Financial Results for FY2023

(Results for the Fiscal Year Ended March 31, 2024)

May 23, 2024

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.

Security Code 8088

Copyright © Iwatani Corporation. All rights reserved.

Contents

1.FY 2023 Overview -Highlights

-Consolidated Operating Results

-Consolidated Operating Results of each Segment -Operating Profit Analysis of each Segment -Balance Sheet (Consolidated)

2.FY 2024 Forecasts

-Forecasts for the Year Ending March 31, 2025 -Forecasts of each Segment

3.Progress of Medium-Term Management Plan "PLAN27"

-Progress of Management Targets

-Progress of Priority Measures

4.Capital and Business Alliance with Cosmo Energy Holdings Co., Ltd. (For Reference)

FY2023 Statement of Cash Flows

PLAN27 Progress by Business Segments

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1

FY 2023 Overview

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2

Highlights

Net sales decreased. Operating profit increased. Ordinary profit and profit attributable to owners of parent reached record highs for the ninth consecutive year.

Summary of Financial Results for FY2023

  • Net sales decreased due to low import prices compared to the previous year and lower selling prices of LPG, as well as weak sales of rechargeable battery materials for next-generation automobiles.
    (FY2023 average CP in yen: 81,774 yen (CP: $569 USD Exchange rate: ¥143.50/$)
    (FY2022 average CP in yen: 96,106 yen (CP: $725 USD Exchange rate: ¥133.73/$)

Operating profit increased due to the efforts in Industrial Gases & Machinery business to reduce the increased production costs and positive impact of LPG price fluctuation versus the previous year. Ordinary profit and profit attributable to owners of parent increased, due in part to the recording of a gain on bargain purchase as non-operating profit resulting from accounting for Cosmo Energy Holdings(hereinafter Cosmo Energy HD) using the equity method.

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

847.8 billion yen

YoY (58.3) billion yen

(6.4)%

50.6 billion yen

YoY +10.6 billion yen

+26.5%

66.2 billion yen

YoY +19.1 billion yen

+40.8%

47.3 billion yen

YoY +15.3 billion yen

+47.9%

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Operating profit quarterly trends (100 million yen)

165

173

187

88

91

85

60

54

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2022*FY2023

*Reflects the finalization of provisional accounting treatment for business

combinations.

3

Consolidated Operating Results

(100 million yen)

FY23

FY22

YoY

FY23

Results

Results

(A)-(B)

Forecasts

(A)

(B)

(A)/(B)

Net Sales

8,478

9,062

(583)

9,070

(6.4)%

Gross profit

2,294

2,129

+165

+7.8%

Operating

506

400

+106

450

profit

+26.5%

Operating profit

+67

excluding impact of

498

431

450

LPG import price

+15.5%

fluctuation

Non-operating

155

69

+85

profit

+123.1%

Equity gains of

93

+93

affiliated companies

related to Cosmo

Energy HD

Ordinary profit

662

470

+191

503

+40.8%

to owners of parent

473

320

+153

335

Profit attributable

+47.9%

Net sales

9,062

Integrated

Energy

217

Materials

1

8,478

(360)

Industrial

(441)

Others

Gases &

Machinery

FY22

FY23

Operating profit

51

Materials

Others

506

58

(2)

(1)

Industrial

400Gases &

Integrated Machinery

Energy

FY22

FY23

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4

Consolidated Operating Results (Segment Analysis)

(100 million yen)

FY23

FY22

YoY

YoY

Results (A)

Results (B)

(A)-(B)

(A)/(B)

Net sales

8,478

9,062

(583)

(6.4)%

Integrated Energy

3,571

3,932

(360)

(9.2)%

Industrial Gases & Machinery

2,621

2,404

+217

+9.1%

Materials

1,982

2,424

(441)

(18.2)%

Others

303

302

+1

+0.4%

Operating profit

506

400

+106

+26.5%

Integrated Energy

201

143

+58

+41.1%

Industrial Gases & Machinery

217

165

+51

+31.1%

Materials

123

126

(2)

(2.4)%

Others, Adjustments

(35)

(34)

(1)

Operating profit excluding impact of LPG import

498

431

+67

+15.5%

price fluctuation

Ordinary profit

662

470

+191

+40.8%

Profit attributable to owners of parent

473

320

+153

+47.9%

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5

Impact of LPG Import Price Fluctuations

Assumption

Wholesale price is linked to LPG import price.

