Creation of a more
comfortable space on the Earth iswhat Iwatani wishes and strives for.



Corporate Philosophy

Become a person needed by society,as those needed by society can prosper
Our corporate philosophy—“Become a person needed by society, as those needed by society can prosper”—expresses Iwatani
Corporation’s philosophy since its founding. We are pursuing the satisfaction of both society and consumers, the philosophy handed
down over the years as the foundation of all our businesses. Today, our core business of LPG, which spurred a revolution in household
fuel and reduced the burden of household tasks, provides a reliable and widely used clean energy source for daily life, for commercial
activity, and for emergencies. Industrial gases, another core business, are essential to the manufacture of nearly all of the products
around us. They play a key role as an infrastructure on which industrial progress is based. Iwatani is a market pioneer in hydrogen,which, in addition to its industrial applications, is on the verge of becoming a major driving force toward the realization of a sustainable
society as the ultimate zero-carbon energy source.
While today’s society faces a wide range of challenges in areas ranging from the environment and global warming to energy, we willcontinue striving to establish a sustainable, resource-circulating, carbon-free society by ceaselessly creating and supplying whatsociety needs.

Since FY2022, this Integrated Report has sought to promote understanding among an ever broader range of stakeholders. The reportprovides an overview of the Iwatani Group and its medium- to long-term business strategies from both financial and non-financial
perspectives. It also presents our plans for medium- to long-term growth, addressing major initiatives and business strategies
intended to create social value and strengthen corporate value. We will continue to enhance the Integrated Report and the information
it provides to more clearly explain the Iwatani Group’s efforts to strengthen corporate value over the medium to long term.
Period Covered

Most of the information provided in this Report concerns the period from April 1, 2022 through March 31,
2023, the Group fiscal year. Some information also refers to events before and after this period.

Published

October 2023

Guidelines Referenced ● International Integrated Reporting Council (IIRC), International Integrated Reporting
Framework● Ministry of Economy, Trade and Industry of Japan, Guidance for Integrated Corporate
Disclosure and Company-Investor Dialogues for Collaborative Value Creation

  

Forecasts of business performance and other forward-looking statements found in this Report involve risks and uncertainty. Please
note that actual results may differ for various reasons from the forward-looking statements presented herein.


P. 2
P. 3
P. 5
P. 7
P. 9
P. 11
P. 13
P. 17
P. 19
P. 21
P. 25
P. 27
P. 29
P. 31
P. 33

1

Corporate Philosophy
To Our Stakeholders
Iwatani’s History
Business Summary
Value Creation Process
Value Creation CapitalInterview with the President
Long-Term Vision and Materiality
Medium-Term Management Plan
Hydrogen Strategies
Carbon-free Strategies
Domestic Energy & Service Strategies
Overseas Strategies
Non-financial Strategies – Human Resource Strategy
Non-financial Strategies – Technology Strategy

P. 35
P. 39
P. 43
P. 47
P. 49
P. 53
P. 56
P. 57
P. 58
P. 59
P. 60
P. 61
P. 63
P. 64

Integrated Energy
Industrial Gases & Machinery
Materials
Governance
Governance – Executive Officers
Climate Change Response
Promoting Environmental Management
Supply Chain Management and Human Rights
Safety and Security Initiatives
Health and Productivity Management and Occupational
Health and Safety
ESG Data
Social Contribution Activities
Financial Highlights
Company Data

2

To Our Stakeholders

Contributing to society as a trusted company bycreating new value
Since our founding in 1930, Iwatani Corporation has provided awide range of products and services for both daily life and industrial
applications, including energy, industrial gases, and materials,
based on our corporate philosophy: Become a person needed bysociety, as those needed by society can prosper. These efforts are
grounded in our desire to contribute to society by creating newvalue society will need in the future. This is the major driving force
underlying the progress of our businesses.
Since 1941, when we identified hydrogen as the ultimate clean
energy source, we have pushed for progress toward widespreaduse of hydrogen energy. Under the corporate slogan adopted in1970 on the 40th anniversary of our founding—Creation of amore comfortable space on the Earth is what Iwatani wishes andstrives for—we strive to deliver solutions to the social issues posedby environmental issues, as well as help achieve the Sustainable
Development Goals (SDGs), through contributing to create acarbon-free society based on hydrogen.
As a co-representative of the Japan Hydrogen Association
established in December 2020 and as a key member of theHydrogen Council established chiefly by global energy firms, weare acting to promote use of hydrogen around the world with theaim of moving toward a hydrogen energy-based society.
To stimulate new hydrogen demand, we are developing hydrogenrefueling stations in Japan and in the United States in response to
the spread of fuel cell vehicles (FCVs). We will focus on developinghydrogen-refueling stations for fuel cell commercial vehicles,
including trucks and buses, as well as reducing operating costs bypromoting self-service refueling.
We are securing new hydrogen demand by meeting customer
needs to reduce carbon emissions through means including
factory decarbonization and hydrogen supply as a fuel to enablereal-world means of transportation and mobility, whether by train,marine craft, or other, at large scale.

Corporate Slogan

Creation of a more comfortable space on
the Earth is what Iwatani wishes and strives for.
Corporate Philosophy

Become a person needed by society,as those needed by society can prosper

Iwatani Code of Corporate Ethics /The Iwatani Group Environmental Charter
Fundamental Philosophy /Implementation Guide

Integrated
EnergyBalancing business activities withenvironmental activities
Industrial Gases &Machinery3

Materials

Our efforts to secure CO2-free hydrogen sources include studying
the commercialization of green liquid hydrogen production
alongside our partners, including a power utility and a mining
company in Australia. In particular, the Liquefied Hydrogen Supply
Chain Commercialization Demonstration Project in which weparticipate has been selected by the New Energy and Industrial
Technology Development Organization (NEDO) for funding from theGreen Innovation Fund. This project will include feasibility studies
on developing global liquid hydrogen supply chains integratinghydrogen production, liquefaction, shipping, marine transport,
and receipt to establish the world’s first large-scale hydrogenliquefaction and transport technologies capable of handling
capacities on the order of tens of thousands of tons per year.
In Japan, we are participating in the Fukushima Plan for a New
Energy Society, a project intended to produce green hydrogenusing electric power generated from renewable energy sources.
We are also studying a broad range of practical projects, includinghydrogen production from plastic waste.
Our main LPG business has a customer base of more than 3.3
million households across Japan. We support our customers’ lives
in various aspects, including stable supplies, solutions, security,community contributions, and the environment. We are making
energetic progress to achieve LPG decarbonization through various
efforts, including research on decarbonization through supplying
LPG mixed with hydrogen as well as propanation (synthetic green
LPG production) as we head toward becoming the energy & living
total service provider of choice for our customers and communities.
As we advance toward our 100th anniversary and beyond, we
remain firmly committed to achieving sustained growth, and willcontinue to offer new value to all our stakeholders.

Chairman and CEO

President

Iwatani Code of Corporate Ethics❶ We will create new values sought by our customers,
thereby contributing to society.
❷ We respect compliance with the related laws andordinances and their spirit, and fulfill our social responsibility through fair and free competition.
❸ We will proactively disclose our corporate informationand have a dialogue with society in order to obtainwide support and mutual understanding from society.
❹W e will respect diverse values and create an environment where abilities can be fully demonstrated irrespective of the race, nationality, gender, and age to
flexibly respond to changes in business environment.
❺ We will conduct corporate activities aimed at realization of a decarbonized society and coexisting with theenvironment in accordance with the idea embodied
in the phrase “Creation of a more comfortable spaceon the Earth is what Iwatani wishes and strives for.”❻ We will conduct corporate management from an international perspective.
4

Iwatani’s History

A History of Meeting Society’s Needs and Rising
to the Challenge of Innovation

 

 







First procurement of helium
from Qatar

Iwatani Hydrogen Refueling
Station in Amagasaki, Japan’s
first commercial hydrogenrefueling station, opens.

Start of hydrogen-refuelingstation operations in the
United States

Iwatani GateWay service
introduced

Completion of the world’s firstmaritime transport demonstration
tests of liquid hydrogen between
Japan and Australia, including
loading and unloading

The Gas and Energy business enriches daily life, supports societal progress, and contributes to a more prosperous future. Some of thegases we handle include LPG, air separation gases, helium, and hydrogen. Iwatani was early to identify the possibilities of these gases andhas since built stable supply networks, developed new technologies, and devised new products. Iwatani maintains a firm commitment topursuing the challenge of innovation in response to the world’s needs, centered on the Gas and Energy business.



Iwatani Corporation establishedMarui Propane introduced

Osaka Hydrogen Industries Co.,
Ltd. (now Iwatani Industrial
Gases Corporation) establishedCassette-Feu (a hose-freeportable cooking stove)
introduced

Sakai LPG Terminal completed

Hydro Edge Co., Ltd. commences
operating Japan’s largest liquidhydrogen production plant.

Net sales
1,000,000(million yen)
900,000

800,000

700,000


Iwatani Naoji Shoten founded

Fiscal year end
changed from
November to March

600,000

500,000

400,000

300,000

1965
Listed on the First
Sections of the Osaka
Securities Exchange
and the Tokyo
Stock Exchange

Trends in net sales

200,000

100,000* Consolidated net sales since 2000
0















 

 (FY)The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan [ASBJ] Statement No. 29, March 31, 2020) and other accounting standards have been applied since FY2021. Figures shown for FY2020 have been restated through the retroactive application of these accounting standards.

  

1953 Marui Propane introduced
1969 Cassette-Feu (a hose-free portable cooking stove)
introduced
1977 ALALA Clean home detergents introduced

1980 Sakai LPG Terminal completed
1981 Imports commence for LPG from
Saudi Arabia
1994 Kashima LPG Joint Stockpiling
Terminal completed
1995 MaruiGas Disaster Relief Corps launched2014 First import of LPG from the United States
2016 First venture into retail electric power2017 First venture into the retail city gas market

2021 New cassette gas canister plant opens
2021 Iwatani GateWay service introduced
2022 Enelife Corporation established2022 Initial sales of carbon offset LPG

   

1958 Osaka Hydrogen Industries Co., Ltd.
(now Iwatani Industrial Gases Corporation) established
Full-scale entry into the hydrogen business1975 Cold Air Products Co., Ltd. established
Secured position as an industrial gas manufacturer
1978 Japan’s first commercial liquid hydrogenplant completed

1980 First helium gas imports
1985 Alliance formed with Union Carbide
Corporation (US) for joint operations
involving industrial gases
1994 Kitsuregawa Gas Plant completed

2006 Hydro Edge Co., Ltd. brings Japan’s largest
liquid hydrogen production plant online
2013 First helium procurements from Qatar
2014 Iwatani Hydrogen Refueling Station, Japan’s firstcommercial hydrogen-refueling station, opens
in Amagasaki
2019 First venture into hydrogen-refueling station
business in the United States

2021 Helium center opens in Thailand
2022 HySTRA feasibility testing completed
2022 Tokico System Solutions, Ltd. made wholly-owned subsidiary2022 Acquisition of Aspen Air U.S., LLC
2023 Basic design work begins on green hydrogen business inAustralia in partnership with Stanwell Corporation Ltd.
and other parties

1952 Initial sales of synthetic resins1953 Sales begin for gas pipes, joints, valves, and othermetal products and raw materials, such as rutile sand(lagging material)
1976 First sales of I-WRAP plastic bags, which are easy
to pull out from the package, eventually a longrunning staple product1977 Named primary trading company of Kawasaki
Steel Corporation (now JFE Steel Corporation)
alongside expansion of the metals division
1997 Acquisition of Doral Mineral Industries Ltd.
(Australia)
1999 General distribution rights in Japanfor zircon sand acquired from
Rio Tinto Group

2004 Ultra-precision slit processing
business launched in China
2012 Initial sales of smartphone materials
2012 Initial sales of biomass PET resin derived
from plant-based materials
2014 Initial sales of palm kernel shells (PKS) as
biomass fuel2016 Initial sales of aluminum catalyst PET resin
featuring superior recyclability

2020 Capital participation in R Plus Japan Ltd.
2022 Capital participation in Nordic Mining ASA
2023 Production capacity at Bangkok Ai-Toa Co., Ltd.
expanded1930 Iwatani Naoji Shoten founded:
first sales of oxygen, carbide,and welding rods
1941 Hydrogen sales begin.
1945 Iwatani Corporation
established Begins supplying metals
and other raw materials toindustrial gas customers.

5



 6

Business Summary

Business Summary



    

Steady Income Growth

Net Sales[Consolidated]

Improved Financial Standing
with a Net D/E Ratio of 0.35

Operating profit (¥ billion)
Profit attributable to owners of parent (¥ billion)

3.3%
Materials

301.9

Equity capital (¥ billion)
40.0

40.0

242.4
33.5

43.4%

32.0
29.9

28.7
27.1

29.9
182.2

26.4

25.0
159.3

23.2

   

 LPG  Electricity sales and city gas safety services
 Gas equipment, lifestyle products, health foods
 Portable gas cooking stoves and cassette gas canisters

billion(FY2022)

16.7

141.7

17.5

16.5

10.4

136.5

154.4
135.2
134.4
132.0
126.3

139.4
126.5

114.7

109.0

111.1

96.7

71.1
1.96

12.3

11.1

151.3

19.2

18.5

10.5

165.4

161.0

20.9

20.4

19.1



270.1

Net D/E Ratio

Integrated
Energy26.8%

Interest-bearing debt (¥ billion)

45.0

Other

96.1

83.1

1.64

1.44

8.0

1.09

6.1

0.98

0.84

0.73

0.64

0.55
0.23

2011

2012

2013

PLAN12

Industrial Gases& Machinery

2014

2015

PLAN15

2016

2017

2018

PLAN18

2019

2020

2021

PLAN202022

2023(Forecast)

PLAN
27

PLAN23* Figures for FY2021 and later reflect the application of the Accounting Standard for Revenue Recognition.

26.5%

Operating Profit[Consolidated]
Integrated
EnergyMaterials

29.0%

32.9%

2012

2013

PLAN12

2015

2016

PLAN15

2017

2018

PLAN182019

2020

PLAN20

2021

2022

PLAN23* Figures for FY2021 and later reflect the application of the Accounting Standard for Revenue Recognition.

 

Proactive Investment Based on
Growth Strategies

Paying Progressive Dividend While
Maintaining Appropriate Returns toShareholders as Profits Grow

Investment (¥ billion)
Depreciation (¥ billion)
Cash flow from operations (¥ billion)

Dividends per share (¥) *1
Consolidated payout ratio (%)* Figures for investment and depreciation through FY2014 are for property, plant, and equipment.
Figures for investment and depreciation since FY2015 are totals for property, plant,
and equipment and intangible assets (excluding goodwill) and investment securities.
Figures for investment and depreciation since FY2021 are totals for property, plant,
and equipment and intangible assets (including goodwill) and investment securities.

51.4*1 Figures for FY2011-2016 reflect consideration for the five to one reverse stock split.
*2 Commemorative dividend of 20 yen

48.7

43.0



70.0

72.0

39.1
37.2

billion2014

 Industrial gases (e.g., air separation gases, hydrogen, helium)
 Gas production and supply facilities and industrial machinery

2011

0.35

0.30

27.8

40.2

(FY2022)

28.5
33.3

22.6

16.5

18.8

14.9
12.7
12.3

15.5
13.3
13.2

2011

2013

14.5

15.9

11.9

33.2

20

*2

33.7
27.8

16.2

16.3

19.2

16.3

95

95

75

75

2019

2020

2022

2023
(Planned)

65

22.9
18.3

17.1

85

26.4
17.0

16.3

16.6

40.0
34.6

26.2

24.8
18.1

17.4

15.4
16.2

24.4

22.3

21.3

36.1

31.4

October 2017: Five to
one reverse stock split

55

13.0
35

35

35

35

2011

2012

2013

2014

40

40

2015

2016

Industrial Gases & Machinery

38.1%*Excludes other businesses/adjustments.
7

 Functional plastics products  Resources Advanced materials  Metals  Electronic materials

2012

PLAN12

2014

PLAN15

2015

2016

2017

PLAN182018

2019

PLAN20

2020

2021

2022

PLAN232023(Forecast)

PLAN
27

PLAN12

PLAN15

2017

PLAN182018

PLAN202021

PLAN23

PLAN
27* Figures for FY2021 and later reflect the application of the Accounting Standard for Revenue Recognition.

8

Value Creation Process

Iwatani’s Value Creation Process
Business Environment
Resources andEnergy· Securing stablesupplies ofresources and energy· Growing geopolitical
risks

INPUT

Long-Term Vision

Environment

Society· Measures against
climate change andnatural disasters· Transition tocarbon-free society· Responses to depopulation
and aging society· Diversification of consumer
values· Growing demand for social
sustainability

We are striving to realize the following four elements of our Long-Term Vision
to become a Group that continues to help realize “a more comfortable spaceon the Earth.”

1. Developing a CO2-free hydrogen supply chain
2. Promoting a resource circulating society
3. Providing infrastructure and services that support local communities
4. Enhancing the management foundations to promote sustained growth

OUTPUT

BUSINESS MODEL
Corporate Philosophy

Financial Capital● Operating profit: ¥43.1 billion (excluding
impact of LPG import price fluctuation)● Equity ratio:
46.0%

Financial Capital

Become a person needed by society,as those needed by society can prosper(As of March 31, 2023)● Nationwide LPG and industrial gas networks
to realize stable supplies

Intellectual Capital● Operating profit:● ROE● ROIC¥65.0 billion
10% or higher
6% or higher(PLAN27 targets)

Integrated Energy

Manufacturing Capital

OUTCOME

Manufacturing Capital

LPG / Electricity sales and city gas
safety services / Gas equipment,
lifestyle products, health foods /Portable gas cooking stoves andcassette gas canisters● LPG wholesale/retail market share● Hydrogen (including liquid hydrogen) market share:● Helium market share:

No. 1
approx. 70%
approx. 50%(As of March 31, 2023 [in Japan])● Technological development capabilities at the
Iwatani R&D Center and the Iwatani Advanced
Hydrogen Technology Center● Gas and energy handling technologies andadvanced safety structures

Human Capital● Consolidated number of employees: 11,351

Intellectual Capital
Basic Policy

Business expansion
to achieve “solutions
to social issues” and“sustained growth”(As of March 31, 2023)● Promoting diversity and inclusion● Certified and specialized human resources
supporting manufacturing and safety● HR development systems to achieve
continuing growth for employees

Materials
Functional plastics products /Resources / Advanced materials /Metals / Electronic materials

Industrial Gases& Machinery
Industrial gases(e.g., air separation gases,
hydrogen, helium) /Gas production andsupply facilities andindustrial machinery● Delivering low-/zero-carbon solutions● Establishing decarbonization technologies● Developing advanced technologies to contribute to a sustainable

society

Human Capital● Ratio of female managers
10% or more
● Annual training costs per employee¥150 thousand● Percentage of childcare leave taken by male employees
100%(PLAN27 targets)● Creating new value and services reflecting increasingly diverse

Social and Relationship Capital● Nationwide customer base in the LPG
business● Strong LPG and industrial gas dealershipnetworks● Strong relationships with overseas suppliers● Hydrogen business alliances

customer needs● Enhancing structures to ensure the stable supply of gas and energy● Enhancing structures to ensure the stable supply of rare resources● Swiftly implementing hydrogen technologies throughout society

Develop moretransparent governance

Develop an environmentand systems in which diverse
human resources can thrive

Iwatani Code of Corporate Ethics /The Iwatani Group Environmental Charter

Natural Capital

Risk Management Committee● Energy use (total converted to caloric value):
1,765 TJ
(FY2022 [in Japan])

Provide infrastructure andservices that will enrichpeople’s lives● Testing to build a CO2-free hydrogen supply chain

Social and Relationship Capital

9

Create businesses that willlead to the realization ofa sustainable society

Security and Export Control Committee, Personal Information Control Committee, Compliance Committee,
Factory Safety Control Committee, Sustainability Promotion Committee, Global Security Control Committee,
Customer Satisfaction (CS) Committee, Product Safety & Brand Management Committee

Promote innovation withthe use of technologies
and expertise

Natural Capital● CO2 emissions from business activities:(FY2030 target: 50% vs. FY2019)

approx. 220 thousand t(FY2022 [in Japan])● CO2 reductions in society through environmental products:

Fuel conversion, supply of hydrogen for fuel cell vehicles (FCVs),
expanded PKS sales, etc.
approx. 560 thousand t(FY2022)10

Value Creation Capital

Value Creation Capital
Value creation in the Iwatani Group can be traced to six types of capital: financial, manufacturing, intellectual, human, social andrelationship, and natural capital. By effectively combining these types of capital in business activities based on our corporate
philosophy and management policies, we strive both to find solutions to social issues and to deliver new value to society. As aresult, we will build a virtual circle consisting of our own growth and social value creation through our accumulated capital toserve as a source of new value creation, and seek to achieve sustained enhancement of corporate value.

Financial CapitalSound financial foundations to enable proactive investment in growth
The Iwatani Group has made steady progress on enhancing its financial foundations using funds
raised through continued efforts to strengthen our earning capabilities. In 2020, ¥30 billion inconvertible bonds were converted to shares of common stock. In 2021, we earned a long-term
issuer rating of A and issued our first green bonds. Through these and other efforts, we have beenable to establish sound financial foundations. Under our PLAN27 medium-term management plan,we will take advantage of these foundations to aggressively invest ¥470 billion over the course of
five years. We plan to make large-scale investments while maintaining our external financial ratingof A, including the investments currently underway to develop a CO2-free hydrogen supply chain.
● Net D/E ratio● Ordinary profit● Total assets(excluding impact of
LPG import pricefluctuation) billion● External financial rating

%



(As of March 31, 2023)● Industrial gas sites

 sites
Pressurized terminals (LPG terminals)
 sites
Filling stations
 sites
Core LPG Centers* included above sites* Core LPG Centers:
Disaster-resistant centers equipped with seismic retrofitting,emergency power generators, and other improvements● Hydrogen-refueling stations

Industrial gas centers
Hydrogen plants
Japan Air-separation plants
Helium centers
Liquefied carbon
dioxide plants, etc.
Overseas sites

%(As of March 31, 2023)(FY2023 [nonconsolidated])● Investment in
HR development

Approx.

¥ million/year(FY2022 [nonconsolidated])● Certified and specialized human resources
supporting manufacturing and safety
High-pressure gas production
safety managers:High-pressure gas sales managers: (As of March 31, 2023)

Social and Relationship Capital
Bonds of trust with customers and trading partners serving as the foundation forgrowthThe Iwatani Group strives to earn trust by ensuring a safe and stable supply of gases. We
also focus on strengthening ties to our dealership organization, which delivers value to themarket at large, and to our suppliers, who play vital roles in creating new value and ensuring
stable supply. Our bonds of trust with stakeholders are a key form of capital that serves asa pillar of sustained growth.

LPG and industrial gases networks to realize stable supply
The Iwatani Group’s extensive domestic and international network is centered on Gas andEnergy. In the LPG business, we operate nationwide networks ranging from import andfilling stations to distribution centers. The Industrial Gases Business is also expanding its
domestic and international supply chains. We count the stable supply structure madepossible by these networks among our strengths.

