FY2024

Iwatani Corporation

Investors’ Guide
Security code: 8088

Updated: May 23, 2024
Copyright © Iwatani Corporation. All rights reserved.

1

Company Overview
Corporate Philosophy

Become a person needed by society,as those needed by society can prosper.
Corporate Slogan

Creation of a more comfortable space on the Earthis what Iwatani wishes and strives for.
Company Overview*As of March 31, 2024

Established:
May 5, 1930
Paid-in-Capital:
35.096 billion yen
Consolidated Net Sales: 847.8 billion yen (FY2023; consolidated)
Net income:47.3 billion yen (FY2023; consolidated)
Affiliated Companies: 241 (including 105 consolidated subsidiaries)
Employees:
11,332 (FY2023; consolidated)
Fiscal year ends:
March 31
Copyright © Iwatani Corporation. All rights reserved.

Osaka Head Office

Tokyo Head Office1Overview of Iwatani’s BusinessOur core businesses are Gas and Energy

Integrated Energyl LPG
l Electricity sales and city gas safety
servicesl Gas equipment, lifestyle products,l Portable gas cooking stoves andcassette gas canisters

Other

Materials

23.4%

Consolidated
Net Sales:¥847.8 billion
Industrial Gases & Machineryl Industrial gases (e.g., air separation
gases, hydrogen, helium)
l Gas production and supply facilities andindustrial machinery

3.6%

Integrated Energy

42.1%(FY2023)

Industrial Gases &Machinery

30.9%

Materials

22.7%

Integrated Energy

Consolidated
Operating Profit:

Materialsl Functional plastic productsl Resources and advanced materialsl Metals l Electronic materials

37.2%¥50.6 billion(FY2023)

Industrial Gases &Machinery40.1%

Copyright © Iwatani Corporation. All rights reserved.

*Excludes other businesses/adjustments.

2

Iwatani’s Business Development
B to C Customer Base

Integrated Energy
2021

B to B Customer Base

Industrial Gases & Machinery
2022

Iwatani GateWay service begins

Acquisition of Aspen Air US, LLC, an American industrial
gas production and sales company
HySTRA feasibility testing completed

2017

Entry into city gas retail business

2014

2016

Materials
2022

Capital participation in Nordic Mining ASA

2020

Capital participation in R-Plus Japan, Ltd., a newly
established company engaged in used plastics recycling

2014

Entry into retail electricity business

Iwatani Hydrogen Refueling Station Amagasaki, Japan's
first commercial hydrogen station, begins operating

2014

2013

2012

1981

1978

2010

First import of LPG from United States
Imports commence for LPG from Saudi
Arabia1969

Sales of Cassette-Feu, Japan's first hose-freecooking stove, begin

1953

First in Japan to launch nationwide sales of
propane gas for household use

1945
1941
1930

Sourcing of helium from Qatar begins
Operations commence at Japan's first large-scalecommercial liquid hydrogen production plant

1975

Cold Air Products Ltd. established
Entry into the field of industrial gas production

1958

Osaka Hydrogen Industries Co., Ltd. (now Iwatani
Industrial Gases Corporation) established
Full-scale entry into the hydrogen business

Sales of rechargeable battery materials begin
Sales of smartphone materials begin
Sales of eco-friendly biomass PET resins begin

1997

Doral Mineral Industries Ltd. (of Australia) acquired

1953

Initial sales for gas pipes, joints, valves, and other metal
products and raw materials, such as rutile sand (lagging
material)

1952

Sales of synthetic resins begin

Iwatani Corporation established
Sales of hydrogen begin
Iwatani Naoji Shoten founded. Sales of oxygen, carbide and welding rods begin.

Gas and Energy
Copyright © Iwatani Corporation. All rights reserved.

l Begins supplying metals andother raw materials toindustrial gas customers.

3

Integrated Energy Business (Overview)<Breakdown of sales>

Energy-related equipment

LPG
From LPG import to delivery tohouseholds

Gas supply equipment,gas devices
Gas stove

21%

ENE-FARM system

Segment
net sales

Portable gas
cooking stove,cassette gas canisters
LPG supply equipment

LPG-powered
emergency generator¥357.1 billion

8%

Other fuel-related

LPG(consumers)

49%(FY2023)

11%

Cartridge gas products

LPG(industrial)

10%

LPG
(international)
Portable gas
cooking stove

Non-LPG
l LNG
l Kerosene

Cassette
gas canister

1%<Iwatani’s LPG sales>
RetailWholesaleIndustry ranking

No.1 /
16,381 companies

No.1 /
1,100 companies

Market share

4.7%

13.9%

Households
using MaruiGas*

1.11 million

3.3 million

Source: LP Gas Annual Report: Facts and Figures, Iwatani estimates* The name of the Company’s LPG brand(As of March 31, 2024)

Copyright © Iwatani Corporation. All rights reserved.

