Copyright © Iwatani Corporation. All rights reserved.

<8088>

（Update：May 21, 2021）

The Iwatani StoryIwatani Corporation

（LPG Tanker： GALAXY RIVER）

1

Corporate Profile

Become a person needed by society,

as those needed by society can prosper.

Established : May 5, 1930

Paid-in Capital : 35,096 million yen

Consolidated Net Sales : 635.5 billion yen (March 31, 2021)

Affiliated companies : 230 (Consolidated 101) (March 31, 2021)

Number of Employees : 10,130(Consolidated) (March 31,2021)

Corporate Philosophy

Iwatani Group

2

Our Business

Operating Income【Consolidated】

29.9Billion yen （FY 2020）

Net Sales【Consolidated】

635.5Billion yen （FY 2020）

Energy

46.6%

Industrial Gases& Machinery

27.5%

Materials

21.5%

Agri-Bio &Foods

3.8%

Agri-Bio & Foods

2.5%

Others

0.6%

Note） Others and adjustments are excluded.

Energy

52.7%

Industrial Gases& Machinery

30.3%

Materials

14.5%

・LPG ・Electric power sales and city gas safety service ・Gas equipment and lifestyle products

・Portable gas cooking stoves and cassette gas canisters

・Industrial gasses ・Gas facilities and industrial machinery

・Functional plastic products ・Resources and advanced materials・Metals ・Electronic Materials

・Frozen foods ・Equipment for Agriculture・Seed pigs and equipment for livestock

Core business “Gas & Energy”

Energy Division

Industrial Gases & Machinery Division

Materials Division

Agri-Bio & Foods Division

3

B to C Customer base B to B Customer base

Gas＆Energy

Company History

Agri-Bio & Foods

MaterialsEnergy Industrial Gases & Machinery

2017Entered city gas retail market

2016Entered retail power business

2014Began importing LPG from U.S.A.

1981Began importing LPG from Saudi Arabia

1969Commenced sales of “Cassette-Feu” portable cooking stove

1953Commenced sales of Marui Propane

1988Established Iwatani Agrigreen Co., Ltd.Strengthened Agri-Bio business

1974Began selling frozen foods

2014Opened Japan’s first commercial hydrogen station Iwatani HydrogenStation in Amagasaki, Hyogo

2013Began importing helium from Qatar1978Japan’s first industrial liquefied hydrogen manufacturing plant completed

1975Cold Air Products Ltd. establishedEntered field of industrial gas production

1958Osaka Hydrogen Industries Ltd. (now Iwatani Industrial Gases Corp.) established and full-fledged hydrogen business commenced

2020Launched JV company “R PLUS JAPAN Ltd,”to develop recycling used plastics.

2010Commenced Bio based PET resins

1997Acquired Doral Mineral Industries Ltd. (Australia)

1953Commenced handling of gas pipes, joints, valves and other metal products, and rutile sand (covering) and other raw materials

1952Commenced handling of synthetic resins

1945 Iwatani Corporation established

1941 Commenced handling of hydrogen

1930 Naoji Iwatani Shoten established; commenced sales of oxygen, carbide and welding rods

- Utilized LN2 to enter frozen food business

- Began Livestock business with providing LPG for heating Poultry houses

⇒Developing into pig breeding business

- Began supplying raw materials to customer plants purchasing industrial gases from Iwatani

2019Entered Hydrogen station business in the U.S.

1960Began selling brooder used for henhouses

1982Established Iwatani Camborough Co., Ltd. (Signed contract with PIC)Strengthened Livestock business

2012Commencedsmartphone related parts

4

64

33

5470

96

117 120

171

82

134

155

195

174192

127

215

268294

299

322

344

365

△42△17

2731

41

23

55 52

25

55 61

105

80

104

61

123

165 175192

209

232243

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

VD2002 PLAN05 PLAN08 PLAN12 PLAN15 PLAN18

(Forecast)

Net Ordinary Profit (100 million yen)

Profit attributable to owners of parent (100 million yen)

Profitability is constantly increasing.

Progress in Profitability

PLAN20

5

1,988 1,933

1,869 1,856 1,865 1,870

1,793 1,791 1,717

1,589 1,661

1,593

1,513

1,610

1,417 1,365

1,352

1,320 1,263 1,265

961

419 392 404 448

480

562 599 602

541 609 633

711

831

967

1,090 1,147

1,344

1,544

1,654

1,822

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2,424

4.10

4.41 4.16

3.60 3.41

2.95 2.71

2.66

2.79

2.29

2.30 1.96

1.64

1.44

1.09 0.98 0.84

0.73 0.64

0.55 0.23

（At year’s end）

VD2002 PLAN05 PLAN08 PLAN12 PLAN15 PLAN18

As financial standing improves, Net DER has been reduced to 0.23.