Import terminals● Ratio of female newgraduates in career track(Japan Credit Rating Agency)
Long-term Issuer
Rating of

Manufacturing Capital● LPG sites

Diverse human resources capable of tackling the challenges of creating new value;
specialized human resources to support sustained growth
In addition to the human resources needed to generate business growth by creating newvalue for society, the Iwatani Group draws on highly specialized human resources in areas
such as manufacturing, safety, and technology to support the stable supply of gas andenergy. We are creating the environment needed to allow diverse human resources todemonstrate their abilities to the fullest, and also provide a wide range of training
opportunities that support individual growth. Our goal is to achieve sustained growth bysecuring the human resources capable of meeting society’s needs at all times.

● Consolidated numberof employees● Equity ratio billion

Human Capital sites sites
 sites sites sites sites

Japan
Overseas sites
 sites● LPG customers● Strong ties to dealerships

 million households
Direct sales customers million households
included above:

Wholesale customers:

Marui-Kai members*1: approx.
Iwatani-Kai members*2:

 *1 LPG dealership network *2 Industrial gases dealership network(As of March 31, 2023)(As of March 31, 2023)(As of March 31, 2023)

Natural CapitalIntellectual Capital
Technological development facilities to support our businesses; Gas and Energy
handling technologies built up over the years
The Iwatani R&D Center develops technologies to create new value alongside our customers,
based on our technological capabilities built up over the years in the fields of Gas and Energy.
In addition, the Iwatani Advanced Hydrogen Technology Center carries out R&D on
technologies related to liquid hydrogen, as well as technologies in areas such as hydrogenenergy and green LPG, which will play important roles in realizing a carbon-free society.
● Joint R&D projects with national
projects and public research institutes

 projects in total
11● Center visitors persons from companies

Efforts to achieve a carbon-free society
In addition to decarbonizing our own business activities, the Iwatani Group offers products
and services to help customers decarbonize theirs. The three businesses, comprising
Integrated Energy, Industrial Gases & Machinery, and Materials work together as one to help
realize a carbon-free society.

● Contributions to CO2 emissions reductions
CO2 emissions from business activities:

approx.

 thousand t* FY2022 (in Japan)(FY2030 target: 50% vs. FY2019)(FY2022)

CO2 reductions in society
through environmental products:

approx.

 thousand t* FY202212

Interview with the PresidentInterview with the President
We will seek to increase corporate value further in the runup to the 100th
anniversary of our founding in 2030.

Active investment in medium- to long-term growth resulted in cumulative
investments of ¥110.0 billion over two years.

Goals of the PLAN23 medium-term management
plan achieved ahead of schedule

PLAN23 Management Indicators and Investment
AmountOur PLAN23 medium-term management plan set numerical targets of ¥40.0
billion in ordinary profits and ROE of 9% or higher. For FY2022, we met thesegoals ahead of schedule: ordinary profit reached ¥47.0 billion, while ROE
was 11.2 percent.
We made steady progress under PLAN23 on enhancing the foundations ofindividual businesses. In the Integrated Energy Business, efforts to expand
our base of LPG direct sales customers, combined with the acquisition of
Enelife, formerly a part of the group of Tokyo Gas Co., Ltd., led to success inachieving the target figure of 1.1 million households. In the area of portablegas cooking stoves, we made progress on overseas business development,
including the construction of a new manufacturing plant in Thailand.
Sales in the Industrial Gases & Machinery Business grew as we enhanced
our domestic and international supply networks, including opening a new
helium center in Thailand. We acquired the two companies of Tokico System
Solutions, Ltd., whose intellectual property holdings include outstanding fluid
control technologies and manufactures hydrogen dispensers, and Aspen Air
U.S., a manufacturer of air separation gas in the US state of Montana.
In the Materials Business, growth in sales of environmental products, risingmarket prices, and efforts to ensure stable resource procurement, including
efforts to secure rights to high-purity titanium ore through investments in
Nordic Mining ASA, led to significant growth in both sales and profits.

President

Hiroshi Majima

Helping to realize “a more comfortable space on the Earth” under our
PLAN27 medium-term management plan to establish a hydrogenenergy-based society.
Q

Can you provide an overview of the FY2022 financial results?

A

We achieved record profits for the eighth consecutive year and reached the goals of ourPLAN23 medium-term management plan.

Overview of financial results in FY2022
Sales of major products grew in FY2022 as economic activities continued
to normalize amid signs that the COVID-19 disaster was coming to an end.
These efforts and efforts to accommodate growth in various markets resulted
in record-high net sales of ¥906.2 billion.
At the same time, as LPG import prices declined gently, the impact of LPG
import price fluctuation* were dramatically lower (by ¥11.1 billion) from lastyear, which led to a decrease in operating income. Nevertheless, ordinary
13

profit was ¥47.0 billion, while net income, at ¥32.0 billion, set a new high forthe eighth consecutive year.
I would like to take this opportunity to express our gratitude to our trading
partners, shareholders, and other stakeholders.
* Impact of LPG import price fluctuation: Impact on profit and loss arising from the fact that sale prices in the LPG
market reflect fluctuating market conditions first, while the impact on inventory prices lags (by roughly two to threemonths)

Forecasts of financial results for FY2023 call for increases in net sales to¥907.0 billion and in operating profit to ¥45.0 billion. We expect ordinary
profit and net income to set new records for the ninth consecutive year.

■ Management Indicators
Items
Ordinary Profit[excluding impact of LPG
import price fluctuation]

Return on Equity(ROE)

FY2022 Results

PLAN23 Targets¥47.0 billion[¥50.1 billion]¥40.0 billion

11.2%

9% or higher(FY2021-FY2022)

Result

PLAN23 Target¥110.0 billion¥150.0 billion■ Investment Amount
Items
Cumulative Total
Investment

Q

What kind of sustained growth are you targeting under the new PLAN27 medium-term
management plan?

A

Our goal is to expand and to contribute to sustained growth by providing solutions to social
issues, including solutions that will help society achieve carbon neutrality.

Formulating the five-year PLAN27 medium-term
management plan
In June 2023, we announced our new PLAN27 medium-term management
plan. This five-year plan for the period beginning in FY2023 seeks to achieve
the following management targets in FY2027: operating profit of ¥65.0
billion, ROE of 10% or higher, and ROIC of 6% or higher.
The social issues evident around the world today include the needto secure stable supplies of resources and energy, adapt to climatechange, and build sustainable societies. Based on our Corporate
Philosophy—Become a person needed by society, as those neededby society can prosper—we will strive to grow our businesses to help
implement PLAN27’s basic policies of identifying solutions to social
issues and achieving sustained growth.

Turning demand for carbon neutrality into growth
opportunities
With the goal of achieving carbon neutrality, which is one of social challenges
we face, the global movement to become carbon-free is accelerating, amid
dramatic innovations in energy and technology. Under these conditions, wewill work to achieve business growth by helping customers reduce carbon
emissions.
In the Integrated Energy Business, we are working to grow the low-/zerocarbon business as the world transitions to carbon neutrality. These efforts

include promoting the transition from oil to LPG and supplying carbon
offset gas using J-Credits. We are also performing feasibility testing of amethod of supplying mixed hydrogen and LPG by pipe. Additionally we hope
to decarbonize LPG in the future. By pursuing R&D on the production ofgreen LPG using hydrogen and biomass, we aim to become a leader indecarbonization within the LPG industry.
In the Industrial Gases & Machinery Business, we are meeting the needs ofmanufacturing customers from perspectives including providing Hydrocut®
premixed hydrogen-cutting gas as an alternative to acetylene and othergases and hydrogen burners to decarbonize industrial furnaces. We are also
meeting the demand for decarbonization testing through sales of ammonia(which, like hydrogen, is drawing attention) to thermal power plants for
denitration applications. As projects in areas such as gas and supply facilities
for decarbonization efforts proliferate, we aim to expand supply capacity andenhance engineering functions.
In the Materials Business, we are focusing on procurement and sales
expansion for environmental materials to meet customer needs. Examples
include plant-derived PET resins with low environmental impact and biomass
fuels for power generation. In addition, in 2025 we will begin sales of green
titanium raw materials from Nordic Mining ASA, in which we invested
last year. We will continue striving to achieve further business growth by
supplying the products and materials customers will need in the future.

14

Interview with the President

Q

Can you tell us about your efforts in the hydrogen business under PLAN27?

A

In addition to building a CO2-free hydrogen supply chain, we expect to grow the hydrogenbusiness, even during the transitional period, until the system for full-scale supply ofhydrogen from overseas has been established.

The Japanese government’s Basic Hydrogen Strategy sets a target of 12
million tons of hydrogen adoption for 2040, about six times current levels.
Plans call for total public and private investment of about ¥15 trillion forhydrogen over the coming 15 years. In addition, efforts toward full-scaleutilization of hydrogen as an energy source are set to greatly accelerate,
one of such being governmental research into systems for price differential
supplementation between existing fuels and hydrogen.
Companies are expected to accelerate their decarbonization efforts, and we
expect continuing growth in sales of hydrogen and related testing equipment.
For this reason, Iwatani will promote growth in the liquid hydrogen businessin response to growing demand for decarbonization and the development ofa CO2-free hydrogen supply chain. We will also move forward with efforts
across the entire supply chain from the perspectives of manufacture,transport, and use, in cooperation with domestic and international partners.
Hydrogen supply from overseas is expected to commence around 2030.
During the transition period, we expect demand to exceed current hydrogenQ

How do you plan to realize the Long-Term Vision of enhanced management foundations topromote sustained growth?

A

In addition to enhancing human resources and strengthening our technologies, we willaddress corporate governance.

To achieve the Group vision of becoming a Group that continues to help
realize “a more comfortable space on the Earth” by 2030,four component
processes will need executing: developing a CO2-free hydrogen supply chain;promoting a resource-circulating society; providing infrastructure and services
that support local communities; and enhancing management foundations
to promote sustained growth. This last element concerns human resources,
technology, governance, and other aspects that support the preceding threecomponent processes.

Human resources
Human resources are the source of sustained value creation. We will work
toward three numerical targets to become an organization in which each andevery employee can continue to grow and succeed.
In the area of diversity and inclusivity, we will build environments thatwelcome and accommodate diverse individual capabilities, perspectives,and ideas. This includes the goal of having women serve in at least of 10%
of managerial positions.
In the area of human resource development, we will use the new training
center to build a training structure to promote the autonomous growth of
our employees. At the same time, we will roughly double investments in
education per employee.
To make the workplace a more rewarding place to work, we will strive toaccommodate flexible workstyles that help employees balance work andpersonal life. As part of these efforts, we are seeking to have all eligible male
employees take childcare leave.
(See Non-financial Strategies – Human Resource Strategy, p. 31.)15

supply capacity. Thus, we will strive to enhance supply capacity by building
new liquid hydrogen production plants, producing hydrogen with lower CO2
emissions during the production process using waste plastics, and othermeans. To ensure the steady capture of growing demand, we will enhance
our transport functions using tanker trucks and other means.
We plan to invest a total of ¥178.0 billion in the hydrogen business, including
forward-looking investment in overseas hydrogen production, to help
establish a hydrogen energy-based society. We also expect stable growth
due to the government’s adoption of a price differential supplementation
system.
We will achieve growth in the hydrogen business through steady investments
to achieve the financial targets for FY2027 and efforts to commercialize a
CO2-free hydrogen supply chain.

of whose members are outside directors, we are enhancing transparency
in decision-making on matters such as appointment, dismissal, andcompensation of Members of the Board and the appointment of auditors.
On the matter of risk management, the Risk Management Committee and its
subcommittees, which are directly responsible for risk management, will be
subject to appropriate oversight by the Board on important matters.

We will achieve sustained growth in corporate value by enhancing ourmanagement foundations, by enabling each and every employee to workwith cheerfulness, fun, and liveliness, as well as by achieving the targets of
PLAN27 and the goals envisioned in our Long-Term Vision.

(See Governance, p. 47.)

Q

What are your thoughts on capital policies and returns to shareholders?

A

We prioritize allocation of funds to investments for growth, but we plan to steadily increase
dividends in accordance with growth in profits.

Technologies
Enhancing our strengths in technology is essential for growing our coregas and energy businesses and maintaining our strengths in the hydrogenbusiness. To this end, we will make progress on the following three themes:
First, we will demonstrate our technological capabilities and engineeringfunctions to grow our businesses. In particular, as we work to build a liquidhydrogen supply chain, we will step up joint efforts within the Group and pool
our cumulative experiences and expertise to support the hydrogen energy
society of the future based on both technology and safety.
Second, we will pass along and strengthen our technological capabilities.
Drawing on our newly established internal university organization to train
employee with strengths in technology and safety, we will enhance thestructures needed to make it possible for customers to use LPG, industrial
gas, and other products with peace of mind.
Third, we will draw on our intellectual property (IP) to increase our earning
power. We will strive to increase our earning capabilities by identifying priority
fields, including liquid hydrogen, hydrogen-refueling stations, and green LPG;
by enhancing our special areas of expertise; by building on our strengths tosecure competitive advantages; and by leveraging IP to strengthen alliances.
(See Non-financial Strategies – Technology Strategy, p. 33.)

GovernanceAt least one-third of the membership of the Board of Directors, which makes
key management decisions and provides oversight functions, consists ofoutside directors, including woman director. It strives to achieve transparent
decision-making and ever more effective management oversight. In addition,by establishing the Nomination and Compensation Committee, a majority

The basic idea of capital allocation under PLAN27 calls for raising funds
through interest-bearing debt in addition to the operating cash flows
generated over the period of the plan while prioritizing investments in

Trends in dividends and payout ratio
Target
20% or higher*

Payout ratio
16.3%

17.1%

Approx. ¥160

16.3%

Dividend per share
¥85

2021

¥95

¥95

Progressive
Dividend2022

sustained growth by building a CO2-free hydrogen supply chain and otherefforts.
We plan to make cumulative total investments of ¥470.0 billion over the
five-year timeframe of the plan. This includes investments of ¥420.0
billion in growth and ¥50.0 billion in maintenance and repairs. We plan
to raise funds using interest-bearing debt instead of equity financing.
Maintaining financial soundness is an important goal.
Our target for returns to shareholders in FY2027 is a minimum payout
ratio of 20% on net income, excluding the impact of LPG import pricefluctuations. We plan to ramp up dividends, and plan not to reducethem.
In the future, we plan to continue growing our businesses while targeting
solutions to social issues and sustained growth based on steady investment
in growth. We ask for the continuing understanding and support of ourshareholders and investors.

October 2023

2023

2027

(Forecast)(Target)* Based on net income (excluding impact of LPG import price fluctuation)

President
16

Long-Term Vision and Materiality

Key Issues for the Realization of the Long-Term Vision
Based on our Corporate Philosophy—Become a person needed by society, as those needed by society can prosper—the Iwatani Groupwill strive to achieve sustained growth and to deliver solutions to social issues, thereby completing the four component processes of ourLong-Term Vision for 2030.

Long-Term Vision
Our Vision for FY2030
Corporate group that continues
to contribute to the creationof a more comfortable spaceon the EarthDevelopment ofa CO2-free hydrogen
supply chain
Promotion ofa resource-circulating
society
Provision of infrastructureand services that support
local communities

Materiality

Related SDGs

Major Initiatives

Medium-Term Management Plan

● Promote commercialization of a CO2-free hydrogen supply chain

Create businesses that willlead to the realization ofa sustainable society

PLAN27● Develop and expand low-/zero-carbon solutions● Deliver stable supplies of resources and strengthen resource circulating
businesses(FY2023–FY2027)

Key period for ensuring the realization of the Long-Term Vision● Maintain resilient LPG supply chains and strengthen disaster prevention
measures

Provide infrastructure andservices that will enrichpeople’s lives● Embody Iwatani GateWay concept● Extend cartridge gas business overseas and develop new products● Develop and market technologies for the social implementation of hydrogen

Promote innovation withthe use of technologies
and expertise● Establish and implement green LPG technology

Hydrogen Strategies (See p. 21.)

Carbon-free Strategies (See p. 25.)

● Develop applications for and strengthen quality control and safety of industrial
gases● Establish systems to enhance employee engagement

Develop an environment andsystems in which diverse
human resources can thrive

Domestic Energy & Service Strategies(See p. 27.)

● Create workplace environments where diversity is accepted and valued● Recruit and develop people who respond to change and continue to create
value

Overseas Strategies(See p. 29.)

Enhancement of the managementfoundations to promotesustained growth● Fulfill the functions of the Board of Directors and secure its diversity● Promote dialogue with stakeholders● Strengthen risk management system

Develop more transparent
governance

Resources and Energy

Business Environment● Securing stable supplies of resources and energy ● Growing geopolitical risks

Materiality Identification Process

Determining
Analyzing the importance of issues in light of
the importance the corporate philosophy, the Iwatani Code ofof various
Corporate Ethics, and management strategies
issuesIdentifying
materiality

17

Identifying as each materiality judged to beimportant both to society and stakeholders
and to the Iwatani Group

Society● Responses to depopulation and aging society ● Diversification of consumer values ● Growing demand for social sustainability

Working toward the Sustainable Development Goals (SDGs)
Our stance on materiality
We choose as material items key aspects deemed highly importantalong the axes of both importance to the Iwatani Group (horizontalaxis) and importance to society/stakeholders (vertical axis).
High
Importance tosociety/stakeholders

Identifying
issuesIdentifying issues gleaned from theSustainable Development Goals (SDGs) anditems evaluated by environmental, social, andgovernance (ESG) rating agencies

Environment● Measures against climate change and natural disasters ● Transition to carbon-free society

Non-financial Strategies
Climate Change Response (See p. 53.)
Human Resource Strategy (See p. 31.)
Technology Strategy (See p. 33.)

Low

At Iwatani, we consider a sound understanding of and efforts toachieve the Sustainable Development Goals (SDGs) adopted by theUnited Nations in 2015 essential aspects of identifying materiality.
By validating the relationship between each materiality and the 17
Goals and 169 Targets of the SDGs and identifying which SDGs

relate to each materiality, the Iwatani Group will contribute towidespread innovations throughout society.

Key Issues (Materiality)
Variousissues○ Create businesses that will lead to the realization ofa sustainable society○ Provide infrastructure and services that will enrich people’s lives○ Promote innovation with the use of technologies and expertise○ Develop an environment and systems in which diverse humanresources can thrive○ Develop more transparent governanceHigh
Importance to the Iwatani Group18

Medium-Term Management Plan

Medium-Term Management Plan: PLAN27(FY2023–FY2027)

The five-year PLAN27 medium-term management plan addresses the timeframe starting with FY2023.

Capital Policies and Returns to Shareholders
Perspective on capital policies

Establishing a hydrogen energy-based society

Theme
Basic Policy

Business expansion to achieve “solutions to social issues” and “sustained growth”

Management Targets● Operating profit¥ 65.0 billion

We plan to invest a total of ¥470.0 billion over the course of five years by raising funds from operating cash flows and via interest-bearing debt. We will

● ROIC

10% or higher

Returns to shareholders● 5-year cumulative
investment

6% or higher¥ 470.0 billion● Returns to shareholders

20

Payout ratio*1 of%or higher
Progressive dividend*1 Based on net income ( excluding impact of LPG import price fluctuation) FY2027 target

Priority Measures
Hydrogen Strategies (See p.21.)

Carbon-free Strategies (See p. 25.)

● Expand liquid hydrogen business that captures growing carbonfree-related demand● Develop a CO2-free hydrogen supply chain

Domestic Energy & Service Strategies (See p. 27.)
● Expand market share and streamline
distribution by utilizing LPG business
infrastructure● Provide services that contribute tosolving social issues of local
communities● Expand business by promoting low-/zero-carbon solutions
business● Invest in the realization of a carbon-free society

Overseas Strategies (See p. 29.)
● Leverage strengths of individual
segments to expand business inrespective regions

core businesses. To maintain low capital costs, we will draw on interest-bearing debt in place of equity financing. While maintaining our external financial
rating of A to secure our fundraising capabilities, we have adopted a policy of using interest-bearing debt up to a maximum net DER of 0.7.

Capital Policies● ROE

prioritize investments to achieve sustained growth and realize a hydrogen energy-based society, founded on the premise of steady growth in earnings in our

Non-financial Strategies● Climate Change Response (See p. 53.)
● Human Resource Strategy (See p. 31.)
● Technology Strategy (See p. 33.)

PLAN27 is our first plan to clearly set forth as a target a minimum payout ratio of 20%*1 and to commit progressive dividend, with no steps backward. We
expect to pay dividends of approximately ¥160/share in FY2027, the final year of the plan, based on steady dividend increases that reflect growth in profits.

PLAN27 Basic approach to capital allocation● Secure financial soundness and use financial leveraging (net DER of 0.7 or less)● Proactive investment toward the realization of a hydrogen energy-based society and sustained growth● Progressive dividend with a target payout ratio of 20% or higher*1
Increase in
cash flow fromoperations
Capitalstructure
optimization
Promotion of
growth investment& Improvement of
profitability

Returns toshareholders

Illustration of cash allocation▶ Stable cash generation based on steady
growth of foundational businesses

Increase inoperating funds

Interestbearing debt

▶ Secure financial soundness and use
financial leverage¥32.0 billion¥151.0 billion

Secure financing capability by maintaining ‘A’ rating fromexternal agencies
Use interest-bearing debt with a cap of net DER 0.7▶ Proactive investment that will help expand profit

Depreciation

Investment¥192.0 billion¥470.0 billion

Investment in development of liquid hydrogen supply chain
Selection of investments that takes profitability into account▶ Increase dividends steadily in line withgrowth while securing investment capital(Progressive dividend targeting a payout ratio of 20% or
higher*1 in FY2027)

Net income¥192.0 billion
Dividends

Cash In¥33.0 billion
Cash Out

Progress on and Positioning of the Medium-Term Management Plan
Since FY2000, based on our seven medium-term management plans, we have made steady progress with business structural reforms, improvements inearnings capability, and our financial makeup. Following preceding periods in which we lay the foundations and shifted to an aggressive posture, PLAN27
covers a crucial period for achieving the goals of the Long-Term Vision.
Strategy andimplementation based on
the Long-Term Vision

Ordinary profit
Capital investment

Shift to offense

Medium-Term
Management
Plan“PLAN27”

Investment for growth

Groundwork

Enhancing earning potential
Improving financial foundations

PLAN12
19

PLAN15(FY2023–FY2027)

PLAN18PLAN20

PLAN23

PLAN27Long-Term
VisionBreakdown of Investment Funds
AmountGrowth investment

Content¥420.0 billion

Of which¥320.0 billion● Development of CO2-free hydrogen supply chains● Promotion of low-/zero-carbon business● Expansion of domestic energy business● Growth investments overseas

Of which

Foundational businesses¥100.0 billion● Expansion of domestic supply capacity of
air separation gases, etc.

Maintenance / Repairs¥50.0 billion● Repairs of LPG plants, etc.

