billion yen in “Other” under current assets, including advance payments to suppliers, respectively, despite a decrease of 17.575 billion yen in notes and accounts receivable - trade, and contract assets. 2) Total Liabilities Total liabilities at the end of the first quarter of the current fiscal year decreased by 11.460 billion yen from the end of the previous fiscal year to 439.316 billion yen. This was mainly due to decreases of 8.675 billion yen in notes and accounts payable - trade, 8.049 billion yen in short-term borrowings, and 4.677 billion yen in long-term borrowings, respectively, despite an increase of 10.042 billion yen in “Other” under non-current liabilities, including deferred tax liabilities. Interest-bearing debt, including lease liabilities, etc., at the end of the first quarter of the current fiscal year decreased by 6.796 billion yen to 240.562 billion yen from the end of the previous fiscal year. 3) Total Net Assets Total net assets at the end of the first quarter of the current fiscal year increased by 39.047 billion yen from the end of the previous fiscal year to 488.043 billion yen. This was mainly due to increases of 24.857 billion yen in retained earnings, 10.254 billion yen in valuation difference on available-for-sale securities, and 3.019 billion yen in foreign currency translation adjustment, respectively. (4) Consolidated Financial Results Forecasts Although economic trends, fluctuations in LPG import prices, and other factors may affect our business performance, we have not changed our consolidated earnings forecast announced on May 14, 2026, for the first quarter of the current fiscal year. - 4 -
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(Million yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 27,670 28,343 Notes and accounts receivable - trade, and contract assets 150,865 133,290 Electronically recorded monetary claims - operating 27,596 28,823 Merchandise and finished goods 65,454 67,614 Work in process 8,710 10,574 Raw materials and supplies 12,057 11,709 Other 25,892 30,281 Allowance for doubtful accounts (300) (314) Total current assets 317,947 310,323 Non-current assets Property, plant and equipment Land 73,702 73,548 Other, net 174,073 182,920 Total property, plant and equipment 247,776 256,468 Intangible assets Goodwill 20,020 19,496 Other 15,534 15,402 Total intangible assets 35,555 34,898 Investments and other assets Investment securities 237,585 269,070 Other 61,431 57,126 Allowance for doubtful accounts (522) (526) Total investments and other assets 298,493 325,669 Total non-current assets 581,825 617,036 Total assets 899,772 927,359 Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheets - 5 -
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(Million yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 69,538 60,863 Electronically recorded obligations - operating 27,281 26,068 Short-term borrowings 38,036 29,987 Income taxes payable 9,220 7,315 Contract liabilities 8,007 9,544 Provision for bonuses 7,336 4,833 Other 51,728 55,972 Total current liabilities 211,149 194,584 Non-current liabilities Bonds payable 70,000 70,000 Long-term borrowings 120,254 115,576 Provision for retirement benefits for directors (and other officers) 1,246 1,037 Retirement benefit liability 6,110 6,060 Other 42,015 52,058 Total non-current liabilities 239,627 244,731 Total liabilities 450,777 439,316 Net assets Shareholders’ equity Share capital 35,096 35,096 Capital surplus 32,323 32,323 Retained earnings 307,098 331,955 Treasury shares (1,559) (1,561) Total shareholders’ equity 372,957 397,813 Accumulated other comprehensive income Valuation difference on available-for-sale securities 41,835 52,089 Deferred gains or losses on hedges 3,094 3,841 Foreign currency translation adjustment 15,936 18,955 Remeasurements of defined benefit plans 3,274 3,211 Total accumulated other comprehensive income 64,140 78,098 Non-controlling interests 11,897 12,131 Total net assets 448,995 488,043 Total liabilities and net assets 899,772 927,359 - 6 -