4

LPG Industry Overview and the Company’s Structure
LPG industry overview

The Company’s structure

The industry has a three-tiered hierarchical structure:primary distribution, wholesale and retail.

<Structure of LPG procurement and supply><LPG industry structure>
LPG

ImportGas producing
country

Primary
distributors(6 domestic companies)

Wholesalers(Approx. 1,100 domestic companies)

Transport

Integrated from primary distributor to retailing

Crude oil refining

Retailers(16,381 domestic companies)

DeliveryApprox. 40% of households in Japan are LPG consumers

Import & storage terminal/
primary terminal

5 sites

LPG terminal/pressurized
terminal

2 sites

Filling station

6.83
million

LPG households

City gashouseholds

households

households*1 Source: Sangyouhoudoushuppan Co., Ltd.
(FY2022), Agency for Natural Resources andEnergy (March 2023)*2 Source: Agency for Natural Resources andEnergy (March 2023)*3 Source: FUJI KEIZAI CO., LTD., 2018 Residential
Energy Service Equipment Forecasts by Area
(FY2017 Results)

*3

31.68
millionhouseholds*2

23.73
million*1

Areas where
LPG access accountfor about 95% ofJapan’s land area.
LPG is the mostcommonly usedenergy source out
areas with access tocity gas.

108 sites

Household use,commercial use

Wholesale,industrial use

Characteristics of transaction counterparties<Percentage of Japanese households using LPG>
Fully electrified
households

Peer primary
distributors

Non-Marui-Kai
distributors

23.73

16,381companies

million households

Approx. 3,200
companies

Copyright © Iwatani Corporation. All rights reserved.

Customers
using MaruiGas3,3million households
Marui-Kai distributors

Iwatani transaction
counterparties
included above

LPG households

1,800

Approx.
companies

1,400 companies
Directly-owned
sales companies

21 companies

Direct sales
customers

1.11

million households

Retailers nationwide * Marui-Kai is the Company’s network of
LPG distributors.

5

Business Strategy (Wholesale)<Nationwide platform>
Delivery facilities● 135 facilities ● Approx. 1,600 persons● Approx. 1,300 vehicles

Supply anddistribution network

Sales network(gas, equipment)

Maintenance

Offices● 280 locations● Approx. 3,200 persons

Bases● 108 filling stations nationwide

Harnessing the supply infrastructure to grow earnings in the wholesale business
Growing the number of transaction counterparty
businesses

Streamlining delivery<Development of proprietary Marui-Kai services>● Sales support (device sales, gas demand
development)● Maintenance contracting● Industry exchange, informationexchange, HR training

Building
relationswith retailers<Streamlining delivery>
UpsizeTotal optimization

Centralization

Maintain, expand, and reorganize own facilities.

MaruiGas Disaster Relief Corps● Japan’s only and largest nationwide private sector disaster prevention
organization, established jointly with distributors to ensure rapid LPG
recovery in response to disasters● Conducting annual concurrent nationwide drills to maintain andstrengthen disaster response capabilities (mobilizing 2,191 technicians to 32
sites through March 2024)

Dual strategy
promotion

Other
companies

Iwatani
Expansion

Reorganization

Alliance

Increasing
delivery contracting
IwataniOthercompanies

Deploying remote automatic meter reading
and truck dispatch planning systems

Improving delivery structure throughmore efficient use of our facilities

Copyright © Iwatani Corporation. All rights reserved.

Promoting delivery allianceswith other companies
6

Business Strategy (Retail)<Distribution of ><Distinguishing features of the retail LPG industry>
Import● Coststructure Wholesaleof household
LPG

10%
20%

Retail70%

Transportation of gas
cylinders,safety management,
meter reading,etc. involve work andcost.

● Distribution of Large-scale(2,500 units
or more)companies by
14.5% Small-scale
number of(500 units or less)customers
38.2%● Issues
Small/Mediumscale businessaccount for alarge share.

Shortages of successors and employees
Declining and aging population
Making gas devices energy efficient
Intensifying energy competition

Medium-scale(501-2,499 units)

47.3%

Declining number of retail businesses* LPG cost structure not including import prices
Source: Prepared by Iwatani based on Agency for Natural Resources and Energy, Briefing Material for Transaction Normalization Guidelines
under the Revised Act on the Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas Ministerial Ordinance, etc.