Priority measures

20

Hydrogen Strategies

Establishing a Hydrogen Energy-Based Society

Promote innovation withthe use of technologies
and expertise

Create businesses thatwill lead to the realizationof a sustainable society

Related Key Issues (Materiality)

Iwatani’s roles in a hydrogen energy-based society

Basic Concept

Efforts directed at the use of hydrogen as an energy source are expected to expand. In 2023, Japan’s Basic Hydrogen Strategy, a national
strategy established by the Japanese government, was revised for the first time in six years. Iwatani will pursue efforts across the entire
supply chain from perspectives including the manufacture, transport, and use of hydrogen.

Building a global supply chain
Major obstacles to achieving a hydrogen energy-based society include generating demand and procuring and securing a stablesupply of large volumes of inexpensive CO2-free hydrogen. On the supply side, we have working to reduce costs and achievea stable supply through large-scale procurements from abroad and by enhancing our domestic supply infrastructure. On the
demand side, we are working with multiple partners to generate new demand for hydrogen. By taking full advantage of thehandling technologies developed over many years and a liquid hydrogen supply network tailored to address large-scale transportand storage, we are aiming to deliver hydrogen to customers while playing an active role in hydrogen manufacturing and other
upstream processes. In this way, we are working to establish an integrated global supply chain from upstream to downstream.

Manabu Tsuyoshi Member of the Board, Senior Managing Officer, General Manager, Hydrogen Business Division

Expanding the Liquid Hydrogen Business to Capture Growing Demand Generated by Decarbonization Efforts

Use
Transport
Fuel cell (FC)vehiclesTransporting liquidhydrogen by trailer

Manufacture Transport

Manufacture

Overseas hydrogenproductionUse

We are making progress on developing the nationwide supply
infrastructure needed to support the use of hydrogen, focusing
in particular on the business of hydrogen-refueling stations forheavy-duty fuel cell (FC) vehicles, including FC buses and trucks.
In February 2023, we established Iwatani Cosmo hydrogen station
LLC, a joint venture with Cosmo Oil Marketing Co., Ltd., a company
currently making progress on developing Japan’s first hydrogenrefueling station to be located inside truck terminals. We will also
promote the adoption of hydrogen-refueling stations by promoting
self-service stations and cutting costs.

Supplying liquid hydrogen andequipment for demonstration

Use

Companies involved in the RE100 project to use 100% renewables
for energy consumed in business activities are undertaking everbroadening hydrogen energy demonstrations. At Panasonic
Corporation’s Kusatsu facility, all power used by the production
sections at the fuel cell plant comes from solar cells and purehydrogen fuel cells made by Panasonic itself. We supply the liquidhydrogen used in this demonstration. We plan to boost suppliesof liquid hydrogen for use in demonstration projects like this one.

Commercial FC trucks

Domestic production
plantsHydrogen importtankers

Iwatani entered the hydrogen business in 1941. Since then, we have worked to help establish a society capable of using hydrogen as
an energy source. We have built a nationwide network that integrates all processes, from production to transport, storage, supply, andsafety, enabling us to smoothly meet user demand. Amid growing interest in hydrogen for decarbonization applications, we will meet new
demand by supplying hydrogen in line with customer needs and developing and offering applications such as mixed-hydrogen burners.

Developing hydrogen-refueling stations

Transport

Pipeline supplies

Artist’s depiction of completed Keihin Truck
Terminal Heiwajima Service Station

Supplying liquid hydrogen

Decarbonization
demonstration

Hydrogen-refuelingstations andrelated equipment

FC busesHydrogen receiving
terminals
Hydrogen power
generation demonstration

Expanding domestic hydrogenproduction capacity

Manufacture

To respond to growing domestic hydrogen demand, including
demand for decarbonization applications, we must grow domestichydrogen production capacity during the transition period up to thetime full-scale imports from overseas can begin. We are studying
new production facilities in addition to those in Osaka, Yamaguchi,
and Chiba.

Hydrogen production through waste
plastic gasification

Manufacture

We are currently examining the feasibility of producing hydrogen
via the gasification of waste plastic for use in local markets. In
May 2023, in partnerships with Toyota Tsusho Corporation, JGC
Holdings Corporation, and 26 local governments, universities, andother organizations, we launched the Study Group on Hydrogen
Production through Waste Plastic Chemical Recycling. Using waste
plastic from industrial sites, households, and other sources in urban
areas offers a rapid path to achieving a stable low-cost hydrogen
supply. This will help expand the use of hydrogen, move us closer
to becoming carbon-free, and promote the circulation of resources
across a wide range of fields.

© Panasonic Corporation

Hydrogen-refueling station for FC buses

Industrial hydrogen
supplies

Factories,etc.

H2 KIBOU FIELD (Kusatsu facility, Panasonic Corporation)

Households

Collecting waste plastics
from waste-generating sites

Hydrogen use

Hydrogen supply

Hydrogenproduction
through
gasification

Liquefaction/pipelines

Growing power-generation and mobility applications

Use

To decarbonize thermal power generation facilities powered by natural gas, we are developing and testing technologies for the mixed burningof natural gas with hydrogen and for the burning of hydrogen alone. Having set the goal of full-scale implementation of these technologies,
we are making progress on initiatives to establish the supply structures and cost levels needed for real-world power generation. In addition,
we plan to expand mobility applications beyond motor vehicles, to include ships, aircraft, railroads, and special-purpose vehicles.

21© Kawasaki Heavy Industries, Ltd.

© Mitsubishi Heavy Industries, Ltd.

Photo of the Kobe Smart Community Hydrogen Power Generation Project (Port Island), a
NEDO subsidized project (undertaken by Obayashi Corporation and Kawasaki Heavy Industries, Ltd.)

Hydrogen gas turbine

Hydro Edge liquid hydrogen production plant

Supply chain model illustration

Further enhancements of liquid hydrogen handling technologies
The Iwatani Group offers technologies that enable the efficienttransport and storage of hydrogen through means including
volume reduction, achieved by compression and liquefaction, andhydrogen procurement and supply in line with flow rates, pressures,and other parameters set by customers. In addition, we haveproduction functions and technologies for liquid hydrogen-related
facilities within the Group and produce and operate equipment,
including ultra-low-temperature liquefied gas storage tanks andtanker trucks. Issues posed by the growing demand for hydrogenenergy include the need to expand the scale of related facilities, toincrease our capacity to supply gas and equipment, to respond tomaintenance demands, and to enhance our transport capacity. We
plan to build further on the handling technologies accumulated andrefined over the years.

Transport

A tanker truck and storage tank, both essential to supplying liquid hydrogen

22Hydrogen Strategies

Building a CO2-free Supply Chain

Advancing Joint Efforts Inside and Outside the Iwatani GroupTo establish a hydrogen energy-based society, we must generate demand and make possible the large-scale procurement and stable supply
of inexpensive CO2-free hydrogen. On the supply side, in addition to procuring large volumes of hydrogen from overseas, we will work to cut
costs and enable stable supply by enhancing the domestic supply infrastructure. By fully capitalizing on the in-house handling technologies
accrued to date and our liquid hydrogen supply network, which is suited to large-scale transportation and storage, we aim both to deliverhydrogen to customers and play an active role in upstream areas such as hydrogen production, in order to create integrated supply chain
covering from the upstream to the downstream.

Enhancing manufacturing and engineering functions

Liquefied Hydrogen Supply Chain Commercialization Demonstration Project(reducing costs through large-scale transport)

Manufacture

To move closer to the full-fledged implementation of a CO2-free hydrogen supply chain, we applied
subsidies from the Green Innovation Fund to establish the world’s first hydrogen liquefaction andtransport technologies on a demonstrated scale of tens of thousands of tons per year. We tested an
integrated international liquid hydrogen supply chain from hydrogen production through liquefaction,
shipping, sea transport, and unloading. Given the need to reduce costs through expanded facility
scale toward the goal of commercialization in FY2030 and beyond, plans call for the tankers for use
in this project to be at least 100 times larger than that used for the HySTRA* feasibility testing. We areresponsible for the production of liquid hydrogen overseas and the evaluation of terminals in Japan andabroad as well as coordination with the demand side drawing on our customer base.

Transport● Project period
FY2021–2030 (ten years)
● Implementation structureJapan Suiso Energy, Ltd.
(core company),
Iwatani Corporation,
ENEOS Corporation*C O2-free Hydrogen Energy Supply-chain Technology Research Association
The organization implementing the Demonstration Project
Establishment of Mass Hydrogen Marine Transportation Supply Chain Derived from Unused Brown Coal by NEDO   
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Made up of over 152* leading companies from the energy, transport,
and manufacturing sectors around the world, the Hydrogen Council
seeks to achieve its shared goals by formulating recommendations
for hydrogen use and effective action plans in joint efforts
with policymakers, hydrogen-using businesses, internationalorganizations, and citizens’ groups in various countries. As amember of the Hydrogen Council’s steering committee, Iwataniis active in efforts to expand use of hydrogen in Japan throughsharing a global hydrogen vision.

Japan Hydrogen Association (JH2A)

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  
  





 

・    
 



Hydrogen Council*As of June 2023





Dispensers provided by Tokico System Solutions, Ltd.

Participation in Hydrogen-related Associations

Operating a Liquefied Hydrogen Marine Carrierat the Expo 2025 Osaka, Kansai, Japan


 
 

 

 

We are striving to enhance the structures needed to achieve a stable supply and increase
profitability by strengthening our manufacturing and engineering functions. In April
2022, we made Tokico System Solutions, Ltd. a wholly-owned subsidiary. Tokico System
Solutions, Ltd. holds technologies for measuring and controlling various gases and othermaterials and offers strengths in the development and construction of dispensers usedat hydrogen-refueling stations, as well as robust business foundations in various otherareas, including the manufacture and sale of measurement instruments. We plan tofurther grow the hydrogen business by generating synergies through joint efforts with its
engineering functions. We are also partnering with Cosmo Energy Holdings to apply thetechnologies and knowledge built up by both partner companies in engineering and otherfields related to hydrogen-refueling stations and hydrogen production.

We plan to operate Japan’s first liquefied hydrogen marine carrierat the Expo 2025 Osaka, Kansai, Japan (hereinafter referred as“the Expo”). Unlike conventional internal combustion engine
vessels, this vessel will achieve high environmental performanceby generating no CO2 or pollutant emissions during operation, andwill also achieve outstanding comfort free of odors, noise, andvibration. This liquefied hydrogen marine carrier is planned as a
“floating pavilion” that will transform the trip to and from the Expo
into a special experience for attendees from around the world, while
also communicating to the world the appeal of hydrogen energy.

       Use    

Established in December 2020 to develop a hydrogen-basedsociety earlier through various practical projects, the Japan
Hydrogen Association (JH2A) started operation as a generalincorporated association in April 2022. With a membership of 379
companies and organizations as of May 2023, including not justenergy suppliers, automakers, and manufacturers of various typesof related equipment but banks, securities firms, and insurers, theJH2A is a truly nationwide organization. As a corepresentative of
the JH2A, we are moving ahead with various energetic initiatives
in partnership with other members.







 
­ 
      
       

Illustration of a liquefied hydrogen marine carrier planned for commercial operation in the
Expo

Source: Japan Suiso Energy, Ltd.

Efforts to procure large volumes of green hydrogen

Manufacture 

Since 2021, we have undertaken feasibility studies on large-scale
production of green hydrogen and exporting it to Japan, in theAustralian state of Queensland. In May 2023, to move forward tostudies in preparation for a final investment decision, we began
front-end engineering design (FEED) together with five firms, one ofwhich is Stanwell, a power company owned by the state. Intended
to achieve stable and low-cost production and supply of greenhydrogen over the long term, this project is expected to have a
production capacity of at least 800 t/day of hydrogen in 2031 andbeyond.

PLAN27Development of supply chains in anticipation of large-scale liquid hydrogen supply

FY2030FY2050Hydrogen energy-based society
Achieve significant cost reductions

5-year Cumulative Investment

FY2023

Now

Promoting development in preparation for building hydrogen supply systems

Transport

178.0 billion¥   

Artist’s depiction of hydrogen production facility in Aldoga, Australia

FY2022

Use

To build innovative hydrogen supply systems to meet large-scale demand such as that for power generation, we are proceeding with active
development together with our business partners. Joint development projects underway include those on liquid hydrogen pressurizing
pumps with Mitsubishi Heavy Industries, Ltd., large-scale liquid hydrogen vaporizers with Sumitomo Precision Products Co., Ltd., and largescale liquid hydrogen storage tanks with Toyo Kanetsu K.K. We will continue moving forward on development of the machinery, equipment,
and technologies needed to build large-scale hydrogen supply chains through business partnerships.
23

FY2027

14,000 t/year
45.0 billion

Sales
volumeNetsales ¥¥

115.0 billion● Produce liquid hydrogen fromwaste plastics● Build the 4th liquid hydrogenproduction plant● Build plant in the United States

FY202730,000t/year¥ ¥

30.0 billion● CO2-free hydrogen supply
chain overseas

FY2030Net sales

Sales volume

92.0

billion¥

33.0 billion● Invest in domestic HRS(expansion, related facilities)● Build more HRS for FC trucks in
the United States

300,000 t/year
200.0 billion

Sales
volumeNetsales ¥

Import price ¥30/Nm3
FY2030 and beyond Begin commercial
operation of CO2-free hydrogen supply
chain overseas

Selling price at hydrogen-refuelingstation (HRS) ¥100/Nm3

24

Carbon-free Strategies

Toward a Carbon-free Society
Ammonia facilities

Basic Policy

Business expansion through helping customers decarbonize their business activities across theentire Iwatani GroupIn line with our corporate philosophy, “Become a person needed by society, as those needed by society can prosper,” our legacy has to datebeen to find solutions to social issues. Our mission henceforth is to establish a carbon-free society by leveraging the business infrastructure
and technological strengths we have amassed to date to deliver low-/zero-carbon solutions to our customers—from industries to individual
consumers—to help reduce CO2 emissions throughout society while also growing our businesses.

Production
processes● Sales of denitration ammonia supply
equipment to power companies in Japan● Capable of design, construction, safety
management, and other tasks forammonia supply equipment

Applications

Supply equipment forammonia power generation

Hydrocut® eco-friendly
mixed fusing gas

Production
processes● Fusing gas developed and produced by
Iwatani by mixing ethylene with hydrogenfor fusing and brazing applications● Ability to cut CO2 emissions by 84% (comparedto acetylene based on LCA calculations)Applications

Promote innovation withthe use of technologies
and expertise

Create businesses thatwill lead to the realizationof a sustainable society

Related Key Issues (Materiality)

Steel, shipbuilding,construction, automotive, etc.

PET resins with low
environmental impact

Rawmaterials● Overseas procurement of plant-based
PET resins with low environmental impact

Applications

Beverage bottles, films,
etc.

Low-/zero-carbon solutions based on our business foundations and technological capabilities

CO2 visualizationand valuation

EnergyProduction
processes■ · · · Integrated Energy

Utility■ · · · Industrial Gases & Machinery

Contribute to solving social issues

Conceptual imageof contributions

EnergyEnergyVisualization of supply
chain CO 2 emissions

CO2
visualizationand valuationRawmaterials■ Decarbonization of power
generation through supplyof biomass fuels
Rawmaterials■ Conversion to LNG/LPG■ Carbon offset gas

Ammonia supply equipment

Utility

Green titanium raw materials

EnergyFuel■ Energy savings in industrial furnaces■ Ammonia plant■ Hydrocut ®

■ More eco-friendly raw materials(biomass PET / green titanium)

Raw materials

Production processRawmaterials● High-purity titanium ore exported frommining concession in Norway● Zero CO2 emissions during extraction
made possible by renewable energy■ High-efficiency boiler

Production
processes

Power
generation

Hydrocut®

■ · · · Materials

Applications■ Green LPG■ Fuel cells/storage
batteries■ Solar power
generation

Titanium metal, titaniumoxide pigments, etc.

Bottles made from biomass PET resin

Green LPG

Energy● Establishing and rapidly testing new technologies to produce LPG by combining hydrogenwith CO2 (propanation, butanation)● Establishing technologies to produce LPG from dimethyl ether (DME), which has properties
similar to LPG
Applications

Supply to LPG customers (general consumers, industrial and commercial
customers)

Roadmap toward green LPG productionHome

Source: Prepared based on Japan LP Gas Association data

Project 1
Feasibility studies toward the developmentof new technologies for direct synthesisof LPG from hydrogen and CO 2

Launch of practical applications,building commercial plants

Feasibility studies on
expanding scales forpractical use in society

Project 2
R&D on indirect synthesis technologies to
produce LPG through a catalytic reaction from
DME produced using CO 2 as a raw material

Specific Decarbonization Initiatives

Fuel conversion● Helping to reduce CO2 emissions throughconversion from heavy oil and kerosene
to LPG and LNG● Enabling proposal of CO2-reduction
solutions in combination with boilers
and other equipment

EnergyUtilityCogeneration system

Supporting CO2 emissions reductions by
Applications
manufacturing customers
Gas heat pump (GHP) air
conditioning

Stage 1: 2021–2025

A Nordic Mining mine

SMEs

Value of CO2 reductions

Application

CO2 emissions reductions
achieved through fueltransition to LPG

Certification

Effective use ofenvironmental
value

CO2 reduction method
proposal, feedback

Fuel for biomass power
Applications
generation

Carbon offsets
LPG, LNG

CO2 emissions calculation andvisualization service
Energy use(data input)

Palm kernel shells (PKS) as
biomass fuelPLAN27CO2 emissions
visualization, reduction
proposals

Decarbonizationrelated net sales*¥82.0 billion(e.g., reports of monitored data)

Stage 3: 2030–2050

FY2027
FY2022J-CreditCertification
Committee

Stage 2: 2025–2030J-Credit Project

Energy● Importing palm kernel shells (PKS) andwood pellets from Southeast Asia

25

CO2visualizationand valuation● Valuation of CO2 emissions reductions achieved by customers,
as J-Credits● Providing services to visualize CO2 emissions generated by acompany’s activities and the overall supply chain in accordancewith international standards under the Greenhouse Gas Protocol

Steam boilers, industrial
Applications
furnaces, etc.

Biomass fuelCombining J-Credit scheme and CO2
emissions calculation/visualization services

Target plant scale: 100 kg/day• First half of the 2030s:
Realizing adoption of 10–100 t/day in society• By 2050:
Replacing total demand for LPG (approx.
8 million t) with green LPG

Growing demand
for transition
to lower CO2
emissions●5-year Cumulative
Investment*

15.0 billion¥

Integrated Energy

Realization ofa carbon-freesociety●

Decarbonizationrelated net sales*

170.0 billion¥

fuel conversion, green LPG, etc.

Industrial Gases & Machinery
Ammonia plant, Hydrocut®, etc.

Materials
Major firms

Biomass/recycle PET resins, secondary battery materials, etc.
*Net sales and investment amounts related to decarbonization do not include those related to hydrogen.
Net sales and investment amounts related to hydrogen are stated in Hydrogen Strategies (p. 21).

26

Domestic Energy & Service Strategies

Realizing Sustained Growth by Enhancing Earnings
Capabilities and Introducing New Services

Provide infrastructureand services that will
enrich people’s lives

Related Key Issues (Materiality)

Streamlining delivery

Basic Policy

Growing retail market share and enhancing earnings capabilities by promoting M&A activities
using our nationwide network
The Iwatani Group began selling LPG nationwide in 1953, as Marui Propane. To maintain stable supplies of LPG lifeline services, we havedeveloped an integrated supply structure, from import through customer delivery, and boast the top nationwide market share in Japan.
Concentration of LPG businesses is expected to accelerate as the number of consumer households decreases. Under such conditions,
we will aim for further business growth by promoting efforts to strengthen our retail business, centered on merger and acquisition (M&A)
activities conducted through now, and streamlining of our LPG business as a whole, including delivery.
■Iwatani’s LPG sales■Historical number of direct sales customers

The Iwatani Group operates a logistics structure that delivers gas to households in every corner of Japan. We will cut business costs to growearnings while implementing the measures necessary to maintain a stable supply. We will also expand delivery facilities through mergers
and consolidations as well as by updating delivery facilities to be more disaster-resistant. In this way, we will streamline delivery structuresand draw on remote meter-reading systems and delivery route planning systems to achieve more efficient delivery. Partnerships with othercompanies (delivery subcontracting) in specific regions are also under consideration, to build comprehensive and efficient delivery structuresand establish strong stable delivery networks on which customers can rely.
■Iwatani initiatives■Initiatives with other companies

Develop an efficient delivery structure through optimal placement ofsites in each area

Improve delivery efficiency through alliances (delivery sub-contracting) withother companies

Upsize(unit: 10K households)

Total optimization

110

No.1/

No.1/

16,381 companies

1,100 companies

4.6%

13.8%

Market share

99

72

74

75

76

80

78

81

83

86

88

90

1.10 million

1999

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

Drawing on our nationwide network, the Iwatani Group will set its sights on continuing growth by expanding its market share in the retailsector, primarily through its M&A activities. The LPG market is projected to shrink by about 5% in the years through FY2027; nevertheless,the Iwatani Group will seek to achieve growth of 18% in direct sales customers, targeting a figure of 1.30 million households. To grow theretail business, we will leverage our nationwide network of 110 supply facilities and the Iwatani Group’s strengths in delivery, safety, andsales networks to grow the wholesale customer base and to build relationships to contribute to business succession and M&A activities.

■Create virtuous cycle for enhancing customer base

Evolving into an energy & living total service provider essential to customers and communities
Drawing on our supply infrastructures for delivering LPG nationwide,
we are moving forward with efforts to advance solutions to social
issues within each region. In addition to supplying energy such as
solar PV and green LPG to contribute to decarbonization, we use
the Iwatani GateWay IoT platform to provide services supporting
everyday life, including community safety and shopping services,to help address shrinking populations, aging, and other community
issues. By providing comprehensive solutions to community issues,
including the need to become carbon-free, we plan to evolve
into an energy & living total service provider while building theinfrastructures to contribute still further to society as an essential
member of our communities, essential to our customers.