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(Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 206,353 233,357 Cost of sales 151,787 168,641 Gross profit 54,566 64,716 Selling, general and administrative expenses Transportation costs 7,856 8,688 Provision of allowance for doubtful accounts (4) 7 Salaries, allowances and bonuses 11,574 12,349 Provision for bonuses 3,233 3,424 Retirement benefit expenses 438 386 Provision for retirement benefits for directors (and other officers) 24 25 Other 25,027 26,422 Total selling, general and administrative expenses 48,150 51,305 Operating profit 6,416 13,410 Non-operating income Interest income 84 98 Dividend income 819 1,054 Foreign exchange gains 46 7 Share of profit of entities accounted for using equity method – 18,772 Subsidy income 438 467 Other 812 1,624 Total non-operating income 2,201 22,025 Non-operating expenses Interest expenses 753 920 Share of loss of entities accounted for using equity method 72 – Other 356 220 Total non-operating expenses 1,182 1,140 Ordinary profit 7,435 34,295 Extraordinary income Gain on sale of non-current assets 306 446 Gain on sale of investment securities 50 8,419 Subsidy income 52 – Gain on liquidation of project 332 – Total extraordinary income 742 8,865 Extraordinary losses Loss on sale of non-current assets 14 4 Loss on retirement of non-current assets 285 61 Loss on sale of investment securities 0 – Loss on tax purpose reduction entry of non-current assets 52 743 Total extraordinary losses 352 809 Profit before income taxes 7,825 42,351 Income taxes 2,661 10,352 Profit 5,164 31,999 Profit attributable to non-controlling interests 426 277 Profit attributable to owners of parent 4,737 31,721 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income (For the three months) - 7 -
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(Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 5,164 31,999 Other comprehensive income Valuation difference on available-for-sale securities 1,587 10,315 Deferred gains or losses on hedges (125) (81) Foreign currency translation adjustment (3,444) 1,315 Remeasurements of defined benefit plans, net of tax (390) (90) Share of other comprehensive income of entities accounted for using equity method 107 584 Total other comprehensive income (2,265) 12,044 Comprehensive income 2,898 44,043 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,531 43,703 Comprehensive income attributable to non-controlling interests 367 340 Quarterly Consolidated Statements of Comprehensive Income (For the three months) - 8 -
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(million yen) Reportable Segments Others *1 Total Adjustments *2 Quarterly Consolidated Statements of Income *3 Integrated Energy Industrial Gases & Machinery Materials Subtotal Net sales Outside customers 91,475 62,033 51,517 205,026 1,327 206,353 - 206,353 Intersegment 1,065 331 585 1,982 7,598 9,581 (9,581) - Total 92,541 62,364 52,103 207,009 8,925 215,935 (9,581) 206,353 Segment income 2,063 2,107 2,991 7,162 462 7,625 (1,209) 6,416 (million yen) Reportable Segments Others *1 Total Adjustments *2 Quarterly Consolidated Statements of Income *3 Integrated Energy Industrial Gases & Machinery Materials Subtotal Net sales Outside customers 99,809 69,024 62,825 231,658 1,698 233,357 - 233,357 Intersegment 1,115 1,533 647 3,296 8,108 11,404 (11,404) - Total 100,924 70,557 63,473 234,955 9,807 244,762 (11,404) 233,357 Segment income 7,671 4,842 2,301 14,815 433 15,248 (1,838) 13,410 (3) Explanatory Notes to Quarterly Consolidated Financial Statements (Notes to Segment Information, Etc.) Ⅰ. First Quarter of FY2025 (April 1, 2025 - June 30, 2025) a) Information related to sales, operating income (loss) by reportable segment (Note) *1. “Others” is an operating segment not included in reportable segments. “Others” represents businesses in finance, insurance, transportation, safety, information processing, etc. *2. Adjustments for segment income include companywide expenses not allocated to each segment and the elimination of intersegment transactions. *3. Segment income is adjusted with operating income of the quarterly consolidated statements of income. *4. In the previous interim consolidated accounting period, we finalized provisional accounting treatment for a business combination. The finalization has been reflected in the figures for the previous first quarter. b) Information on impairment loss on fixed assets and goodwill by reportable segment None Ⅱ. First Quarter of FY2026 (April 1, 2026 - June 30, 2026) a) Information related to sales, operating income (loss) by reportable segment (Note) *1. “Others” is an operating segment not included in reportable segments. “Others” represents businesses in finance, insurance, transportation, safety, information processing, etc. *2. Adjustments for segment income include companywide expenses not allocated to each segment and the elimination of intersegment transactions. *3. Segment income is adjusted with operating income of the quarterly consolidated statements of income. b) Matters related to changes in reportable segments, etc. Effective from the first quarter of the current fiscal year, the two consolidated subsidiaries that were previously included in “Others” have been reclassified to “Integrated Energy.”Furthermore, segment information for the cumulative first quarter of the previous fiscal year was prepared based on the new classification. c) Information on impairment loss on fixed assets and goodwill by reportable segment None - 9 -