Drawing on our nationwide LPG platform to grow the direct sales
customer base and enhance retail earnings capabilities
Growing the direct sales customer base chiefly through M&A activities(Unit: 10,000 households)

Growing number of wholesale counterparties
72

Expanding M&A opportunities

74<Trend in number of direct sales customers>

75

76

78

80

81

83

86

88

90

99 100 101 103

130
110 11135

Growing the direct sales customer base

1999

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Copyright © Iwatani Corporation. All rights reserved.

2027
7

Business Strategy (Industrial)<Nationwide industrial LPG supply infrastructure>● One-stop service from proposal through to construction and maintenance● 24-hr 365-day/year remote monitoring ● Centralized management within Iwatani GroupGrowing earnings by promoting fuel conversion
Meeting user decarbonization needs by switchingfrom heavy oil/kerosene to LPG (fuel conversion)Comprehensive support
for decarbonization/low-carbon aims of customers● Generating environmental value from SME CO2 reductions
via conversion to J-Credits
J-Credit Project
SMEs etc.

Proposals for energy and cost savings for heat demand,
power conservation, and BCP measures

Application

CO2 emissions reduced

Certification

J-CreditCertification
Committee(Reporting of monitored data)×

Total support, from stable supply of LPG
to equipment upgrades and maintenance

Proceeds for CO2 reduction

Proposal of CO2 reduction
methods/feedback

Effective use ofenvironmental value

CO2 emissions calculation and visualization service
Amount of energy used(data entry)

Carbon offset
LPG/LNG

Large corporations, etc.

CO2 emissions visualization,
reduction proposals● Launching the supply of carbon offset gas using J-Credits in 2022
Businesses seeking
to reduce CO2 emissions

Carbonoffset gas① Created in house (J-Credits)② Purchased on the market(J-Credits, voluntary credits)

Steam boiler

Offsetting

CO2
emissions

Environmental
value

Environmental
value

Cogeneration system
Copyright © Iwatani Corporation. All rights reserved.

8

Business Strategy (Initiatives to Reach the Next Growth Stage)
Iwatani GateWay Plan (digital transformation of the integrated energy business)

Iwatani GateWay

IoT platform

This Internet of Things (IoT) platform adds communication functions to household gas alarms for use as gateways to connect a wide range of devices.
This is intended to provide new services and value to support customer lifestyles.
Sales offices

Enabling to reach any of our domestic LPG customers within 30 minutes via

Iwatani’s energy business network

3,200 persons
at 280 offices

Physical connections to our LPG customers across Japan
Digital connections to householdenergy data and various sensors

Iwatani GateWay

LPG retailers

Rush service

Gas safety

More efficient delivery
Internet
Wi-Fi
Lighting？

Electricity meter？

Shopping service
Convenience Remodeling

Iwatani
GateWay

LPG meter

Water meterAir conditioner

Watching over children and seniors

Detector

Water
heaterTV

Eco-Jozu

Delivery bases
Approx.
1,600 persons
at 135 facilities
Approx. 1,300 vehicles

Detecting andWearablepreventing frailty risks devices
Healthcare

Refrigerator

Block
ENE-FARM chain
Environmental value

NursesLong-termcare specialists

Multifunctional cooperation
IoT homeappliances
Smart use

Liaison with Regional
Comprehensive Care Services
Smartphone

Copyright © Iwatani Corporation. All rights reserved.

9

Business Strategy (Cartridge Gas)
Japanese market

Overseas markets

High quality and brand power

Use of manufacturing facilities

××

New product development capabilities to meet customer needs

Introducing products that meet the needs of each country

Growing sales and profits by cultivating new demand

Growing sales in China and Southeast Asia
while growing the business in North America

Outdoor use

Cassette gas products Portable gas cooking stoveother than cooking stoves with outstanding design

Historical sales of cassette gas canisters
in China
70 (Millions)

Iwatani Cartridge Gas Corporation

60
50
40
30
20
10
FORE WINDS outdoor leisure brandMarudan cartridge gas heater

Cassette Feu KIWAMI

0

2018

2019

2020

2021

2022

2023

FY2027 Japan sales targets
FY2023 sales

FY2027 sales target

Portable gas cooking stoves1.98 million

3.4 million

Cassette gas canisters

97.45 million

130 million

Iwatani Gas Appliances (Zhuhai) Co., Ltd.

Global sales volume (FY2027)l Portable gas cooking stoves 4.7 M units
Iwatani Cassette-Feu (Thailand)Co., Ltd.

Copyright © Iwatani Corporation. All rights reserved.

l Cassette gas canisters

120 M units
10For Reference: Impact of LPG Import Prices
Assumption❶

Wholesale price is linked to LPG import price.