Expand retailbusiness

Use of nationwide network

Households
using LPG

M&As

Iwatani direct sales
households
Iwatani wholesale
households

FY202227

FY2027

Group supply facilities:
110**As of March 31, 2023

Expanded use ofnext-generation energies
Promotion of low-/zero-carbon

Inquiries aboutbusiness succession
from small suppliers

Sales network

City gas

Kerosene

LPG

Electricity

Living services business

Safetyinspections

Delivery
network

Iwatani GateWay
platform

Daily essentials

Remodeling

Shopping services

BCP measures

Environmental
valuation

Community
safetyDigital customer contact points
Call center

Storagebatteries

Solar cells

E-commerce
sites

Alarms with
communication
function

Ene-Farm

Business foundations that combine the physical and the digital through the use of the Iwatani GateWay■ Expansion of direct sales customer base primarily through M&As, and improvement ofdelivery efficiency■ Use of LPG business foundations to provide products essential to daily life and new services■ Development of next generation energies to contribute to carbon neutrality

PLAN27
FY2027

Net sales ¥330.0 billion
PLAN27

Expansion of energy business
operations Strengthening ofliving services business

Iwatani growth rate + 18%
Market growth rate −5%

Businesstie-ups inrespective
regions

Increase
wholesalecustomers

Expansion of business / service fields

M&As

Physical customer contact points

Energy business

Targets of the Domestic Energy & Service Strategies
Sales per customer

Direct sales customers
1.30 million

Increasein market
share

Improve delivery efficiency through developmentof high-density delivery structure

Creating New Services to Support Communities

Growing retail market share

1.10 million

Alliance

Increase delivery
sub-contracting

Streamlining ofdelivery

Use of remote automatic meter reading andtruck dispatch planning systems

LPG Business Measures

Households

Reorganization

Other
companies

3.30 million(As of March 31, 2023)

Expansion

Dual-strategy
promotion

Maintain, expand, and reorganize own facilities

35

Households
using MaruiGas

Other
companies

Centralization

Strengthening of services that help solve
communities’ social issues

Industry ranking

Wholesale

Shift to low-carbon energy

Retail103
100 101

PLAN23
FY2022

Net sales ¥280.0 billion■ Expansion of direct sales customer base primarily
through M&As
■ Expansion of electricity/city gas safety business

5-year Cumulative
Investment¥

33.0 billion

Increase number of direct sales customers through M&As

Expansion of customer base using sales and delivery networks / Capture new customer contact points using digital technologies
Customer base28

Overseas Strategies

The Iwatani Group: Expanding Internationally

Create businesses thatwill lead to the realizationof a sustainable society

Related Key Issues (Materiality)

Basic Policy

Provide infrastructureand services that will
enrich people’s lives

Key Points of International Business Development  

Response to changes in world affairs

Priority areas for expanding business foundation

To date, the Iwatani Group has grown its businesses by providing products and services to domestic customers. Based on strengths amassed over the years,
including the expertise of the Integrated Energy Business in fuel conversion and industry decarbonization, our Industrial Gases & Machinery Business boasts
industrial gas production and sales networks and the capacity to promote machinery and equipment solutions, while our Materials Business can procure
environmental products and implement the measures needed to maintain a stable supply of mineral resources. Drawing on our strengths and domestic businessfoundations, we will continue identifying business opportunities and pursuing market development on the international stage.

■ Further strengthen stable supply system /Diversification of procurement sources■ Identify growth potential and changes in industrial
structure in each region■ China: Delve deeper into mega market■ Southeast Asia: Expand production and supply facilities for growing markets withincreasing populations■ Other regions: Venture into American market (world’s largest industrial gases market)

ChinaSoutheast Asia

North America

EuropeBusiness
environment

Mega production/consumption market

Business
environment

Fast-growing market

Business
environment

World’s largest industrial gases market

Business
environment

Eco-conscious market

Strategy

Sales expansion of key products

Strategy

Business expansion by increasing production and supply facilities

Strategy

Expand business, including through M&As

Strategy

Creation of resource circulation-based business● Expand sales channels for portable gas cooking stoves/cassette gas
canisters● Expand production plants for air separation gases and hydrogen● Expand supply facilities for specialty gases, such as helium● Strengthen sales of industrial gases in growth fields● Expand raw materials business in growth fields● Expand sales and production facilities for portable gas cooking
stoves/cassette gas canisters● Develop new business based on supply and safety expertise in LPG and
LNG● Expand supply facilities for specialty gases, such as new refrigerants
and helium● Expand manufacturing plant for air separation gases● Expand manufacturing functions of metal processing business● Expand procurement sources for biomass fuel● Create resources and metal recycling/processing businesses● Supply parts and raw materials to environment-related industries● Expand sales of cartridge gas products for outdoor market● Consider entering LPG market through dealership acquisitions, etc.
● Expand HRS business● Strengthen production and sales of air separation gases● Expand supply facilities for helium and other specialty gases

Australia
Business
environment

Rich in energy and resources

Strategy

Explore procurement source● Expand investment in development of liquid hydrogen supply chain● Develop new mining lot for mineral sands● Use carbon credits from afforestation activities

Targets of the Overseas Strategies
FY2022Other regions

5-year Cumulative Investment

21%

East Asia*1

Overseas sales¥

AfricaBusiness
environment

Rich in resources

Strategy

Explore new procurement sources for resources● Expand procurement sources for mineral resources, such as rare earths
and rare metals
29

24%● Industrial Gases & Machinery● Materials

55%

Other regions*3

East Asia*1

94.0 billion¥

Overseas sales

120.0 billion

Southeast Asia*2● Integrated Energy

FY2027

PLAN27*3¥220.0 billion

Overseas sales

nearlydoubledSoutheast Asia*2*1 China, South Korea, Taiwan*2 Singapore, Thailand, Malaysia, etc.
*3 The United States, Australia, etc.

30Non-financial Strategies – Human Resource Strategy

Building an Organization in Which Diverse
Individuals Can Thrive While Growing on Their Own

Related Key Issues (Materiality)

Develop an environmentand systems in which
diverse humanresources can thrive

Develop moretransparent
governance

Basic Policy

HR Development

Rewarding Workplaces (fulfilling working environments)

Realizing a virtuous circle of organizational growth through recruitment, development, andactive participation of our people

Support for employees’ autonomous career development, whichis essential to ensuring that our human resources can continue tomeet society’s needs as called for in our corporate philosophy, is
one of our priorities. We plan to use the new training center underconstruction in Kobe to implement a reformed training structure toencourage autonomous career development.

To build workplaces in which diverse individuals can thrive, it isessential to secure psychological safety and realize flexible work
styles to balance work with life events. To support this balance
between work and life events, we are enhancing systems related
to flexible work styles and childcare and long-term care, as well as
fostering an appropriate organizational culture.

The source of sustained value creation is human resources. Our goal is to be an organization in which each and every employee can thrive and grow.
To do so, we will hire diverse human resources, including international human resources, those with IT skills, and those with external experience,
regardless of gender, and build an environment that accepts and accommodates their values and allows them to demonstrate their individual
abilities to the fullest. We support the autonomous career development of our employees to maximize their abilities, while strengthen employee
satisfaction and motivation by realizing flexible work styles. Through this cycle of overall organizational growth based on securing, training, andutilizing human resources, we will continue to deliver value to the world by growing our businesses and putting our strategies into practice.

Diversity&
Inclusion

Diverse ideas

Corporate growth

HydrogenCarbon-free

Adaptability
to change

HR development

Domestic Energy& Services

Ability toutilize
individual
strengths

Rewarding
workplaces

Overseas

Elective/selective training

Other experience

Programs related toflexible work styles

Details

Become aMember Training

Remote working program

Employees may work remotely from home orelsewhere under certain conditions.

Lead the Self Training

Program for taking
leave in hourly units

Employees can take annual paid leave, childnursing-care leave, and short-term
nursing-care leave flexibly in hourly units.

Other leave programs

Refreshment leave (awarded as special leaveto those who have been employed for a certain
number of years), summer vacation (awarded
separately from annual paid leave),bereavement leave, transfer leave, etc.

Programs related towork/life balance

Details

Shortened working hours

Enables employees with children through thethird grade of elementary school to shorten
their designated working hours

Childcare/babysitting
subsidies

Subsidies for childcare by partner babysitting
firms and childcare facilities

Partner maternity leave

Up to three days of special leave for spousal
childbirth

Early returnsupport allowance

Pays the actual cost of childcare services, up
to 50,000 yen/month, when an employee
returns from childcare leave before the childreaches the age of 12 months.

Younger
employees

Sustained value creation

Individual growth

Mandatory training

External training
Mid-level
employees

Various businessskills andmanagement skills
Examples:• Critical thinking• Accounting• Organizational/HRmanagement, etc.

Assessment Training 1

Assessment Training 2

Manageriallevel• Internal knowledgesharing• Secondment toGroup companies• Secondment toother companies• Study abroad

Lead the Team Training

External training• Business
management training• Global leadershiptraining

Lead the Society
Training• Internal knowledgesharing• Secondment toGroup companies

Concepts of the training system to encourage autonomous career development●Annual training costs per employee
150

Approx. 2×(¥ thousand)

100
50
0

FY2022

FY2027 (target)●Examples of efforts to foster a culture of sound work/life balance•Publishing childcare and long-term care handbooks•Posting reports on childcare leave by fathers and reports onbalancing work with childcare on the internal bulletin board•Participation in joint events with other companies (onsupporting subordinates with children and women’s careers)

Diversity and Inclusion
Diversity management that draws out the full capabilities of diverse employees will enable Iwatani to continue meeting societal needs.
Accordingly, we are pursuing various initiatives to promote diversity and inclusion, under the slogan “Toward an organization of acceptanceand mutual respect of diverse values.”

Major initiatives
Organizational
culturePromoting womenin the workplace

Employment andpromotion of people
with disabilities
31

To be an organization capable of continuing to create new value, we are promoting efforts in areas such as workplacepromotion of women and people with disabilities, participation by men in raising children, and more diverse work
styles. We are increasing employee understanding of diversity and inclusion through internal training on the subject.
Through proactive hiring of women, support for balancing work and life events, and broader choices of work styles,
we are enhancing efforts to promote the role of women in the workplace. As of March 31, 2023, women made up
6.0% of managers, and we are implementing a wide range of initiatives including measures targeting younger andmidlevel staff to increase the percentage of women in management. In addition, under our Plan of Action for a General
Employer we are making progress on building workplaces in which women can demonstrate their individuality andcapabilities to the fullest.
We are proactively hiring employees with disabilities through both new graduate and midcareer hiring programs. As of
March 2023, those with disabilities accounted for 2.78% of employees—a level higher than the percentage requiredby law. We are also making progress on improving working environments and providing various kinds of support toenable employees with disabilities to demonstrate their capabilities to the maximum.

Targets of the Non-financial Strategies (Human Resource Strategy)
Items

Indicators

Targets

FY2022 results

Diversity & Inclusion

Ratio of female managers

10% or higher

6.0%

HR Development

Annual training costs per employee¥150 thousand¥86 thousand

Rewarding Workplaces

Percentage of childcare leave taken by male employees

100%

30.6%

External Evaluations
Platinum Kurumin

We have earned Platinum Kurumin certification for our efforts to
support balancing work and family life.

Eruboshi

We have earned Two-Star Eruboshi certification for our efforts topromote women in the workplace.

32

Non-financial Strategies – Technology Strategy

Enhance Technological and Safety Capabilities That
Leverage Iwatani’s Strengths

Develop an environmentand systems in which
diverse humanresources can thrive

Develop moretransparent
governance

Basic Policy

Iwatani R&D Center: Pursuing Its Mission to Further Develop Our Technologies

Enhancing the technological and safety capabilities needed to grow the Gas & Energy businesses

The Iwatani R&D Center aims to be an R&D site that is open to the public. Building on Iwatani’s strengths as both a trading company
and a manufacturer, the R&D Center carries out R&D across a wide range of areas, from fundamental research through development ofapplications and products, by fusing at a high level its information capabilities, which enable us to identify society’s needs, and the unique
technological capabilities, based on gas technology, that we have built up over the years. Leveraging the unique R&D structure built byhandling a wide range of gases and our unique capacity to propose innovative systems based on years of experience, we create new value
alongside our customers and partner companies, as well as universities, public institutions, and government agencies.

Key to growing our core Gas & Energy businesses and leveraging the strengths in hydrogen business is enhancing our technologicaland safety capabilities. Toward this end, we have identified technology strategies among our non-financial strategies. We are striving todemonstrate technical capabilities and engineering functions as our expertise; to enhance and pass down technical capabilities; and to
improve our earnings abilities by leveraging intellectual property. By demonstrating our technological and safety capabilities, we will fulfill
our everyday business operations more safely and efficiently and propose solutions well-suited to customer needs, thereby promoting thecreation of new businesses and new value.

3 themes ofTechnology Strategy

Specialization
Advance joint efforts within the Iwatani Group forthe development of a liquid hydrogen supply chain
Acquire expertise to makequick response to market needs

Technological capabilities

Strengthen alliances by leveraging
the Company’s own intellectual property

Internal University of Technology and Safety

The Technology & Engineering Division: The Core of Group Engineering Functions

In October 2023, to build on the knowledge and capabilities intechnology and safety fundamental to our gas business, we will
open an internal university. This facility will train human resources
capable of providing powerful support for Iwatani’s strengths insafety and technology through programs that allow any employee,regardless of job description or age, to master the advanced skills
needed in workplaces across business fields, including LPG,
industrial gases, and hydrogen.

Established in April 2015 as a cross-functional organization serving
the entire Iwatani Group, the Technology & Engineering Division
is involved in tasks across the entire sphere of engineering: frombusiness research through project management, design, operations,safety, and quality assurance. The division also cooperates withsales sections to address customer carbon neutrality topics andneeds through engineering.

■Training system■Sample projects

Practice
Group training
at the R&D centersand other sites

LecturesIn-person andvideo lectureformats

Electivecourses
Choice of subjects
with reference tomodel courses
for student
affiliated sections○ Planning and installing hydrogen supply facilities for major customers aiming for
decarbonization○ Hydrogen supply/filling equipment for the liquefied hydrogen marine carrier at the
Expo 2025 Osaka, Kansai, Japan○ Development and study of filling equipment for liquefied hydrogen powered vehicles○ Ammonia-supply equipment to reduce NOx emissions from thermal power stations○ Overseas filling and shipping equipment for special gases and other materials

Use on the job

Requiredcourses

Earning in-house qualifications

Pass down safety control technologies accumulated
in production, transport, etc. of gases

Courses

Hydrogen analysis equipment for hydrogen-refueling stations

At the Iwatani R&D Center, equipped with welding demonstration
rooms, we propose unique technologies and products in areas
such as welding robots and shield gases to meet diverse needs at
welding worksites in terms of automation, quality improvements, andcost cutting. We undertake experiments to evaluate shield gases,
welding materials, and other substances on customer request. We
are developing technologies for hydrogen cutting to contribute todecarbonization and welding technologies using collaborative robots.

Hydrogen-refueling stations analyze the densities of 14 ingredientsto prevent admixture of impurities when filling fuel cell vehicles.
The Iwatani R&D Center has developed equipment based on timeof-flight mass spectrometry (TOF-MS), which is more efficientand affordable than traditional analytical methods. The Group isplanning the full-fledged introduction of this technology in FY2023,
as we aim to contribute to realizing a hydrogen energy-basedsociety by enhancing our technological capabilities Groupwide.

Welding robots

TOF-MS analysis equipment

Technologies for joining dissimilar metals

Life Science Research Laboratory

Amid growing demand for air conditioning due to global warming,
we are pursuing R&D on technologies for joining copper andstainless steel as an alternative to pure copper, in response to
growing global demand for that metal. Currently, in cooperation
with customers, we are pursuing various efforts, including durability
testing and the expansion of applications to develop products using
this technology.

We are developing technologies and equipment for cell storage andtransport to leverage the gas application and low temperature control
technologies we have developed in the field of industrial gases tocontribute to the industrial development of regenerative medicine
technologies. In February 2023, we established an onshore aquaculture
facility at the Iwatani R&D Center, where we are developing optimal onshore
aquaculture systems capable of stable production using oxygen gas.
(See Industrial Gases & Machinery Business, p. 41.)

Secure competitive advantage by bringing research
results from the Iwatani R&D Center andthe Iwatani Advanced Hydrogen Technology Center to market

Promote gas and energy businesses byleveraging technological capabilities

Video lessons
and e-learning

Advanced welding technologies and demonstrations

IP strategy

Acquire knowledge and experience
with the use of new in-house academy

33

Related Key Issues (Materiality)

Liquid hydrogen filling equipment for the hydrogen-engine Toyota Corolla

Iwatani Advanced Hydrogen Technology Center: Exploring the Possibilities of Hydrogen
Opened in October 2021, the Iwatani Advanced Hydrogen Technology Center accelerates the development of new technologies related todecarbonization—including green hydrogen and green LPG, as well as hydrogen-related technologies—needed to establish a hydrogenenergy-based society. As a technology center of Iwatani, Japan’s sole supplier of liquid hydrogen, this facility is equipped with a testing
environment unmatched in Japan and is capable of handling liquid hydrogen at extreme low temperatures of -253°C and hydrogen gas at
high pressures of up to 135 MPa.

Equipment related to hydrogen energy
The center undertakes R&D on technologies essential to hydrogenrefueling stations. It uses some of Japan’s most advanced testing
equipment for liquid hydrogen and ultra high pressure hydrogen gas
for purposes including evaluation of the suitability of metals and othermaterials for use with hydrogen and durability testing of equipment.
Through these means it is examining ways to reduce costs and increase
the safety of building hydrogen-refueling stations and pursuing researchthat will contribute to regulatory revisions. It is also focusing on newtechnological development in areas such as developing equipment andcapture of cold heat from gasification of liquid hydrogen for reuse—
efforts targeting the coming age of large-scale hydrogen supplies.

Testing equipment for liquid hydrogen

Testing equipment for ultra high pressurehydrogen gas

34

Integrated Energy

Integrated Energy

Strengths, Opportunities, Risks
Strengths❶LPG last-mile services, stable supply structure

Driving the transformation into our role as an energy & living total service provider
The Integrated Energy Business sells household and commercial LPG delivered nationwide under the
MaruiGas brand name, as well as industrial LPG and LNG for factory use. Together with efforts to growmarket share based on the promotion of M&A activities that draw on our nationwide network, we will evolve
into an energy & living total service provider.

Hirozumi Hirota

Senior Managing Officer, Member of the Board
General Manager, Integrated Energy Business Group● LPG ● Electricity, city gas (safety inspection) ● Gas equipment, products essential to daily
life, health foods ● Portable gas cooking stoves, cassette gas canisters

Main
products

Business highlights and position
Operating income including impact of
LPG import price fluctuation

335.9■Sales composition by region

Operating income excluding impact of
LPG import price fluctuation
393.2

3.5%

398.0

0.1%

327.1

313.5
253.7

22.6

16.8

14.1

13.6

17.4

15.0

13.9

14.6

FY2022

18.0

14.3

10.8

96.4 %FY2018FY2019○ We propose comprehensive solutions only Iwatani can provide, including fuelconversion to LPG and LNG, green LPG, hydrogen, ammonia, and renewable energy.

❸ Business infrastructure for solutions to community issues○ Our broad-ranging support structure for solving the issues faced bycommunities and customer households draws on a sales force of approximately
3,200 persons at about 280 sales offices across Japan, together with thedigital solutions made possible by the Iwatani GateWay platform.

Opportunities

Risks● Growing demand for fuel conversion in response to the risingneed to reduce CO2 emissions● Structural changes amid the decarbonization movement
within the LPG industry● Growing need for solutions to community issues● Declining demand for energy due to changing community
demographic trends● Delays in raising the adoption of renewable energy

Business Capital Serving as Sources for Value Creation■Trends in net sales and operating income (¥ billion)
Net sales○ As a leading player in the LPG field, we operate a stable supply structure fordeliveries to customers across Japan, including five import terminals, 110
filling stations, and 130 distribution centers.
○ We support living and business continuity planning (BCP)—for example,
promoting the adoption of LPG-powered emergency generators—to ensure
disaster preparedness.
○ In the event of a disaster, the MaruiGas Disaster Relief Corps, made up of
Marui-Kai members from across Japan, rushes to the scene to inspect andrestore LPG service.

❷ Capacity to propose optimal energy mixes for decarbonization
purposes

FY2020

FY2022

FY2021

FY2023(Forecast)* The Accounting Standard for Revenue Recognition and other accounting standards have been applied since FY2021. Figures shown for FY2020 havebeen restated through the retroactive application of these accounting standards.
* Business segment categories were revised with the FY2023 corporate reorganization. Figures for FY2022 reflect these segment changes.

■ Japan■ Other■ East Asia

Nationwide real contact network and LPG dealershiporganization (Marui-Kai)

The Iwatani GateWay digital platform, used for solutions
to community issues across Japan○ A nationwide network, from import terminals to filling stations○ Disaster-resistant core LPG centers in communities acrossJapan○ A network of sales and distribution facilities across Japan○ An IoT platform for connecting with customers○ A new infrastructure for providing services and value to support
consumer lifestyles○ Expanding the customer base through our brand power andstrengths in safety
Sales offices● Approx. 280 sites● Approx. 3,200 employees

Distribution centers● Approx. 130 sites● Approx. 1,600 employees● Approx. 1,300 vehicles■Sales composition

Energy-related equipment

LPG
From LPG import to delivery to households

Gas stove

Gas supply equipment,
gas appliances

Ene-Farm system

19%

Portable gas cooking stoves,cassette gas canisters
LPG supply equipment

Cartridge gas products

Portable gas
cooking stove

Non-LPG● LNG ● Kerosene

357%LPG-powered
emergency generator

Cassette
gas canister

Segment
net sales¥393.2 billion

Other fuel-related(FY2022)

11%

LPG(international)

1%

LPG(consumers)

49%

Japan's largest and most unique nationwide private sector
disaster prevention organization (MaruiGas Disaster Relief Corps)

Cassette gas canister production plants designed for
safe, reliable quality control and stable supply○ A nationwide disaster prevention organization established jointly with
distributors to ensure rapid LPG recovery in response to disasters○ Made up of some 3,600 qualified gas technicians from various companies○ Conducting annual concurrent nationwide drills to maintain andstrengthen disaster response capabilities○ Quality control and brand power based on integrated production
and sales structures○ The capacity to develop new products reflecting customer needs○ Structure for stable supply using domestic and international
manufacturing facilities(Million)
60

Japan

Number of cassette gas canisters sold in China

50
40

Thailand

30
20
10

LPG
(industrial)

13%

02011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Total domestic and international sales volume (FY2022)

China

Portable gas cooking stoves Cassette gas canisters
4.291 million
157 million

Business expansion in the US and Southeast Asia
36

Integrated Energy

Major Initiatives

Using our domestic brand and product strengths to grow the cartridge gas
business in Japan and around the world* Growth measures for the LPG business are described under Domestic Energy & Service Strategies (p. 27).

In 1969, for more than half a century since we introduced Cassette-Feu, Japan’s first hose-free portablecooking stove, our cartridge gas business has earned trust and helped support consumer home dining needs
through portable gas cooking stoves and cassette gas canisters. We plan to grow into a brand recognizedaround the world via various measures, including the development of new products and new fields targeting
growing needs for outdoor, emergency, and other uses and efforts focusing on international business growth.

Contributing to a carbon neutral society and striving to decarbonize LPG
We are developing next-generation energy for the future. Amongthese efforts, we are focusing on the development of green LPG, a
key topic for the LPG industry as a whole as society makes progress
on decarbonization. We are proceeding with various green LPG
development initiatives, including those focusing on technologies
for the production of LPG from hydrogen and CO2 and from biogas
extracted from wastes generated by the livestock business. We
intend to lead the LPG industry toward the implementation of green
LPG.