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(Notes in the Event of Significant Changes in Shareholders’ Equity) None (Notes on the Assumption of a Going Concern) None (Notes to Additional Information) (Changes in Fiscal Year-Ends of Consolidated Subsidiaries) Effective from the first quarter of the current fiscal year, the fiscal year-end of overseas consolidated subsidiaries has been unified to the consolidated fiscal year-end of March 31. Consolidated subsidiaries for which the fiscal year-end can be changed will have their fiscal year-end changed from December 31 to March 31. For China-based consolidated subsidiaries where changing the fiscal year-end is difficult, consolidation is achieved by conducting a provisional year-end closing on the consolidated fiscal year-end of March 31. The Company has adopted a method whereby the profit and loss of the subsidiary for the three months from January 1, 2026 to March 31, 2026 are adjusted according to retained earnings. As a result, at the beginning of the first quarter of the current fiscal year, retained earnings decreased by 1,450 million yen. Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) Depreciation 7,251 7,915 Amortization of goodwill 809 801 (Notes to Quarterly Consolidated Statements of Cash Flows) The Company has not prepared a quarterly consolidated statement of cash flows for the first quarter of the current fiscal year. Depreciation, including amortization related to intangible assets except goodwill, and amortization of goodwill for the first quarter of the current fiscal year are as shown below. (million yen) (Notes) In the previous interim consolidated accounting period, we finalized provisional accounting treatment for a business combination. The finalization has been reflected in the figures for the previous first quarter. (Notes on Business Combinations, Etc.) (Significant revision of the initial allocation of acquisition costs in comparative information) Although the Company applied provisional accounting treatment for the business combination with ISG, Inc. conducted on November 29, 2024, in the previous fiscal year, it finalized the provisional accounting treatment in the previous interim consolidated accounting period. As a result of accordingly having finalized the provisional accounting treatment, significant revisions to the amount initially allocated to acquisition cost have been reflected in the comparative information included in the quarterly consolidated financial statements for the third quarter of the current fiscal year. Consequently, the provisionally calculated amount of goodwill, initially 4,082 million yen, has decreased by 1,872 million yen due to the finalization of the accounting treatment, resulting in a revised amount of 2,210 million yen. The decrease in goodwill was due to increases of 2,729 million yen in other intangible assets (customer-related intangible assets) and 856 million yen in deferred tax liabilities. The impact on the consolidated statements of income for the previous first quarter is immaterial. - 10 -
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(1) Consolidated Statements of Income (Unit: 100 million yen) (Figures are rounded down to the nearest 100 million yen) 1Q FY2025 Apr-Jun 2025 1Q FY2026 Apr-Jun 2026 Change Rate FY2026 (Forecast) Net sales 2,063 2,333 270 13.1% 9,600 Gross profit 545 647 101 18.6% － Operating profit 64 134 69 109.0% 488 Ordinary profit 74 342 268 361.3% 590 47 317 269 569.6% 455 (2) Operating Profit Except for Impact of LPG Import Price Fluctuation (Unit: 100 million yen) 1Q FY2025 Apr-Jun 2025 1Q FY2026 Apr-Jun 2026 Change Rate FY2026 (Forecast) Operating profit 64 134 69 109.0% 488 Impact of LPG import price fluctuation (11) 36 47 － － 75 98 22 29.1% 488 (3) LPG Import Price (CP) 0 (4) Segment Information (Unit: 100 million yen) 1Q FY2025 Apr-Jun 2025 1Q FY2026 Apr-Jun 2026 Change Rate Net sales 914 998 83 9.1% Operating profit 20 76 56 271.8% Net sales 620 690 69 11.3% Operating profit 21 48 27 129.8% Net sales 515 628 113 21.9% Operating profit 29 23 (6) (23.1)% Net sales 13 16 3 28.0% Operating profit (7) (14) (6) － Results for 1Q FY2026 Profit attributable to owners of parent Operating profit except for impact of LPG import price fluctuation Overview Provisional accounting treatment related to business combination was finalized in the previous interim consolidated accounting period. Accordingly, the figures for the three