Progress in Financial Standing

Net Debt Equity Ratio

Interest-bearing Debt (100 million yen)

Equity (100 million yen)

PLAN20

6

109 107 105 99 101 97 108 115119

114 123 127 123 132 133 145162 163 170

183192

205

87

164

82

156

129118

132 142 129132 132

149

181155

188

248

333

262

332346 337

440

120

185

135

158199 175

254

207

332

277

144

314

244

226

430

361372

285

391

402

487

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Depreciation cost InvestmentOperating CF（100 million yen）

(Forecast)

*~2014; Figures for capital expenditure and depreciation expenses cover only property, plant, and equipment. 2015~; Figures for capital expenditure totalize fixed assets, intangible assets (goodwill excluded), and investments in securities.

Progress in investment

Positively making investment with growth strategy

7

3015 15 15 20 25 25 25 25 25 30 35 35 35 35 40 40

5565

75 75 7515

20

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

※2

※1 Payout ratio and Dividend per share (2000 to 2016) is calculated based on the consolidation of shares (5 shares → 1 share) on October 1, 2017.

※2 Including commemorative dividend: 15 yen (Before stock consolidation :3 yen) ※3 Including commemorative dividend: 20 yen

Returns to Shareholders

Dividendpolicy

・ Paying continuous and stable dividends

・ Returning our profits appropriately in consideration for our performance

and business situation

October, 2017

Stock consolidation

5 shares → 1 share

Dividend per share (yen) ※1

Payout ratio (%)

(Forecast)

27.6%24.2% 25.2%

58.5%

22.7% 23.9%

48.8%

36.0%

23.8%

16.2%

21.3%

16.5%

27.8%

15.9%11.9%

15.4%16.6%

22.3%

17.4% 17.8%

※3

8

LPG

(household)

45%

LPG

(Industrial)

8%

LPG

(Oversea)

8%

Petroleum-

related

9%

Cartridge Gas

products

7%

Gas

equipment,

etc.

23%

Energy Division (Overview)

Energy Division

Net sales

296.1billion yen

（FY 2020）

Energy equipment

Gas stove Ene-Farm

Drinking water delivery

“Fuji no Yusui” water

Net sales component ratio

Petroleum-related

・LNG・Kerosin・Gasoline

LPG

Import LPG～Home delivery

Cartridge Gas products

Cassette gas canister

Portable gas cooking stove

9

(*1) Source: Sangyouhoudoushuppan.Co.,Ltd.(2020)Agency for Natural Resources and Energy (2020)

City gas*2

30.99m

All electric*3

6.83m

LPG *1

24.18m

(*3) Source: FUJI KEIZAI CO., LTD. (2018)

Energy Division (LPG Business Overview)

(*2) Source: Agency for Natural Resources and Energy (2020)

(*4) Source: Ministry of Economy, Trade and Industry (2014)

LPG used by 40% of households《Japan LPG Consumption Household Ratio》

(*4) (*4)

《World LPG Consumption Household Ratio》

U.K. GermanyOther

LPG household customers

24.18million

Nationwide retailers

Iwatani customers

3,200

3.20 million

Non-Marui Distributors ‘ Group

1,800

subsidiary distributors

21*

1,400

Marui distributors’ Group

Direct sales

customers

1.01million

As of March 31, 2021

Iwatani as No. 1 in LPG

Retail Wholesale

Industry Rank

1st／17,170 1st／1,100

Share 4.2％ 13.2

％

Marui Gas household customers

1,010K 3,200K

LPG LPG

City gas City gas

《Iwatani LPG Sales》(UNIT：households)

17,170

Iwatani customers(retailers)

Iwatani customers

(household customers)

95% of Japan by areais covered by LPG supply

10

31.9%

21.1%

11.6%

14.5%

16.0%

5.0%

1～300

301～600

601～1000

1001～2500

2501～4999

Over 5000

19,02418,516

17,805 17,603 17,170

2016 2017 2018 2019 2020

《LPG Industry Structure in Japan》

(1,100)

(17,170)

Wholesalers

Primary Distributors

Retailers

《Retailer Trends》

(6 )Import

Refinery

LPG

Transport

Transport

Necessary distribution rationalization at retail part

《Household LPG Cost Structure》

（Unit: Companies)

(Source: Ministry of Economy, Trade and Industry,

“Retailers and Safety Agencies in Japan”)

(Source: Agency for Natural Resources and Energy)

《Distribution of Retailer Customers》

(Source: Agency for Natural Resources and Energy“FY2018 Petroleum Products Supply and Demand Optimization Survey: Oil Gas Distributor/Retailer Business Conditions Survey Report”)

1-300

301-60053% have 600 or fewer

(UNIT：households)

Wholesalers・transportation・safety management・meters checking・labor cost etc.