In addition to proposing solutions in areas such as fuel conversion
from heavy oil and other fuels to LPG and LNG, which generate
fewer CO2 emissions, and energy-saving equipment, Iwatani
has launched services to generate, and return to customers,
environmental value from the CO2 emissions reductions achieved
through these services. To meet the needs of highly eco-conscious
customers, we sell carbon offset LPG using the J-Credit schemeand propose the use of solar power and other renewable energy
sources, as we support a wide range of customer decarbonization
efforts.

2023

TrendsDevelop low-carbon business
Fuel conversion
to LPG

Carbon offset

Energy saving

Use ofrenewable energy

Business growth in international markets

Hydrogen/LPG mixture fuel ➡ Hydrogen 100%

In Japan, we will seek to stimulate existing demand by introducing
products with outstanding designs and features while growing
demand in new applications and fields, utilizing our own
manufacturing plants and other resources. We will focus on
product development to meet emerging and growing needs related
to outdoor recreational activities and for emergency use.

Biomass LPG ➡ Green LPG

FY2022sales

FY2027
sales target

vs.
FY2022Since we began manufacturing and selling portable gas cooking
stoves and cassette gas canisters in Zhuhai, China, in 1996, ourinternational business growth has focused on the China market. In
addition to our operations in China, in April 2023, we opened a new
portable gas cooking stove plant in Thailand. This facility will serve
as a base for promoting competitive products developed over along history of sales in Japan in various markets, including Taiwan
and Southeast Asia, areas where consumer demand is expected
to grow. We will also introduce new products in the United States,
which has a large market for outdoor goods.

Portable gas cooking
stoves

2.2 million

3.4 million+54%■Portable gas cooking stove production facilities and major regional sales plans

Cassette gas canisters

98 million

130 million

+32%

2030

Produce and supply green LPG

Supply mixed LPG andhydrogen via pipelines
Blend hydrogen

SupplyExtract biogas fromlivestock waste

Use (burn)Pipeline
supplyAir

Carbon offset with the use of
J-Credit scheme

2050

Achieve decarbonization by establishing new technologies in medium to long term

Promote fuel conversion
Expand sales of energy saving equipment,
fuel cells, solar cells, storage cells

Our major efforts

Measures to achieve domestic market growth2027

Demonstration phase

2020

Senior Managing Officer
General Manager, Cartridge Gas Division

Yasushi Sakai■New product development and sales for outdoor use

Sales volume in
China
2,700K units

Livestockbusiness
Used plastics

LPG tanks

LPG + Air + Hydrogen

Propane 13A
supply areas

Production volume in China

Approx. 2,500K units/FY2027
FORE WINDS outdoor leisure brandSale in outdoor goods shops

Proposing life products and services to meet customer needs

Emergency generators, GHPs

BCP products

ALALA (natural household detergents) and Natural Mineral Waterfrom Mt. Fuji (water delivery) brands. We also offer services that
improve quality of life, including remodeling and community safety
services. We help make the lives of our customers even better by
providing the products and services needed by our customers andcommunities.

Fuel cells, solar cells, storage cells
High efficiency water heaters

Propose a wide range of productsthat contribute to BCP measures

CN products

Products essential to daily life

Expand sales of products that respondto carbon-free society (electrification, etc.)

BtoC products

relatedEnhance after sales service

Customer solutions
House cleaning, vacant house renovations, etc.

37

Community safety service

Marudan cartridge gas heater

Yakimaru II cassette gas smokeless barbeque grill

Detecting frail elderly

Portable gas cooking stoves
4,700K units

Cassette gas canisters
120,000K units(+118% compared with FY2022)(+96% compared with FY2022)

Targets

5-year Cumulative Investment¥70.0 billion■Operating Profit (¥ billion)
484.0

25.5
Major Target

393.2+¥90.7 billion

New service

14.3

Number of
LPG direct sales customers+¥11.1 billion

Sell a package of monitoring services for children and seniors and the provision of LPG
Lifestyle services

FY2027

1.3 million households

New service

Use electricity and gas usage data to monitor the health of elderly people living alone

Sales volume inSoutheast Asia
800K units

PLAN27 medium-term management plan targets■Net Sales (¥ billion)

Service provision
Lifestyle services

Production volume in Thailand

Approx. 700K units/FY2027

FY2027 overseas sales targets

Develop attractive new products
Develop new sales channels

Product sales

Remodeling/home equipment-related

Sales volume in
EU, USA and Australia
600K units

Byproduct gas issynthesized duringdecomposition■Introducing products with outstanding designs and features

We have a nationwide LPG customer base and sell products forbusiness continuity planning (BCP) needs, including LPG emergency
power generators and gas heat pumps (GHPs), as well as productsthat contribute to decarbonization via three types of power cells(storage cells, solar cells, and fuel cells) and high-efficiency water
heaters. We offer the essentials of daily life, including our own

Approx. 5,000K units/FY2027

Sales volume inIndia and others
200K units

Hydrogen● Sell carbon offset LPG● Convert the resulting CO2 emissions reductions at
consumer households into credits

Production volume in Japan

Sales volume in
East Asia
400K units(+18% compared with FY2022)

FY2022

FY2027

FY2022

FY202738

Industrial Gases & Machinery

Industrial Gases & Machinery

Strengths, Opportunities, Risks
Strengths

Targeting a position as a major industrial gas player in global markets by advancing into growth markets
The Industrial Gases & Machinery business consists of the Industrial Gases business, whose products include air
separation gases (oxygen, nitrogen, and argon), hydrogen, helium, carbon dioxide, semiconductor material gases,
and medical gases, and the Machinery business, which includes production and supply equipment for a wide
range of gases, factory automation systems, welding equipment, semiconductor manufacturing equipment, andenvironmental equipment. We support the industry by proposing solutions to meet customer needs, drawing on thetechnological capabilities accumulated over many years and our wide-ranging lineup of gas and machinery products.

Yasuhisa Ueda
Main
products

Senior Managing Officer, General Manager, Industrial Gases Division● Industrial gases (air separation gases, hydrogen, helium, carbon dioxide, etc.)● Gas production and supply equipment, industrial machinery

Business highlights and position■Sales composition by region

3.9%

Operating income
259.2

240.4
190.5

186.0

6.5%

184.3

16.4%

172.0
11.9

11.1

9.8

16.5

12.4

FY202217.5

73.2%
FY2018FY2019❸ Capacity to propose solutions to specific customer challenges○ A wide range of gas application technologies, including low-carbon
and zero-carbon solutions○ Capacity to propose comprehensive solutions with integration ofdiverse industrial gases and machinery and equipment❹ Technological development capabilities of the Iwatani R&D Centerand the Iwatani Advanced Hydrogen Technology Center○ See Non-financial Strategies – Technology Strategy on p. 34.

Opportunities

Risks● Advancing automation, labor saving, and decarbonization in manufacturing● Market expansion in China, Southeast Asia, and the United States● Evolving domestic and international industrial structures● Country-specific risks, policy trends, and other aspects

Business Capital Serving as Sources for Value Creation■Trends in net sales and operating income (¥ billion)
Net sales❶ Business development based on stable procurement and stablesupply as a producer○ Helium: Competitive strength in global markets based on our multiple
procurement sources, use of own containers, etc.
○ Hydrogen: Handling in house all activities from production throughtransport, storage, use, and maintenance○ Air separation gases: Building a stable nationwide supply structure
based on our advanced ISO 9001-certified quality management
structure❷ Years of experience, expertise, and handling technologies in hydrogen○ See Hydrogen Strategies on p. 21.

FY2020

FY2021

FY2022

FY2023(Forecast)* The Accounting Standard for Revenue Recognition and other accounting standards have been applied since FY2021. Figures shown for FY2020 havebeen restated through the retroactive application of these accounting standards.

■ East Asia
■ Other■ Japan■ Southeast Asia

Safe, precise, and speedy gas supply and service network○ Building stable domestic and international supply chains fromproduction through supply○ Establishing regional maintenance structures○ Customizing gas supply systems depending on customer needs
Helium○ Ensuring stable supply through procurement from two sources: Qatar
and the US○ Establishing a distribution network centered on Japan and Asia using
our own helium containers
Hydrogen○ Building structures for stable supply of compressed hydrogen andliquid hydrogen

Applications technologies capable of handling diverse
gases in accordance with their properties○ Capacity to propose solutions backed by the gas handling technologies,
extensive track record in their adoption, and integrated capabilities
from design through maintenance accumulated over many years○ Continuing development of new gas technologies while responding
swiftly to customer needs and issues
Example: Hydrocut® hydrogen-based premixed fusing gas that significantly reduces
CO2 emissions; high-density oxygen solution equipment, which is seeing
increasing use in inland aquaculture; liquid nitrogen and storage containers
used to freeze and store regenerative medical products such as cells

Global network■Sales Breakdown
Gas facilities and other

Breakdown by gas type 


High-pressure gas supply facilities  

Welding equipmentLiquid gas trucks

Semiconductor
manufacturing equipment

Welding robots

Welding materials

Sheet-metal welding
machines

Pharmaceuticalmanufacturing equipment 


  



Domestic network

Industrial gases market size in Japan












                  
         

 

Source: Gas Georama in Japan 2023, Company estimates

39

­

   




Gas center Air separation plant Helium center
Operating company, trading company, representative office






Comprehensive abilities combining gases with machinery







 








United States  
   



Other

○ The Iwatani Group can provide services from gas supply throughmachinery and equipment for using gas○ Our extensive product lineup and broad-ranging domestic andinternational networks, in addition to years of expertise, support
customer production activities

Gas center ・・・・・・・・・・・・・・・・・・・ 21
Hydrogen plant ・・・・・・・・・・・・・・・ 11
Air separation plant ・・・・・・・・・・・ 9
Helium center ・・・・・・・・・・・・・・・・ 2
Other ・・・・・・・・・・・・・・・・・・・・・・・ 6(As of August 31, 2023)

 



Source: Gas Georama in Japan 2023

40

Industrial Gases & Machinery

Major Initiatives

The Machinery Division will drive business growthBusiness growth in priority regions
To achieve medium- to long-term business growth, the Industrial
Gases business is actively expanding in the markets of North
America, China, and Southeast Asia, while strengthening its
revenue foundations in Japan.
We are entering North America, among the largest industrial gas
markets, by leveraging our special strengths in hydrogen, helium,
and specialty gases. We are growing our businesses actively
through M&A activities, including the acquisition of a North
American industrial gases dealership in 2019 and the January2023 acquisition of Aspen Air U.S., LLC, which manufactures andsells air separation gas.

We plan to accelerate this expansion by enhancing the industrial
gases sales and moving forward with strategic investments.
In the markets of China and Southeast Asia, which are experiencing
rapid economic growth, we are investing to strengthen our position
as a producer and expanding our air separation unit (ASU) andhelium center networks in response to growing demand. Our goal
is to achieve further business growth by enhancing our existing
supply chains still further and boosting sales centered on air
separation gases, helium, and specialty gases.

Japan

United States

Focus on growth fields such as decarbonization demand
Expand sales of machinery and equipment(decarbonization and automation)

Full-scale entry into market through M&As of industrial
gas businesses and further business expansion
Business
environment World's largest industrial gases market

Business Rising energy costs, growth of decarbonization
environment field, changes in industrial structure
Investment Growth investment in existing and new businesses

Investment

Helium container

The Machinery Division is expanding sales of various types of machinery, from welding, cutting, andindustrial robotics machinery through electronic components production equipment, equipment related to
semiconductors, medical and pharmaceutical products, and the environment, and machine tools. Drawing
on our extensive domestic and international networks, the comprehensive capabilities of the Iwatani Group
in gas supply and other areas, our wide-ranging product lineup, and years of expertise in machinery adoption
and solutions, we help customers overcome various challenges.

Hiroyuki Yano

Managing Officer
General Manager, Machinery Division

The Machinery Division is active in machinery and equipment
related to production lines, including welding machinery androbotics. Among its strengths is the capacity to directly ascertain
what customers need even before production activities begin.
In addition to identifying customer needs and proposing optimal
machinery at the stage at which customers are considering
production, we are able to propose solutions across a wide range ofareas, including gas supply, maintenance, and supply of materials.

Striving for optimal solutions to customer challenges, we seek togrow the Iwatani Group’s businesses. We also receive numerous
inquiries about decarbonization of production lines, and we areresponding in cooperation with partner companies through means
including development of machinery using hydrogen in production
processes. Taking advantage of the Iwatani Group’s special
strengths, we will boost corporate value through new productdevelopment and expansion of the scope of business.

Iwatani’s machinery lineup

Development of industrial gas plants M&As ofindustrial gases dealerships

Four Priority Regions
Aspen Air US, LLC

Southeast Asia

Air separation plant(Jiaxing Iwatani Industrial Gases Co., Ltd.)

Expand business area and product range

Enhance supply capacity of industrial gases andexpand product range
Expand sales of machinery and equipment(robotics and semiconductor related)

Business
environment Mega market that continues to growBusiness
environment Market expansion due to population growth

China

Investment Expansion of industrial gas plants (venture inland)

Helium center(Iwatani Corporation (Thailand) Ltd.)

Investment

Hydrogen burner

Hydrogen cutting machine

Presses for all-solid-state batteries and gloveboxes Metal powder forming press

Welding robot

Collaborative robot

Ammonia supply facility

Expansion of industrial gas plants to meet growing demand
M&As of industrial gases dealerships

Tackling new growth areas
The Industrial Gases & Machinery Business focuses not just on
decarbonization, but on regenerative medicine and onshore
aquaculture. In the area of regenerative medicine, we are focusing
on establishing industry standards in areas such as cell storage
and distribution, based on joint research with universities and joint
efforts with our business partners, centered on research facilities
at the Iwatani R&D Center.

We are working to expand our businesses into the field of onshore
aquaculture, drawing on the oxygen dissolving technologies
amassed over the years, to promote fish breeding and raising. In
February 2023, we set up a research facility at the Iwatani R&D
Center, where we plan to grow our businesses in the aquaculture
field by increasing knowledge of onshore aquaculture and thereby
to deliver solutions to social challenges such as food shortages.

Oxide-film, nitride-film coating equipment

PLAN27 medium-term management plan targets
Targets

5-year Cumulative Investment¥270.0 billion■Operating Profit (¥ billion)■Net Sales (¥ billion)
340.0

25.5
Major Target

240.4

16.5

+¥99.5 billion+¥8.9 billion

Air separation gases

FY2027 2.0 billion m3(+25% compared with FY2022)

FY2022Cell culture41

FY2027

FY2022

FY2027

Onshore aquaculture facility

42

Materials

Materials

Strengths, Opportunities, Risks

Contributing to a resource-circulating and carbon-free society by
expanding our lineup of eco-friendly products
The Materials business was an early actor in developing mineral resources, including mineral sands, andrelated applications. Our emphases are procurement and development of functional plastics, advanced metals,
and other resources essential to the environmental, electronics, and automotive fields. It also contributes tothe realization of a carbon-free society through biomass fuels and other sustainable eco-friendly products.

Kenji Motoori

Senior Managing Officer, General Manager, Materials Division● Eco-friendly PET resins (biomass PET resins, aluminum-catalyst PET resins)● Biomass fuels ● Battery-related materials (lithium, cobalt) ● Mineral sands (titanium ore,zircon sand) ● Stainless steel ● Metal processing products ● Functional films

Main
products

Business highlights and position■Trends in net sales and operating income (¥ billion)■Sales composition by region
242.4
220.2

159.1

150.9

149.5

12.6

12.3

111.7
5.7

FY2018FY2019

5.6%
6.0%

7.2

4.6

4.5

FY2020

FY2021

6.3%

FY2022■ East Asia
■ Japan■ Southeast Asia ■ Other● Demand shift toward eco-friendly products during the stageof transition to a carbon-free society● Rising demand for rare resources● Growth of China, Southeast Asia, and other emerging markets

Risks● Market contraction for existing products due to rising
environmental awareness● Rising costs of development, production, procurement,
logistics, etc.
● Supply risks associated with rising geopolitical risks andnatural disasters

Business Capital Serving as Sources for Value Creation
Business infrastructure in mineral sands

Overseas metal processing plants○ Ownership of mining concession in Australia○ Building a stable supply structure by diversifying supply sources○ Leading share of sales in Japan in combination with procurement frommajor resource firms○ Developing an integrated production structure from raw materials throughprocessing, to target emerging markets (Thailand, China)○ Product development/processing functions to meet customer needs (airconditioning equipment, automotive parts and materials)

Strong ties to suppliers○Building an extensive network to realize stable procurement from suppliers around the world

Electronic Materials

Functional Plastics● Battery-related materials● Display materials● Resin raw materials (PET resin, polypropylene, etc.)● Resin molding products, films, sheets

Related industries: Electronics, automotive batteries, etc.

Functional
Plastics

Electronic
Materials

Segment
net sales

Automotive battery materials

Metals
Metals23%

Related industries: Food and beverage, daily household
goods, home electrical appliances, etc.

20%

21%

Related industries: Electronic components,
air conditioning equipment, etc.

❶ Strong customer network○ A strong customer base including leading players with highmotivation to achieving carbon-free society and control overmarkets❷ Stable supply structure○ Stable procurement capabilities based on strong ties to overseas
suppliers and our in-house sources❸ Proposing state-of-the-art products○ Capacity to propose products that draw on high-value-added
advanced technologies to address the needs of society and ourcustomers

82.1%

FY2023(Forecast)■Breakdown of sales● Stainless steel ● Precision stainless steel● Aluminum ● Non-ferrous materials● High alloys ● Metalworking products

Opportunities

FY2022* The Accounting Standard for Revenue Recognition and other accounting standards have been applied since FY2021. Figures shown for FY2020 havebeen restated through the retroactive application of these accounting standards.
* Business segment categories were revised with the FY2023 corporate reorganization. Figures for FY2022 reflect these segment changes.

Smartphone materials

Strengths

Air conditioner panel¥242.4 billion(FY2022)

Resources &Advanced Materials

36%

PET resins

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.

Mineral sands
PET resins
Battery materials, rare earths
Stainless steel
Biomass fuels

Wire processing

43

Stainless steel

Resource business

Ceramic raw materials

44Materials

Major Initiatives
Growing the environmental solutions business
The Materials Business seeks to balance environmental protection
and business growth by providing solutions to customers that will
help build a resource-circulating society. A resource-circulating
society is one that respects natural cycles and avoids placing
burdens on the environment. To reduce consumption of natural
resources and minimize environmental impact, we have focusedto date on sales of raw materials with low environmental impacts(i.e., eco-friendly PET resins, biomass fuels, and battery-relatedmaterials). As we transition from a low-carbon to a zero-carbon
society, we are striving to enhance sales of products and materials
with low environmental impact (environmental products) and todevelop resource recycling structures.

Investments in vital mineral resources

Growing the metal processing business

Mineral resources are vital to various applications, including
renewable energy equipment and EVs, which are expected to see
increased use as we transition to a carbon-free society. Securing
stable supplies of mineral resources, which are distributed
unevenly among nations, is a pressing issue. We will build more
resilient supply chains by enhancing procurement and production
functions to meet booming international demand and by promoting
green initiatives in response to domestic customer needs forenvironmental value.

Backed by climate change, the air conditioning business is expected
to record continued growth in Asian markets. At the same time,
demand is expected to increase for activities related to the transition
to energy-saving heat pump water heating systems in markets
like Europe and North America. In light of these expectations forcontinuing growth in demand, we have enhanced the production
capacity of our wire processing plant in Thailand. To meet future
customer needs, we will enhance our manufacturing and processing
functions and grow the metal processing business still further.

Australian mineral sands concession

Air conditioner exterior unit fan guards

Enhancing sales of environmental products
In addition to strengthening sales of products and materials withlow environmental impact, such as aluminum catalyst biomass PET
resins, biomass fuels, and battery-related materials, we are also
working to grow our supply chains and enhance our procurement●Eco-friendly PET resins

We are focusing on selling biomass PET
resins made from plant-based materials,
in place of fossil-based materials andaluminum catalyst PET resins that are easily
recyclable, as eco-friendly PET resins. Amidrising environmental awareness, demand
for these resins is growing, centered on
PET bottles for beverages.

●Biomass fuels

We supply palm kernel shells (PKS), a
byproduct of the palm oil production
process, and wood pellets produced fromthinned lumber and other materials, asfuel for use in power generation. Biomass
power generation is drawing attention asa renewable energy source that offers thepotential to realize carbon neutrality, withno effect on CO2 levels.

CO2absorbed

OffsetCO2emitted

Palm plantation

PKS

Biomass power
generation

Photosynthesis

Bottlecapabilities.
Leveraging the strong supplier networks built to date in Japanand around the world, we will develop new products by actively
promoting efforts to build a resource-circulating society.

●Battery-related materials

Rechargeable batteries are widelyused in various applications, including
smartphones and electric vehicles (EVs),
as batteries that can be recharged andreused repeatedly. We sell imported raw
materials, including cobalt and lithium, tobattery manufacturers in Japan. Thesematerials are used as electrode materials
for rechargeable batteries. In the future, weplan to grow sales of various new materials,
including nickel, while actively developing
new battery parts and materials.

Promoting development and commercialization of advanced materials
Our acrylic foam shock-absorbing materials are widely used in
the organic electroluminescent panels used in smartphones. The
nonmagnetic stainless steel foil we produce at our plant in China
is used in state-of-the-art foldable smartphones. We plan to focus
on the development of materials for use in next-generation mobility(electric and fuel-cell vehicles), for which demand is expected to
grow rapidly. Our goal is to contribute to a carbon-free society
through the development and supply of state-of-the-art materials.

BottleFunctional films (vehicle display materials)

Aluminum catalyst biomass PET resins

Wood pellets

Rechargeable batteries for electric vehicles

PLAN27 medium-term management plan targets
Targets

Building a resource circulation framework
Amid various challenges, including resource depletion and risingcosts affecting underground resources and growing demand forcopper due to the spread of EVs and 5G telecommunications,attention is focusing on urban mining to reclaim copper andother materials from the printed circuit boards (PCBs) found insmartphones, computers, and other devices. In partnership withnationally authorized suppliers in India and Southeast Asia, weare developing resource circulation businesses to achieve stable
recovery, refining, rolling, and recycling of metals from used PCBs
and other sources. We will contribute to an eco-friendly society byrecycling metals from products already produced.

45

306.0

Recovery, sorting, pulverizing

242.4

Sorting,
melting,refining

Resource
circulation model

5-year Cumulative Investment

17.5
Major Targets

12.6+¥63.5 billion
Used electronic
components,
PCBs,
scraps frommanufacturing
processes, etc.