months ended June 30, 2025 reflects the finalized provisional accounting treatment. Overview Net sales increased due to steady sales of rechargeable battery materials and various industrial gases, as well as high import prices of LPG. In terms of profit, the impact of increased profit from LPG import price fluctuation, improved profitability of helium, an increase in share of profit of entities accounted for using equity method, etc. contributed to achieving record-high profits in gross profit and all subsequent profit categories. Overview ・Impact of LPG import price fluctuation led to an increase in profit by 4.7 billion yen year-on- year. ・Operating profit except for the impact of LPG import price fluctuation was 9.8 billion yen, an increase of 2.2 billion yen. ・Profit increased due to positive impact of LPG import price fluctuation. ・Sales volume in the LPG retail sector decreased. ・Profitability improved in the LPG wholesale sector. ・Sales of portable gas cooking stoves and cassette gas canisters decreased mainly in China. * For more detailed information, please see a slide of "Impact of LPG Import Prices" in Iwatani Corporation Business Overview. (https://www.iwatani.co.jp/eng/ir/pdf/about_iwatani.pdf) *Figures for fiscal year ending March 31, 2027 (forecast) were announced on May 14, 2026. ・Sales volume of air separation gases grew mainly for the electronic component industry. ・Shipments of liquid hydrogen remained strong mainly for space development and decarbonization applications. ・Profitability of helium improved and gases for the semiconductor industry remained strong. ・Sales of ammonia supply equipment for decarbonization applications grew. * Net sales represent sales to third parties. ・Sales of resin raw materials, resin products, and rechargeable battery materials grew. ・Sales of rare earths and other items increased. ・In mineral sands, the profitability of our own mining sites in Australia declined. ・Sales volume of stainless steel decreased. Additional Information Integrated Energy Industrial Gases & Machinery Materials Others, Adjustments * "Others, Adjustments" represents the sum of the "Other" business segment and "Adjustments." 400 500 600 700 800 ＜Propane($/t)＞ 475 580 615 635 760 635 625 2024.4 2025.4 2026.4 2026.8 Ave. 549$/tAve. 612$/t 1Q Ave. 601$/t 1Q Ave. 610$/t 1Q Ave. 701$/t 620 580 - 11 -
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(5) LPG and Industrial Gases Net Sales - Sales Volume 1Q FY2025 Apr-Jun 2025 1Q FY2026 Apr-Jun 2026 Change Rate 1Q FY2025 Apr-Jun 2025 1Q FY2026 Apr-Jun 2026 Change Rate Domestic residential use 273 262 (10) (4.0)% 443 497 54 12.2% Domestic industrial use 82 80 (1) (1.9)% 93 114 20 22.2% LPG sub total (except for overseas) 355 343 (12) (3.5)% 537 612 74 13.9% 359 345 (14) (4.0)% 541 615 74 13.7% － － － － 390 444 53 13.7% (6) Financial Position (Unit: 100 million yen) (8) Amount of share of profit or loss of Cosmo accounted for using equity method FY2025 end 1Q FY2026 end Change (Unit: 100 million yen) Total assets 8,997 9,273 275 1Q FY2025 Apr-Jun 2025 1Q FY2026 Apr-Jun 2026 FY2026 (Forecast) Equity 4,370 4,759 388 (5) 182 88 Interest-bearing debt, gross 2,473 2,405 (67) Interest-bearing debt, net 2,196 2,122 (74) Equity ratio 48.6% 51.3% 2.7pt 27.5% 25.9% (1.6) pt Non-consolidated Statements of Income (Unit: 100 million yen) Debt-to-equity ratio, gross 0.56 0.50 (0.06) pt 1Q FY2025 Apr-Jun 2025 1Q FY2026 Apr-Jun 2026 Change Rate 0.50 0.44 (0.06) pt Net sales 1,239 1,411 172 13.9% Operating profit 2 79 77 － Ordinary profit 130 230 100 77.4% (7) Capital Expenditure Profit 121 254 132 108.9% (Unit: 100 million yen) 1Q FY2026 Apr-Jun 2026 FY2026 (Forecast) Financial Position (Unit: 100 million yen) Integrated Energy 51 190 FY2025 end 1Q FY2026 end Change Industrial Gases & Machinery 71 310 Total assets 6,180 6,292 111 Materials 24 133 Equity capital 2,824 3,124 299 Others, Adjustments 9 67 Equity capital ratio 45.7% 49.7% 4.0 pt Capital expenditure 156 700 Depreciation 79 323 Net sales (100 million yen) LPG total Ratio of interest-bearing debt to total assets Debt-to-equity ratio, net Sales volume (thousand tons) (9) Non-consolidated Various industrial gases *“Others, Adjustments” represents the total of the “Others” business segment and “Adjustments.” In this document, "Cosmo Energy Holdings Co., Ltd." is abbreviated to "Cosmo." Amount of share of profit or loss of Cosmo accounted for using equity method * Presented here are figures for property, plant and equipment, intangible assets (including goodwill), and investments securities, etc. (which include 12.8 billion yen invested in property, plant and equipment in the current period.) - 12 -