(CP)Time from import to sale isapproximately three months.
Approximately three months

LPG
import priceLPG
fromMiddle East

Assumption❷

LinkedLPG
fromthe US

Wholesale
price
Gas-producing country Iwatani’s LPG import & storage terminal(MB)

LPG users

Legally required reserves: 40 days

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

LPG importpricefluctuation(If LPG import prices return to original levels, impact will be zero.*)Rising phase Cheap inventory sold at high price
Basis for selling price

G im

t
por

LP

Cost basis

e

pric

Falling phase Expensive inventory sold at low price<Approx. 3 months>

Cost basis

Earnings
booster effect

LPG

imp

ort

pric

e

Earnings
depressor effectBasis for selling price<Approx. 3 months>*Actual impact on performance varies depending on inventory volume, time of sale, sales volume, etc.

Copyright © Iwatani Corporation. All rights reserved.

11

Industrial Gases & Machinery Business (Overview)
Machinery, equipment, etc.

Sales Breakdown

Breakdown by gas typeAir separation gases

19%

24%

High-pressure gas supply facilities

Welding equipment

Machinery,equipment,
etc.

42%

Liquid gas trucks

Segment
net sales

OxygenNet sales¥262.1 billion 58(FY2023)

Specialty gases

27%

5%

Carbon dioxide

Hydrogen

6%

13%

46%

Welding robots

Argon

Helium%(FY2023)6%¥151.2 billion

Industrial
gases

30%

Nitrogen

Other

Breakdown of industry-side sales by gas type
Overseas sales ratio

Air separation gases

27%

51%

Nitrogen

30%

Other

Sheet-metal welding machines Semiconductor manufacturing equipment

Market share of specialty gasesl Hydrogen(incl. liquid hydrogen)100% No. 1 in industry
approximately 50% No. 1 in industry

Pharmaceutical manufacturing equipmentl Helium

Source: Gas Georama in Japan 2024, Company estimates

Copyright © Iwatani Corporation. All rights reserved.

FY2023¥618.7 billion

approximately 70% No. 1 in industryl Liquid hydrogen
Welding materials

36%
HeliumOxygen3%Specialty gases

13%

Hydrogen Carbon
dioxide
%
%

5

5

Argon

12%

9%

Source: Gas Georama in Japan 202412

Industrial Gases (Overview)Raw materialType of gas

Domestic
market size

Share by application
Other
Machinery
Food
Transportation
Other
Other

Other
Ironmaking

29.6

Cooling(specialty gas)

Iron & steel

Electrical

Welding

Carbon dioxide

55.6

Chemicals

Refining

Byproduct gases
from chemical plants
and other sources

Metals
Machinery
Chemicals(air separation gas)

183.7

Transportation

Argon

Iron & steel(air separation gas)

77.9

Beverage

NitrogenElectricalAir

Chemicals

Cryogenic distillation(air separation gas)

Metals
MachineryTransportation

OxygenChemicals

Iron & steel(billion yen)

Other
Other

Balloons
Cryogenics

Analytics

Welding

Optical Fibers

Leak tests

Semiconductors

Import(liquid)

21.0
27.8

(specialty gas)

Glass

HydrogenChemicals*Helium gas only

MetalsPetroleum-derived
hydrocarbon

Helium(specialty gas)Lightelectricalappliances

Byproduct gases from oiland chemical plants
and other sources

Reformpurification

Gas fields

Refining*Liquid carbon dioxide only*Compressed hydrogen only
*Reference: 2024 Gas Georama in Japan. Japanese market size estimates by the Company based on the size of the industrial gases market in 2023.

Copyright © Iwatani Corporation. All rights reserved.

13

Business Overview (Helium)
Main uses

Procurement and supply structurel Used in state-of-the-art fields like semiconductors, optical fiber,
MRIs, and the space industry
Other ■
Low temperature engineering ■Balloons, blimps ■Space industry ■©JAXA

Welding ■Utilizing helium’s inertness
and high heat transmittivity■ Semiconductors

14%

1% 1%
1%
10%

27%

Utilizing helium’s inertness, high heattransmittivity, and high specific heat

Helium gas

Qatar
Supplier

2023

4.96 million cu. m

14%

Japan

Analysis ■Semiconductors ■8%

Low temperature engineering ■Used in research requiring extremely
low temperature environments

Sales territory

Supply structure■ Otherl Reduction of loss during filling through introduction ofhigh-efficiency equipmentl Realization of stable supply through investment in containers

1% 6%
3%

■ MRI/NMR

Used to cool superconducting
magnets, etc.