Primary distributors

Retailers

（Unit: Companies)

Costly

13%

17%

70%

Energy Division (LPG Business Overview)

11

Increase Direct Customers

35

66 70 72 74 75 76 78 80 81 83 86 88 9099 100

101

1999 2005200620072008200920102011201220132014201520162017201820192020

<Direct Distributors’ Customer Trends>

Household

/Commercial

Wholesale

/Industrial

・Strengthen profitability through retail rationalizationcentering on M&A

Primary Distributors

Integrated Structure from Primary Distribution to retail

Nationwide platformLogistics

Safety management

Sales network

Expand Wholesale Business

・Developing customers base through brand power and high safety levels

General Assembly of the organization for Marui Gas supply chain shops

Import terminal /Primary terminal

４ sites

Secondary

terminal

３ sites

Cylinder Filling station

99 sites

<Iwatani LPG Procurement/Supply System>

Gas-Producing Countries

(Unit: 10,000s)

Energy Division (LPG Business Strategy）

285 sales offices,3,000 salespeople,3,000 vehicles

142 distributioncenters,2,000 people,2,000 vehicles

12

Gas stove Gas detector

Sales/Safety Networks Developed in LPG Business

《Scenario for B to C business expansion》

Expand customer base by Strengthen city gas business

Development of Diverse Life-related Products and Services

Increase sales per customer

Water heater “fujina” cosmetics“Fuji no Yusui” water

Alala Series

Energy Division (B to C Business Strategy)

B to C Businesses

Shareholding Ratio49%

Shareholding Ratio51%

<Direct sales customer base>

LPG : 1,001K households

City gas * : 1,410K householdsElectricity : 30K households

(As of March 31, 2021) *Kinki & Chubu area

Initiative

2

Initiative1

Initiative1

Initiative

2

LPG direct sales customersCity gas and electricity Customers*

Sales

Network

Taking Advantage of Nationwide Platforms

DistributionNetwork

SafetyNetwork

LP

GG

as e

qu

ipm

en

t &

con

su

mer

pro

du

cts

Sale

s per

cust

om

er

customer 1,010,000households

customer 1,440,000households

Sale

s per

cust

om

er

Increase sales per customer

Increase sales per customer

Cit

y g

as s

afe

ty s

erv

ice &

Ele

ctr

icit

y

Expand customer base

Existing New

*Calculated by Iwatani from the announced target numbers of city gas customersobtained by electric power companies

Gas e

qu

ipm

en

t &

con

su

mer

pro

du

cts

Expand customer base

13

Energy Division (B to C Business Strategy)

Initiatives for Iwatani GateWay

14

0

15

30

45

60

200920102011201220132014201520162017201820192020

Cartridge Gas Business

Iwatani Gas Appliances(Zhuhai) Co., Ltd.

Iwatani Cartridge Gas Corporation

・Increase in sale in Japan and China ・Expand business in the U.S. and Southeast Asia

Promote Demand with New Product Development

New Product DevelopmentCapability

High Quality and Brand Power

from Integrated Manufacturing/Sales

MillionsCassette Gas Canister Sales

in China

(Japan)

Portable gas cooking stoves 82％

Cassette Gas canisters 63％

“Yakimaru” Cassette Gas-Type Smokeless Meat Barbeque Grill

＜Recent Products Developed＞

“Tough Maru” Portable cooking stove

(As of March 31, 2021)

Energy Division (Cartridge Gas Business Strategy)

( Sales volume (global) )

portable gas cooking stoves 4,471Kunits

Cassette Gas canisters 134Munits

(As of March 31, 2021)

Expand business in the U.S. and Southeast Asia

15

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

（$/ｔ）

LPG import price (CP)

FY 2020 : Ave. $421/t

FY 2019 : Ave. $450/t

FY 2018 : Ave. $519/t

LPG (Propane)Import price (CP)

<CP: Contract Price>

・Saudi Aramco new price system (CP system) has been applied since October 1994.

・Tends to rise in winter-demand season.

16

Legal stock period: 40 days

３ months

Rising Price Sell inexpensive stockat high price

Profit Rises

Falling Price

Profit Falls

②From LPG import to sale takes

3 monthsPremise

Impact of LPG Import Price

Oil-producing country

Iwatani LPG import terminal End user

Sell expensive stockat low price

*The actual impact on performance varies depending on inventory volume, sales timing (season), sales volume and other factors.

