Iwatani : Supplementary Explanation for 1st Half FY22

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.

1

FY 2022 1st Half Overview

Copyright © Iwatani Corporation. All rights reserved.

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 billion yen	YoY	+116.2 billion yen (+39.1%)
14.4 billion yen	YoY	+0.8 billion yen (+6.0%)
18.4 billion yen	YoY	+1.9 billion yen (+11.6%)
12.3 billion yen	YoY	+2.0 billion yen (+19.5%)

Copyright © Iwatani Corporation. All rights reserved.

■ Operating profit quarterly trends（100 million yen）

	142
78	121			89
58				55

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2021FY2022

3

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

Copyright © Iwatani Corporation. All rights reserved.

4