Liquefied helium

13%Southeast Asia (2 sites)

Helium centers

Utilizing helium’s inertness
and small molecular size

Utilizing helium’s small molecular size

(2 sites)

Utilizing helium’s inertness
and high heat transmittivity

17%■ Analysis

Leak testing ■China (2 sites)
Japan

Sales territory
United States
Supplier■ Optical fiber

15%

Welding ■l Procurement from multiple sources in North America and Qatar

2023

1.7 million cu. m 69%
Japan© JEOL Ltd.

© Canon Medical Systems Corporation

Source: Japan Industrial and Medical Gases Association (JIMGA)

Osaka Helium Center

Copyright © Iwatani Corporation. All rights reserved.

Tokyo Helium Center

Bangkok Gas Center (Thailand)
14

Business Overview (Hydrogen)Top domestic market shares and only supplier of liquid hydrogen
有利子負債額（億円）

Raw materials

Iwatani’s hydrogen businessHistorical sales volume of hydrogen in Japan
Our market share(Mill. Nm3)
200

Compressed hydrogen

Our market share

Byproduct gases

Fossil fuels

Approx.

Liquid hydrogen

35%

Approx.

70%

Uses

Transport

Production

150

Hydrogen plant(liquid hydrogen)Hydrogen plant(compressedhydrogen)Hydro Edge
extension
100

YLH*
extension

Hydro Edge
onlineLiquid hydrogen

Compressedhydrogen

YLH*
online50

Energyapplications

Chiba Plant
onlineIndustrial
applications
0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Gas Georama in Japan 2024

Copyright © Iwatani Corporation. All rights reserved.

(Planned)* Yamaguchi Liquid Hydrogen Corporation

15

Business Strategy (Hydrogen)

Expanding sales with liquid hydrogen as core
Industrial applications

Energy applications

l Leveraging the advantages of liquid hydrogen to grow ourcustomer baseLiquid hydrogen characteristics
Enableslargescaletransport andstorage

Growing decarbonization demand
Responding to demand to implement decarbonizationin business activities

Transport
efficiency
Approx.

l Building a new energy market

Purity12 times High purity 99.9999%(relative to compressedhydrogen)

H2 KIBOU FIELD
Photo: Panasonic Corporation

Hydrogen applications
Glass manufacturing(optical fibers, quartz glass)

HYBARI hydrogen hybrid train
Photo: East Japan Railway Company

Hydrogen cutting machine,
mixed-combustion type hydrogen burner

Development initiatives for hydrogen-refueling stations

Heat-treating
metals

Semiconductors,
electronics

Space development* Used as an additive in brightannealing for smooth metallic
surfaces* Dilution of raw material gases,
ambient use, etc.

* Liquid hydrogen only(rocket fuel)Promoting construction of hydrogen refueling stations in Japanand around the world©JAXA* Oxyhydrogen burners forclearglass free of clouding

US hydrogen-refueling station

Copyright © Iwatani Corporation. All rights reserved.

FC bus -adopted hydrogen-refueling station

Iwatani Cosmo Hydrogen Refueling Station
Heiwajima

16

Business Strategy (Hydrogen)Liquid hydrogen production bases
 Increase production capacity in line with increased sales ofliquid hydrogen

Exploring the feasibility of building new liquid hydrogen production facilities
in addition to those in Osaka, Yamaguchi, and Chiba, in response to increasing
domestic demand for low carbon hydrogen and other applications

Chiba Plant of
Iwatani Industrial Gases

1 line = 5 t/d(Ichihara City, Chiba Prefecture) Operating since 2009

 Exploring the feasibility of building new liquid hydrogenproduction facilities

1 Line Hydrogen production through gasification of waste plastics
Commercializing production of hydrogen from waste plastic by the mid-2020s
Study involving project near the Port of Nagoya in Aichi Prefecture undertaken in partnership with Toyota Tsusho Corporation
and JGC Holdings Corporation

Illustration of supply chain model

Hydrogen production
through gasification

Collecting
waste plastics
from emitters

Yamaguchi Liquid Hydrogen

Hydro Edge

(Shunan City, Yamaguchi Prefecture)(Sakai City, Osaka Prefecture) 1 line operating since 2013
 1 line added in 2017

2 Lines 2 lines operating since 2006
 1 line added in 2020

Waste plastics

3 Lines

Hydrogen use
Plants, etc.

Households

Hydrogen
supplyH2

H2

H2

Liquefaction

H2

Pipelines

Reducing GHG emissions by 85% (vs. hydrogen production using natural gas)

Copyright © Iwatani Corporation. All rights reserved.