Cost

Selling price

(3 months)

Cost

Selling price

(3 months)

①Wholesale price is based

on LPG Import Price

Wholesale Price LPG Import Price※

※ The price consists of “CP” (from the middle east) and

“MB” (from the U.S).

∝

Short-term impact of market fluctuations(If LPG import price fluctuations return to the original level, the impact is ±0.)*

LPG Import Price Fluctuations

LPG import price

LPG import price

17

73.5%

6.9%

6.1%

4.6%

2.5%2.4%

2.0%

2.0%

Propane & Butane

LPG Varieties:

Propane Ｃ3Ｈ8Primarily residential/commercial

Butane Ｃ4Ｈ10Primarily industrial/automotive

Good Portability

LiquefiedVaporized

Easily liquefied by pressure and cooling;

in volume to 1/250

High Calorie

ＬＰガス 都市ガス

24,000 kcal/m3

11,000 kcal/m3

LPG City Gas

(Source: Japan LP Gas Association)

Total CO2 emissions from production to combustion

Clean

0.89 1.00

1.28

0.85

(Petroleum=1.00)

LPG-related Data

75% Imported; 73% of Imports from U.S.

Source: Japan LP Gas Association (2020)

(FY2019）

(FY2019)

Countries Exporting LPG to Japan

Domestic Production

(Oil Refining)24.2%

Imports75.8%

Qatar

Saudi Arabia

Abu Dhabi

U.S.

Other

Kuwait

LPG Import Ranking

(FY2019)

Top Share in Wholesale/Retail SectorsLPG Wholesaler Ranking

by Annual Sales Volume (FY2019)

Source: Sekiyukagakushimbunsya.(2021)

Rank ImporterVolume(k tons)

Share

1 ENEOS Globe 3,162 29.5%

2 Astomos Energy 2,881 26.9%

3 GYXIS 1,773 16.5%

4 Japan Gas Energy 1,229 11.5%

5 Iwatani 817 7.6%

6 Tokyo Gas 454 4.2%

Rank WholesalerVolume(k tons)

1 Iwatani 1,751

2 ITOCHU ENEX 525

6 Mitsuuroko Vessel 390

9 Nippon Gas 311

12 TOKAI 299

Rank RetailerLPG

Residential Customers

１ Iwatani 1,000,000

２ Nippon Gas 877,000

３ TOKAI 651,682

４ ITOCHU ENEX 551,000

LPG Retailer Ranking

by No. of Direct Customers (FY2019)

LPG Demand by Application (k tons)

Demand Centers on Residential/Commercial and Industrial(Source: Japan LP Gas Association)

FY2015(Actual)

FY2016(Actual)

FY2017(Actual)

FY2018(Actual)

LPG Oil Coal City gas

7,635 7,591 7,723 7,382 7,259

2,839 2,790 2,778 2,686 2,749

821 779 716 636 567

1,339 1,213 1,422 1,360 1,344

1,929 1,730 1,988 1,993 2,133

170 301 182 145 81

Residential/Commercial Industrial

Automotive Citygas

Chemical feed Electric power

14,80915,394 14,733 14,404

FY2019(Actual)

Australia14,132

Source: Sekiyukagakushimbunsya.(2021) Source: Sekiyukagakushimbunsya.(2021)

Canada

18

Nitorogen

21%

Oxygen

6%

Argon

7%Carbon

Dioxide

7%Hydrogen

15%

Helium

20%

Other

gases

24%

Industrial Gases & Machinery

Net sales

174.6billion yen

(FY2020)

Industrialgases

Gas equipmentand others

Weldingequipment

Gas supply facilities

Gas equipment and others

Liquefied gas trucks Welding robots

Sheet-metal welding machines

Semiconductor equipment

Welding materials

H2 70％

Market Share of Specialty Gases

（including LH2）

No.1 in Japan

No.1 in Japan

No.1 in Japan

Overseas sales ratio

25%

Source: Iwatani estimated based onGas Georama in Japan 2021

Net sales of industrial gasesAir

separation Gas

34％

Specialty Gases42％

Industrial gas domestic market share

Air separation gas49%

Specialty gases 13％

Industrial Gases & Machinery Division (Overview)

Source: Gas Georama in Japan 2021

Nitrogen28%

Oxygen12%

Argon9%

Helium4%

Other gases38%

CarbonDioxide

5%Hydrogen

4%

Net sales

98.3billion yen

(FY2020)

LH2 100％

He 50％

FY2020

525.4billion yen

56%44%

Pharmaceutical equipment

19

Industrial Gases & Machinery (Material & Use)

※Compressed hydrogen

Source: Gas Georama in Japan 2021

※Liquefied carbon dioxide

semiconductor

N2

O2

Ar

CO2

H2

Cryogenicdistillation

Reformpurification

Refinement

Imports He

Air

Hydrocarbon from oil

Material

Byproduct gases from

chemical plants, etc.