LPG import price

linked to

Wholesale price

Assumption Term from import to sale is

  • approx. three months.

Approx. three months

-LPG from Middle East(CP) -LPG from the US(MB)

Gas-producing country

Iwatani's LPG

LPG users

import & storage terminal

Legally required reserves:40 days

LPG import

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

price

(If LPG import prices return to original levels, impact will be zero*.)

fluctuation

Rising phase

Cheap inventory sold at high price

Falling phase Expensive inventory sold at low price

Basis for selling price

Cost basis

Earnings

Earnings

booster effect

depressor effect

Cost basis

Basis for selling price

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

6

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Operating Profit Analysis of Integrated Energy

Results

(100 million yen)

FY23

FY22

YoY

YoY

FY23

Achievement

Results

Results

Forecasts

rate

(A)-(B)

(A)(B)

(A)

(B)

(C)

(A)/(C)

Net sales

3,571

3,932

(360)

(9.2)%

3,980

89.7%

Operating profit

201

143

+58

+41.1%

180

112.1%

Operating profit

194

174

+19

+11.3%

180

107.9%

excluding impact of LPG

import price fluctuation

Analysis of changes in operating profit

(million yen)

1,120

330

760

20,173

3,890

(230)

14,301

Main factors

(million yen)

Impact of LPG import price fluctuation +3,890

(100 million

1Q

2Q

1H

3Q

4Q

Full

yen)

year

FY23

(17.3)

(34.0)

(51.3)

+32.6

+26.3

+7.5

FY22

+20.4

(15.0)

+5.3

(29.3)

(7.3)

(31.3)

Changes

(37.7)

(19.0)

(56.7)

+61.9

+33.7

+38.9

Retail

+1,120

-improvement in profitability of LPG

  • Wholesale +330

-improvement in profitability by reducing procurement costs and revising selling prices

  • Industrial (230)

-decrease in LPG demand for calorific adjustment for city gas

  • Others +760

-solid sales of cassette gas canisters and gas- related safety equipment

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7

Operating Profit Analysis of Industrial Gases & Machinery

Results

(100 million yen)

FY23

FY22

YoY

YoY

FY23

Achievement

Results

Results

Forecasts

rate

(A)-(B)

(A)(B)

(A)

(B)

(C)

(A)/(C)

Net sales

2,621

2,404

+217

+9.1%

2,592

101.1%

Operating profit

217

165

+51

+31.1%

175

124.0%

Analysis of changes in operating profit

(million yen)

1,880

570

21,705

1,220

1,470

16,561

FY22

Air separation

Hydrogen

Specialty

Gas-related

FY23

gases

Business

gases

equipment

Main factors

(million yen)

Air separation gases

+1,470

-decrease in sales volume mainly for the electronic component industry

-took an action toward growing production cost

Hydrogen Business +1,220

-decrease in sales volume mainly for the semiconductor industry

-took an action toward growing production cost

Specialty gases +1,880

-stable procurement and supply of helium and carbon dioxide

Gas-related equipment +570

-increase in sales of power semiconductors- related equipment and gas-related equipment

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8

Operating Profit Analysis of Materials

Results

(100 million yen)

Main factors

(million yen)

FY23

FY22

YoY

YoY

FY23

Achievement

Results

Results

Forecasts

rate

(A)-(B)

(A)(B)

(A)

(B)

(C)

(A)/(C)

Functional plastics products

+150

Net sales

1,982

2,424

(441)

(18.2)%

2,202

90.0%

-increase in sales of PET resin for beverage

bottles

Operating profit

123

126

(2)

(2.4)%

123

100.0%

Resources & advanced materials (60)

-increase in sales of biomass fuel

Analysis of changes in operating profit

(million yen)

-mineral sands sales declined in Japan despite

strong production and sales at our own

overseas mining sites

150

150

Metals + 150

12,604

(60)

-solid sales of stainless steel and overseas

12,305

processed metal business

(530)

Electronic Materials (530)

-sluggish sales of battery-related materials

for next-generation vehicles due in part to

inventory adjustments at sales destinations

-strong sales of functional films for smartphones

FY22

Functional

Resources &

Metals

Electronic

FY23

Plastics

Advanced

Materials

Products

Materials

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9

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Iwatani Corporation published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 01:34:06 UTC.