17

Business Strategy (Toward a Hydrogen Energy-Based Society)

Building a CO2-free hydrogen supply chain
Promoting efforts across the supply chain
from manufacture through transport and use

Alliances with partners in Japan and overseas
Liquid hydrogen production facilities

Use
Transport

Manufacture Transport

Transporting liquidhydrogen by trailer

Manufacture

Overseas hydrogen production

Industrial hydrogen supply
Commercial FC trucks

Domestic production
plantsHydrogen-refueling stations
and related equipment
Decarbonization

Hydrogen import tankers
Transport

Fuel cell (FC)vehiclesHydrogen receiving
terminals

FC buses

Pipeline supply

Hydrogenpower generation
Copyright © Iwatani Corporation. All rights reserved.

18

Business Strategy (Building a Liquid Hydrogen Supply Chain)
Liquefied Hydrogen Supply Chain Commercialization Demonstration Project (Green Innovation Fund)l Project objectives/overview
Liquefied hydrogen supply chain commercialization demonstration project intended
to achieve a hydrogen supply cost of 30 yen/Nm3 (delivery on board cost) by 2030
Annual H2 Supply

l Project periodl Implementation structure

FY2021-2030 (10 years)

Japan Suiso Energy, Ltd. (lead company)
Iwatani Corporation, ENEOS Corporation

Main Facilities

Implement commercial production
Kawasaki Coastal Area,
Kawasaki, JapanPort of Hastings, Victoria, Australia

shipping
Commercialization
Demonstration(-2030)H2 Production

Liquefier

Storage

LH2 Carrier

Storage

Users

Power Plants

28k t/y(0.32 billion Nm3/y)

Coal + CCS

GH2

product

LH2

GH2

1/8
1st full-scale
Commercialization(around 2031-)
to expandCommercialization
Demonstration
facilities

receivingH2 production
100 t/dCoal + CCS

Liquefier
60 t/d × 2

LH2 Tank
10,000 m3 × 5

1 LH2 Ship
(1 Tank use)

LH2 Tank
50,000 m3 × 1

1/8

2 units

1/4

1 ship1 tank

LH2 tank
total 200,000 m3

LH2 Tank • LH2 Ship
40,000 m3 × 4 × 2 ships

LH2 Tank
50,000 m3 × 4

Coal + CCS

product

225k t/yGH2(2.52 billion Nm /y)

GH2
LH2

3

H2 production
770 t/dLiquefier
50 t/d × 20

Power Plant output 1 mil kW
Target Price (CIF Japan Port)
Approx. 30 yen/Nm3

Securing multiple supply chains for obtaining CO2-free hydrogenfrom overseasl Studying green hydrogen production in Gladstone, Queensland, Australia
Commercialization study by five companies: Iwatani, the Kansai Electric Power Co., Inc., Marubeni Corporation, Stanwell,and Keppel
Copyright © Iwatani Corporation. All rights reserved.

19

Business Strategy (Machinery)
Robotic system sales(automation) proposal
capabilities

Comprehensive
semiconductor
post-processing
equipment lineup

Comprehensive
welding solutions
proposal capabilities

Gas equipment
engineering capabilities

Iwatani’s expertise and technological strengths

Proposing optimization of production processes to meet customer needs
Automotive, shipbuilding, electronic components, semiconductor, industrial machinery, manufacturing, and other industries

Initiatives toward next growth stage
Labor saving

Initiatives to meet decarbonization demand

Automation equipment (e.g., testing, manual labor),
coworking robot solutions

Proposing equipnent for hydrogen and ammonia feasibility
studies and meeting new demand

Automation of testing

Hydrogen-refueling station equipment

Coworking robot

Copyright © Iwatani Corporation. All rights reserved.

Hydrogen mixed burner

Ammonia supply equipment

20

For Reference: Business Facilities
Our businesses are also expanding in China, Southeast Asia, and US.
Global network

Domestic network

Dalian Iwatani Gas Machinery Co., Ltd.
Air separation plant
Gas center
Operational Company,
trading company/
representative officeHelium center
Others(Air separation gases)(Hydrogen)Industrial gas supply network

Shanghai Iwatani Co., Ltd.

Gas center ……………………21

Xiaogan Iwatani
Industrial Gases Co., Ltd.

Hydrogen plant ………………11
Air separation plant ……………9
Helium center …………………2
Others …………………………6

Aspen Air US, LLC

Jiaxing Iwatani Industrial Gases
Co., Ltd.

(air separation gases)(Air separation gases)(Helium)(Hydrogen)

Advanced Specialty Gases(specialty gases)

Iwatani-SIG Industrial Gases Sdn. Bhd.
(Air separation gases)

Iwatani Corporationof America

Iwatani Corporation (Singapore) Pte. Ltd.