Variety

Gas wells

Air separation gases

Specialty gases

Byproduct gases from oil

& chemical plants, etc.

Purification

Share by applicationScale of Domestic market

145.5

62.5

47.7

27.3

18.4

23.1

（billion yen）

iron & steel

iron & steel

chemicals

chemicals

chemicals

automobiles

automobiles

automobiles

machinery

machinery

others

others

others

metal-working

metal-working

electrical

appliances

electricalappliances

food

iron & steel

welding coolingbeverages others

electronics metal-working chemicals glass others

optical fibers welding

balloons cryogenics

analysis

machinery

chemicals

leak tests

iron & steel

others

20

0

50

100

150

200

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Industrial use

Liquefied hydrogen

Byproduct gases

Fossil fuels

Transport

Energyuse

Iwatani’s Hydrogen Business

Compressed hydrogen

Industrial Gases & Machinery Division (Hydrogen Business Overview)

Sources

Uses

(Millions of Nm3)

Hydrogen Sales Volume in Japan

Source: Gas Georama in Japan

Manufacturing Hydrogen plants (LH2, Compressed H2)

Hydro Edge

:launched

IwataniIndustrial Gases

Chiba Plant:launched

Yamaguchi Liquid

Hydrogen:launched

Liquefied hydrogen

Compressed hydrogen

IwataniShare

35%

(Forecast)

Yamaguchi Liquid

Hydrogen1LIne added

Iwatani

Share

70%

Top share in Japan/Only one supplier of liquefied hydrogen

Hydro Edge

1 Line added

21

Industrial Gases & Machinery Division (Hydrogen Business Strategy)

液化水素サプライチェーンの構築Industrial applications Energy applications

Expand sales of liquefied hydrogen (LH2)

- Create an energy market

FCV

Build more hydrogen refueling stationsdomestic and overseas.

53

4

2017年度 2020年度

stations

Involved in

40%■Iwatani’s

domestic stations■Iwatani’s

overseas stations

Key characteristics of LH2

Ease of mass transport/storage

High purity

more efficient to transport

Approx.

12 times

Hydrogen applications

Glassmaking(Optical fiber,quartz glass)

Space development(Rocket fuel)

LH2 onlyBright annealing additives for giving metal surfaces a mirror-like shine

Oxyhydrogen burners for

making clear, non-fogging glass

Heat-treating metals

Semiconductors, electronics

Diluting source gases and creating

atmospheres

- Expand the customer base by promoting the characteristics of LH2

FY2020 FY2023

Purity99.9999%

FCV : 800,000 units

FC Buses : 1,200 units

Forklifts : 10,000 units

H2 demand : 3,000k ton

2030’s goal

FC Bus

FC Forklift*10k ton = 11k N㎥

Basic Hydrogen Strategy

Green Growth Strategy

22

Production/Storage Transport Use

LH2 production base

Build up LH2 supply chain

- Strengthen LH2 production capacity

Iwatani Industrial Gases Chiba Plant

- Acquire competitive hydrogen sources with

Carbon dioxide free

Yamaguchi Liquid Hydrogen

2 lines

2013: 1 line went into operation2017: 1 line added

1 line

In operation since 2009

Hydro Edge 3 lines

(Shunan City,Yamaguchi Prefecture)

(Sakai City,Osaka Prefecture)

(Ichihara City,Chiba Prefecture)

2006: 2 lines went into operation2020: 1 line added

1 Line= 3,000 L/h

CO2-free hydrogen production using renewable energy

Lignite project in Australia

Australia

CCS: Capturing waste CO2

Received at Kobe Airport island ⇒

Distributed across the country

Japan

LH2 carrier

Electric power from renewable

energy

Hydrogen production/

storage

Hydrogen power

generation

Mobility(FCVs, etc.)

Industrial applications

Grid power

The Fukushima Plan for a New Energy Society

Industrial Gases & Machinery Division (Hydrogen Business Strategy)

Hydrogen project

23

LNG

LH2

Goals

Industrial Gases & Machinery Division(Expansion of the hydrogen business)

Hydrogen sources

Acquire large amounts of inexpensive, CO2-free hydrogen sources

Hydrogen import terminal

Shift from production to import/storage functions

Hydrogen useCreate hydrogen energy demands

CO2-freeNew

New New Energy conversion at industrial complexesLH2 terminals

Lignite + CCS

Oil + CCS

Overs

eas

Jap

an

Jap

an

Provided by Hystra

Provided by Kawasaki Heavy Industries,Ltd.