60.0 billion■Operating Profit (¥ billion)■Net Sales (¥ billion)●Reclaimed metals business

Non-magnetic stainless-steel foil (foldable
smartphone components)

Bioplastics+¥4.8 billion

FY2027 100K t(+94% compared with FY2022)

Biomass fuels

FY2022

FY2027

FY2022

FY2027

FY2027 1,050K t(+220% compared with FY2022)

46

Governance

Develop More Transparent GovernanceBusiness Execution and Oversight System
Board of Directors
Responsible for Iwatani’s business decision-making and oversight,
the Board of Directors consists of 13 members (including fiveOutside Members of the Board). Together with swift, appropriate
decision-making and oversight based on comprehensive
and active deliberation in the Board of Directors, the Outside
Members of the Board strengthen the functions of the Board byenhancing and improving the transparency of decision-making
and the effectiveness of oversight from standpoints independentof company management and based on extensive experience andknowledge of corporate governance.
Executive Officer System
Iwatani strives to stimulate the activities of the Board of Directors
by introducing the posts of executive officers to speed up decisionmaking and delegate authority. In accordance with management
policies decided on by the Board of Directors, executive officers
are delegated authority by the representative member of the Board
to devote themselves to business execution in compliance with
relevant instructions and orders. Through adopting this system, weare promoting more efficient management by enhancing decisionmaking on corporate strategies and oversight functions by the
Board of Directors.
Board of Corporate Officers
Once a month, Iwatani’s Board of Corporate Officers, whose
membership consists of full-time Members of the Board,
executive officers, and full-time corporate auditors, meets to share
information and facilitate communication in addition to deliberatingon important matters related to business execution.
Nomination and Compensation Committee
Iwatani has established a voluntary Nomination and Compensation
Committee as an advisory body to the Board of Directors. Thisbody consists of three or more Members of the Board, a majorityof whom, including the chair, are Outside Members of the Board.
The goal is to enhance fairness, transparency, and objectivity
in procedures related to decision-making on the appointment,
dismissal, and compensation of Members of the Board and auditors
and to strengthen corporate governance, through consultation withthis Committee.

Audit System
Iwatani has adopted a company structure with a board ofcorporate auditors. The Board of Corporate Auditors consists offour corporate auditors (including two outside corporate auditors).
Full-time corporate auditors attend all meetings of the Boardof Directors and the Board of Corporate Officers meetings, andoutside corporate auditors also attend Board of Directors meetings,
to ensure full oversight of Members of the Board’ execution of theirduties. Corporate auditors are appointed with a focus on matterssuch as their specialized knowledge of finance, accounting,and the law and their knowledge and experience related to ourbusinesses. Outside corporate auditors in particular are appointed
based on the requirements for independent Members of the Board
identified by financial instruments exchanges. Our audit system
is based on multifaceted perspectives. The Audit Department has
been established to conduct internal audits. Its periodic internal
audits, implemented in close cooperation and communication
with corporate auditors, consider whether the business activities
throughout the Group are being performed appropriately andefficiently.
47

Basic Policies
1. We will create an environment that allows shareholders to exercise theirrights properly and will endeavor to ensure equality among shareholders.
2. We will respect the rights and positions of employees, customers, business partners, creditors, local communities and other stakeholders andendeavor to collaborate with them properly.
3. We will make appropriate disclosure in accordance with legislation.
For the purpose of ensuring transparency, we will endeavor to offer
information other than the information to be disclosed pursuant to thelegislation.
4. We will make impartial, transparent and swift decisions in an effort toensure that the Board of Directors will properly fulfill its functions andduties.
5. We will endeavor to hold constructive dialogs with shareholders forcontinuous growth and increase in corporate value.

Specialized individual committees
Goals, overview

Security and Export Control Committee

Enhancing management structures for compliance with the Foreign Exchange and Foreign Trade Act and preventing improper exports

Personal Information Control Committee

Comprehensive protection of personal information

Compliance Committee

Comprehensive compliance with laws and regulations

Factory Safety Control Committee

Formulating priority measures on high-pressure gas safety and other matters

Sustainability Promotion Committee

Deliberating on important matters related to sustainability including climate change

Global Security Control Committee

Comprehensive international risk management

Audit Board of Corporate Auditors

Customer Satisfaction (CS) Committee

Increasing customer satisfaction

ReportProduct Safety & Brand Management Committee

Examining the safety and compliance of products handled, establishing the image of the Iwatani brand, and maintaining and increasing brand value

General Meeting of Shareholders
Appointment and dismissal

Appointment
and dismissal

ReportBoard of Directors(13 Members of the Board
in total, including 5 Outside
Members of the Board)

The Iwatani Group has established a Risk Management Committee to ensure integrated management of risks across all Group companies.
Specialized individual committees set up beneath the Risk Management Committee address main anticipated risks such as compliancerisks and plant safety risks, to enable comprehensive responses to corporate risks, both apparent and potential. The Risk Management
Committee holds regular meetings overseen by the chairperson, reports to management, and strives to manage risks groupwide, including
risks related to compliance with applicable laws and regulations. Special individual committees meet regularly to monitor the status ofcompliance and efforts related to the risks. The individual chairpersons of these committees report on the content of their meetings to the
Risk Management Committee.

Committee

Corporate Governance Structure

Consultation
andresponse

Risk Management System

Appointment
and dismissal

Independent Auditors(4 corporate auditors intotal, including 2 outside Report
corporate auditors)

Appointment,
dismissal,
and supervision

Nomination andCompensation Committee

Board ofCorporate
Officers

Direction
ReportDirection

Compliance

Representative
Members of the
Board

Liaison

ReportAudit

Iwatani acts with uncompromising respect for the letter and the spirit of applicable laws and regulations and fulfills its social responsibilities
based on free and fair competition. In 1998, to prevent corporate misconduct, we established the Iwatani Code of Corporate Ethics as “anorm to be observed in all aspects of business activities on the basis of sharing the management philosophy, morality and values among
management team members and employees in the group.” We publicize this code throughout the Company and Group companies to raiseawareness of compliance groupwide, and also revise it to reflect recent changes in the social conditions in which we do business as wellas amendments in laws and regulations.

Risk Management Committee
Direction

ReportDirection• Security and Export Control
Committee• Personal Information Control Committee• Compliance Committee• Factory Safety Control Committee• Sustainability Promotion Committee• Global Security Control Committee• Customer Satisfaction (CS)Committee• Product Safety & Brand Management
Committee
Direction

ReportDirection

ReportAudit Department
Internal
audit

Internal
audit

ReportBusiness divisions and related companies

Corporate Governance Report:
https://www.iwatani.co.jp/eng/sustainability/governance/corporategovenance/pdf/governance.pdf

List of officers:https://www.iwatani.co.jp/eng/company/profile/officer.html

Compliance Committee
The Compliance Committee is set up under the Risk Management
Committee to comprehensively promote legal and regulatorycompliance by enforcing and enhancing compliance structuresin Iwatani Group business activities. It reports on compliance to
the Risk Management Committee via the Compliance Committee
chairperson and to the management team via the Risk Management
Committee chairperson.
We have also established a whistleblowing program to enhancecompliance through the rapid discovery and rectification of
improper actions. We have established a structure whereby
reports from employees and others concerning organizational
or individual actions in violation of laws or regulations canbe addressed properly. Under this system, the Compliance
Committee investigates the facts of the matters reported and,as necessary, takes swift corrective and preventive action.
Contact points for whistleblowing reports from employees andothers have been set up both inside and outside the Company.
Response is based on advice from independent experts. Rules
prohibiting retributive and disadvantageous treatment safeguard
the rights of whistleblowers.

Prohibition of bribery and corruption
The Behavioral Guidelines in the Iwatani Code of Corporate Ethics
prohibit giving and receiving business-related entertainment or
gifts beyond social and international norms. They strictly prohibit
actions that qualify or may be construed as bribery of public officials
or quasi-public officials (e.g., employees of local governments,
independent administrative agencies, or auxiliary organs), in Japanor overseas, in connection with doing business. By formulating
guidelines such as these and striving to raise awareness amongindividual employees, we strive to prevent bribery and corruption.
Internal awareness-raising activities
In addition to sharing our management philosophy, ethics, and values
through the Iwatani Code of Corporate Ethics—a set of norms withwhich Group management and employees must comply in various
aspects of business activities—we also implement compliancetraining to raise awareness of compliance. This training ensuresthat all employees fully understand the importance of compliance,
including compliance with the Antimonopoly Act and other laws
and regulations, through lectures by attorneys as guest lecturers.

48

Governance – Executive Officers

Executive Officers
1

Akiji Makino(As of June 21, 2023)

5

Chairman and CEO

Career history, status, responsibilities
March 1965 Joined the Company
Member of the Board
June 1988
Executive Director
June 1990
June 1994
Senior Executive Director
President, Iwatani Industrial Gases Corporation
April 1996
Retired from Member of the Board
June 1996

June 1998
April 2000
June 2004
June 20122

Toshio Watanabe

Shares held

68,200 shares

April 2001
April 2003
June 2004
June 2006
June 2012

Reasons for appointment
Mr. Toshio Watanabe, as Representative Executive Vice President since June 2006 and as Vice Chairman since June 2012, has strengthened the corporate
governance with excellent risk management to yield significant results for the enhancement of the corporate value of the Group.

Manabu Tsuyoshi

April 2020
June 2022

Member of the Board, Managing Officer
Information Technology Planning Department; Accounting
Department (current position)
Member of the Board, Senior Managing Officer (current
position)
Legal Department (current position)
Logistics Department; Business Administration Department(current position)
Shares held

15,200 shares

Senior Managing Officer, Member of the Board

Career history, status, responsibilities
Joined the Company
April 1989
Executive Officer
June 2017Managing Officer
April 2018
April 2019
General Manager, Hydrogen Division (current position)

Senior Executive Director
Member of the Board, Executive Vice President
Executive Officer
Representative Executive Vice President
Vice Chairman (current position)

April 2019

Reasons for appointment
After filling several key posts in a bank, Mr. Itaru Ookawa joined the Company in June 2014 and has managed the Accounting Department. Since
April 2020, he, as Member of the Board and Senior Managing Officer, has been in charge of the Logistics, Business Administration, Legal, andAccounting divisions to yield significant results for the enhancement of the corporate value of the Group.

6

Vice Chairman

Career history, status, responsibilities
March 1968 Joined the Company
General Manager, Related Businesses Department
April 1996
General Manager, General Affairs & Personnel Department
June 1996
Member of the Board
Executive Director
April 2000

Senior Managing Officer, Member of the Board

Career history, status, responsibilities
Joined The Sanwa Bank, Limited. (currently MUFG Bank,
April 1985
Ltd.)
June 2014
Joined the Company
General Manager, Accounting Department
April 2015
Executive Officer
June 2015
Managing Officer
April 2016
Member of the Board
June 2017
June 2017
Executive Officer

Member of the Board, Executive Vice President, theCompany
President
Executive Officer
Chairman and CEO (current position)

Reasons for appointment
Mr. Akiji Makino, as President since April 2000 and as Chairman and CEO since June 2012, has exercised his excellent management skill and leadership to yieldsignificant results for the enhancement of the corporate value of the Group.

Itaru Okawa

June 2020
April 2022

Member of the Board, Managing Officer
Member of the Board, Senior Managing Officer (current
position)

Reasons for appointment
Mr. Manabu Tsuyoshi has extensive work experience in the Hydrogen and Global Businesses. Since April 2022, he, as Member of the Board andSenior Managing Officer, has been in charge of the Hydrogen division to yield significant results for the enhancement of the corporate value of theGroup.

Shares held

9,000 shares

Shares held

46,300 shares

7
3

Hiroshi Majima

April 2014
April 2017
April 2019
April 2020

Executive Director
Senior Executive Director
Member of the Board, Vice President
President (current position)

Makoto Horiguchi

Shares held

20,200 shares

April 2022
June 2022

April 2019
April 2020
April 2022

Reasons for appointment
Mr. Makoto Horiguchi has extensive work experience in the Industrial Gases & Machinery and Global Businesses. Since April 2020, he has been responsible forsales as Member of the Board, Vice President to yield significant results for the enhancement of the corporate value of the Group.

Hirozumi Hirota

Career history, status, responsibilities
March 1980 Joined the Company
Executive Officer
June 2007
Member of the Board
June 2009
Executive Director
April 2011
Senior Executive Director
April 2013
June 2017Retired from Member of the Board, the Company
Chairman, Iwatani Logistics Corporation
Chairman, Iwatani Liquefied Gas Terminal Co., Ltd.

Member of the Board, Senior Managing Officer
Industrial Gases Division; Hydrogen Division; Machinery
Division
Member of the Board, Vice President (current position)
Responsible for sales (current position)
New Product Development Department; Market Research
Department (current position)
Chairman, Risk Management Committee (current position)
Shares held

18,800 shares

Joined the Company, Managing Officer
Safety & Environment, Hydrogen Energy
Senior Managing Officer
Responsible for Energy Division and Industrial Gases
Division; Safety & Environment, Hydrogen Energy
General Manager, Technology & Engineering Division,
Iwatani R&D Center, Iwatani Advanced Hydrogen
Technology Center; Hydrogen Energy (current position)
Member of the Board, Senior Managing Officer(current position)
Sustainability Management Department; Security(current position)

Shares held

3,300 shares

Reasons for appointment
After filling key posts in the Ministry of Economy, Trade and Industry including Director-General for Technology Policy Coordination and Industrial and
Product Safety, Minister's Secretariat, Mr. Hiroshi Fukushima joined the Company in November 2019 and was in charge of Safety & Environment andHydrogen Energy. Since June 2022, he, as Member of the Board and Senior Managing Officer, has been in charge of the Technology & Engineering
division, Iwatani R&D Center, Iwatani Advanced Hydrogen Technology Center, Sustainability Management division, Safety, and Hydrogen Energy toyield significant results for the enhancement of the corporate value of the Group.

8

Vice President, Member of the Board

Career history, status, responsibilities
Joined the Company
April 1979
Executive Officer
June 2012
April 2015
Managing Officer
Member of the Board
June 2016
Executive Officer
June 2016
General Manager, Industrial Gases & Machinery BusinessGroup
April 2017
Executive Director

49

November 2019
December 2019
April 2020

April 2023

Reasons for appointment
Mr. Hiroshi Majima has extensive work experience in the Industrial Gases & Machinery Business and the Information Technology Planning division,and the Corporate Planning & Coordination division. Since April 2020, he has exercised his excellent leadership as President to yield significant
results for the enhancement of the corporate value of the Group.

4

Senior Managing Officer, Member of the Board

Career history, status, responsibilities
April 1987
Joined the Ministry of International Trade and Industry(currently the Ministry of Economy, Trade and Industry)
Director for Technology Affairs and Advanced Capacity
June 2013
Building Strategy, Minister's Secretariat
July 2015
Deputy Director-General, Manufacturing Industries Bureau
Director-General for Commerce and Distribution Policy
June 2016(Industrial Safety)
Director-General for Technology Policy Coordination andJuly 2017
Industrial and Product Safety, Minister's Secretariat

President

Career history, status, responsibilities
Joined the Company
April 1981
Executive Officer
June 2010
April 2011
Managing Officer
General Manager, Electronics & Machinery Division
April 2012
Member of the Board
June 2012
Executive Officer
June 2012

Hiroshi Fukushima

Senior Managing Officer, Member of the Board

January 2021 Senior Managing Officer, the Company; General Manager,
Energy Division; Daily Commodity Division, Cartridge Gas
Division
General Manager, Integrated Energy Business Group;
April 2021
General Manager, Energy Division
June 2022
Member of the Board, Senior Managing Officer (current
position)
General Manager, Integrated Energy Business Group;
General Manager, Energy Division; General Manager, Daily
Commodity Division (current position)

Shares held

14,600 shares

Reasons for appointment
Mr. Hirozumi Hirota has extensive work experience in the Industrial Gases & Machinery and Integrated Energy Businesses. Since June 2022, he, as
Member of the Board and Senior Managing Officer, has been in charge of the Energy and Daily Commodity divisions to yield significant results for theenhancement of the corporate value of the Group.
50

Governance – Executive Officers

9

Shinji Murai

13

Outside Member of the Board

Career history, status, responsibilities
April 1973
Assistant Professor, School of Engineering, Osaka University
August 1987 Professor, School of Engineering, Osaka University
August 1999 Professor, School of Engineering, Osaka University; Dean,
School of Engineering, Osaka University; Dean, Graduate Schoolof Engineering, Osaka University
March 2002 Professor Emeritus, Osaka University (current position)
Senior Fellow, Japan Science and Technology Agency Center
July 2003
for Research and Development Strategy
April 2005
Executive Director, Nara Institute of Science and Technology

April 2006
April 2009
April 2013
April 2013
June 2016

Shares held

Shosuke Mori

June 2005
June 2010
June 20190 shares

Audit & Supervisory Board Members

11

Hiroshi Sato

April 2009
April 2013
April 2016
June 2016
April 2018
June 2021

2

Naoki Iwatani

Shares held

1,700 shares

Hiroyuki Suzuki

Corporate
management

Chairmanand CEO
Vice
Chairman

Outside Member of the Board

Career history, status, responsibilities
August 1980 Joined Maruichi Steel Tube Ltd.
Member of the Board, Maruichi Steel Tube Ltd.
June 1983
Executive Director, Maruichi Steel Tube Ltd.
June 1990
June 1997
Senior Executive Director, Maruichi Steel Tube Ltd.
Representative Executive Vice President, Maruichi Steel Tube Ltd.
June 1999

April 2003
June 2003
June 2013
June 2022

President, Maruichi Steel Tube Ltd.
President and Executive Officer, Maruichi Steel Tube Ltd.
Chairman and CEO, Maruichi Steel Tube Ltd. (current position)
Member of the Board, the Company (current position)

Reasons for appointment
Mr. Hiroyuki Suzuki has engaged in the management of a general pipe manufacturer developing a wide range of production and sales of pipes home and abroad.
He also served as Representative Director of Kansai Association of Corporate Executives (general incorporated association). Since 2022, he, as Outside Memberof the Board, has supervised the Company's management properly from an independent position and has given meaningful advice on management policies andstrategies. He has also made efforts as a member of the Nomination and Compensation Committee to ensure transparency, objectivity and fairness of the director
election and compensation. The Company expects him to continuously carry out his duties as Outside Member of the Board properly and adequately and to give
advice on global business development, contributing to the enhancement of the corporate value of the Company.

51

Shares held

Shares held

7,400 shares

Audit & Supervisory Board
Member (Full-time)

Shares held

900 shares

Yasushi Yokoi

4

Audit & Supervisory Board
Member (Outside)

Career history, status
March 1982 Registered as Certified Public Accountant(current position)
May 2001 Representative Partner, Asahi & Co. (currently
KPMG AZSA LLC)
July 2008 Board Member, KPMG AZSA & Co. (currently
KPMG AZSA LLC)
July 2010 Board Member, General Manager of Osaka
2nd Business Division, KPMG AZSA LLC
July 2012 Senior Executive Board Member in charge ofDiversity and General Manager, Nagoya Office,
KPMG AZSA LLC
June 2021 Audit & Supervisory Board Member of theCompany (current position)

Shares held

19,900 shares

Shares held

1,100 shares

Skill Matrix

President

12& Supervisory Board
Yoshinori Shinohara Audit
Member (Outside)3

Career history, status
February 1963 Registered as a Certified Public Accountant(current position)
July 1969 Senior Partner, Yamato Accounting Office(subsequently merged into Asahi & Co.)May 1999 Deputy President, Asahi & Co. (presently
KPMG AZSA LLC)
June 2001 Senior Partner and Senior Advisor, Asahi & Co.
August 2002 Representative Director, Shinohara Management and Economics Research Institute Co.,
Ltd. (current position)
June 2015 Audit & Supervisory Board Member of theCompany (current position)

21,500 shares

Career history, status
April 1990 Joined the Company
June 2009 Executive Officer
April 2011 Deputy General Manager, Energy Division (incharge of the east)
June 2011 Member of the Bord
April 2015 Executive Director
Business Administration Department, Audit
Department
Chairman, Risk Management Committee
April 2019 Member of the Board, Senior Managing
OfficerJune 2022 Audit & Supervisory Board Member (Full-time)(current position)

President, Kobe Steel, Ltd.
Chairman, Kobe Steel, Ltd.
Member of the Board, Senior Advisor to the Board, Kobe Steel,Ltd.
Senior Advisor to the Board, Kobe Steel, Ltd.
Advisor, Kobe Steel, Ltd. (current position)
Member of the Board, the Company (current position)

Career history, status, responsibilities
Mr. Hiroshi Sato has engaged in the management of a corporation with a wide range of business domains including materials centering around iron and steel,machinery and energy, and has extensive experience and broad insight regarding corporate management as a whole. Since 2021, he, as Outside Member of theBoard, has supervised the Company's management properly from an independent position and has given meaningful advice on management policies and strategies.
He has also made efforts as a member of the Nomination and Compensation Committee to ensure transparency, objectivity and fairness of the director election
and compensation. The Company expects him to continuously carry out his duties as Outside Member of the Board properly and adequately and to give advice on
business administration including affiliates management and plants management, contributing to the enhancement of the corporate value of the Company.

Audit & Supervisory Board
Member (Full-time)

Shares held

2,700 shares

Outside Member of the Board

Career history, status, responsibilities
April 1970
Joined Kobe Steel, Ltd.
Member of the Board, Kobe Steel, Ltd.
June 1996
Managing Officer, Kobe Steel, Ltd.
June 1999
June 2000
Member of the Board, Managing Officer, Kobe Steel, Ltd.
Member of the Board, Senior Managing Officer, Kobe Steel, Ltd.
June 2002
Senior Executive Director, Kobe Steel, Ltd.
June 2003
Representative Executive Vice President, Kobe Steel, Ltd.
April 2004

Toyofumi Ohama

Career history, status
March 1972 Joined the Company
June 1996 Member of the Board
June 1999 Retired from Member of the Board; Senior
Associate Director
April 2004 General Manager, Corporate Planning &Coordination Department; General Manager,
Overseas Business Administration Department
June 2004 Member of the Board
April 2006 Executive Director
June 2008 Audit & Supervisory Board Member (Full-time)(current position)

President and Representative Director, The Kansai ElectricPower Co., Inc.
Chairman and Representative Director, The Kansai ElectricPower Co., Inc.
Member of the Board, the Company (current position)

Reasons for appointment
Mr. Shosuke Mori has engaged in the management of corporations supporting societal infrastructure including electricity, information communication and urban
development. He also served as Chairman of Kansai Economic Federation (public interest incorporated association). He has extensive experience and broad insight
regarding corporate management as a whole. Since 2019, he, as Outside Member of the Board, has supervised the Company's management properly from an
independent position and has given meaningful advice on management policies and strategies. He has also made efforts as a member of the Nomination andCompensation Committee to ensure transparency, objectivity and fairness of the director election and compensation. The Company expects him to continuously
carry out his duties as an Outside Member of the Board properly and adequately and to give advice on environmental initiatives and global business, contributing to
the enhancement of the corporate value of the Company.

Shares held

5,800 shares

Outside Member of the Board

Career history, status, responsibilities
April 1963
Joined The Kansai Electric Power Co., Inc.
Member of the Board, The Kansai Electric Power Co., Inc.
June 1997
Executive Director, The Kansai Electric Power Co., Inc.
June 1999
June 2001
Executive Vice President, The Kansai Electric Power Co., Inc.

January 2012 Partner, Sakura Law Office (current position)
October 2015 Part-time judge (domestic relations conciliator)
June 2023
Member of the Board, the Company (current position)

Reasons for appointment
Although Ms. Yuki Saito has no experience of direct involvement in corporate management, she has extensive experience as an attorney and deep insight into legal
matters. From 2023, The Company expects her to properly supervise the Company’s management from an independent position as Outside Member of the Boardand to give advice on management policies and strategies as well as on enhancement of corporate governance, contributing to the enhancement of the corporate
value of the Company.