Gulf Helium Services W.L.L.
(Helium)

Qatar(Air separation gases)

UAE
Saudi Arabia

PT. Iwatani Industrial Gas Indonesia

Oman

Yemen

Copyright © Iwatani Corporation. All rights reserved.

21

Materials Business (Overview)
Electronic Materials

Breakdown of sales

 Battery-related materials
 Display materials
Related industries: Electronics, automotive batteries, etc.

10%

Smartphone materials

Automotive battery materials

30% Resin raw materials (PET resin, polypropylene, etc.)
 Resin molding products, films, sheets
Related industries: Food and beverage, daily household goods,
home electrical appliances, etc.

Electronic
Materials

MetalsFunctional Plastics

Functional
Plastics

24%

Segment
net sales¥198.2 billion

Air conditioner panel

PET resins

Film (protective tape)(FY2023)

MetalsResources &Advanced Materials

36%

 Stainless steel  Precision stainless steel Aluminum  Non-ferrous materials
 High alloys  Metalworking products
Related industries: Electronic components, air conditioning
equipment, etc.

Overseas sales ratio

24%

Resources & Advanced Materials
 Mineral sands (zircon, titanium raw materials)
 Ceramic raw materials (Rare Earth metals, zirconium
compounds)  Refractory raw materials
 Biomass fuels  Electronic materials
Related industries: Chemicals, ceramics, automotive,
semiconductors, etc.

Market share Biomass PET resins approximately 70% No. 1 in industry
Wire processing

Stainless steel

 Titanium ore(high-grade)approximately 40% No. 1 in industry

Resource business

Ceramic raw materials

Source: Company estimates
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22

Business Overview (Functional Plastics)
Resin raw materials

Resin products

Meeting a wide range of customer needs by proposing
eco-friendly raw materials such as biomass plastics

Business development using the processing functions ofdomestic Group companies and overseas partner companies

Biomass PET

Familiar Iwatani brand products like films and daily itemsl Integrated supply chain management from biomass raw
materials procurement through sales of biomass PET resinsl CO2 reduction achieved: approx. 28% (vs. previous products)
Carbon dioxide

Sugar canes

Absorption

Life cycle

Bottles

Sheets(e.g., beverages, condiments, daily articles) (e.g., food containers)

Plastics

Biomass MEG

Plastic bags for foodMicrowavable containers

Biomass PET

Overseas OEM products

Biomass PP, PE, PS
l ISCC certified in FY2022
l Developing new markets inJapan in partnership with
global chemical companiesl First use of biomass PS inJapan
Nursing bottles’ cap made using biomass PS

Commercial air conditioner filters

Copyright © Iwatani Corporation. All rights reserved.

Long-term care beds
23

Business Overview (Resources & Advanced Materials)
Overseas Enhancing earnings capabilities through in-house operations (extraction)
Japan

Procurement from major resource firms and sales growth via pulverizing and processing functions

Titanium ore (TiO )2

Uses: Titanium dioxide pigments, ferrotitanium,
welding materials

Zircon sand (ZrSiO )4

Uses: Refractory, ceramics, zirconia,
grinding materials, casting

Iwatani Australia Pty. Ltd.
 100%
subsidiaryof Iwatani
Corporation* Supply scheduled to begin in 2025

CanadaNordic Mining ASA
 Investee
company of
Iwatani
Corporation

South Africa* Planned mining site

Investing in Norwegian concession for green
titanium, which promises high environmental
value* Zero CO2 emissions during mining

Supplier

Iwatani investments

Copyright © Iwatani Corporation. All rights reserved.

24

Business Overview (Metals)
Processed metal products
As well as sales of materials such as stainless steel and aluminum, enhancing processing functions to grow earnings
Metal slitting business
Automotive parts and materials businessWire rod processing businessl Strong relationships with home appliance makers
Demand is projected to growin the air conditioning market
in Asia.

l Applying precision slitting function for compact,
lightweight, resource-conserving, energy-saving,large-capacity electronic components

Enhanced manufacturingfunctions of our plant(in Thailand) in 2023

Enhancing sales to semiconductor
and auto industries

Examples of products: Fan guards for exterior air conditioning units
Examples of products:
Insert molded parts(next generation auto parts,
electronic parts)

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25

Business Overview (Electronic Materials)
Secondary battery materials

Functional films for displays

Enhancing sales by expanding product and materials lineups

Growing sales of our proprietary shock absorption materials

l Selling lithium, cobalt, and manganese used inlithium-ion secondary battery cathodesl Working with OEMs to develop our own proprietaryproducts to meet customer needs<Results of testing by dropping a steel ball>

Lithium, cobalt,
and manganesesuppliers

Cathodematerial andbattery makers

Iwatani

Anode active material

Ordinary materials

Our shock absorption
materials

Our original products
demonstrate high shock
absorption performance.