Provided by Kawasaki Heavy Industries,Ltd.

Caustic soda

Renewable energy

R&D Who?

Iwatani R&D CenterTechnology & Engineering DivisionOutside partner companies

Increase efficiency in hydrogen production/storage/transportation, develop its applications, enhance security-related technologies, and increase energy efficiency

Power plants(co-firing）

Industrial energy

Hydrogen reduction / Desulfurization

Industrial applications

Hydrogen stations

LH2 production in JapanElectrolysis using surplus power

Reforming / Modification

Refinement of by-product gasesProduce hydrogen to adjust surplus energy

Renewable energy

Lignite + CCS

Used PlasticsBio gas

24

Global Helium Production

Industrial Gases & Machinery Division(Helium Business Overview)

Procurement System

Qatar U.S.

Shanghai

Malaysia

Japan2 sites

Sales regionSupplierSupplier

Iwatani handling volume in Qatar: 8M m3/year

Contract period: 2013-2032

Helium Center

Procured from U.S. and Qatar

U.S. and Qatar account for 80% of global

production

Source:United States Geological Survey

Procurement capabilities/Top share in Japan

Helium Import Prices

U.S.

Qatar

Algeria

Australia

Russia

Poland

Canada

2020

Crude helium import price rising in Japan

SemiconductorsOptical fiber CryogenicsMRIs

Gas Helium Liquefied Helium

Main Applications for Helium

Used in cutting-edge fields where growth expected

Supply System

Highly efficient helium recovery by installation facilities

Stable supply by investing containers.

Osaka helium center

Tokyo helium center

helium container

helium truck

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2000 2005 2010 2015 2020

Yen/㎏

Source:Trade Statistics of Japan

25

Qatar

Saudi Arabia

Yemen

UAE

Oman

Industrial Gases & Machinery Division (Network)

＜Overseas Network＞ ＜Domestic Network＞

Gas centers: 21

Hydrogen plants: 11

Air separation gas plants: 9

Helium centers: 2

Other sites: 6

Industrial Gas Supply Sites Air separation gas plants

Gas centers

Operating companies, trading companies, representative offices

Helium centers

others Dalian Iwatani Gas Machinery Co., Ltd. (Air separation gases)(Hydrogen)

Shanghai Petrochem-Iwatani Gases Development Co., Ltd. (Carbon dioxide)

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

Iwatani-SIG Industrial Gases Sdn. Bhd.

(Air separation gases)Gulf Helium Services W.L.L.

(Helium)

PT. Iwatani Industrial Gas Indonesia(Air separation gases)

Dalian Iwatani Trading Co., Ltd

Shanghai Iwatani Co., Ltd.

26

Materials Division (Overview)

Synthetic resins（ PET resin ,Polypropylene）Plastic products Various films and sheet

Mineral sands (Zircon sand, Titanium raw materials)Ceramics raw materials (Rare earth, Zr compounds）Refractory raw materials, Biomass fuel

Stainless,Precision stainless steel, Aluminum, Non ferrous, High alloy, Metal processing

Electronic ceramics materialsBattery-related materialsDisplay related materials

Functional Plastic ProductsElectronic Materials

Metals

(Related industry)Beverage, Food, Daily commodity, Home electronics industry

(Related industry) Electronic component industry, Air conditioning equipment industry

(Related industry)Chemical products, CeramicAutomotive, Semiconductor industry

Air conditioner panel

(Related industry) Electronic industry

Resources & Advanced Materials

32％

Metals 33％

Functional Plastic

Products

23％

Net Sales

136.4 billion yen

FY 2020

Electronic Materials

12％

PET resin Film(Protective tape)

StainlessWire processing

Precision work

Minerals

Overseas sales ratio

25%

Smartphone related material

Raw materials for ceramics

Resources & Advanced Materials

27

Materials Division (Strategy)

Scale-up of resource business

Scale-up of environmental business

Sales expansion and development of advanced materials

●Expansion of mineral sands business・Acquisition of new mining area・Development of the next area

●Entry into new projects etc.