1
10Outside Member of the Board

Career history, status, responsibilities
October 2006 Registered as an attorney
Joined Sakura Law OfficeSpecially Appointed Fellow, Japan Science and Technology Agency
Center for Research and Development Strategy
Executive Director/Vice President, Nara Institute of Science andTechnology
Professor Emeritus and Specially Appointed Professor, Nara
Institute of Science and Technology (current position)
Senior Advisor, the Company, General Manager, Iwatani R&D Center
Member of the Board, the Company (current position)

Reasons for appointment
Mr. Shinji Murai has extensive experience and great knowledge and insight as research institution manager and university professor. Since 2016, he, as Outside
Member of the Board, has supervised the Company’s management properly from an independent position and has given meaningful advice on management policies and strategies. He has also made efforts as Chairman of the Nomination and Compensation Committee to ensure transparency, objectivity and fairness of thedirector election and compensation. The Company expects him to continuously carry out his duties as an Outside Member of the Board properly and adequately,
and to give advice to the Company for raising the technological capabilities and further expanding the research and development.

Yuki Saito

Akiji Makino●

Toshio Watanabe●

Hiroshi Majima●

Member of
Makoto Horiguchi
the Board
Member of
Itaru Okawa
the Board
Member of
Manabu Tsuyoshi
the Board
Member ofHiroshi Fukushima
the Board
Member of
Hirozumi Hirota
the Board
Outside Member
Shinji Murai
of the Board
Outside Member
Shosuke Moriof the Board
Outside Member
Hiroshi Satoof the Board
Outside Member Hiroyuki Suzukiof the Board
Outside Member
Yuki Saitoof the Board

Financialaccounting

Legal affairs /riskmanagement

HR / talentdevelopment●●●

Global

●

●

●

●

●

●

●

●

R&D

Productionengineering

ESG /sustainability

●
●

●
●

●

●

●

●

●

●

●

●

●

●
●
●

●

●

●

●

●

●
●

●

●
●

●

IT /
digital●●●Sales /
marketing

●

●

●

●
●
●

52

Climate Change Response

Climate Change Response

Risk Management (Assessment and Process of
Identification and Management)
We are proceeding with efforts to strengthen our response to
climate change risks and our efforts to address climate change
opportunities by assessing these risks and opportunities along
the two axes of probability of occurrence and impact on business.
In addition, we assess the business impact of climate change instages, based on the extent of the potential financial impact. In
particular, we assess the future business environment via scenario
analysis from a long-term perspective and in light of the uniquecharacteristics of climate change.

Basic Concept
Recognizing climate change and other global environmental issues
as important management challenges, the Iwatani Group considers
harmony with the environment to be essential to our corporate
activities and continuity. Toward this end, we are striving to reduce
the environmental impact of various business activities. We havedeclared our support for the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD)* and joined the
TCFD Consortium, and we have assessed and identified, and areverifying responses to and disclosing, climate-related risks andopportunities based on the TCFD Framework.

* The TCFD was established by the Financial Stability Board (FSB) at the request of the G20
countries to study matters such as climate-related disclosure.

Governance
Iwatani has established a Sustainability Management Department.
This unit will be responsible for planning measures to promotesustainability and disseminate awareness of sustainability issues
throughout the Group, including overseas. Iwatani has alsoestablished the Sustainability Promotion Committee under the Risk
Management Committee, which coordinates risk management
Groupwide. The Sustainability Promotion Committee deliberates
on matters such as risks, opportunities, action policies, and targets
related to climate change and checks on the progress of related
results. As part of the oversight structure, the Board of Directors
receives periodic reports and is also briefed on important mattersas they arise to ensure appropriate supervision.

Board of Directors

Representative Members of the Board

Potential societal
outcomes

Business sections

International Business

Identification of important risks and opportunities
Scenario analysis from a long-term perspective

Responding to and managing important risks and opportunities

2°C scenario

Sustainability Management Department

Administrative sections

Analysis and assessment of risks and opportunities

We have chosen the Integrated Energy Business, Industrial Gases & Machinery Business, and Materials Business as the businesses subject
to scenario analysis. These businesses are more likely to be affected by climate change. We then identified the following two scenarios,
based on data and other materials from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).
Both are prestigious international agencies referenced in the TCFD recommendations.

Risk Management Committee

Structure for promoting and disseminating sustainability measures

Identification of candidate risks and opportunities

Strategy (Scenario Analysis)

Scenarios

Sustainability Promotion Committee

Process of identification and management ofrisks and opportunities related to climate change

Referencescenarios

4°C scenario

In this scenario, bold policies and technological innovations will be pursued In this scenario, society is characterized by economic andto move toward carbon neutrality and to achieve the ambitious medium- and social growth accompanied by the continuing extensive
long-term targets currently advocated by each country. Average temperature development of fossil fuel sources and the continuanceincreases through the end of this century are kept to less than 2°C. The social of resource- and energy-intensive lifestyles. Averagechanges associated with the transition to a decarbonized society are very likely temperatures rise by approximately 4°C by the end of the
century, generating the high likelihood that climate change
to affect business activities and results.
In this scenario, certain physical impacts will be generated, alongside the will affect business activities and results.
significant impact of enhanced regulations and other factors accompanying the In this scenario, significant physical impacts will be
generated.
transition to a decarbonized society.

Transition• Announced Pledges Scenario (IEA WEO 2022)• Net Zero Emissions by 2050 Scenario (IEA WEO 2022), etc.

Physical• SSP1-2.6 (IPCC AR6), etc.

• SSP5-8.5 (IPCC AR6), etc.

Results of Scenario Analysis ①
Based on a consideration of future market trends and the scenarios identified in the Integrated Energy Business, Industrial Gases &Machinery Business, and Materials Business subjected to scenario analysis, we sought to predict the financial impact in 2050 in relation to
the priority factors. The quantitative information used in scenario analysis is based on scenarios from the IEA, IPCC, and other sources. This
information entails numerous uncertainties.
ScenarioBusiness
Timeframe

2°C scenario
Integrated Energy Business
2050
Risk

Significant decline in demand for fossil fuels due
to changing consumer awareness accompanying
the adoption of fossil fuel surcharges, emissions
credit trading, and other policies and regulations
aimed at establishing a decarbonized society

Risk

Widening physical damage to production facilities
due to natural disasters

Growing demand for energy-saving equipment—
Key risks
for example, Ene-Farm devices and hybrid waterandOpportunity heaters—as awareness of energy conservation
opportunities
and decarbonization grows in the household

Financial
impactScenarioBusiness
Timeframe

Large

Low

Key risks
andopportunities

Moderate

sectorOpportunity

Increased demand for equipment for disaster
preparedness accompanying efforts to enhancedisaster countermeasures and business
continuity planning (BCP)

Low

Opportunity

Major potential business opportunities associatedwith the development and adoption of green LPG

Large*1

Under the 2°C scenario, various factors—for example, sharp tax hikes
due to the introduction of carbon taxes or unexpected growth in customers
to non-fossil fuels—may have significant consequences for
Overview transitioning
the Integrated Energy Business, which handles LPG. At the same time,of themay create major business opportunities for the Group, whichanticipated changes
could be capitalized on by promoting the development and adoption of LPG
business
decarbonization
The changes may also present opportunities forenvironment further growth bytechnologies.
increasing sales of energy-saving equipment and emergency
power supplies and developing the CO2 visualization business and new
businesses based on the Iwatani Gateway platform.

53

Overviewof theanticipatedbusiness
environment

2°C scenario
Industrial Gases & Machinery Business
2050
Risk

Higher costs for electricity and decarbonization
measures at industrial gas plants with thegrowing adoption of carbon taxes, emissions
credit trading, and other policies andregulations

Risk

Widening physical damage to production
facilities due to natural disasters

Opportunity

Large-scale growth in both domestic andinternational demand for hydrogen, mainly asa fossil fuel alternative; significant growth indemand for hydrogen-related equipment ashydrogen demand grows

Financial
impactModerate

Low

Financial impact

ScenarioBusiness
Timeframe

Large: Equivalent to at least several tens of billions of yen in net sales / Moderate: Equivalent to several billions to several tens ofbillions of yen in net sales / Low: Equivalent to several billions of yen in net sales

2°C scenario
Materials Business
2050
Risk

Higher costs for electricity and decarbonization
measures, mainly in the resource and metal
processing businesses, with the growing
adoption of carbon taxes, emissions credit
trading, and other policies and regulations

Risk

Widening physical damage to production
facilities due to natural disasters
Growing demand for lithium, cobalt, and other

*2

Large

While the 2°C scenario assumes higher costs for electricity and decarbonization
measures at industrial gas plants, as carbon taxes and other policies are
adopted progressively, it also presents the potential for rapid growth in thehydrogen business due to sharp growth in demand for hydrogen as a fossil fuelalternative; for use as a raw material for various synthetic energy fuels; and foruse in other applications. In addition, steady demand growth is expected forvarious industrial gases such as oxygen, nitrogen, argon, and helium to parallel
economic growth.

*1 Analysis includes the consequences of measures beyond measurements of the potential impact
of climate change under the scenario.
*2 There is potential for very high growth opportunities depending on the extent of progress on
climate change response.

Opportunity rechargeable battery materials with growing
Key risksuse of EVs and stationary batteries
andopportunities

Financial
impactScenarioBusiness
Timeframe

Moderate

Low
Large

Opportunity

Growth in the metal processing business for
air conditioners in response to the growing
use of home air conditioners mainly inemerging markets, as well as the switch toelectric heating systems and shift to energyefficient models

Moderate

Opportunity

Growing demand for PKS, wood pellets, andother biomass fuels as alternatives to fossil
fuels

Moderate

The 2°C scenario assumes higher costs for electricity and decarbonization
measures, mainly in the resource and metal processing businesses, as
Overview carbon taxes and other policies are adopted progressively. On the other
hand, it also raises the possibility of growing demand for rechargeableof theanticipated battery materials and biomass fuels and expanding opportunities in thebusiness of processing metals for air conditioner use. In addition, it raises
business
environment the possibility of further growth through the development and promotionof business activities related to 100% biomass PET resins, biodegradable
resins, and plastic recycling.

Key risks
andopportunities

4°C scenario
All businesses
2050

Financial
impactRisk

Lower productivity due to rising temperatures

Moderate

Risk

Lower LPG sales due to rising temperatures

Low

Risk

Higher costs of responding to disasters

Low

Risk

Increased loss of profits due to growing
frequency of disasters

Low

Opportunity

Higher sales of disaster response and BCP
equipment, including LPG-powered emergency
generators

Low

The 4°C scenario assumes higher acute risks, which bring sudden damage,and higher chronic risks, which have ongoing and chronic impacts on
business activities.
At all production and filling facilities, our LPG and industrial gas businesses
maximum flooding risk levels based on hazard maps published by
Overview identify
local governments and implement the necessary countermeasures. In additionof theto physical countermeasures, we strive to strengthen the maintenance ofanticipated BCP manuals, undertake disaster drills, and promote safety awarenessbusinesseveryday safety activities. Having established the only nationwide
environment throughdisaster relief team in the private sector energy industry, the LPG businessstrives to maintain and strengthen its disaster response capabilities. We arealso at work installing LPG-powered emergency generators and auto gasfilling facilities at major sites. We believe we have achieved a degree of risk
resilience even under the 4°C scenario.

54

Climate Change Response

Promoting Environmental Management

Results of Scenario Analysis ②

Promoting Environmental Management

The results of scenario analysis are applied in examining medium- to long-term business strategies, making steady progress on initiatives
that make our businesses more resilient, and addressing growth opportunities. As climate change response moves ahead, we recognize thepotential for changes in the assumptions underlying our scenarios. Thus, we will continue to update scenarios and analyses as necessary,
based on information on scenarios published by external agencies.

Under the Iwatani Environmental Policy, we employ an environmental management system and strive to contribute to solutions toenvironmental challenges.

Environmental Policy

Environmental Management System (EMS)

Major responses to identified risks and opportunities

Iwatani has earned ISO 14001 certification for its head offices
in Tokyo and Osaka, the Iwatani R&D Center, and the Iwatani
Advanced Hydrogen Technology Center. These facilities accountfor more than 60% of all Iwatani personnel. While block branches
and branch offices fall outside the scope of this certification, they
operate in compliance with ISO 14001 under the guidance of thehead office product divisions in charge.

● Production and supply of green LPG (See p. 26.)
● J-Credit generation from customer CO2 emissions (See p. 25.)
● Supply of mixed hydrogen and LPG (See p. 37.)
● Liquefied Hydrogen Supply Chain Commercialization Demonstration Project (See p. 23.)
● Enhancement of manufacturing and engineering functions (See p. 24.)
● Eco-friendly PET resins (See p. 45.)

EMS Implementation Structure
Scope of ISO 14001 Certification

Management Team

Targets of the Non-financial Strategies (Climate Change Response)

Environmental
Management
Representative

The Iwatani Group has announced its goal of achieving carbon neutrality by FY2050, targeting as a milestone to be reached by FY2030
reductions of 50% in CO2 emissions compared to FY2019 levels by the Iwatani Group in Japan. We aim to achieve our reduction targets
for FY2030 through various measures, including the utilization of unused cold energy and the installation of solar panels at industrial gas
plants; switching to renewable energy, including corporate PPA; and applying J-Credits that we ourselves generate. Where reductions
are difficult, we will consider use of non-fossil fuel certificates.

219 thousand tons

● Promoting use of cold energy at
industrial gas plants● Reducing electricity purchases throughthe installation of solar panels andother measures

Scope 178 thousand tons

EMS Office

Tokyo Head Office/Osaka Head Office
Unit Manager & Environment
Promotion Manager● Use of non-fossil fuel certificates

FY2019 results● Switching to renewableelectricity (including
corporate PPA)

● Use of J-Credits, etc.

FY2030 target

Note: CO2 emissions are calculated based on GHG protocols.
FY2019 results include CO2 emissions of companies acquired since FY2020.
These targets use as assumptions the 2030 electricity emissions coefficients of
the Japanese government’s Plan for Global Warming Countermeasures.

* Rates of CO2 reduction initiatives exclude the effects of improved emissions coefficients for electric power.

SDGs/Environmental Goals and Results in FY2022, Environmental Goals for FY2023

To achieve carbon neutrality by 2050, we will reduce CO2 emissions in our business activities and contribute to the reduction of CO2
emissions in society as a whole through the expansion of our hydrogen and other businesses.

Now
Scopes1 and 2

Our CO2emissions
reductions

No.

• Energy conservation at plants and offices, adoption of solar power and renewable electricity, streamlining logistics, etc.

Scope
3

AchievementNo.

FY2023 Environmental Goals

Results

1

Expanded use of eco-friendly
products

30 points

33 points○

Decarbonization of LPG through mixed burning with hydrogen, etc.
Greening of LPG via biomass LPG,
propanation, etc.

Contributing
to carbon
neutrality
throughout
society• Promoting hydrogen strategy
Demandcreation

Enhancing domestic hydrogen production capacity

Demonstration of international CO2-free hydrogen supply chain

Commercial implementation

Promoting use of hydrogen in power and industrial sectors• Fuel cells, storage cells, solar power, etc.

Scope 3

FY2022 Environmental Goals
and Results
Goals

2

Promoting SDGs/environmental
activities

6,000 points

10,070 points○

3

Reductions in environmental
impact generated by businessvehicles: Introduction of low
emission vehicles

25 vehicles

54 vehicles○

4

Reductions in environmental
impact generated by companywide energy consumption inaccordance with regulations on
individual businesses under theamended Act on the Rational
Use of Energy

Improvements incompanywide energy
consumption efficiency(1% improvementin average efficiency
over FY2018–FY2022
five-year period)

2.6% up in average
efficiency over
FY2018–FY2022
five-year period

×

Enhanced hydrogen applications

Scope
2

Items

• Use of credits from planting business, use of non-fossil fuel certificates and J-Credits• Fuel transition from heavy oil to LPG, LNG, etc.

Emissions
reductionsat customer
facilities andin customer
activities

We set environmental goals every year as part of our EMS. In FY2022, we achieved three of four goals, the exception being “Reductions inenvironmental impact generated by companywide energy consumption in accordance with regulations on individual businesses under theamended Act on the Rational Use of Energy.”2050• Decarbonization and greening of LPG, etc.

Scope
1

Iwatani R&D Center/Iwatani Advanced
Hydrogen Technology Center
Unit Manager & Environment
Promotion Manager• To raise employee awareness of environmental issues, in addition to the environmental
training held at the beginning of each fiscal year, we provide environmental training aspart of the training for newly hired employees and managers and in e-learning programs.
• No violations of environmental laws and regulations occurred in FY2022 (including
the Waste Management and Public Cleansing Act, the Act on the Rational Use of Energy, and the Poisonous and Deleterious Substances Control Act• Internal environmental audits were performed twice in FY2022 (in September 2022
and February 2023. We also underwent periodic review by the High Pressure Gas
Safety Institute of Japan in October 2022; our operational status was rated “fine.”

50% reduction
Scope 2140 thousand tons

Internal
Environmental
Auditors• Eco-friendly PET resins, green titanium, etc.

Building
large-scale
supplystructures

Liquidhydrogen
supply1

Promoting activities torealize a sustainable
society① Business expansion to realize a hydrogen energy-based society② Expanding the development and promotion of decarbonization
solutions③ Enhancing efforts to achieve a resource-circulating society

2

Promoting reductionsin the Iwatani Group’s
CO2 emissions① Promoting decarbonization initiatives② Promoting logistics efficiency improvements and decarbonization③ Reducing our environmental impact through use of digital technologies and business efficiency improvements

3

Thorough compliance① Complying with environmental laws and regulations

Achievement: ○=100% achieved; △= 60% or more achieved; ×= less than 60% achieved

55

56

Supply Chain Management and Human Rights

Safety and Security Initiatives

Supply Chain Management and Human Rights

Safety and Security Initiatives

Businesses today face growing demand to fulfill their social responsibilities—not just in their own activities, but throughout the supply chain,including suppliers. In response, Iwatani is enhancing risk management, including respect for human rights, across the entire supply chain,to build more sustainable supply chains.

As an enterprise engaged in business along the axes of gas and energy, Iwatani recognizes the importance of safe supply of LPG andindustrial gases to customers, ensuring that they can use them with peace of mind. We consider safety itself to be the core of our business
operations, and we focus on safety initiatives accordingly. In addition to making appropriate revisions to standards targeting safer, more
efficient safety management, we support safe business activities by ensuring the efficacy of safety measures through emergency response
drills, internal audits and guidance on improvement measures at plants.

Supply Chain Management
Based on our corporate philosophy—become a person needed by society, as those needed by society can prosper—we provide a wide
range of products and services for everyday life and for industry, including energy, industrial gases, and materials. To remain a company
needed by society, we will communicate the Iwatani Group Supply Chain Conduct Policy to our suppliers and to other business partners,
thereby establishing and maintaining sustainable supply chains.

Iwatani Group Supply Chain Conduct Policy
1. Respect for Human Rights
We act at all times based on a profound respect for human rights, and make every effort to avoid inhumane practices such as discrimination,harassment, abuse, and child labor.
2. Respect for the Rights of Employees to Organize and Engage in Collective Bargaining
We respect the rights of our employees to organize and engage in collective bargaining.
3. Preventing Forced Labor and Unfair Wages
We do not tolerate practices involving forced labor, and act to comply with statutory minimum wage standards and to prevent unfair wage practices.
4. Ensuring Occupational Health and Safety
We provide safe, sanitary, and healthy working environments that help maintain the physical and mental health of our employees. We prepare anddisseminate emergency plans for disasters, accidents, and other emergencies.
5. Environmental Conservation
We strive to achieve harmony with the natural environment and to safeguard against environmental issues through efforts that address climate change,
biodiversity, and other environmental issues.
6. Legal and Regulatory Compliance, Fair Trade, and Anti-corruption
We comply with the letter and spirit of all applicable domestic and foreign laws and standards, seek to uphold fair trade practices, and seek to avoid
and safeguard against corrupt practices.
7. Improving the Quality, Safety, and Reliability of Products and Services
We work ceaselessly to improve the quality, safety, and reliability of our products and services.
8. Information Disclosure
We are committed to disclosing information regarding all of the above topics in a timely and appropriate manner.

The Group’s Own Integrated High-pressure Gas
Safety Management Standards

Based on the safety technologies and expertise accumulated
over the years in the LPG business, we have established ourown integrated high-pressure gas safety management standards(Iwatani Safety Spec., or ISS), which we use to strengthen safety
operations. The ISS standards are considered implementation
rules under the Safety Rules for High-Pressure Gas established in
1966, systematically describing all related safety details. Throughrepeated revisions based on the knowledge and expertise attainedin activities such as gas production and transport, we will contributeto the growth of the LPG and industrial gas businesses based on
the Group’s own standards.

Gas transport and delivery instruction basedon ISS
Preparing safety management standards

Gas Distribution Emergency Response Network
As one practical measure under these management standards, weare developing an emergency response network to enable rapid
response to emergencies, including accidents and other problems
that may arise during the transport of gases such as LPG and liquidhydrogen. We maintain safe transport systems through measures
based on the ISS standards, including truck evacuation locations,setting up mobilization structures reflecting the initial responsemanual, and periodic on-site drills.
Emergency response drill for a tanker truck
accident

Human Rights
Iwatani Code of Corporate Ethics calls for all “to respect human rights, and refrain from any form of discrimination and harassment.” We arefocusing on enhancing programs and training to develop an environment in which each and every employee can work in confidence while
demonstrating their individual abilities to the fullest. Based on our support for international human rights standards, we have also establishedthe Iwatani Group Human Rights Policy to promote human rights initiatives both within the Iwatani Group and externally.

Iwatani Group Human Rights Policy
1. Scope
This policy applies to all officers and employees of the Iwatani Group. Additionally, we strive to ensure that all business partners and other stakeholders
understand and comply with this policy.
2. Support and Respect for International Agreement on Human Rights
We support various human rights declarations and guidelines, including the United Nations International Bill of Human Rights and the International
Labour Organization’s Declaration on Fundamental Principles and Rights at Work. We are committed to pursuing our business activities in strict
accordance with the UN Guiding Principles on Business and Human Rights.
3. Human Rights Due DiligenceThrough due diligence efforts to monitor human rights issues, we strive to identify, prevent, and mitigate any negative human rights impacts of the
Iwatani Group’s operations.
4. Correction and Remediation
Should our business activities have or contribute to negative impacts on human rights, we will fulfill our responsibility to take appropriate corrective
and remedial steps.
5. Dialogue and Discussion
Through the initiatives based on this policy, we will pursue and seek to maintain an attentive two-way dialogue with all stakeholders.
6. Training and Education
We will provide the training and education needed to ensure that officers and employees understand this policy and to ensure that this policy takes
firm root within the company.
7. Information Disclosure
We will disclose appropriate information on our human rights initiatives based on this policy on our website and elsewhere.