Anode

Separator

Metal material(Anode collector foil)

Cathode active material
CathodeMetal material(Cathode collector foil)

Conduction auxiliary agent

Nonmagnetic stainless steel foil(Component used to make folding smartphones)

Functional film
(Automotive display material)

Used in organic EL panels
for smartphones

Currently developing films for use
in high-performance displays
for next generation vehicles (EVs, FCVs)

Internal structure of a lithium-ion secondary battery

Copyright © Iwatani Corporation. All rights reserved.

26

Initiatives Toward the Next Growth Stage
Investing in new environmental
technologies and businesses

Participating in R Plus Japan,
a chemical recycling project to produce
chemical products like PET and plastics
from waste plastic materials

Conventional technology
Used plastics

Conversion
to oilConversion to
raw materials(Thermolysis)

Recycling

New technology
Used plastics

Growing earnings by securing users
through long-term contracts

Palm kernel shells (PKS)(Thermolysis)

Conversion to
raw materials

Biomass fuel (PKS, wood pellets)

Wood pellets

l Building an integrated PKS supply chain
from collection through supply(earning environmental certification)l Procurement from multiple sources inSoutheast Asia

Recycling

Benzenel Considering procurement sources
independent of Chinal Considering the business of producing
nickel-cobalt compounds
Demand related tonext generation vehicles(EVs, FCVs) is growing
Projected global use ofnext generation vehicles(including FCVs, EVs, and hybrids)(Unit: 10,000 vehicles)
3000
2500

2,443

2000

1,230

1500
1000

0

Propylene

ToluenEnhancing procurement capabilities
in response to the growing
secondary battery market

560

500

(Thermolysis, catalysis)
Ethylene

Secondary battery materials

2020

2025

2030

Source: Yano Research Institute Ltd.

XyleneProcess flow

Also considering manufacturingchemicals from wood raw materials
Copyright © Iwatani Corporation. All rights reserved.

27

For Reference: Business Facilities<Overseas facilities>
Trading company subsidiary
Operating company subsidiary<Japan facilities>
Beijing Representative
OfficeINOC (Changzhou)
Stainless Steel Products Co., Ltd.

Iwatani Corporation(Korea) Ltd.

Suzhou Iwatani Metal Products Co., Ltd.

Representative office

Domestic facility
Affiliate

Shanghai Iwatani Co., Ltd.
Iwatani Corporation (Hong Kong) Ltd.
Iwatani India Pvt. Ltd.

Iwatani Corporation (Taiwan) Ltd.
Iwatani Vietnam Co., Ltd.

Zhongshan Iwatani Co., Ltd.
Zhongshan Kasatani Co., Ltd.

Marui Sangyo Co., Ltd.

Iwatani Corporation (Thailand) Ltd.
Bangkok Ai-Toa Co., Ltd.
Germany
Iwatani Malaysia Sdn. Bhd.

Europe Office

Iwatani Corporation Tokyo Head Office
TAIHEIKINZOKU Co. Ltd.

Iwatani Corporation (Singapore) Pte. Ltd.

NOSE KOZAI, INC.
Kyushu Stainless
Kako Center Corporation

Iwatani Materials Corporation

PT. Iwatani Indonesia
Taihei Kozai Co., Ltd.

USA

Sanei Stainless Center Co., Ltd.
Iwatani Techno Co., Ltd.

Iwatani Corporation Osaka Head Office

Iwatani Corporationof America

Iwatani Australia Pty Ltd.

Copyright © Iwatani Corporation. All rights reserved.

28

Shareholder and Investor Information Site
Integrated Report

Fact Book

The Integrated Report contains information on ESG initiatives andother topics.

The Fact Book reviews business results and KPIs.

Integrated Report | To Investors | Iwatani Corporation (iwatani.co.jp)

Fact Book | To Investors | Iwatani Corporation (iwatani.co.jp)

Medium-term Management Plan PLAN27

IR information

Features explanatory materials on the Medium-term Management Planas well as briefing videos and summaries of questions and answers
from briefings.

Visit the site below for a summary of financial results, materials frombriefings on financial results, stock and shareholder information,and other information and resources.

Medium-term Management Plan | To Investors | Iwatani Corporation (iwatani.co.jp)

To Investors | Iwatani Corporation (iwatani.co.jp)

Copyright © Iwatani Corporation. All rights reserved.

29