●Scale-up of PET resinsbusiness

・Sales expansion of Eco-friendly

PET resins・Development of 100% Bio

Based PET resins・Participation in business to develop recycling used plastics

●Sales expansion of biomass fuel

●Sales expansion of Battery-related Materials

●Shock absorption sheets for smartphones

・High-Function Metal materials for Electronics

●Development of the leading edge of electronic material

・Nano-Nickel ・Gallium oxide

●Strengthening and scale-up of metalprocessed products business

●Strengthening metal slitting business

●Scale-up of automobile-related materialsbusiness

Strengthening metal-processing business overseas

28

Zircon Sand (ZrSiO4)Use：Refractory, Sanitary ware, Zirconia, Abrasive materials,

Casting sand

Titanium Minerals (TiO2)Use：Titanium Dioxide pigment, Titanium metal,

Welding Materials

・ Sales into global market based on mining and processing operations・ Stable procurement for Japan’s market by relationship with suppliers

・Iwatani’s 100% subsidiary

・Mineral sands mining and mineral processing operations

Doral Mineral Sands Ltd

South Africa

Supplier

Materials Division (Mineral sands Business)

Canada

FY2019：Acquisition of KLPL※

※Keysbrook Leucoxene Pty LtdBusiness：Mining and sales of mineral sands

29

FY2020 FY2023

Biomass Fuel(PKS・Wood pellets)

Procurement capabilitiesof PKS in partnership with the major supplier in Southeast Asia

Materials Division (Eco Friendly Products )

Our Sales Plan

700 Kt

Bio based PET resins

Product capabilitiesto achieve the environmental load reduction

Aluminum catalyst PET resins

Sugarcanes

materials

PET resins with lower CO2 emissions

PET resins with exceptional recyclability

Excellent for the environmental PET Resins

260 Kt

●Power generation by using plant-derived organic resources (biomass)

●CO2 is emitted during combustion, but plants absorb CO2 through photosynthesis during the growth process ⇒ Carbon neutral

●Supply of high-quality PKS thorough quality management

●30% of ingredients are plant-derived

Carbon dioxide Sugar canes

Biomass MEG

Biomass PET

Plastic

Life Cycle

Absorption

Battery-related Next-Generation Automobiles

Procurement capabilities of Battery-related materials in partnership with one ofthe biggest suppliers in China

Increasing demand for Next-Generation Automobiles

●Sales expansion of Cobalt, Nickel and Aluminum foils etc.

560

1,230

2,443

Source : Yano Research Institute Ltd.

≪Forecast :Expansion Next generation Vehicles all over the world≫（Including FCV,EV and Hybrid)

●Join Battery Association for Supply Chain,being formed to strengthen internationalsupply chain competitiveness

Unit : Million car

PKS

Wood pellets

30

The cutting edge of electronic material developmentShock Absorption Sheets for Smartphones

Iwatani’s shock absorption material

Regular material

Iwatani’s uniqueShockAbsorptionmaterial

Materials Division (Advanced materials)

Material pulverization technology

Results of Iron Ball Drop Test

High adoption rate in organic EL smartphones,which require shock absorption

Electronic Component

Larger capacity/more compact

Requires refined material with low variation

Nano-nickel

High-Function Metal materials for Electronics

Treat variety of High-Function Metal materials

● High-Function materials for Next-Generation Automobiles,

for communication equipment

EV drive motor(Power steering,Brake)

Foldable organic El smartphones,5G communication equipment

●Nonmagnetic stainless steel●High strength stainless steel foils●High-Function copper alloy●Functional aluminum foils●Magnesium alloy

●Nano-Nickels

●Gallium oxide materials for semiconductors

Power semiconductors

Contributing to recycling-basedsociety by improved the efficiency

of energy in semiconductor

Requires new materials ,improved the efficiency of energy,

work and size

High purificationtechnology

Gallium oxide materialsFor semiconductors

31

Agri-bio & Foods Division (Overview)

Agri-Bio

Livestock

Foods

Agricultural materials,Agricultural equipment

Plant factoryPeat moss Flower containers

Seed pigs,Livestock equipment

Camborough pigs

Frozen foods (for commercial)

Frozen foods（for end-users）

Frozen processed meatFrozen vegetables

Foods

47%

Livestock

33%

Net sales

23.9billion yen（FY 2020）

Agri-Bio

20%

Camborough pigs farm

Frozen foods (delicatessen)

Processed seafood

32

Agri-Bio & Foods Division (Strategy)

・Diversification of suppliersfor stable supply

・Strengthening frozen foodsfor end-users in addition tofor wholesalers Share

13％ ⇒ 20％

Foods

Frozen vegetables(for commercial)

LivestockStrengthening foods business

Increase share of breeding pig market

Iwatani Strength

・Proprietary freezing technology(“Fresh I” production method)

・Group sites in Japan and overseas・Relationship with various suppliers・Iwatani’s own quality assurance

system for safe and secure food supply

External Factors

・Increase in need for labor savingsdue to labor shortages

・Influence of TPP/EPA・Increase in need for restaurants

and ready-to-go food industriesdue to increase dual incomefamilies

Iwatani Strength External Factors

・High productivity of Camborough pigs・Extensive lineup of breeding facilities

and equipment・High quality quarantine management

system・Alliance with the large pig farm

・Large-scale consolidation and oligopolization by major producers

Camborough pigs Camborough pigs farm

Frozen vegetables(for end-users)

33

Transitioning to a CO2-Free Society

Hydrogen

ESG (Environment / Society / Governance)

Initiatives for Environment

Focusing on realization of a hydrogen energy society. Handling Biomass for renewable energy and PET resins.

