Iwatani : Supplementary Explanation for FY22 (with scripts)

Financial Results for FY2022

(Results for the Fiscal Year Ended March 31, 2023)

May 24, 2023

Iwatani Corporation

(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.

〔TSE Prime, 8088〕

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Contents
1.FY 2022 Overview	3.Review of Mid-term Management Plan "PLAN23"
-Highlights
	-Review of Management Target
-Consolidated Operating Results (Analysis of Net Sales)
	-Investment Results
-Consolidated Operating Results (Analysis of Operating Profit)
-Consolidated Operating Results by Segment		-Review of Basic Strategies

-Operating Profit Analysis by Segment -Balance Sheet (Consolidated) -Statement of Cash Flows

2.FY 2023 Forecasts

-Notice of Changes in Segments

-Forecasts for the Year Ending March 31, 2024 -Forecasts by Segment

-Dividend Payout Ratio

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1

FY 2022 Overview

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Highlights

Net sales increased. Despite a slight decline in operating profit, ordinary profit and profit attributable to owners of parent reached record highs for the consecutive eight years.

Summary of Financial Results for FY2022

• Net sales increased in all segments due to increased sales of main products as a result of normalization of socioeconomic activities from Covid-19, in addition to the response to various market rises and high LPG import prices.
• Operating profit declined due to the significant negative impact of LPG import price fluctuation year-on-year.
• Ordinary profit and profit attributable to owners of parent reached record highs for the consecutive eight years. Achieved the target of 40 billion yen in ordinary profit under the PLAN23 one year ahead of schedule.

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

906.2 billion yen	YoY	+215.8 billion yen (+31.3%)
40.0 billion yen	YoY	-0.04 billion yen (-0.1%)
47.0 billion yen	YoY	+0.5 billion yen (+1.3%)
32.0 billion yen	YoY	+2.0 billion yen (+6.9%)

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■ Operating profit quarterly trends（100 million yen）

162

142

		121
78				89		92
58
				55
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q

FY2021FY2022

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For the fiscal year ending March 2023, we have achieved the earnings forecast announced on November 9 last year.

Compared to the previous year, operating profit slightly decreased, but ordinary profit and profit attributable to owners of parent increased, reaching a record high for the eighth consecutive year.

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Consolidated Operating Results (Analysis of Net Sales)

（100 million yen）

	FY22	FY21	YoY	FY22
	Results	Results	(A)-(B)	Forecasts
	(A)	(B)	((A)/(B))	（*）

	Net sales	9,062	6,903	+2,158	8,400
	+31.3％
	Gross profit	2,129	1,917	+211	ー
	+11.0％
	Operating	400	400	(0)	400
	profit	(0.1％)
	Non-operating	69	63	+6	65
	profit	+10.1％
	Ordinary profit	470	464	+5	465
	+1.3％
	Ordinary profit			+117
	except for impact	501	384	ー
	of LPG import	+30.5％
	price fluctuation
	Profit attributable	320	299	+20	300
	to owners of
	+6.9％
	parent

Increase/Decrease factors

■ Increase in sales of mainstay products due to normalization of socioeconomic activities from Covid-19

■ Responding to the increase of market prices

■ High LPG import prices

*Achieved record-high net sales

■ Net sales

		874	56	1	9,062
	560		Agri-bio	Others
		& Foods
665		Materials
6,903	Industrial
	Gases &
Integrated	Machinery
Energy

FY21

FY22

*Announced on Nov.9th 2022

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Net sales increased JPY215.8 billion, or 31.3%, to JPY906.2 billion compared to the previous fiscal year, due to an increase in sales of mainstay products along with the normalization of socioeconomic activities after the COVID-19 pandemic, as well as responding to various market rises and LPG import prices remaining high.

Although LPG import price fluctuation decreased JPY11.1 billion YoY which was a negative factor, gross profit increased JPY21.1 billion or 11% to JPY212.9 billion due to the increase in sales of mainstay products and the effect of higher profits from newly consolidated subsidiaries.

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