Developing an Integrated Safety Management Structure Using Digital Technologies
To improve safety, we are seeking to develop an integrated safety management structure by 2030. We will build a structure that ensuressafer, more stable supply of gas to customers by totaling and analyzing data concerning safety and operations from across the Group.
Drawing on our safety systems, we will develop data on and systematize advanced safety management technologies built up throughactivities such as gas production and transport and pass them along to future generations.

High-pressure gas issues in the field

Measures

Increasingly severe disasters

Using high-performance cameras to immediately check and respond to damage

Shortage of human resources

Saving labor in facility operations by digitalizing paper forms

Aging facilities

Automated scheduling of facility updates through digitalization of machinery records

Using cameras to check on the state of damage throughthe safety system

57

Plant facility inspection using tablets

Using a computer system to manage all plant facilities

58

Health and Productivity Management and Occupational Health and Safety

ESG Data

Health and Productivity Management andOccupational Health and Safety

ESG Data

We regard our human resources to be the source of value creation through business growth and implementation of strategies. As such,
Iwatani identifies HR strategies* in the non-financial strategies of the PLAN27 medium-term management plan. To maintain and improve
the health of employees—an essential part of making the most of our human resources—we focus on ensuring safe working environments
and helping employees stay in good health, from a health and productivity management point of view.

Environment
Material balance (Iwatani Group*1)* See Non-financial Strategies – Human Resource Strategy, p. 31.

InputsHealth and Productivity Management Declaration
In 2022, we announced our Health and Productivity Management Declaration to demonstrate our stance on health and productivity
management initiatives to our stakeholders. We will continue to promote initiatives to protect the safety and health of our employees andtheir families based on the following declaration.

Health and Productivity Management Declaration
Since its founding in 1930, Iwatani Corporation has done business in line with its corporate
philosophy: “Become a person needed by society, as those needed by society can prosper.”As always, our goal is to achieve sustained growth and strengthen corporate value by meeting
key needs in our society.
To achieve these goals, it is essential that our all employees have the mental and physical wellbeing. Based on the conviction that our employees are our most important asset, we strive tocreate safe working environments and promote the health of our employees and their families.
We remain committed to creating new value and contributing to society by making it possible
for all our employees to do their best in healthy and harmonious workplaces.

Stress checks andmental health initiatives

Reducing long
working hours
Promoting club activities
and participation in
sporting events
59

To maintain employee health and to enrich their work/life balance, we have introduced noovertime days and a system that shuts down computers automatically as a tool for controlling
working hours. We check on long hours through interviews in cooperation with industrial
physicians as part of our efforts to maintain employee mental and physical health.
We support employee health and stimulate interactions among employees by supporting theactivities of internal recreational clubs. We also contribute to community health promotion eventsand sponsoring athletic events, including the Osaka Marathon and the Princess Ekiden, thequalifying long-distance relay race for the All Japan Industrial Teams Women’s Ekiden.

FY2021

FY2022

344,793

336,325

Recycled (paper) (t)* *

186

156

171

11,875

17,197

Industrial waste (t)*1

5,808

5,722

11,024

LPG

151,709

153,305

140,036

Wastewater (thousand m3)*1*2

903 (88%)

City gas/LNG

89,01054,23558,809Diesel206,471

175,902174,239

Gasoline

150,439

147,307

143,405

Kerosene

12,36913,797

13,359Bunker A

6,056

8,868

8,009

Fuels (GJ)

Paper (t)*2

251 (95 %)

232 (96 %)

224 (98%)

Water (thousand m3)*2

954 (95 %)

1,001 (96 %)1,007 (90 %)*1 Totals include domestic consolidated subsidiaries and two equity-method affiliates using large volumesof energy in addition to domestic Iwatani Corporation business sites.
*2 Where estimates are included, the percentage of announced figures consisting of actual measurements
are indicated in parentheses.
*3 Recycled paper volumes include paper resources other than those for business use, including newspapers, magazines, and wrapping paper.
*4 CO2 emissions from electricity use, included in Scope 2 figures for FY2020, are calculated on a locationbasis, while those for FY2021 and FY2022 are calculated on a market basis.
*5 Totals include overseas consolidated subsidiaries and representative offices.

Society
Iwatani Corporation (nonconsolidated)
Male
Employees

Averageannual salary(¥ thousand)New-graduate
hires

Based on the perspectives of stress management and mental health, we conduct annual stresschecks. These are followed by population analysis to contribute to workplace environmental
improvements, in cooperation with industrial physicians. Other initiatives intended to prevent
mental health issues include setting up an external hotline and raising awareness throughvarious opportunities, including training for new employees and tiered training.

FY202011,858

Midcareer hires

Average years ofcontinuing
service

Turnover rate*6(%)

FY2020

FY2021951

FY2022953

960

Female

355

366

391

Women (%)

27.2

27.7

28.9

Male

565

575

639

Female

38

40

41

6.3

6.5

6.0

39.3

39.6

39.7

Male

10,241

10,32910,952

Female

5,523

5,542

5,466

Total

8,959

9,001

9,413

Male

42

35

37

Female1 3

Outputs

In JapanCO2 emissions (t)Overseas845 (95%)

887 (95%)

Scope 1*1

81,57085,20885,935

Scope 2*1*4

132,928

151,247

141,976

Scope 1*5−−

37,686

Scope 2−−

121,454*5

Scope 3 CO2 emissions

FY2020

FY2021

FY2022

Total of the following categories (t)8,559,372

8,846,895

10,764,421

Category 1

Purchased goods and services

2,936,522

3,181,419

4,233,523

Category 2

Capital goods

20,42825,324

71,139Category 3

Fuel- and energy-related activities notincluded in Scope 1 or Scope 2－－

44,090Category 4

Upstream transportation and distribution－－

57,073Category 5

Waste generated in operations

16,242

15,98830,837

Category 6

Business travel

1,321

1,325

1,480

Category 7

Employee commuting

4,738

4,734

5,309

Category 8

Upstream leased assets

－

－

－

Category 9

Downstream transportation and distribution

－

－

－

Category 10

Processing of sold products

－

－

－

Category 11

Use of sold products

5,465,635

5,492,873

6,197,114

Category 12

End-of-life treatment of sold products

－

－

－

Category 13

Downstream leased assets

386

353

327

Category 14

Franchises

－

－

－

Category 15

Investments

114,099

124,878

123,529

Underlined figures have been independently certified by SOCOTEC Certification Japan K.K.
* Category 4 emissions are based on the specified-shipper calculation scope and method under the calculation, reporting,and publication system.
* Category 8 emissions are omitted from the calculations because emissions from use of leased assets are calculated
under Scopes 1 and 2.
* Category 9 emissions are omitted from the calculations due to the difficulty of ascertaining actual conditions because of
the diversity of shipping and delivery operations.
* Category 10 emissions are omitted from the calculations due to the difficulty of ascertaining actual conditions becauseof the diversity of subject products.
* Category 12 emissions are omitted from the calculations due to the difficulty of ascertaining actual conditions becauseof the diversity of subject products.
* Category 14 emissions are omitted from the calculations due to the lack of subject activities.

42

28

33

50.0

44.4

47.1

Male

2

3

8

Female4

03Women (%)

66.7

0.0

27.3

Male

16.9

17.2

17.0

Female

11.8

11.8

11.7

Members of the Board

12

12

12

Total

15.5

15.7

15.5

Outside Members of the Board

2

3

4

Male

1.7

2.3

3.2

Independent Members of the Board (included in above)

2

3

4

Female

7.3

4.4

6.4

Outside Members of the Board (%)

16.7

25.0

33.3

Women (%)

Measures to support
the health of employees
and their families

Material balance (Iwatani Group)

305,406

Women (%)

To support employee health management, we provide annual health checkups for employees
34 and younger and annual comprehensive medical checkups for those 35 and older. We also
provide guidance by industrial physicians and health management staff based on the resultsof these checkups to encourage health management by individual employees. In addition, we
support the health of employees’ families through a subsidy program for health checkups for
dependents aged 35 and older, as well as health checkups for dependents 40 and older, with a
special focus on metabolic syndrome.

FY2022

Steam (Gj)

Average age (years)

Specific Initiatives

FY2021

Electricity (thousand kWh)Managers

President

FY2020Total
Average overtime hours per month

Governance
Iwatani Corporation (nonconsolidated)

FY2020

FY2021

FY2022

3.2

2.9

4.1

Board of Directors meetings

16

16

15

11.3

12.7

13.7

Member of he Board attendance rate (%)

97.9

99.0

99.4

Male

3.2

13.0

30.6

Audit and Supervisory Board members

4

4

4

Female

100.0

100.0

83.3

Outside Audit and Supervisory Board members

2

2

2

Percentage taking annual paid leaves*7

54.6

52.1

48.8

2

2

2

Percentage of employees with disabilities

2.17

2.26

2.78

Independent Audit and Supervisory Board members(included in above)

0

0

0

Audit and Supervisory Board meetings

13

13

13

100.0

78.8

100.0

Percentage taking
childcare leave

Occupational illnesses or injuries (fatalities in parentheses)
Fatalities due to occupational illness or injury

Average attendance rate in Audit and Supervisory
Board meetings (%)

0

0

0

Training participants

252

388

456

Members of Nomination and Compensation Committee

−

5

6

Training hours/person

11

12

13

72,201

117,013116,227

Members of Nomination and Compensation Committee
who are Outside Members of the Board

−

3

4

Nomination and Compensation Committee meetings

−

3

1

Average attendance rate in Nomination andCompensation Committee meetings (%)

−

100.0

100.0

Training costs (¥ thousand)*6 Includes only employees who resigned for personal reasons.
*7 While figures for the years through FY2021 were calculated including five days of summer vacation, due
to a change in the definition used in calculations, those for FY2022 and later do not include the days ofsummer vacation. (Calculation using the definition used until FY2021: 56.8%)

60

Social Contribution Activities

Social Contribution Activities

Athletics Club

Through its support for cultural activities, research and development, international exchange, and technological aid, Iwatani contributes tosociety.

Joint Efforts with the Activities of the NHK Symphony Orchestra

Support for the Japan Chamber Music Foundation

Iwatani has worked with the NHK Symphony Orchestra, which performs
around the world, as a special supporting corporate member since1987. This reflects our support for the Orchestra’s stated purpose, “Toaugment Japan’s music
and artistic standards
through symphonic music performances and toachieve its social and cultural mission.” We help
provide communities with
opportunities to experience classical music bysponsoring the NHK Symphony Orchestra summer
concert series every year.

Iwatani supports the Japan Chamber Music Foundation, established
to communicate the wonders of chamber music to Japan and theworld. We support activities including the Osaka International
Chamber Music Competition, in which groups of young musiciansfrom around the world compete, and the Osaka International
Chamber Music Festa, which is freed from the classical musiconly genre constraint by allowing folk music and other genres fromaround the world.

A Comfortable Planet - All Japan Elementary
School Essay Contest

Improving and Promoting Welding Skills in Asia

Iwatani is a special supporting corporate member of the
NHK Symphony Orchestra.

Iwatani has sponsored the All Japan Elementary School Essay
Contest since 2010, reflecting our corporate slogan: Creation of amore comfortable space on the Earth is what Iwatani wishes andstrives for. The contest is open to elementary school children fromacross Japan. In 2022,
its 13th year, the contest
attracted 6,502 entries
from 727 schools. We willcontinue helping to raise
the level of children’sinterest in energy and theenvironment through thiscontest.

Established in April 2017, the Iwatani Athletics Club welcomed head coach Hisakazu Hirose, who has trained numerous long-distancerunners over the years. In January 2019, we welcomed Athens Olympic gold medalist Mizuki Noguchi as a Club advisor. In 2022, the Club
took 7th place in the Princess Ekiden, the qualifying long-distance relay race for the All Japan Industrial Teams Women’s Ekiden (Queen’s
Ekiden) for the second consecutive year. Team member Ayano Shiomi won the 800 m event, while Madoka Nakano took the fifth place in the
10,000 m event, in the Japan Association of Athletics Federations (JAAF) Athletics Championships. Ayano Shiomi was selected to represent
Japan at the Asian Athletics Championships in 2023. Based on its cornerstone interests in contributing to society and communities throughathletic activity and training efforts for some of Japan’s leading athletes, the Club is working hard to achieve its goal of first place in the All
Japan Industrial Teams Women’s Ekiden.

©Getsuriku

Sponsoring the Music Competition of JapanThe Music Competition of Japan is the music competition with thelongest history in Japan. It was launched in 1932 with the aimsof encouraging highly talented musicians and raising the level ofJapan’s music scene. We have supported this competition since2011 due to its social, educational, and artistic importance.

Iwatani supports various efforts to improve welding skills in Asia,
including the Dalian City - Iwatani Japan-China Welding Technology
Seminar and Contest, held for ten years starting in 1997; the Iwatani
Welding Seminars held in Hanoi, Jakarta, and other locations
since 2007; and the Iwatani-API/IWS Welding Contest held jointlywith the Indonesian
Welding Society (IWS) in
suburban Jakarta from2016 through 2019.
We remain committed
to supporting improved
welding skills in Asian
nations through these
activities.
The Iwatani-API/IWS Welding Contest prize-giving ceremony

Technology Promotion through the Iwatani Naoji Foundation
The Iwatani Naoji Foundation

Sponsoring the Japan International Birdman Rally

Hydrogen Awareness-Raising Activities

Since 2010, as a program to commemorate our 80th anniversary,
we have sponsored the Japan International Birdman Rally, acontest to see whichhuman-powered aircraft
can fly the farthest. We
support this contest as
its concept coincides
with our business goalof realizing a cleanenergy society.

Our responsibilities include pioneering the future and passing ontechnologies for a new era to the next generation. Through courses about hydrogen energy held across Japanand experimentation using water electrolysis
and miniature fuel-cellvehicles, we give children opportunities to experience clean hydrogenenergy.

©ytv

The Support Team for Your Community Helps Keep Communities Safe
Members of the Marui-Kai, an organization of LPG distributors
belonging to Iwatani’s nationwide LPG network, draw on theirindividual sales and distribution networks to carry out activities
under the Anata-no Machi-no Sapototai (Support Team for Your
Community) banner and to help keep their communities safe andsecure. These activities include participation in programs such as
the Ugoku Kodomo 110-Ban (Mobile Emergency Call Center forKids) and Kodomo 110-Ban no Mise (Store Acting as Emergency
Call Center for Kids) initiatives. Their goal is to contribute to thecommunity by reporting and assisting lost children and exchanging
greetings and communication with members of the community
while engaging in LPG delivery and everyday business operations.

With the goal of improving the lives of the public and promoting international mutual understanding through sustained progress in scienceand technology, the Iwatani Naoji Foundation encourages and provides subsidies for research and development, supports international
exchange, and undertakes human resource development activities.

61

Iwatani Subsidies for Science and Technology Research; Iwatani Naoji
Commemorative Award; Iwatani Scholarship for International Students

Relief Fund Aids Disaster-Affected Areas

The Iwatani Subsidies for Science and Technology Research provide research grants of up to
2 million yen per project for outstanding research projects involving energy and the environment.
In FY2022, this program awarded a total of 142.11 million yen to 72 projects. The cumulative
total through FY2022 was 2,191.47 million yen, awarded to 1,094 recipients. The Iwatani Naoji
Commemorative Award honors outstanding achievements in research and development on energy
and the environment. This award consists of a commemorative certificate, a medal, and an additional
prize of 5 million yen. Through now, it has presented a total of 110 million yen to 47 winners.
The Iwatani Scholarship for International Students, a program providing financial support to selffinanced graduate students from East Asia and Southeast Asia enrolled in programs in the naturalsciences, awarded a scholarship of 1.8 million yen per year to each of 14 students. To date, thisprogram has provided 498 students with a cumulative total of 947.04 million yen in scholarships.

In 2009, Iwatani and Saudi Arabia’s national oil company Saudi
Aramco established the Saudi Aramco-Iwatani Emergency LP
Gas Relief Program, which provides free portable gas stovesand cassette gas canisters to locations affected by major natural
disasters, as relief supplies. This fund has been mobilized eighttimes through now, in response to disasters such as the Great
East Japan Earthquake and damage caused by the August 2021
typhoons, when Iwatani delivered portable gas stoves, cassette gas
canisters, and Natural Mineral Water from Mt. Fuji in response torequests from local governments in the affected areas.

Recipients of the 49th Iwatani Subsidies for Science andTechnology Research

Relief supplies for areas affectedby the July 2020 torrential downpours

Relief supplies for areas affectedby the August 2021 typhoons

62

Financial Highlights

Company Data
FY2022*1

Company Overview

Million yen

Name

FY2018FY2019FY2020*1

FY2021*1

Net sales

715,085

686,771562,223

690,392

906,261

Gross profit

170,613

176,259

176,244

191,762

212,925

Operating profit

26,45628,72829,35240,07640,035

Ordinary profit

29,95232,27034,152

46,413

Profit before income taxes

29,43832,19734,755

Profit attributable to owners of parent

19,221

20,994Comprehensive income

15,955Investments*2

Fiscal year

February 2, 1945

Established

Head offices

Osaka Head Office 6-4, Hommachi 3-chome, Chuo-ku, Osaka 541-0053, Japan Tel: 81-6-7637-3131
Tokyo Head Office 21-8, Nishi-Shimbashi 3-chome, Minato-ku, Tokyo 105-8458, Japan Tel: 81-3-5405-5711

47,011

Paid-in capital

35,096 million yen

45,94347,322Business sites

50 (45 in Japan, five overseas)

23,03029,96432,022

Employees

20,78035,45031,491

38,002

33,232

34,63933,77740,03070,008Depreciation*3

17,09818,394

19,27822,986

26,492R&D expenses

2,428

2,494

2,261

1,917

2,056

Cash flow from operating activities

39,11740,264

48,77913,075

Cash flow from investing activities(23,693)(30,885)(28,831)(31,939)

Cash flow from financing activities(13,614)(3,587)(7,052)

8,038

Head offices: two; block branches, branches: 43
Research and other facilities: Iwatani R&D Center, Iwatani Advanced Hydrogen Technology Center, Biwako
Conference Center, Shiga Training Center

51,471

Overseas network

Five representative offices, three holding companies, 26 trading-company subsidiaries, 38 operating companies(60,286)

Consolidated subsidiaries

106 companies

11,032

Website469,715

512,015

558,479

656,003

Fixed assets

259,768

265,942289,905

299,008352,814

Interest-bearing debt

126,359

126,577

96,161

111,160

139,454

Net interest-bearing debt

106,411

101,052

57,37981,184

105,723

Net assets

173,986

191,152

253,586

280,307312,230

Yen

Per-share data*4

390.62426.63428.36520.98556.693,361.91

3,703.65

4,245.33

4,696.56

5,249.53

65

95*5

75

85

95

Cash dividend applicable to the period
Ratioshttps://www.iwatani.co.jp/eng/

Share information

3.7

4.2

5.2

5.8

Total shares issued
and outstanding

Shares listed on

Prime Market, Tokyo Stock Exchange

Shareholders’ registry
management agent

Mitsubishi UFJ Trust and Banking Corporation

57,579,463 shares(excluding 982,186 shares of treasury stock)Total shares issued and outstanding (excluding treasury stock)

57,579,463 shares

Distribution ofshares byshareholder type

Financial
institutions
30.7%

Individuals andothers24.4%

Foreign corporations
and others
22.7%

Shareholder%

Operating profit to net sales

11,351

Domestic network

457,603

Shareholders’ equity

Consolidated employees

March 31

Total assets

Profit attributable to owners of parent

1,351

Fiscal year ends

Million yen

End of fiscal year

Other
corporations
21.1%

Securities
firms
1.1%

Shares held
(thousand)

Percentage ofshares held*1

4.4

The Master Trust Bank of Japan, Ltd. (Trust Account)

6,953

12.08

4,132

7.18

ROE

12.0

12.1

10.8

11.7

11.2

The Iwatani Naoji Foundation

ROA

6.6

7.0

7.0

8.7

7.7

Custody Bank of Japan, Ltd. (Trust Account)

2,527

4.39

46.0

Government of Norway

2,186

3.80

MUFG Bank, Ltd.

1,336

2.32

Resona Bank, Ltd.

1,177

2.05

1,000

1.74

Iwatanisangyou Senyukai

933

1.62

Nippon Life Insurance Company

898

1.56

Iwatani Enyukai

786

1.37

38.8

47.7

48.4

*1: The Accounting Standard for Revenue Recognition and other accounting standards have been applied since FY2021. Figures shown for FY2020 have been restated throughthe retroactive application of these accounting standards.
*2: Figures through FY2020 include property, plant and equipment, intangible assets (excluding goodwill), and investment securities. Figures since FY2021 include property, plantand equipment, intangible assets (including goodwill), and investment securities. *3: Figures since FY2021 include amortization of goodwill.
*4: Figures provided under per-share data reflect the effects of the reverse stock split (5:1) implemented in October 2017. *5: Includes commemorative dividend of ¥20.

Operating profit (¥ million)

600,000

300,000

(FY)

0

’18

’19

’20

’21

’22

Total assets (¥ million)

Profit attributable to owners of parent (¥ million)

40,00040,00030,00030,00020,00020,00010,00010,000

(FY)

0

’18

’19

’20

’21

’22

Shareholders’ equity (¥ million)

800,000

(FY)

0

*3

’18

’19

’20

’21

14.0

300,000

10.0
8.0

200,000

200,000

100,000

0

0

ROA

6.0
2.0

(FY end)

’18

’19

’20

’21

’22

(FY end)

’18

’19

’20

’21

’22

(FY)

7,000
6,000
5,000
4,000
12,000
9,000
6,000
3,000

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

2022

4.0
0

8,000

Share trends(January 2022‒September 2023)

ROE

12.0

400,000’22

Change in ROE and ROA (%)

400,000

600,000*2

Share price (¥)

900,000

Tetsu Iwatani Co., Ltd.

Trading volume

Net sales (¥ million)

Major
shareholders(thousand shares)

36.1

Equity ratio

63(As of March 31, 2023)

’18

’19

’20

’21

’22

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sept.

0

2023

*1: Shareholding ratios are calculated excluding treasury stock (982,186 shares).
*2: Iwatanisangyou Senyukai is Iwatani’s employee stock ownership program.
*3: Iwatani Enyukai is a stock ownership program for companies engaged in long-term transaction relationships with Iwatani.

64

Osaka Head Office 6-4, Hommachi 3-chome, Chuo-ku, Osaka 541-0053, Japan
TEL:81-6-7637-3131
Tokyo Head Office 21-8, Nishi-shimbashi 3-chome, Minato-ku, Tokyo 105-8458, Japan TEL:81-3-5405-5711

This product is made of material fromwell-managed FSC ® -certified forests,
recycled materials, and other controlled
sources.
Published in October 2023

This repor t is printed using waterlessp r i n t i n g w i t h l i m i t e d e f fl u e n t a n d
consumption of hazardous substances.

This report is printed with inks
containing no volatile organic
compounds (VOC).