・PKS (Palm Kernel Shells）・Kernel shells left over from palm oil production・Used in biomass power generation・Carbon neutral, so reduces CO2 emissions

・Bio based PET resin・PET resin that uses plant-derived materials・Used as raw material for plastic (PET) bottles・Reduced use of fossil resources

and less CO2 emissions when incinerated

CO2 absorption CO2 emissions

＜Carbon Neutral＞

Kernel shells left over from palm oil production

・Construction of hydrogen stations for FCV

2020 2025 2030

40,000 200,000 800,000

・FCV Diffusion Target (from METI)

cf. FCV reduces CO2 emissions (700kg/year for one vehicle)

45% of stations in Japan are involved with Iwatani

（Unit: car)

Realizing a Sustainable Society

Biomass Fuel, Bio based PET resins

Encouraging the Shift to Alternative Fuels

Encouraging the shift from fossil fuels such as coal and petroleum to LPG and natural gas

・Total support for customers shifting to alternate fuels, from stable supply to equipment improvement and maintenance service

CFC-Free Dust Blower

No containing chlorofluorocarbons(CFCs)

・While the typical alternativefluorocarbon HFC-134a doesnot directly deplete the ozoneLayer, it has a very high globalwarming potential of 1,430.CFC-free dust blowers achievea global warming potential of1 or below.

Cogeneration system GHP

34

ESG (Environment / Society / Governance)

Building Energy Infrastructure to Support Local Communities

Stable Supply of “Warmth”

Construction of disaster-ready supply system

・Establishment of 50 core centers nationwide・Construction of supply system that will

function even in disaster situations

Formation of disaster rescue party

・Formation of Marui Gas Disaster Rescue Party consisting of certified LPG technicians (3,600)

・Deployed during emergencies to restore service・Integrated nationwide drill in October each year

Rigorous safety system

・Security and management of LPG terminals under unified Group standards

Useful as Disaster Readiness Provisions

The Cassette-Feu “Tafumaru Jr.” and “Fuji no Yusui”

・Appeal to consumers about the need to stockpiledisaster readiness provisions.

For Local Communities

Safety Patrol for children

・Local anti-crime activities with delivery vehicles

Greeting actions at the delivery and checking meters

CSR

Culture, Sports, Academic PromotionIwatani intends to continueworking together with local residents

NHK Symphony Orchestra

Iwatani CorporationAthletics Club

The Iwatani NaojiFoundation

Initiatives for Society

35

Our corporate philosophy is “Become a person needed by society, as those needed by society can prosper.”

In keeping with that philosophy, we have set forth a basic policy on corporate governance consisting of five elements

and it is endeavoring to develop a corporate governance structure to increase management soundness,

transparency, and efficiency.

Basic Policy

1.We will create an environment that allows shareholders toexercise their rights properly and will endeavor to ensurequality among shareholders.

2. We will respect the rights and positions of employees,customers, business partners, creditors, local communities and other stakeholders and endeavor to collaborate with them properly.

3. We will make appropriate disclosure in accordance withlegislation. For the purpose of ensuring transparency, we will endeavor to offer information other than the information to be disclosed pursuant to the legislation.

4. We will make impartial, transparent and swift decisions inan effort to ensure that the Board of Directors will properlyfulfill its functions and duties.

5. We will endeavor to hold constructive dialogs withshareholders in a bid for continuous growth and increasein corporate value.

For details, refer to the information on corporate governance on corporate report.(http://www.iwatani.co.jp/eng/investor/data/corporate_report.html)

Corporate Governance Structure

ESG (Environment / Society / Governance)

Initiatives for Governance

(As of April 1, 2021)

Copyright © Iwatani Corporation. All rights reserved. 36（Iwatani Hydrogen station at Shiba Koen）

Iwatani Corporation

IR, Corporate Planning & Coordination Department

TEL：+81-6-7637-3470 FAX：+81-6-7637-3333

Website：http://www.iwatani.co.jp/eng/investor/investor01.html

Contact

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